Nedbank: Earnings from loans rise to R17bn

Published Oct 28, 2014

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NEDBANK had posted an 8.4 percent rise in loan income for the first three quarters of the year after writing more loans to companies, the bank said yesterday. Nedbank, which earlier this month took a 20 percent stake in pan-African lender Ecobank, said earnings from loans had risen to R17bn. The bank, which is majority owned by London-listed insurer Old Mutual, increased total advances by nearly 7 percent to R608.7bn in the nine months to September. Its non-interest revenue, or income from transaction activity, insurance and trading, increased at a slower 2.4 percent rate to R14.5bn. Nedbank said its credit loss ratio, which measures bad debt costs as a proportion of total loans, had improved to 0.77 percent from 1.15 percent a year ago, partly as a result of the bank reducing its exposure to unsecured lending. Nedbank shares are up more than 5 percent this year, but are lagging behind an 11 percent increase in the banking index. Yesterday Nedbank shares added 1.52 percent to close at R224.55 – Reuters

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