Old Mutual Had 'Resilient' first 9-Months

LONDON--Nedbank Group Ltd. (NED.JO), the majority-owned South African banking subsidiary of Old Mutual PLC (OML.LN), said Monday it has delivered a resilient performance for the first nine months of the year, and it continues to expect organic growth in diluted headline earnings per share for the year to be above nominal GDP growth.

For the nine months ended Sept. 30 Nedbank's net interest income rose 3.7% to 17.68 million South African Rand ($1.29 million), compared with ZAR17.04 million a year earlier, supported by annualized growth in average interest-earning banking assets of 10.4%, including an increased proportion of high quality liquid assets held for Basel III liquidity coverage ratio requirements.

Non-interest revenue increased 7.6% to ZAR15.61 million, from ZAR14.51 million, the company said.

The bank had a common-equity tier 1 capital ratio at Sept. 30 of 11.1%, compared with 11.4% at June 30 and a target of 10.5% - 12.5%. Its tier 1 capital ratio stood at 11.8%, down slightly from 12.1% at June 30, but within the range of 11.5% - 13.0% targeted.

The total capital ratio at Sept. 30 was 14.0%, compared with 14.5% for the earlier quarter and the bank's target of 14.0% - 15.0%.

"In view of the economic headwinds and increasing interest rate cycle, consumer credit demand will remain subdued while credit growth in the wholesale sector is expected to remain at current levels," Nedbank said.

Retail impairments are expected to remain benign while wholesale impairments are likely to be more volatile in South Africa and in the rest of Africa, it added.

-Write to Ian Walker at [e-mail]; @IanWalk40289749

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November 02, 2015 02:55 ET (07:55 GMT)

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