Nedbank Q3 trading update

RNS Number : 4728R

Old Mutual PLC

28 October 2013

 



Old Mutual plc

Ref 86/13

28 October 2013

NEDBANK GROUP - THIRD QUARTER 2013 TRADING UPDATE

Nedbank Group Limited ("Nedbank Group"), the majority-owned South African banking subsidiary of Old Mutual plc, released its third quarter trading update for the three months ended 30 September 2013, today, 28 October  2013.

The following is the full text of Nedbank Group's announcement:

"NEDBANK GROUP - THIRD QUARTER 2013 TRADING UPDATE

"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 proactive credit risk management strategies contributed to an improvement in the credit loss ratio.

We continue to make satisfactory progress towards meeting our diluted headline earnings per share growth target for 2013".

Mike Brown

Chief Executive

OPERATIONAL PERFORMANCE

Net interest income for the nine months ended 30 September 2013 ("the period") grew by 8,3% to R15 725m (Q3 2012: R14 523m) with the net interest margin  at 3,58% (Q3 2012: 3,52%) remaining stable since June 2013.

The credit loss ratio at 1,15% (Q3 2012: 1,02%) for the period improved from 1,31%  at June 2013.

Non-Interest Revenue (NIR) increased by 14,2% to R14 166m (Q3 2012: R12 403m) reflecting slower growth in the quarter. Fee and commissions growth was 14,0%, insurance income grew 14,9% and trading income grew 6,2%. Fair-value adjustments, a volatile contributor to NIR, were a positive R110m (Q3 2012: Negative R228m) resulting in NIR before fair value adjustments growing by 11,3%.

Total advances grew 9,7% (annualised) to R566bn. Excluding trading advances, banking advances growth was 8,5%. Deposits increased 9,4% (annualised) to R590bn.

The group's capital adequacy ratios remain well within its respective internal target ranges with the common equity tier 1 ratio at 11,6% following the payment of the interim dividend in September 2013.

Basel III	Q3 2013		June 2013		Internal target range	Regulatory minimum 2013
	Unappropriated profits		Unappropriated profits
	Including	Excluding	Including	Excluding
Common equity tier 1 ratio	11,6%	11,0%	11,8%	11,3%	10,5% - 12,5%	4,5%
Tier 1 ratio	12,9%	12,3%	13,0%	12,5%	11,5% - 13,0%	6,0%
Total capital ratio	14,7%	14,0%	14,8%	14,4%	14,0% - 15,0%	9,5%

PROSPECTS

The group's forecast for gross domestic product (GDP) growth of 2,0% and an average consumer price index (CPI) of 5,9% for 2013 is reflective of continued pressures in the global and domestic economy.

The group's financial guidance to meet its medium-to-long-term diluted headline earning per share growth target (being, greater than or equal to GDP plus CPI plus 5%) in 2013 remains unchanged.

Shareholders are advised that these forecasts and the figures stated in this trading update have not been reviewed or reported on by the group's auditors.

FORWARD-LOOKING STATEMENT

This announcement contains certain forward-looking statements with respect to the financial condition and results of operations of Nedbank Group and its group companies, which by their nature involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, global, national and regional economic conditions, levels of securities markets, interest rates, credit or other risks of lending and investment activities, together with competitive and regulatory factors.

Sandton

28 October 2013"

Enquiries

External communications

Patrick Bowes                           UK        [phone]

Investor relations

Dominic Lagan                           UK        [phone]

Kelly de Kock                            SA        [phone]

Media

William Baldwin-Charles                         [phone]

                                                            [phone]

Notes to Editors

Old Mutual provides life assurance, asset management, banking and general insurance to more than 14 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.

In the year ended 31 December 2012, the Group reported adjusted operating profit before tax of £1.6 billion (on an IFRS basis) and had £262 billion of funds under management from core operations.

For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com

 

END

 

 

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