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Johannesburg - South Africa's No.4 bank Nedbank [JSE:NED] expects to post better 2010 earnings after reporting a rise in first quarter non-interest revenue on Tuesday as local economic conditions start to improve.
Nedbank, majority-owned by Anglo-South African insurer Old Mutual, said non-interest revenue for the quarter to end March was 18.9% higher at R3.034bn from R2.551bn a year ago.
Net interest income slipped 2% to R4.046bn.
"Whilst the global recovery is fragile and we remain cautious about short term growth prospects, the improving domestic economic conditions are starting to reflect positively in Nedbank Group's performance," chief executive Mike Brown said in a statement.
"This should lead to improved earnings in 2010 in line with our expectations given at the time of announcing the 2009 results."
In February, Nedbank posted lower 2009 profit and like its peers, has been hit by rising bad debts, particularly on home and vehicle loans, as customers struggled to meet payments.
However, the banking group said defaulted home loan advances were rising at a slower rate, with first quarter advances growth up 3.9% to R454.7bn, while its credit loss ratio improved to 1.46% from 1.67%.
- Reuters
