Nedbank share price breakout and interim results overview
The Nedbank Group reported a good financial performance despite challenging macroeconomic conditions
Key Takeaways:
- Financial performance: Nedbank Group reported strong financial results for the first half of 2024, with headline earnings growing by 8% and revenue increasing by 4%.
- Earnings and dividends: Diluted headline earnings per share increased by 12% to 1,650 cents, and an interim dividend of 971 cents per share was declared, reflecting an 11.5% increase.
- Cost and impairment management: The group's cost-to-income ratio rose to 55.3% from 52.9%, and total operating expenses were up by 8% to R19.775 billion. However, a lower credit loss ratio of 104 bps (down from 121 bps) contributed to improved financial performance.
- Digital growth: Nedbank's Managed Evolution (ME) technology platform achieved 95% completion, driving growth in digital metrics, client satisfaction, and market share in key areas such as retail deposits and vehicle finance.
- Outlook: The group expects improved macroeconomic conditions in the second half of 2024, aiming for better economic prospects and continued improvements in ROE to enhance shareholder value.
Nedbank interim results commentary
For the first half of 2024, Nedbank Group reported a good financial performance despite challenging macroeconomic conditions, including geopolitical uncertainty and high interest rates. Key highlights include an 8% increase in headline earnings to R7.911 billion, a 4% rise in revenue to R35.159 billion, and a 12% increase in diluted headline earnings per share to 1,650 cents. The group's return on equity improved to 15%, and a higher interim dividend of 971 cents per share was declared. Despite a difficult operating environment, Nedbank's strategic investments in technology and cost control measures supported strong growth in digital metrics, client satisfaction, and market share gains. The Group remains optimistic about the potential benefits of South Africa's new government and anticipates improved macroeconomic conditions in the second half of 2024.
Nedbank – technical analysis
The share price of Nedbank has broken out of a triangle shaped consolidation. The pattern and subsequent breakout suggests a short term continuation of the longer term uptrend is underway. 28520 provides a projected upside target from the move, while a close below the 26280 might be used as a stop loss or failure indication.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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