Nedbank

As one of Africa’s largest financial services groups, Nedbank’s results over the period are broadly representative of the operating environment for South African banks. Bank advances growth continues to be driven by corporate lending rather than retail portfolios. Despite pressure to contract net interest margins in a lower-rate environment, banks have delivered decent earnings growth from gains in non-interest income (partly driven by strong trading income), strong cost control, and declining credit loss ratios. Capital positions remain strong. Both Standard Bank and Nedbank repurchased shares during the period, and we expect excess capital returns to remain a feature of the sector.

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