Nedbank Moçambique achieved net profits of 430 million Meticais, an increase of 7% on the previous year (402 million), despite the difficult macroeconomic context.
In a statement, the financial institution also highlighted the growth in the deposit portfolio by 7.04%, the improvement in return on equity (ROE) to 15.92% and an efficiency ratio (CTI, cost to income) of 54.98%.
During the first six months, the Bank was the market leader in terms of customer satisfaction (net promoter score). It also recorded a liquidity ratio of 43.69%, showing continuous improvement and remaining above the Central Bank's regulatory limit (25% minimum ratio).
The Bank's capital structure remained solid, with a solvency ratio of 26.11% (regulatory 12%). In that period, the bank committed itself to digitalization, with impressive growth in the number of digitally active customers, reaching the 63% mark in the active customer base.
In terms of performance, the institution also points to the strong dynamism of the Business Lounge by Nedbank, with various actions having been carried out, reinforcing its position as a reference space for clients, promoting networking and initiatives that enhance Mozambican culture.
At Group level, Nedbank delivered a relatively strong financial performance in the first half of 2024, recording an 8% increase in net profit year-on-year to R7.9 billion and an improvement in return on equity (ROE) to 15.0% (H1 2023: 14.2%).
These results are underpinned by good growth in the complementary margin (NIR, non-interest revenue), a lower impairment rate and a rigorous cost management strategy, partially offset by moderate growth in the financial margin (NII, net interest income).
The operating environment in the first half of 2024 remained challenging, as economic activity was low, said Jason Quinn, CEO of the Nedbank Group.
"In addition to geopolitical uncertainty, persistent inflation, high interest rates and uncertainty ahead of national elections in South Africa (SA) negatively impacted domestic activity."
"We remain cautiously optimistic about the potential benefits associated with South Africa's Government of National Unity and anticipate improved macroeconomic conditions in the second half of 2024 and in the medium to long term. While business conditions have improved significantly as some of the economy's most pressing structural constraints have eased as a result of the stabilization of electricity supply, progress in addressing some of the other infrastructure constraints has remained limited."
"Our relatively solid financial performance in the first half of 2024, including the progress made in executing our strategy and the improved economic outlook, give us confidence to achieve our medium-term objectives, and increase our ROE to 17% by 2025 and to more than 18% in the long term."
The Group's balance sheet remained very strong. The CET1 and Tier 1 capital ratios of 13.3% and 14.7%, respectively, remained above the limits approved by the Board of Directors and the SARB's minimum requirements.
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