Johannesburg - Nedbank Group [JSE:NED] reported an expected
24% jump in first-half profit on Wednesday, helped by a surge in fees and
commissions and said it was on track to meet full-year targets.
Diluted headline earnings per share rose to 741 cents in the
six months to end-June, up from a total 600 cents a year earlier.
Nedbank said last month it expected first-half profit growth
of up to 26%.
Bigger rival Absa Group [JSE:ASA] has already reported a 6%
drop in profit for the first half, hurt by non-performing mortgages.
Nedbank, which is majority owned by insurer Old Mutual
[JSE:OML], has turned its retail unit around following losses induced by a 2009
Nedbank said non-interest revenue was up 16% to R8.27bn in
the six months to end June, from R7.14bn.
Net interest income, a measure of earnings from lending
increased to R9.64bn from R8.68bn a year earlier.
Nedbank, which is the South African bank that HSBC dropped a
takeover bid for in 2010.
Its stock is up 25% so far this year, outperforming the
benchmark Top 40 - (Tradeable) [JSE:J200] index, which has gained 6.7%.