MENU
 Registered users can save articles to their personal articles list. Login here or sign up here
In this story
 Registered users can save articles to their personal articles list. Login here or sign up here

Nedbank says revenue slows as downgrade weighs

Bank says it will now be more challenging to achieve 2017 full-year guidance.

South Africa’s Nedbank posted slower revenue growth in the first three months of this year and will find it tougher to meet its full-year targets after a ratings downgrade last month, the bank said on Thursday.

Credit ratings agencies S&P Global Ratings and Fitch in April slashed South Africa’s rating to sub-investment grade after a cabinet reshuffle by President Jacob Zuma and downgraded the nation’s banks soon after.

“The macroeconomic outlook for (South Africa) has deteriorated following the sovereign downgrades which will impact negatively on confidence, investment and growth,” Nedbank said in a trading update for the three months to end-March.

The bank, majority owned by Old Mutual, added that its overall client activity and revenue growth was slower than expected, but the weaker growth was partially offset by better than expected credit losses.

“…we anticipate reduced levels of business and consumer confidence and that it will now be more challenging to achieve the full 2017 year guidance provided at the time of the release of our 2016 annual results,” Nedbank said.

Shares in Nedbank were down 1.1% at R214.60.

   No comments so far

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up here

Latest Currencies

ZAR / USD
ZAR / GBP
ZAR / Euro

MONEYWEB NEWSLETTERS

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Podcasts

Moneyweb Investor Issue 25

If the world's best investment managers, who came together at a recent CFA conference, cannot figure whether a crash or correction is looming, ordinary investors can be forgiven for their hesitation. Thus the June issue of The Moneyweb Investor does its best to fill the gaps. With 17 stories and a podcast, you wouldn't want to miss it.

Follow us:

Search Articles:Advanced Search
Click a Company:
server: 172.17.0.2