Nedbank delivers strong financial performance
Financial firm Nedbank declares dividend up 100 per cent, supported by headline earnings jump of 114 per cent. Joining CNBC Africa to discuss the results is Mike Brown, CEO at Nedbank.
Wed, 09 Mar 2022 11:08:24 GMT
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AI Generated Summary
- Nedbank's impressive results driven by increased client activity, rebounding GDP growth, and strategic credit management
- CEO Mike Brown emphasizes conservative yet proactive approach to credit granting and ongoing economic reforms' positive impact
- Outlook for 2022 shows continued growth with a focus on stable revenues, controlled expenses, and optimistic projections
South African financial firm, Nedbank, has delivered a stellar financial performance, showcasing a robust 114% increase in headline earnings, supported by a dividend up 100%. The CEO of Nedbank, Mike Brown, attributes this success to a more supportive operating environment, marked by a rebound in GDP growth of 4.9% in 2021 and increased client activity. The firm reported a considerable 8% growth in net interest income and a 10% increase in non-interest revenue, fueled by recovering clients and less severe lockdowns. Additionally, a significant 50% reduction in bad debts contributed to the impressive bottom-line growth. Brown emphasized the strategic approach to credit granting, ensuring stability and growth through economic cycles. Despite challenging conditions, Nedbank's retail lending portfolios saw a modest 5-6% growth, with some recovery in wholesale lending primarily in energy-related sectors in the latter half of the year.
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