Nedbank improves its credit-loss ratio, but Ecobank lets down the side
Bank says the performance of its investment in Ecobank was below expectations, as weaker economic conditions and currency volatility took their toll
Nedbank managed to improve its credit-loss ratio and grow profit faster than revenue in its home market during 2016 — an impressive performance marred by losses from its pan-African associate Ecobank. In contrast to Barclays Africa, which reported last Thursday that its credit loss-ratio widened to 1.08% from 0.92%, Nedbank said on Tuesday its credit-loss ratio narrowed to 0.68% from 0.77%. Nedbank declared a final dividend of R6.30, taking its total for 2016 to R12 — an 8.4% increase on the previous year’s R11.07, and beating Barclays Africa’s 3% dividend growth. A R287m headline loss contributed by its rest of Africa division — mainly its 20%-owned Ecobank — slowed its overall headline earnings growth to 6% on 11% growth in operating income. Nedbank’s results for the year to end-December showed its retail and business banking (RBB) division contributed 57% of its R45bn operating income and 43% of its R11.5bn headline earnings. Its corporate investment banking (CIB) division contri...
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