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Nedbank

JSE:NBKP
Snowflake Description

Undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NBKP
JSE
ZAR4B
Market Cap
  1. Home
  2. ZA
  3. Banks
Company description

Nedbank Limited, through its subsidiaries, provides a range of banking and financial services to individuals, small businesses, and government and public sectors. The last earnings update was 101 days ago. More info.


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NBKP Share Price and Events
7 Day Returns
1.1%
JSE:NBKP
-1.8%
ZA Banks
-1%
ZA Market
1 Year Returns
11.7%
JSE:NBKP
6.6%
ZA Banks
-2%
ZA Market
NBKP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nedbank (NBKP) 1.1% 1.3% -0.5% 11.7% 4.4% 1.4%
ZA Banks -1.8% 0.9% 9.7% 6.6% 26.3% 34.8%
ZA Market -1% 1.7% -1% -2% 3.2% 2.4%
1 Year Return vs Industry and Market
  • NBKP outperformed the Banks industry which returned 6.6% over the past year.
  • NBKP outperformed the Market in South Africa which returned -2% over the past year.
Price Volatility
NBKP
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Nedbank's competitors could be found in our database.

NBKP Value

 Is Nedbank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nedbank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nedbank.

JSE:NBKP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= ZAR190.56 * 14.8%
ZAR28.26
Book Value of Equity per Share Median Book Value from the past 5 years. ZAR190.56
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year ZA Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for JSE:NBKP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year ZA Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.615 (1 + (1- 28%) (2403.19%))
1.266
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.266 * 5.96%)
10.28%

Discounted Cash Flow Calculation for JSE:NBKP using Excess Returns Model Model

The calculations below outline how an intrinsic value for Nedbank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

JSE:NBKP Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (14.8% – 10.28%) * ZAR190.56)
ZAR8.68
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ZAR8.68 / (10.28% - 2.73%)
ZAR114.97
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ZAR190.56 + ZAR114.97
ZAR305.53
JSE:NBKP Discount to Share Price
Calculation Result
Value per share (ZAR) From above. ZAR305.53
Current discount Discount to share price of ZAR9.55
= -1 x (ZAR9.55 - ZAR305.53) / ZAR305.53
96.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Nedbank is available for.
Intrinsic value
>50%
Share price is ZAR9.55 vs Future cash flow value of ZAR305.53
Current Discount Checks
For Nedbank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Nedbank's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Nedbank's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nedbank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nedbank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
JSE:NBKP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in ZAR ZAR27.88
JSE:NBKP Share Price ** JSE (2019-11-14) in ZAR ZAR9.55
South Africa Banks Industry PE Ratio Median Figure of 6 Publicly-Listed Banks Companies 8.91x
South Africa Market PE Ratio Median Figure of 207 Publicly-Listed Companies 10.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nedbank.

JSE:NBKP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:NBKP Share Price ÷ EPS (both in ZAR)

= 9.55 ÷ 27.88

0.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nedbank is good value based on earnings compared to the ZA Banks industry average.
  • Nedbank is good value based on earnings compared to the South Africa market.
Price based on expected Growth
Does Nedbank's expected growth come at a high price?
Raw Data
JSE:NBKP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 0.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
12%per year
Africa Banks Industry PEG Ratio Median Figure of 38 Publicly-Listed Banks Companies 0.55x
South Africa Market PEG Ratio Median Figure of 75 Publicly-Listed Companies 1.11x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Nedbank, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Nedbank's assets?
Raw Data
JSE:NBKP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in ZAR ZAR196.35
JSE:NBKP Share Price * JSE (2019-11-14) in ZAR ZAR9.55
South Africa Banks Industry PB Ratio Median Figure of 6 Publicly-Listed Banks Companies 1.26x
South Africa Market PB Ratio Median Figure of 267 Publicly-Listed Companies 0.89x
JSE:NBKP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:NBKP Share Price ÷ Book Value per Share (both in ZAR)

= 9.55 ÷ 196.35

0.05x

* Primary Listing of Nedbank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nedbank is good value based on assets compared to the ZA Banks industry average.
X
Value checks
We assess Nedbank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Nedbank has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NBKP Future Performance

 How is Nedbank expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Nedbank, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nedbank expected to grow at an attractive rate?
  • Nedbank's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Nedbank's earnings growth is positive but not above the South Africa market average.
  • Unable to compare Nedbank's revenue growth to the South Africa market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
JSE:NBKP Future Growth Rates Data Sources
Data Point Source Value (per year)
JSE:NBKP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 12%
South Africa Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
Africa Banks Industry Revenue Growth Rate Market Cap Weighted Average 10.4%
South Africa Market Earnings Growth Rate Market Cap Weighted Average 16.8%
South Africa Market Revenue Growth Rate Market Cap Weighted Average 8.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
JSE:NBKP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
JSE:NBKP Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-06-30 43,836 -54,429 10,841
2019-03-31 43,555 -56,159 10,803
2018-12-31 43,273 -57,889 10,765
2018-09-30 42,698 -15,233 10,843
2018-06-30 42,122 27,423 10,920
2018-03-31 42,076 22,805 11,040
2017-12-31 42,030 18,186 11,160
2017-09-30 41,400 -9,903 10,903
2017-06-30 40,786 -37,992 10,646
2017-03-31 40,134 -36,589 10,271
2016-12-31 39,481 -35,185 9,896
2016-09-30 38,511 -55,238 9,533

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nedbank's earnings are expected to grow by 12% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Nedbank is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
JSE:NBKP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Nedbank Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:NBKP Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-06-30
2019-03-31
2018-12-31 27.88
2018-09-30 28.08
2018-06-30
2018-03-31
2017-12-31 28.90
2017-09-30 28.23
2017-06-30
2017-03-31
2016-12-31 25.63
2016-09-30 24.69

