Ecobank boosts Nedbank’s 2018 profits
CEO Mike Brown says the bank grew its market share of main-banked clients across all business clusters, underpinning ‘solid’ non-interest revenue growth
Nedbank’s headline earnings in the year to end-December rose 14.5% to R13.5bn thanks to the turnaround of its Togo-based associate company, Ecobank Transnational Incorporated (ETI). “In 2018, Nedbank Group seamlessly concluded the process of managed separation from Old Mutual and delivered a resilient financial performance, boosted by the ongoing turnaround in our share of associate income from ETI,” said CEO Mike Brown. ETI contributed a headline profit of R375m, from a loss of R975m in 2017. Nedbank bought a 20% stake in the pan-African lender in 2014. Excluding that investment, Nedbank’s headline earnings grew at a more modest pace of 2.8%. Nedbank said its total assets crossed the R1-trillion mark for the first time ever, while revenues grew 6%. That helped it lift its total dividend for the year by 10.1% to R14.15 per share. The lender’s return on equity, excluding goodwill, improved from 16.4% to 17.9%. However, impairments increased 11.6% to R3.7bn, and the group’s credit los...
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