Nedbank Group (NED) has reported a 23.5% rise in diluted headline earnings per share to 741 cents for the six months ended June 2012 from 600 cents a year ago.
Headline earnings grew 25.1% to R3.468 billion for the period‚ driven by 11% growth in net interest income (NII)‚ 15.8% growth in non-interest revenue (NIR)‚ continued improvement in impairments and responsible expense management combined with investment for growth.¹
An interim dividend of 340 cents per share was declared.
Nedbank said it performed well for the period and made good progress in delivering on its key strategic focus areas.
The increase in return on assets (ROA) to 1.07% and a slight decrease in gearing supported an increase in the return on average ordinary shareholders' equity (ROE)‚ excluding goodwill‚ to 15.7% from June 2011’s 13.7% and ROE to 14.1% from 12.2% previously. The group generated an economic profit of R578 million compared with June 2011’s R146 million.
The balance sheet remains well capitalised with the Basel II.5 core Tier 1 capital ratio at 10.6%. - I-Net Bridge