Nedbank’s earnings improve as ETI albatross gets wings
Nedbank said on Thursday that the return to profitability of associate Ecobank Transnational Incorporated (ETI) bolstered its financial performance in the first half of the year.Managed operations had also contributed to earnings growth, with headline earnings per share for the six months to end-June expected to rise between 23% and 28% to R13.505 and R14.504, the group said in a statement.Nedbank’s association with ETI has weighed on the group’s financial results since an association deal was struck in 2014. That deal had seen Nedbank acquire a 20% stake in ETI, which had a strong footprint in West and Central Africa.The banking alliance had, however, pared Nedbank’s performance due to tough trading conditions in the regions in which ETI operations.Nedbank reported in the six-months of the prior financial year that ETI had HEPS growth to 2%, from the 20.1% growth if it was excluded.The company said at the time it still had confidence in ETI’s management and board, as well as the lo...
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