Nedbank 1Q Interest Income +7.3%, On Track to Achieve 2013 Targets

LONDON--Nedbank Group Ltd. (NED.JO), the majority-owned South African banking subsidiary of Old Mutual PLC (OML.LN), said Friday interest income grew 7.3% in the first quarter ended March 31 to 5.12 billion South African Rand, from ZAR4.77 billion last year, driven by growth in average interest-earning banking assets of 5.9%.

MAIN FACTS:

-Cautious in outlook for the year, Nedbank Group remains on track to achieve its medium to long term earnings growth target in 2013.

-Credit loss ratio increased to 1.22% (2012: 1.08%); this comprised a specific charge of 1.13% and portfolio provisioning of 0.09% (2012: specific: 0.96% and portfolio: 0.12%).

-Non-interest revenue increased 8.1% to ZAR4.389 billion (2012: ZAR4.06 billion.

-Continued strong growth in commission and fee income of 11.2%.

-Insurance income growth 10.1% partially reflecting the slowdown in personal loans as well as the base effect from the benign claims experience in H1 2012.

-Total assets increased from December 2012 7.2% to ZAR695.1 billion (December 2012: ZAR683.0 billion).

-Advances grew 10.4% to ZAR540.7 billion (December 2012: ZAR527.2 billion).

-Assets under management increased 29.1% to ZAR161.3 billion (December 2012: ZAR150.5 billion).

-Organic earnings growth during the first quarter resulted in the common equity tier 1 ratio increasing to 12.2% at March 31 following the successful implementation of Basel III in SA on Jan. 1.

-Nedbank shares closed Thursday at 204 cents valuing the company at ZAR10.01 billion.

-Write to Ian Walker at [e-mail]

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