NEDBANK EXPECTS SHARP INCREASE IN INTERIM AND BASIC EARNINGS PER SHARE

NEDBANK said yesterday that it expected headline earnings per share and basic earnings per share to increase more than 100 percent in the six months to June 30, 2021, when compared with the same period in 2020. The bank said in a pre-close trading update it experienced a material reduction in the impairment charge in the five months to May 2021, compared to the five months to 31 May 2020, but the difficult macroeconomic environment impacted client activity and revenue growth. The bank planned to resume dividend payments when reporting interim results in 2021, with the pay-out ratio still to be determined by the board. In the five month period. average interest earning banking assets at the bank declined year-on-year, reflecting lower gross loans and advances in CIB as a result of clients using excess liquidity to repay committed facilities. Demand for new wholesale loans remained low, with the timing of drawdowns uncertain, although recent developments are encouraging: these included the increase in private renewable energy generation capacity to 100MW and the increase in the RMB BER SA business confidence index to 50 in the second quarter, from 35 in the first quarter of 2021. | Edward West

LONG4LIFE CONCLUDES STRUCTURAL REVIEW OF THE GROUP’S POTENTIAL

INVESTMENT company with a lifestyle focus Long4Life said yesterday that its board had concluded that the optimal structure for the group in the medium term would be to create a focused niche retail business, of which the unbundled Sport and Recreation division would form the basis. This followed a detailed review of the structure and composition of the group to explore options to unlock value for shareholders. The review included an assessment of whether a holding company discount was a factor in the undervaluation of the group a statement said yesterday. The potential for unbundling of assets was explored and whether a niche-focused retail entity would enable enhanced growth and potential merger opportunities. As chief executive of the reconstituted division, Bradley Moritz would be tasked with pursuing suitable acquisitions to bolster this niche retail group. Should these opportunities materialise, this may accelerate a proposed unbundling. For now, the group would operate in its current form. |