Nedbank posts thirteen percent rise in FY earnings

JOHANNESBURG (Reuters) – South Africa's fourth-largest banking group Nedbank posted a 13 percent increase in full-year earnings on Monday, in line with expectations, as lending income boosted profits.

The bank, which is majority owned by London-listed insurer Old Mutual, said diluted headline earnings per share came in at 2,066 cents in the year to December, from 1,829 cents a year ago.

A Thomson Reuters SmartEstimate had forecast earnings rising to 2,039 cents per share, an increase of 11 percent.

Headline earnings, the main measure of profit in South Africa, exclude certain one-time items.

Net interest income, the measure of earnings from lending, increased by 8.2 percent to 22.96 billion rand, while non-interest revenue grew nearly 5 percent to 20.31 billion rand.

Nedbank shares are up 3 percent this year, lagging the 5.6 percent growth by the banks' index. – REUTERS