Nedbank topline surges 21 percent

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NEDBANK Group (Nedbank) has reported a 21 percent increase in revenue for its Southern African Development Community (Sadc) operations, reaching R4,29 million in 2023.
This growth was primarily driven by an expansion in net interest margin (NIM) and unrealised forex gains in Zimbabwe.
During the same period, Nedbank’s Sadc operations experienced a significant 80% growth in headline earnings, rising to R662 million from R367 million in 2022.
Consequently, the group’s return on equity increased to 9,9 percent in 2023, up from 5,9 percent in 2022.
Despite increased reserve requirements in Mozambique and subdued economic growth across the regions, the group managed to achieve this robust revenue growth.
Net interest income (NII) for Sadc operations also saw a surge of 25 percent, amounting to R2,43 million.
This increase was largely due to higher interest rates, with NIM widening to 7,78 percent, loans and advances growth across most regions, and a significant expansion in the US dollar loan book in Zimbabwe. This occurred despite a marginal 2 percent decrease in average total loans and advances to R21 billion.
Non-interest revenue (NIR) for the Sadc operations also rose by 17 percent to R1,85 million, primarily driven by unrealised forex gains in Zimbabwe and an increase in revenue from digital channels.
Excluding Zimbabwe, NIR saw an increase of 8 percent.
The overall number of clients grew by 4 percent to 349 254, compared to 337 287 in 2022, despite a large number of dormant account closures in Zimbabwe.
This growth can be attributed to the seasonal tobacco merchants in the country.
In the previous year, Nedbank launched a group card acquiring solution in Zimbabwe, which included Amex Card acquiring, to enhance its POS merchant offering.
Despite the challenging operating environment, the group remains optimistic about its outlook.
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