Nedbank earnings up 63%

JOHANNESBURG – South African banking group Nedbank increased headline earnings for the nine months to end-September by 62,8 per cent to 2,3 billion rand, the group said yesterday.

Nedbank, majority-owned by South Africa’s biggest insurer Old Mutual, said its trading results for the period were slightly ahead of management expectations. “The unaudited trading results for the nine months to September 30 2005 are slightly ahead of management expectations, driven primarily by the continued positive banking and credit environment, tight expense control and favourable property investment revaluations,” it said in a statement.Net interest income rose 17 per cent to 6,2 billion rand and Nedbank reiterated that it expected full year headline earnings per share to increase by 44-62 per cent from the previous financial year IFRS-restated results.Nedbank launched a three-year recovery programme last year, aimed at turning its business around after a host of problems – including wrong interest rate calls – which slashed profits and triggered a multi-billion rand cash call.Nedbank Chief Executive Officer Tom Boardman said the group remained confident of reaching its main targets.”The operational platform has been established and the group remains confident of meeting its targets of a return on equity (ROE) of 20 per cent and an efficiency ratio of 55 per cent for the 2007 financial year.”The group’s efficiency ratio, excluding foreign currency translation gains, improved by 7,2 per cent to 68,3 per cent in the nine months under review.The efficiency ratio is also known as its cost/income ratio.-Nampa-Reuters”The unaudited trading results for the nine months to September 30 2005 are slightly ahead of management expectations, driven primarily by the continued positive banking and credit environment, tight expense control and favourable property investment revaluations,” it said in a statement.Net interest income rose 17 per cent to 6,2 billion rand and Nedbank reiterated that it expected full year headline earnings per share to increase by 44-62 per cent from the previous financial year IFRS-restated results.Nedbank launched a three-year recovery programme last year, aimed at turning its business around after a host of problems – including wrong interest rate calls – which slashed profits and triggered a multi-billion rand cash call.Nedbank Chief Executive Officer Tom Boardman said the group remained confident of reaching its main targets.”The operational platform has been established and the group remains confident of meeting its targets of a return on equity (ROE) of 20 per cent and an efficiency ratio of 55 per cent for the 2007 financial year.”The group’s efficiency ratio, excluding foreign currency translation gains, improved by 7,2 per cent to 68,3 per cent in the nine months under review.The efficiency ratio is also known as its cost/income ratio.-Nampa-Reuters