The Nedbank Group’s financial performance reflects headline earnings growth in line with management expectations, it said on Wednesday.
For the 10 months ended October, headline earnings growth was driven by higher levels of net interest income (NII) and non-interest revenue (NIR), a lower impairment charge and an expense base that was well managed, the group said in a voluntary trading update.
Guidance provided in the update excludes the impact of the commercial settlement with Transnet — a one-off R600m expense in Corporate and Investment Banking (CIB), it said.
In November, Nedbank said it would pay Transnet R600m to avoid a protracted legal fight over allegations that the bank acted improperly in interest-rate swap deals concluded more than a decade ago.
The settlement was entered into by Nedbank without admitting liability.
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