28th Oct 2013 11:53
LONDON (Alliance News) - Old Mutual PLC Monday said its majority-owned South African banking subsidiary, Nedbank Group Ltd, posted increased revenues in the third quarter due to strong net interest income and non-interest revenue growth.
"In a tough and volatile economic environment Nedbank performed solidly in the third quarter. Our focus on building the franchise continues to underpin non-interest revenue growth [and we] continue to make satisfactory progress towards meeting our diluted headline earnings per share growth target for 2013," Nedbank Chief Executive Mike Brown said in a statement.
Net interest income, or income from lending, grew by 8.3% to ZAR15.73 billion for the nine months ended September 30, compared with R14.52 billion for the corresponding period last year, while the net interest margin increased to 3.58% from 3.52% remaining stable since June 2013.
Non-interest revenue climbed 14% to ZAR14.17 billion, up from ZAR12.40 billion for the corresponding quarter last year, while total loan advances rose 9.7 percent to ZAR566 billion.
The credit-loss ratio fell to 1.15 percent from 1.31 percent in June.
"Proactive credit risk management strategies contributed to an improvement in the credit loss ratio," Brown said.
Nedbank was well ahead of 2013 regulatory minimum capital requirements.
Old Mutual shares were Monday quoted at 204.70 pence, up 0.1%.
By Samuel Agini; [email protected]; @samuelagini
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