By Matṧeliso Phulane
Nedbank Group chief executive Africa Region Dr Terence Sibiya is confident of the bank’s prospects of growth, going forward, if the number of infrastructure projects currently in the pipeline in Africa are anything to go by.
Sibiya noted that there are projects that are earmarked to be implemented in Lesotho such as social infrastructure, roads, agriculture, schools and hospitals.
Apart from that, he said the bank’s focus is also on renewable energy, looking at the shortage of electricity in South Africa lately.
That country has been hard-hit by numerous load shedding episodes which have negatively impacted on the country’s economy.
“We tend to look at our own prospects, given our own sector of excellence for our own strengths and those are in infrastructure.”
“We also look at the population on the average age in the continent, which is probably 19 to 25 years old and that in itself, presents an opportunity for our digital offerings as we roll out our digital products for the new market that we are currently in.
“Therefore, looking at the prospects of growth in sectors such as mining, renewable energy, infrastructure and agriculture, there is tremendous growth,” Sibiya said
In terms of bank accessibility, he conceded that there is a perception Nedbank is not to inaccessible and only caters for wealthy people or higher earners.
“This is far from truth. We assure you that Nedbank offers clear valuable products which are also competitive in the market; the only way forward is going digital while keeping on introducing new products.”
Commenting on the inaccessibility and visibility of the bank, the managing director of Nedbank Lesotho Nkau Matete said there is accessibility to the bank in Lesotho through new products.
He said the bank has launched a product called Nedbank Mobile Money four months ago and has grown to 4 300 users of which 48 percent are from their existing clients and 52 percent are new clients of the bank. That, he remarked, meant the products are able to reach people whom they were unable to serve previously and that shows a huge growth in the digital channel.
Regarding the bank’s visibility, he said there are billboards with revamped messages around towns.
Nkau said to be ahead of digital fraud which has been there, the bank through its risk department, educate clients to be careful with their secret pins while using their bank accounts.
Deliberating on the Nedbank’s performance in the African region, for the financial year ended in December 2022, Sibiya said the Netbank delivers an excellent financial performance as strong revenue growth enables headline earnings growth of 20 percent of salient features.
“Headline earnings increased by 20 percent to R14bn while Return on Equity (RoE) increased to 14 percent. Capital and liquidity ratios strong with CET1 capital ratio of 14.0 percent
“Total dividend for 2022 of 1 649 cents per share, is up to 38 percent at record high levels, R5bn share repurchase programme approved by the board
“Furthermore, Netbank has been recognized as number one South African bank on client net promoter score or satisfaction as a result, the double-digit digital transaction growth continued. Money app and Avo users each above 2 million,” Sibiya added
He added that the bank has ranked AAA which is the highest credit among top five percent of global banks, marking its history.
Again, headline earnings (HE) increased by 20 percent to R14b and it was driven by strong double-digit revenue growth, a slightly higher credit loss ratio and a well-managed expense base. ROE for the period increased to 14 percent, above the prior period of 12,5 percent, assisted by the group’s improved return on assets that increased from 0,98percent to 1,14 percent.
“The group’s balance sheet remained very strong, and capital and liquidity positions improved further to multi-year highs. CET1 and tier 1 capital adequacy ratios of 14,0 percent and 15,5 percent respectively increased from the December, 31 2021 levels, and are well above board-approved target ranges and SARB minimum requirements.
“Some of the key achievements of the Netbank Africa Region business include market leader in brand sentiment score in Lesotho and Mozambique ranked as a top three brand in Namibia and Zimbabwe: Nedbank’s brand sentiment improved in almost all market in Eswatini, Lesotho, Namibia and Zimbabwe.
“Netbank won many awards in 2022 including: Excellence in Mobile Banking in the Finnovex Southern Africa Awards 2022; Most Innovative Retail Banking App in Lesotho 2022 in the Global Banking and Finance Awards 2022; Best Bank for Digital Banking Services,” he said.
