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Johannesburg - Nedbank Group [JSE:NED] posted a 13% rise in first-half profit on Tuesday, boosted by strong growth in income from fees.
Diluted headline earnings per share rose to 831 cents in the six months to end-June, up from 738c a year earlier.
Nedbank, South Africa's fourth-largest lender, has turned around its once-ailing retail unit, after being hit by losses following a 2009 recession and has focused on building up income from fees and commissions.
Non-interest revenue rose 15% to R9.5bn in the six months to end-June, while net interest income, a measure of earnings from lending, increased 7% to R10.3bn.
Impairments, or bad debt costs, increased by 22% to R3.3bn.
The bank also declared an interim dividend of 390c, up nearly 15% from the previous year.
While focused on southern Africa, Nedbank is also in a strategic partnership with Pan-African lender Ecobank Transnational that exposes it to dozens of other African countries.
Last week bigger rival Barclays Africa Group, formerly known as Absa, posted an 8% increase in profit for the first half, while industry leader Standard Bank is scheduled to unveil its performance next week.
Niche lender African Bank flagged on Monday earnings from its main banking unit were likely to worsen in the second half. The mass-market lender also said it would raise $406m in a rights issue to strengthen its balance sheet.
Nedbank's shares have dropped 3.5% so far this year, outperforming Johannesburg's banks index, which has lost 5.3%.
Diluted headline earnings per share rose to 831 cents in the six months to end-June, up from 738c a year earlier.
Nedbank, South Africa's fourth-largest lender, has turned around its once-ailing retail unit, after being hit by losses following a 2009 recession and has focused on building up income from fees and commissions.
Non-interest revenue rose 15% to R9.5bn in the six months to end-June, while net interest income, a measure of earnings from lending, increased 7% to R10.3bn.
Impairments, or bad debt costs, increased by 22% to R3.3bn.
The bank also declared an interim dividend of 390c, up nearly 15% from the previous year.
While focused on southern Africa, Nedbank is also in a strategic partnership with Pan-African lender Ecobank Transnational that exposes it to dozens of other African countries.
Last week bigger rival Barclays Africa Group, formerly known as Absa, posted an 8% increase in profit for the first half, while industry leader Standard Bank is scheduled to unveil its performance next week.
Niche lender African Bank flagged on Monday earnings from its main banking unit were likely to worsen in the second half. The mass-market lender also said it would raise $406m in a rights issue to strengthen its balance sheet.
Nedbank's shares have dropped 3.5% so far this year, outperforming Johannesburg's banks index, which has lost 5.3%.
