“R.itemList.length” “- this.config.text.ariaShown
“This.config.text.ariaFermé”
JOHANNESBURG (Reuters) – South Africa’s Nedbank said Wednesday that it hoped the worst effects of the COVID-19 pandemic would have passed after half-time earnings fell by nearly 70 percent, but its stocks fell because investors tended a more pessimistic outlook.
The lender, which last week hit his provisional earnings on insolvency charges, said Wednesday that his annual earnings would be at least 20 less.
But its effects said he hoped that “the worst effects of COVID-19 and the (big blocking crisis) were left behind” and Nedbank CHIEF executive Mike Brown said knowledge showed that some activities were returning to pre-blocking levels.
“We expect credit losses in the second quarter to be lower than in the first part of the year,” he said, adding that no provision will be repeated for potential long-term credit losses, even if projections are subject to uncertainty.
Nedbank’s credit impairment rate increased by 202% to nearly 7.7 billion rand ($458 million) in the six months ending June 30.
That reduced its profits consistently with the consistent percentage, South Africa’s main profit measure, to 438 cents of 1,435 cents a year earlier.
Last week, he warned of a hePS drop of between 402 and 472 cents.
Approximately 3 billion rand of the rate, a provision for long-term prospective losses, less than those made through some peers, such as Absa, which received a stronger blow in the first place.
While investors applauded Absa’s approach, Nedbank’s shares fell more than 3% before recovering to 1.4% below 0810 GMT. The banking index of the Johannesburg Stock Exchange rose 0.12%.
“Banks are setting up the market to take a more conservative approach,” said Stuart Theobald, president of Intellidex space studies.
Brown said Nedbank would only pay dividends when they changed central bank rules, which asked lenders to avoid bills to hold capital during the COVID-19 crisis.
($1 – 16.7955 rand)
(Report through Emma Rumney; Editing via Promit Mukherjee, Amy Caren Daniel and Barbara Lewis)