First half retail banking losses at Nedbank,
South Africa’s fourth-largest bank by assets, have increased to
ZAR115m ($15.8m) from ZAR69m in the year ago period.
Retail deposits grew by only 1.4% from the
first half of fiscal 2009 to ZAR83.9bn while advances were 2.7%
ahead at ZAR139.9bn.
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“Retail deposit growth remains challenging
given the environment of low interest rates and a highly
competitive market,” said Nedbank in a statement.
Nedbank’s retail net interest margin declined
by 40 basis points to 4.8% from a year ago while the division’s
cost-income ratio worsened, also by 40 basis points, to 65.3%.
Nedbank’s retail arm celebrated one milestone
during the first half with the total retail client base exceeding
five million clients.
Another retail highlight was a reduction in
impairments for unsecured lending, as a result of improving
arrears.
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By GlobalDataBank wide, Nedbank posted first half net
income of ZAR2.15bn, down 16% from the first half of fiscal
2009.
“While we are confident that the worst of the
economic downturn is behind us, the recovery is taking longer than
initially expected. The economic outlook improved during the
earlier part of the year, but has now softened somewhat,” said
Nedbank CEO Mike Brown.
