Nedbank CEO rakes it in

Johannesburg - While Old Mutual is still reeling from a snub by international banking group HSBC around its stake in Nedbank, its banking chief has cashed in a R5.9m profit on his share options.
 
Nedbank CEO Mike Brown earlier on Monday cashed in 80 000 share options issued in 2008 and 2009 at a price of R55.75. These options were sold at R130.46, giving Brown a windfall of R5.9m.
 
The Nedbank share price has been well supported in recent months as speculation was confirmed that Old Mutual was looking to divest from its share in the group.

The share price rose sharply in August as HSBC confirmed it was conducting a due diligence of South Africa's fourth-largest banking franchise.

The stock climbed from around R132 to touch a high of R150.
 
The share price has subsequently fallen off to trade at around R132, after HSBC walked away from the deal with no explanation.
 
Stockbrokerage Imara SP Reid has recently issued an updated call on Nedbank following the sell-off.

It regards the share as a "hold", saying that investors are "likely to take a more cautious approach in the aftermath of today’s sell-off in case another party comes to the table with a deal."
 
Following announcement that HSBC would not pursue the deal, stockbrokerage Barnard Jacobs Mellet (BJM) advised clients: "Nedbank remains the tightest on capital of the big South African banks and its earnings appear most exposed to the impact of weak advances growth."
 
BJM said its preference in the sector was for FirstRand.
 
By midday on Monday, Nedbank was trading at R132.35, up 1% on the day.
 
 - Fin24