Nedbank 9-Month Net Interest Income +8.4%; On Track to Meet Fiscal Year Views

LONDON--Nedbank Group Ltd. (NED.JO), the majority-owned South African banking subsidiary of Old Mutual PLC (OML.LN), Monday reported an 8.4% rise in net interest income for the nine months ended Sept. 30 and said it remains well positioned to meet full-year guidance for growth in organic diluted headline earnings per share of greater than nominal GDP growth.

Nedbank's net interest income for the nine months was 17.04 million south African Rand, ($1.56 million), compared with ZAR15.73 million a year earlier, underpinned by average interest-earning banking assets growth of 9.9%, compared with 6.5%.

Total advances grew 6.8% (annualized) to ZAR608.7 billion, Nedbank said, largely due to growth in wholesale banking advances. Deposits increased 8% (annualized) to ZAR638.8 billion.

Nedbank's Common-equity tier 1 capital ratio slipped to 11.9%, from 12.1% at June 30. Tier 1 capital ratio slipped to 12.8%, from 13.1%, while its total capital ratio stood at 14.6%, compared with 15%.

"We are focused on the drivers of long term value creation for our shareholders as we build our transactional banking franchise and our pan-African banking network," Nedbank's Chief Executive Mike Brown said.

-Write to Ian Walker at [e-mail]

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