UPDATE 1-SA lender Nedbank core income growth slows, sticks to annual profit view

  • Reuters
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UPDATE 1-SA lender Nedbank core income growth slows, sticks to annual profit view
Credit: © Reuters.

(Adds details from statement, share movement)

Dec 2 (Reuters) - Nedbank Group NEDJ.J , one of South Africa's largest lenders, said on Wednesday growth in net interest income slowed in the first ten months of its fiscal year as low interest rates dented margins even as it stuck with the annual profit targets.

The bank said large corporate defaults remained a risk as net interest income growth for the period declined from the 1% growth reported for the six months to June 30. ongoing economic recovery from the low point in Q2 2020, initiated by the gradual easing of lockdown levels from level five to the current level one, is encouraging and is expected to continue," the lender said.

However, it was unlikely to declare ordinary dividend for 2020.

The commercial property advances portfolio, which the lender has a relatively large exposure and was severely hit by the coronavirus crisis, continues to perform ahead of its expectations, it said.

Shares of the bank were down 0.6% at 1216 GMT.

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