NEDBANK Group said yesterday it is on track for double-digit profit growth this year, the latest South African bank to benefit from a rise in higher-risk lending.
Hampered by weak corporate demand for credit, the country’s big banks have ramped up unsecured lending – the profitable but riskier practice of giving loans that are not backed by collateral. Nedbank said in a trading statement that it expects to meet its full-year target for earnings growth.
Net interest income, the measure of earnings from lending, increased nine per cent to 14.5bn rand (£1bn) in the nine months to 30 September, the bank said.
Non-interest revenue, which includes fees and commissions, rose 14 per cent to 12.4bn rand. Total loans were up by seven per cent, while the ratio of bad debt charges decreased.
City A.M. Reporter