Investment Idea: Nedbank - 11 September 2024

On 6 August 2024, Nedbank released its 1H24 results which were characterised by:

1. Headline earnings increased 8% driven by non-interest revenue growth and lower impairments. However, total comprehensive income (which includes other comprehensive income) for the period declined by 26% as the share of losses in other comprehensive income from investments using the equity method (Ecobank investment) increased from R348 million to R1 117 million.
2. Net interest income increased 2% driven by daily average interest-earning banking assets increasing 3%. The net interest margin decreased from 418 basis points to 413 basis points driven by pricing.
3. Non-interest revenue increased by 7% driven by net commission and fee income increasing by 8% and net trading income increasing by 14%.
4. Expenses increased by 8% due to staff cost ...