With an increase in its share price of over 20% this year, Nedbank has rewarded investors at a time when the market has dished out a lot of punishment
Note from The Finance Ghost – I’ve written several times about the favourable environment for banks, with demand for credit and higher prevailing interest rates.
Even when the broader economy is on your side, you still have to deliver results. The latest earnings from Nedbank tell a story of delivery, with HEPS up 26% and the interim dividend up 81%, a strong signal from management that the balance sheet is in great shape and able to support dividends to shareholders. Remember, when the dividend has grown by a higher rate than earnings, this is an increase in the payout ratio. A higher payout ratio is a sign of confidence.
I found it particularly impressive that the credit loss ratio is still 85 basis points (identical to the comparable period) and that the cost-to-income ratio has improved despite cost pressures in the market.
Nedbank places strong value on its wide investor base and now brings its interim results to you as a Ghost Mail reader.
You can zoom in on the window below to read them, or follow the link further down to access the results on the website.
