Nedbank says the launch of its Avo product, an application that will allow its Namibian clients to buy essential products and services online and have them delivered to their homes, is imminent.
Nedbank Namibia Managing Director, Martha Murorua on Tuesday said the planned launch of the product highlights the bank’s focus on innovative initiatives, digital transformation, and showcases the bank’s dedication to redefining customer experiences.
“Close to 60% of clients are now digitally active, and app users surged by 26%, reaching 33,000 customers, with a 16.6% increase in airtime and electricity services. Exciting digital projects like the mobile money wallet and AVO Super app underlined the bank’s commitment to accessible financial services,” she said.
Nedbank’s Avo Super app has gained more than 2 million users since its launch on the app stores in June 2020, a 1.9-fold increase year-on-year and a nearly five-fold increase in the number of active users.
Avo, according to the banking group, now has access to over 12,000 drivers in its delivery fleet across South Africa as product orders continue to grow exponentially.
By the end of 2022, more than 20,000 businesses (a 15% increase) were registered to offer their products and services on this e-commerce platform in South Africa.
This comes as the Nedbank Group has showcased a robust financial performance in the first half of 2023, with a 10% increase in headline earnings and an 11% rise in interim dividends, navigating a tough operational landscape.
The bank’s headline earnings reached R7.3 billion, accompanied by a return on equity of 14.2%, reflecting an improvement over the previous year’s 13.6%, according to the latest first half of the year (H1) 2023 interim results.
The growth in headline earnings can be attributed to a solid 14% increase in revenue, which includes associate income, along with effective expense management.
This led to a commendable 22% growth in reprovisioning operating profits. However, the impact of a 57% surge in the impairment charge, particularly in the South African retail consumer banking sector, somewhat offset this performance.
Nedbank’s CEO Mike Brown acknowledged the challenging environment, saying: “The first half presented a tougher operational scenario than we had anticipated, influenced by a weak global economy, decreased commodity prices, and domestic economic constraints.”
Load-shedding, logistical limitations, inflation, and unexpected interest rate hikes all played a role.
Despite the difficulties, the group’s solid financial standing empowered them to declare an interim dividend of 871 cents per share, signifying an 11% increase with a payout ratio of 57%.
Managing Executive of Nedbank Africa Region Terence Sibiya, expressed satisfaction with the cluster’s stellar performance, particularly the contributions from SADC operations, Ecobank Transnational Incorporated (ETI) associate investment, and the release of a R175 million Ghana sovereign bond provision from 2022.
Nedbank Africa Regions operates across Eswatini, Lesotho, Mozambique, Namibia, and Zimbabwe, with representative offices in Ghana and Kenya.
Nedbank holds a 21.2% stake in ETI, a leading pan-African banking group active in various sub-Saharan African countries. Sibiya noted the impressive performance of the ETI associate investment.
“The cluster exhibited impressive statistics, including a 97% rise in headline earnings to R1.13 billion from R575 million in 2022. Return on equity improved to 29.2%, and the cost-to-income ratio declined to 47.8% from the previous 62.5%,” he said.
He further noted that strong revenue growth in SADC operations led to headline earnings of R461 million, marking a more than 100% increase compared to H1 2022, driven by higher interest rates and forex gains.
According to Nedbank Group interim results 2023, cluster net interest income increased by 40%, while non-interest revenue rose by 30% due to improved margins and forex gains.
