Nedbank posted headline earnings up 6% to about R8.4bn, matching its guidance for flat first half growth and disappointing expectations for a stronger recovery. Net interest income grew only slightly as weaker loan growth and lower margins from falling interest rates weighed on results, while credit impairments remained elevated with a credit loss ratio around 81bps. Analysts also reacted negatively to plans to sell its Ecobank stake, which led to reduced return on equity forecasts and increased uncertainty about long term growth.
Click here to read the SENS