Old Mutual unveils new CEO, says Nedbank posts increase in Q3 profit

UK insurer Old Mutual said Nedbank Group, its majority-owned South African banking subsidiary, posted an increase in net interest income for the first three quarters of the year.

In the nine months to 30 September, net interest income rose 3.7% year-on-year to 17.7bn rand (£0.83bn), driven higher by a 10.4% growth in average interest earning banking assets, including an increased proportion of liquid assets held for Basel III liquidity coverage ratio requirements.

The group added that, due to asset mix changes and a higher cost of funding, net interest margin for the third quarter narrowed to 3.32% from 3.53% a year ago, while non-interest revenue rose 7.6% year-on-year to 15.6bn rand.

Nedbank attributed the increase in revenue to a 6.3% growth in commission and fee income and a strong performance in its client-led markets business, which drove trading income growth up by 23.6% year-on-year.

In a trading update released on Monday, the FTSE 100 group said the outlook for its South Africa-based subsidiary remained upbeat.

"Nedbank Group delivered a resilient performance for the nine months, despite the weaker than expected economic environments and volatile market conditions in South Africa and in the rest of Africa,” it said.

“Our expectation of organic growth in diluted headline earnings per share in 2015 to be above nominal GDP growth remains unchanged."

Meanwhile, in a separate statement, the insurer confirmed the appointment of Bruce Hemphill, as its new chief executive to replace outgoing CEO Julian Roberts.

Hemphill, who previously held the same role at African financial services firm Liberty Group, said he was delighted to join the company.

"My initial focus will be visiting the individual businesses within the group,” he said.

“Building a detailed knowledge of those businesses and their management and meeting staff, customers and other stakeholders.”

Old Mutual shares were down 0.75% to 210.70p 0845 GMT.