Tag: Return On Equity (ROE)

Long-term investors should not rely only on company results to guide smarter investment decisions. Instead, they should understand the context behind the numbers and the broader market trends that shape performance. Company financial results, often called earnings season, are watched closely by equity investors worldwide.

The operating environment during the first 6 months of 2024 was challenging and economic activity remained weak, impacted by geopolitical uncertainty, high interest rates, persistent inflation and general uncertainty ahead of the national elections in South Africa (SA).

Headline earnings increase of 10% driven by strong revenue growth partially offset by increases in retail impairments

A 26% increase in headline earnings per share and a robust balance sheet enabled an 81% increase in the interim dividend per share. The South African economy held up relatively well as global economic conditions deteriorated significantly in the first half of 2022.

Despite current recessionary conditions and upended risk models, the global insurance industry will grow by $1.4 trillion between 2020 and 2025, according to our recent report. To capture a share of this growth and defend their place in the insurance value chain, insurers must reflect on where the industry is heading.

Nedbank has released results for the year ended December 2021. Naturally, this was a much happier year for Nedbank than the year before. The commodity cycle pulled our economy through a tough time, which has knock-on benefits for the big banks.

Operating conditions in the first half of 2021 were better than we expected at the start of the year. This was evident in upward revisions to GDP growth, vaccine rollouts gathering pace and positive developments on key reforms in SA.

The bank is taking a cautious approach due to pandemic uncertainty but says payouts may resume as early as June. Nedbank won't be paying a final dividend for 2020 after rising credit impairments, fewer transactions and falling interest rates resulted in a big decline in full-year earnings. But it is confident that payouts will resume this year.

The banking group is hopeful that impairments will decline, and client activity will continue to improve as the year progresses. Nedbank believes the worst may be behind it after suffering a large decline in first-half earnings due to what is has billed as the Great Lockdown Crisis (GLC).