Nedbank continues to deny state capture benefit
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Nedbank full year 2020 results were broadly in-line with consensus expectations.
The market was well-guided to a 57% decline in HEPS in line with the mid-point of the guided range.
Nedbank Africa Regions saw the largest decline in headline earnings, declining 97% y/y in stark contrast to peers. Nedbank’s SADC exposure, Zimbabwe in particular being the main drag.
Retail Business Banking saw a ~70% decline in headline earnings, while CIB saw a 41% decline. This dynamic is consistent with the peers.
The elephant in the Nedbank room at the moment are the revelations that have come tumbling out of the Zondo Commission that Nedbank benefited improperly from its relationship with Gupta-linked state capture enabler regiments Capital. Nedbank released a statement recently stating that Nedbank was not aware at the time of entering into any of the transactions in question of any associated unlawful or corrupt conduct by Regiments. Nedbank denies that it was complicit in any such unlawful or corrupt conduct that may have been perpetrated by Regiments and others.
But These commission agreements set up a conflict of interests. Regiments was supposed to be advising its clients, in this case ACSA, in their best interests meanwhile it was being incentivised by Nedbank to direct business Nedbank’s way and was in turn profiting from double dipping effectively.
Michael Avery spoke to Nedbank CFO Mike Davis about the allegations which nedbank contines top deny. He also said the bank refuses to release the paper trail citing confidentialy even when opressed onw hwther the bank would release a redacted version.
The market was well-guided to a 57% decline in HEPS in line with the mid-point of the guided range.
Nedbank Africa Regions saw the largest decline in headline earnings, declining 97% y/y in stark contrast to peers. Nedbank’s SADC exposure, Zimbabwe in particular being the main drag.
Retail Business Banking saw a ~70% decline in headline earnings, while CIB saw a 41% decline. This dynamic is consistent with the peers.
The elephant in the Nedbank room at the moment are the revelations that have come tumbling out of the Zondo Commission that Nedbank benefited improperly from its relationship with Gupta-linked state capture enabler regiments Capital. Nedbank released a statement recently stating that Nedbank was not aware at the time of entering into any of the transactions in question of any associated unlawful or corrupt conduct by Regiments. Nedbank denies that it was complicit in any such unlawful or corrupt conduct that may have been perpetrated by Regiments and others.
But These commission agreements set up a conflict of interests. Regiments was supposed to be advising its clients, in this case ACSA, in their best interests meanwhile it was being incentivised by Nedbank to direct business Nedbank’s way and was in turn profiting from double dipping effectively.
Michael Avery spoke to Nedbank CFO Mike Davis about the allegations which nedbank contines top deny. He also said the bank refuses to release the paper trail citing confidentialy even when opressed onw hwther the bank would release a redacted version.