* FY diluted headline EPS 1,340 cents vs 1,069 cents
* Non-interest revenue up more than 16 percent
* Shares at 11-year high
(Adds details, analyst)
By Helen Nyambura-Mwaura
JOHANNESBURG, Feb 29 (Reuters) – Nedbank,
South Africa’s fourth-largest lender, posted a 25 percent rise
in full-year earnings following a big jump in fees, the latest
sign its turnaround plan is gaining traction.
South African banks have been focusing on non-interest
revenues to grow earnings after a 2009 recession knocked credit
demand back and left lenders struggling with bad debts.
Loan growth is now starting to improve as the lenders turned
to high-margin unsecured personal loans.
“They came in much stronger on the non-interest income line
than we had expected. The net interest income line was also
slightly better than we expected,” said Avior Research analyst
Faizal Moolla.
Nedbank’s shares rose to 11-year highs as investors factored
in a 26 percent increase in dividend payout. The shares are up
over 10 percent so far this year, compared with a 7 percent rise
by the Top-40 index, and were 1.2 percent up on the day
by 1017 GMT.
Continued…
