Nedbank: The quiet man of SA banking
CEO Mike Brown says there have been green shoots, notably in an increased market share in vehicle finance
If the regulator would allow it, many are arguing for three and not four big banks in SA. And Nedbank, soon to be liberated from Old Mutual’s control, could end up as prey. Within the managed separation process at Old Mutual, Nedbank has been below the radar. Its results for the six months to June also passed with little fanfare. Headline earnings growth of 2% in SA was in line with the single-digit growth the rest of the sector is expected to show. The bank took an extra hit from the introduction of the IFRS 9 accounting standard. CEO Mike Brown says the treatment of loans is tougher, and based on a forward-looking approach. All loans are treated as stage 1, 2 or 3 — with stage 3 being similar to the old nonperforming loans. Without the new IFRS change earnings would have been up 3.2%. Nedbank has scope to be more aggressive in its advances. The credit loss ratio was up, from 0.47% to 0.53% but this is well within guidelines. Brown says there have been green shoots. Nedbank has inc...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.