Avior Capital Markets - Nedbank Group Limited (101I) Nedbank Group | Earnings growth in the green

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Avior Capital Markets

Harry Botha

Nedbank Group | Earnings growth in the green

Nedbank's H1 '19 results showed a reasonable operational performance considering the challenging operating environment in SA in H1 '19. A low base for credit impairment charges in H1 '18 reduced NED's y/y earnings growth. In our view, NED's focus on credit growth, improved cross-sell and cost containment will support mid-to-upper single digit earnings growth over the next three years. We have not factored in meaningful support from the SA economy (FY â€˜20f: 0.8% GDP) in our forecast for c.10% earnings growth in FY '20f. Please find our analysis and updated forecasts in this note.

12/08/2019 15 EN

Underlying

Nedbank Group Limited

Nedbank is a bank holding company, engaged in providing a range of banking and financial services. Co.'s business operations include: Nedbank Capital, which provides investment banking solutions; Nedbank Corporate, which provides lending, deposit-taking, transactional banking and commercial property finance; Nedbank Business Banking, which provides Commercial banking solutions for small-to medium-sized businesses; Nedbank Retail, which provides financial solutions for individuals, startups and small businesses; and Nedbank Wealth, which offers wealth management, asset management and insurance solutions. As of Dec 31 2014, Co. had total assets of R809,313,000,000.

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ZAE000004875 Johannesburg Stock Exchange South Africa

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Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Harry Botha

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Nedbank Group | Earnings growth in the green

For NEDBANK GROUP, the environment deterioration entails a downgrade to Neutral

Monthly LMI Update Independent Investment Research

Nedbank Group | Dependent on economic reforms

Tiger Brands | ESG | Pressed to execute

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