The Johannesburg-based lender’s assets exceeded ZAR 1 trillion ($75 billion) for the first time.
Nedbank Group forecast that the rate of growth in interest-earning banking assets will be below that of South Africa’s economy in 2018, after earlier predicting it will be in line with the expansion in gross domestic product.
In a statement, the lender said that its credit-loss ratio, which rose six basis points to 53 basis points, will also increase slightly above the level achieved in 2017 although it will remain below its 60 to 100 basis-point target range.
First-half earnings per share excluding one-time items rose 26 per cent to 13.61 rand, boosted by rising profit at Ecobank as well as the Lome, Togo-based lender in which Nedbank owns a 20 per cent stake. South Africa’s economy shrank 2.2 per cent Q1 2018 with the central bank expecting GDP to expand 1.2 per cent in 2018.
Mike Brown, Nedbank’s CEO, said, “Slow revenue growth and a gradual increase in impairments were offset by good cost management.”
Nedbank’s stock has gained 3.2 per cent this year, the best performer in the six-member FTSE/JSE Africa Banks Index which is down 2.6 per cent.