Nedbank’s 2018 consolidated financials show growth amid challenging economic environment
Nedbank recently released its consolidated financial results for the year 2018, which show that despite challenging economic and operating environment, the bank managed to grow positively with an increase in its overall financial position.
Even with a lower than expected growth in loans and advances, net interest income improved by 8.16% to N$ 808.9 million. Nedbank’s investment of excess funding in high yielding liquid asset instruments contributed to offset the impact of slow loans and advances growth. Through regular arrear management initiatives and interventions, impairment charge for the year was contained at N$65.4 million, which is a 7.83% increase from the prior period. As a result, the credit loss ratio has been managed at 0.53% compared to 0.52% for 2017.
Non-interest revenue has shown a 9.99% increase from the previous year. This was achieved through increases in all main streams of non-interest revenue.
“Management kept a sharp focus on expenses during the year, with particular attention on ensuring discretionary expenditure provided real value. Taking into account our continued expansion of our business and investment in technology and innovation platforms, operating expenses were well controlled at a 6.31% increase compared to the 2017 financial year,” explained JG van Graan, Nedbank Namibia Chief Financial Officer. Operating expenses represented 57.71% of total income compared to 58.90% in 2017.
Van Graan commented that at Group level, NedNamibia Holdings maintained a strong financial position and showed better performance compared to last year. With increased contributions from the main subsidiaries, Nedbank Namibia Limited and NedNamibia Life Assurance Company Limited, profit after taxation grew by 12.03% to N$ 340 million for the financial year compared to N$303.5 million in 2017. This growth translated to earnings per ordinary share of 481.86 cents, which represents a 12.10% increase from 429.81 cents in 2017. Net asset value per share grew to 3 702.82 cents from 3 327.65 cents in 2017.
As a responsible corporate citizen, Nedbank is committed to support and partner with government, regulators, customers, and broader societies to create and build inclusive prosperity for all.
The year 2018 also saw Nedbank launching its Private Wealth offering as well as conducting major financing deals including securing the title of lead arranger for the Otavi Steel Manufacturing Plant project as well as a partnership agreement with Ongos Valley Development, for the servicing and construction of proposed 4500 low and middle income residential housing units at a total cost of N$3.7 billion.