Tag: annual results

The past two financial years brought significant financial disruption across sub-Saharan Africa. Economies, corporates, and consumers faced sustained pressure due to challenging macro-economic factors. Structural changes in the video entertainment industry further compounded this disruption.

The 2024 operating environment remained challenging, with weak economic activity. SA’s GDP growth expectations dropped to 0.5%, down from 0.7% in 2023. The first six months proved especially difficult due to geopolitical uncertainty and high interest rates. Moreover, general uncertainty ahead of SA’s national election added further pressure. These factors are reflected in the Nedbank Group Annual Results, highlighting the impact on financial performance and market conditions.

In 2023 the operating environment for South African banks was more challenging than initially forecast. In addition to a weaker global economy, domestic economic activity was impacted by record levels of load-shedding (electricity shortages), logistical constraints, higher-than-expected levels of inflation and, as a result, higher-than-expected increases in interest rates. Collectively, these conditions have put increasing pressure on consumers’ finances and led to reductions in business confidence and investment in most sectors other than energy.

Strong revenue growth enabled headline earnings growth of 20% to R14bn, an increase in ROE to 14% and a CET1 ratio of 14%

The banking group expects earnings for the year ahead to be in line with subdued economic growth.

The building materials retailer expects trading conditions to remain challenging but will continue with its store expansion and relocation strategy.