Nedbank posts double-digit growth in Q1

Johannesburg - Nedbank Group [JSE:NED] has reported a double-digit rise in first-quarter income from fees and lending, as it benefits from a push to revitalise its once-suffering retail unit.

Nedbank, the smallest of South Africa's big four lenders, has been boosting profitability by increasing its revenue from fees. It has also focused on improving its retail unit, which fell to a loss after a 2009 recession sparked a spike in debts.

The unit, once again profitable, is continuing to see a reduction in its bad debt costs, the bank said in its first-quarter trading statement.

Net interest income, the measure of earnings from lending, rose 11.5% during the quarter to R4.8bn.

Non-interest revenue, or earnings from fees, rose 14.9% to R4.1bn.

Chief executive Mike Brown said in a statement the bank remains on track to meet its medium- and long-term earning targets.

Shares of Nedbank are up 19% so far this year.

Nedbank shares rose 0.9% to R174.14 on Friday morning, outperforming a slight decline in the benchmark Top 40 - (Tradeable) [JSE:J200] index.