Nedbank reports 20% profit gain

Old Mutual-controlled Nedbank on Monday reported a 20 percent rise in full-year profit after winning more than half a million new customers.

In a statement the Johannesburg-based lender said that net income rose to R7.8 billion for the year ended December, from R6.5 billion in 2011.

CEO Mike Brown (pictured) said the performance was achieved in a tough economic environment through strong revenue growth, an improved credit loss ratio and responsible expense management.

"In a tough economic environment Nedbank Group's strong franchise and growth orientation together with the momentum built in the first half of the year resulted in the group delivering diluted headline earnings per share growth of 19.0 percent," he said. "This performance was achieved through strong revenue growth, an improved credit loss ratio and responsible expense management while strengthening the balance sheet and investing for growth.

"Nedbank Group has strongly growing and diverse annuity income streams, a long-term record of disciplined expense management, a sound funding base, improving asset quality trends and higher coverage ratios, strong capital levels and stable management teams. These attributes, together with a multiyear focus on the importance of culture and values, position us well to continue to deliver to all our stakeholders in 2013 and to adapt to a volatile and challenging economic environment." he added.

Nedbank, South Africa's fourth-largest lender by assets, combined its private banking operations into one unit and introduced mobile-banking applications to attract customers. The bank also expanded outside South Africa's biggest cities to increase its share of the low-income market, which helped create 450 jobs and attract 655,000 new clients last year.

The full-year dividend per share was up 24.3 percent to 752c.

Headline earnings increased 21.4 percent to R7.51 billion.

The group generated economic profit of R1.511 billion, up 63.5 percent from R924 million in 2011.

Image: Nedbank

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