Headline earnings per share, the main measure of corporate profit in South Africa, was at 1,370 South African cents ($0.8258) for the six months to June 30, compared with 1,084 cents a year earlier. The bank announced an interim dividend of 783 cents per share.
South African lenders have rebounded from COVID-19 lows sooner than expected but are seen treading a fine line between high local unemployment worsened by rising inflation and a higher interest rate regime that is a positive for banks but increases risks of loans going sour.
"I think that our balance sheet is in very good shape to withstand the effects of bad debt from rising interest rates," the bank's chief executive, Mike Brown, told Reuters in an interview.
"As a consequence, we think there's a net positive for the bottom line in that environment."
Nedbank, which posted an 11% jump in revenue, expects inflation to peak in the third quarter at around 7.8%. Brown said the bank was on track to exceed its 2019 profit figures by the end of 2022, a year ahead of schedule.
The lender has two main divisions that contribute the most to its profits - commercial and investment banking, and retail and business banking.
The growth in these segments would be primarily driven by growth in energy and infrastructure lending and by digital initiatives that would bring down costs and increase efficiencies, Brown said.
"Anything to do with renewable energy and embedded energy generation (small-scale solar generation)... we certainly see that segment as a multi-year growth opportunity for the bank," he said.
($1 = 16.5904 rand)
(Reporting by Promit Mukherjee; Editing by Subhranshu Sahu and Bradley Perrett)
