(corrects seventh paragraph, Nedbank S.Africa’s No.4 bank, not
No.2)
* Non-interest revenue up 14 pct
* Net interest income up 9 pct
* Shares flat
By David Dolan
JOHANNESBURG, Oct 29 (Reuters) – Nedbank Group
announced on Monday that it is on track for double-digit
earnings growth this year, the latest South African bank to
benefit from a rise in higher-risk lending.
Hampered by weak corporate demand for credit, the country’s
big banks have ramped up unsecured lending – the profitable but
riskier practice of giving loans that are not backed by
collateral.
Unsecured loans in Africa’s top economy surged 21 percent in
the year to June and now total a $43 billion, the central bank
said last week, as Nedbank and its rivals continue to push
profitable credit cards and personal loans.
“It’s probably the key risk facing South African banks,”
Johann Scholtz, banking analyst at Afrifocus Securities in Cape
Town, said of unsecured lending.
Continued…
