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MarketScreener Homepage  >  Equities  >  Johannesburg Stock Exchange  >  Nedbank Group Limited    NED   ZAE000004875

NEDBANK GROUP LIMITED

(NED)
  Report
End-of-day quote. End-of-day quote Johannesburg Stock Exchange - 10/27
110.08 ZAR   +0.05%
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Market doubts as South Africa's Nedbank hopes worst is over

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08/26/2020 | 06:33am EDT
Customers look on outside Nedbank, after the bank closed due to load shedding, at the Mall of the South in Johannesburg

South Africa's Nedbank said on Wednesday it hoped the worst impacts of the COVID-19 pandemic were over after half-year profits fell almost 70%, but its shares fell as traders tended towards a more pessimistic view.

The lender, which last week flagged a hit to its interim profits from bad debt charges, said on Wednesday its full-year profits would be at least 20% lower.

But its results statement said it hoped the "worst impacts of COVID-19 and the (Great Lockdown Crisis) are behind us" and Nedbank CEO Mike Brown said data showed some activities returning towards pre-lockdown levels.

"We expect H2 credit losses to be lower than H1," he said, adding a provision taken for potential future loan losses should not recur, although any forecasts were subject to uncertainty.

Nedbank's credit impairment charge increased 202% to almost 7.7 billion rand ($458 million) during the six months to June 30.

This lowered its headline earnings per share - the main profit measure in South Africa - to 438 cents, versus 1,435 cents a year earlier.

Last week, it warned of a HEPS fall to between 402 and 472 cents.

Around 3 billion rand of the charge was a provision for future possible losses, less than made by some peers, such as Absa, which took a heftier hit upfront.

While investors cheered Absa's approach, Nedbank's shares fell by more than 3% before recovering to stand 1.4% lower at 0810 GMT. The Johannesburg Stock Exchange's banking index was 0.12% higher.

"Banks are finding market support for taking an extra conservative approach," Stuart Theobald, chairman at research house Intellidex, said.

Brown said Nedbank would only consider dividends when guidance changed from the central bank, which has asked lenders to halt payouts to preserve capital during the COVID-19 crisis.

($1 = 16.7955 rand)

(Reporting by Emma Rumney; Editing by Promit Mukherjee, Amy Caren Daniel and Barbara Lewis)


Stocks mentioned in the article
ChangeLast1st jan.
ABSA GROUP LIMITED -0.21% 101.07 End-of-day quote.-32.30%
DOW JONES AFRICA TITANS 50 INDEX -3.09% 465.49 Delayed Quote.-10.35%
DOW JONES SOUTH AFRICA(ZAR) -3.45% 1614.99 Delayed Quote.-7.38%
EURONET WORLDWIDE, INC. 1.19% 88.45 Delayed Quote.-43.25%
NEDBANK GROUP LIMITED 0.05% 110.08 End-of-day quote.-48.63%
NEDBANK LIMITED 3.33% 6.2 End-of-day quote.-36.08%
S&P AFRICA 40 INDEX -3.52% 153.23 Delayed Quote.-8.23%
SECURE INCOME REIT PLC -5.25% 244.5 Delayed Quote.-40.78%
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Financials
Sales 2020 53 440 M 3 262 M 3 262 M
Net income 2020 4 184 M 255 M 255 M
Net Debt 2020 - - -
P/E ratio 2020 10,8x
Yield 2020 -
Capitalization 53 518 M 3 319 M 3 267 M
Capi. / Sales 2020 1,00x
Capi. / Sales 2021 0,95x
Nbr of Employees 28 559
Free-Float 35,9%
Chart NEDBANK GROUP LIMITED
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Technical analysis trends NEDBANK GROUP LIMITED
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 10
Average target price 134,10 ZAR
Last Close Price 110,08 ZAR
Spread / Highest target 54,4%
Spread / Average Target 21,8%
Spread / Lowest Target -9,16%
EPS Revisions
Managers
NameTitle
Michael William Thomas Brown Chief Executive Officer & Executive Director
Vassi Naidoo Independent Chairman
Mfundo Clement Nkuhlu Chief Operating Officer & Executive Director
Michael Davis Chief Financial Officer & Director
Fred Swanepoel Chief Information Officer
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