South Africa’s fourth-largest lender Nedbank Group expects full-year earnings growth to exceed its medium-to-long term target after fees and commissions grew nearly 16 percent in the first nine months of the year.
The bank majority owned by insurer Old Mutual said non-interest income grew 15.6 percent to R10.9bn in the nine months to the end of September.
The banks also said in its third-quarter trading statement that net interest income was up nearly 9 percent to R13.3bn during the same period.
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Nedbank, along with other large South African banks, is recovering from a surge in bad debts after a 2009 recession that left many borrowers unable to service their loans.
The bank has been increasing its non-interest income, which includes fees and commissions, to offset its dependence on loans.
It said its credit loss ratio had improved to 1.13 percent for the period, from 1.21 percent for the six months to June.
Nedbank’s stock has gained 6.3 percent so far this year, compared with a 3.4 percent fall by the banking index.