Nedbank’s interim dividend back above 2019 pre-Covid level

Banking group Nedbank declared an interim dividend of 783 cents per share for the half-year ended 30 June 2022 on Wednesday, up 81% on the comparative 2021 half year and back above the 2019 pre-Covid interim dividend level.

Nedbank reported a 26% increase in headline earnings per share (Heps). This, together with a robust balance sheet, enabled the 81% increase in the interim dividend per share, the bank noted in its results Sens statement.

In a separate media statement, the bank said it had “delivered an excellent financial performance” for the first half of 2022.

It added that headline earnings increased by 27% to R6.7 billion, driven by strong revenue growth, a flat credit loss ratio, an improved performance from associate Ecobank Transnational Incorporated (ETI) and a well-managed expense base.

Nedbank CEO Mike Brown said the group’s performance in the first half of 2022 reflects improvements  across all key metrics in a complex and difficult operating environment.

“The group’s return on equity [ROE] increased to 13.6% [June 2021: 11.7%], and all frontline business units generated ROEs above the group’s cost of equity,” he noted.

“On the back of strong earnings growth and robust capital and liquidity positions, the group declared an interim dividend of 783 cents, up by 81% year on year and back above the 2019 pre-Covid-19 interim dividend,” Brown reiterated.

Commenting on the SA economic front, he warned: “Electricity supply is a binding constraint on economic growth and job creation, and urgent implementation of the Energy Action Plan is needed,” Brown said.

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