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Nedbank makes E44.8m profit

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Nedbank makes E44.8m profit - SWAZI TIMES-01-Jul-2009

MBABANE – Nedbank Swaziland Limited realised a profit of E44.8 million for the year ended December 31, 2008.

According to the Nedbank Swaziland Limited Annual Report for 2008, this was an increase in profits of about 26 per cent.

“The results were overall pleasing for 2008. Headline earnings increased by E9.2 million or 25.6 per cent from E35.6 million in 2007 to E44.9 million in 2008,” reads the report in part. It also says earnings per share increased from 150 cents to 188 cents. “This encouraging performance was a result of focus on the bank’s balance sheet diversification, that allowed less reliance on expensive fixed and term funding and increased share of the Small and Medium Enterprises (SME) advances,” it elaborates in part. Nedbank Swaziland Limited is the only financial institution that is listed in the Swaziland Stock Exchange (SSX) and the Nedbank shares have been in high demand among investors.

Deposits The report goes on to say the bank saw a steady increase in retail deposits during 2008, as well as a 15 per cent year-on-year growth in transactional deposits. “The increase in headline earnings resulted in dividend per share growth of 30 per cent to 60 cents, compared to 46 cents last year,” it says.

It goes on to say the bank’s decision to diversify the bank’s portfolio had improved the bank’s margins, as evidence in the 22 per cent growth in net interest income, despite a 14 per cent reduction in loans and advances. It also says with the current prevailing economic environment that comes with reduced economic activity, the bank would face challenges in achieving its strategic objectives.

“These will remain focused on growing high interest bearing assets, penetrating the business banking and DME sector, whilst ensuring that profitability is improved through correct pricing of its products and services,” reads the report in part. The report says the bank’s assets grew by 38 per cent when compared to 2007.

“The bank’s balance sheet grew by 38 per cent, bringing total assets to E1.7 billion compared to E1.2 billion in 2007. As the bank’s strategy was to improve the asset mix, where focus was on restructuring of the book to diversify the loans and lesson concentration risk, this strategic focus resulted in a year-on-year reduction of loans and advances by 14 per cent to E817 million,” it reads in part.

It further says key strategic areas of focus for the bank for 2009 to 2011 included expanding and growing bank assurance, focusing on SME, business banking and retail mass market, focusing on customer service, becoming the employer of choice, focusing processes and country credit limits, as well as focusing on bank charges among many other key focus areas.

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