Nedbank set for even stronger FY performance

Share price up over 6% in morning trade on Tuesday.
Image: Moneyweb

Banking group Nedbank is in line for an even stronger full-year financial performance, with headline earnings per share (Heps) expected to surge by between 108% and 118% (or between 2342 cents and 2455c) for its year ended 31 December 2021.

This is according to a trading statement published on the JSE after the market closed on Monday.

Nedbank’s share price was buoyed by the news on Tuesday, with the stock up over 6% in morning trade (around R220 a share).

The bank says a “stronger than expected performance in the last few months of 2021” is behind the higher Heps expectations, as operating conditions for both Nedbank and its clients “continued to improve”.

Nedbank share price

This follows the Covid-19 financial fallout in 2020 that hit both the local market and global markets.

Nedbank now also expects basic earnings per share (EPS) to increase by between 218% and 228% (or between 2280c and 2352c) for the twelve-month period ended 31 December 2021, compared to its 2020 financial year.

Read: SA Tourism and Nedbank collaborate to bolster tourism sector

The bank had flagged a major increase in Heps and EPS for the 2021 year in an update to the market in December, but its latest update on Monday highlights even higher earnings anticipated.

“On 6 December 2021, in the group’s pre-close investor update and trading statement, it was reported that full-year Heps was expected to increase by more than 90% (greater than 2139 cents) and basic EPS was expected to increase by more than 180% (greater than 2008 cents) when compared with those in the 12-month period ended 31 December 2020 (Heps: 1126 cents and basic EPS: 717 cents),” Nedbank points out in its latest update.

“In addition, the group noted that a further trading statement would be issued in Q1 2022 to provide more specific guidance when there is reasonable certainty about the extent and ranges of these increases.”

Nedbank’s 2021 annual results are anticipated to be released on or around 9 March 2022.

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