The South African Nedbank Group delivered an excellent financial performance during the first half of 2022 as net income increased by 271TP2Q2 to R6.7 billion, driven by strong revenue growth, a flat loan loss ratio, improved associated TSI performance and a well-managed expense base.

The group's performance in the first half of 2022 reflects improvements in all key metrics in a complex and difficult operating environment. "The group's return on equity (ROE) increased to 13.61TP2Q (June 2021: 11.71TP2Q), and all frontline business units generated ROE above the group's cost of equity (COE)."

The group's balance sheet remained very strong. CET1 and tier 1 capital ratios of 13.5% and 15.1% respectively higher than levels at December 31, 2021 and well above SARB minimum regulatory requirements.

The average liquidity coverage ratio (LCR) for the second quarter of 144% and a net stable funding ratio (NSFR) of 119% both well above the regulatory minimums of 100%.

"Following strong earnings growth and robust capital and liquidity positions, the group declared an interim dividend of 783 cents, up 81% year-over-year and above the 2019 pre-Covid-19 interim dividend," reads the document sent in our newsroom.

The document notes that Nedbank Africa Regions (NAR) turnover increased by over 100%, from R182m to R574m during the period, delivering an ROE of 15.9%, above the group's COE.

This increase is attributable to improved performance in operations within the Southern African Development Community (SADC) and the continued return on the associated investment Ecobank Transnational Incorporated (ETI).

It should be noted that outside South Africa, Nedbank has operations in five SADC countries, through subsidiaries and banks in Eswatini, Lesotho, Mozambique, Namibia and Zimbabwe, with representative offices in Kenya (Nairobi) and Ghana (Accra). To secure coverage and profits from West and Central Africa, Nedbank has a 21% stake in ETI (also known as Ecobank Group).