Nedbank Nine-Month Interest Income Rises as Lending Climbs

Nedbank Group Ltd., the South Africa bank controlled by Old Mutual Plc, said fees, commissions and interest income climbed in the first nine months of this year.

Net interest income rose 8.3 percent to 15.7 billion rand ($1.6 billion) from a year earlier, while non-interest revenue increased 14 percent to 14.2 billion, the Johannesburg-based bank said today in a statement. Lending rose 9.7 percent to 566 billion rand and the credit-loss ratio fell to 1.15 percent at the end of September from 1.31 percent three months earlier.

“Proactive credit risk management strategies contributed to an improvement in the credit-loss ratio,” Mike Brown, chief executive office of Nedbank, said in the statement.

Nedbank boosted its clients by 10 percent to 6.4 million in the first half as South Africa’s fourth-largest lender by assets targets low-income earners. With bad debts rising as the country’s economy slows, some banks, including Barclays Africa Group Ltd., are reducing lending.

Nedbank said it expects to meet its 2013 target of increasing earnings per share excluding one-time items at the same rate as gross domestic product, plus the consumer price index and an additional 5 percent. South Africa’s Treasury forecasts GDP growth of 2.1 percent this year while CPI was 6 percent in September.

Nedbank rose 2.1 percent to a record 215.40 rand in Johannesburg trading, bringing this year’s gain to 15 percent. The six-member FTSE/JSE Africa Banks Index has climbed 9.4 percent this year.

Before it's here, it's on the Bloomberg Terminal.