Nedbank: ETI’s great recovery boosts parent’s purse
Nedbank delivered blistering earnings and dividend growth at its interim stage due to a reversal of fortunes at Ecobank Transnational Incorporated
Nedbank delivered blistering earnings and dividend growth at its interim stage due to a reversal of fortunes at Ecobank Transnational Incorporated (ETI). The pan-African banking conglomerate, listed on the Nigerian Stock Exchange, is 20% held by Nedbank. It has pulled itself out of a steep dive, contributing headline earnings of R134m to Nedbank’s results for the period. This follows a R1.1bn loss a year ago. With headline earnings growing at just 2% from Nedbank’s "managed operations" — all the businesses in which Nedbank owns a controlling stake — ETI was the primary reason the group lifted headline earnings per share for the six months to June by 26% to R13.61. While Ecobank does not yet pay a dividend, Nedbank’s strong capital base and cash generation meant the group could lift its dividend by 14% to R6.95 per share. More good news could flow from ETI. The banking group has had six consecutive quarters of profitability following executive changes that have contributed to a drast...
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