Nedbank posts 20% rise in annual profit

South African moneylender Nedbank Group has announced a 20 percent increase in the full annual profit, due to higher interest rates, according to Reuters published on Tuesday.

By the end of 2022, Nedbank’s earnings per share was 2,886 South African cents, in comparison to 2,410 the year before.

South African banks are some of the biggest banks in the continent and they have had a good run in 2022, also due to high interest rates and a recovery in economic activity after the pandemic.

Lenders in the country are currently worried about future growth due to the current power supply crisis, inefficient rail, port infrastructure, and high unemployment in the country.

Nedbank is expecting the economic situation to still be difficult, specifically because of the high levels of electricity shortages.

The bank also declared a dividend of 866 cents for the year as well as a $274.28 million as capital optimisation initiative.