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Nedbank will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Nedbank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the South Africa market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Africa market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nedbank has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NBKP Past Performance

  How has Nedbank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nedbank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nedbank's year on year earnings growth rate has been positive over the past 5 years.
  • Nedbank's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Nedbank's 1-year earnings growth is negative, it can't be compared to the ZA Banks industry average.
Earnings and Revenue History
Nedbank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nedbank Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:NBKP Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 43,836.00 10,841.00 3,363.00
2019-03-31 43,554.50 10,803.00 3,363.00
2018-12-31 43,273.00 10,765.00 3,363.00
2018-09-30 42,697.50 10,842.50 3,375.50
2018-06-30 42,122.00 10,920.00 3,388.00
2018-03-31 42,076.00 11,040.00 3,388.00
2017-12-31 42,030.00 11,160.00 3,388.00
2017-09-30 41,400.00 10,903.00 3,389.50
2017-06-30 40,786.00 10,646.00 3,391.00
2017-03-31 40,133.50 10,271.00 3,391.00
2016-12-31 39,481.00 9,896.00 3,391.00
2016-09-30 38,510.50 9,532.50 3,212.00
2016-06-30 37,540.00 9,169.00 3,033.00
2016-03-31 36,412.00 8,666.00 3,033.00
2015-12-31 35,284.00 8,163.00 3,033.00
2015-09-30 34,942.50 8,146.00 3,069.50
2015-06-30 34,601.00 8,129.00 3,106.00
2015-03-31 34,036.00 8,063.50 3,106.00
2014-12-31 33,471.00 7,998.00 3,106.00
2014-09-30 32,764.50 7,944.00 2,985.00
2014-06-30 32,058.00 7,890.00 2,864.00
2014-03-31 31,114.50 7,521.00 2,864.00
2013-12-31 30,171.00 7,152.00 2,864.00
2013-09-30 29,380.00 6,870.50 2,687.00
2013-06-30 28,589.00 6,589.00 2,510.00
2013-03-31 28,149.50 6,499.50 2,510.00
2012-12-31 27,710.00 6,410.00 2,510.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Nedbank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Nedbank used its assets less efficiently than the ZA Banks industry average last year based on Return on Assets.
  • Unable to establish if Nedbank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Nedbank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nedbank has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NBKP Health

 How is Nedbank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Nedbank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nedbank Company Filings, last reported 4 months ago.

JSE:NBKP Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 78,983.00 86,428.00 41,112.00
2019-03-31 78,983.00 86,428.00 41,112.00
2018-12-31 76,407.00 75,171.00 39,101.00
2018-09-30 76,407.00 75,171.00 39,101.00
2018-06-30 72,938.00 77,772.00 33,009.00
2018-03-31 72,938.00 77,772.00 33,009.00
2017-12-31 74,154.00 75,043.00 56,801.00
2017-09-30 74,154.00 75,043.00 56,801.00
2017-06-30 70,704.00 69,270.00 31,889.00
2017-03-31 70,704.00 69,270.00 31,889.00
2016-12-31 67,722.00 65,531.00 53,939.00
2016-09-30 67,722.00 65,531.00 53,939.00
2016-06-30 64,428.00 71,411.00 38,313.00
2016-03-31 64,428.00 71,411.00 38,313.00
2015-12-31 59,954.00 78,973.00 69,272.00
2015-09-30 59,954.00 78,973.00 69,272.00
2015-06-30 57,175.00 60,258.00 39,362.00
2015-03-31 57,175.00 60,258.00 39,362.00
2014-12-31 55,980.00 51,113.00 44,692.00
2014-09-30 55,980.00 51,113.00 44,692.00
2014-06-30 52,266.00 50,873.00 24,517.00
2014-03-31 52,266.00 50,873.00 24,517.00
2013-12-31 51,675.00 49,853.00 57,074.00
2013-09-30 51,675.00 49,853.00 57,074.00
2013-06-30 47,845.00 43,246.00 28,234.00
2013-03-31 47,845.00 43,246.00 28,234.00
2012-12-31 47,286.00 43,770.00 51,585.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Nedbank has an acceptable proportion of non-loan assets held.
  • Nedbank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Nedbank are broadly funded by customer deposits.
  • Nedbank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Nedbank has a low allowance for bad loans.
  • Nedbank has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Nedbank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nedbank has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NBKP Dividends

 What is Nedbank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.8%
Current annual income from Nedbank dividends.
If you bought ZAR2,000 of Nedbank shares you are expected to receive ZAR176 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Nedbank's pays a higher dividend yield than the bottom 25% of dividend payers in South Africa (3.3%).
  • Nedbank's dividend is above the markets top 25% of dividend payers in South Africa (8.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
JSE:NBKP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
South Africa Banks Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.9%
South Africa Market Average Dividend Yield Market Cap Weighted Average of 179 Stocks 4%
South Africa Minimum Threshold Dividend Yield 10th Percentile 1.9%
South Africa Bottom 25% Dividend Yield 25th Percentile 3.3%
South Africa Top 25% Dividend Yield 75th Percentile 8.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

JSE:NBKP Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-03-29 0.841 8.912
2019-03-05 0.841 8.986
2018-03-02 0.866 9.849
2018-03-01 0.866 10.184
2017-03-31 0.867 9.984
2017-02-28 85.780 924.401
2016-04-01 0.782 8.546
2016-03-02 0.782 8.911
2015-03-31 0.756 8.543
2015-02-23 0.756 8.382
2014-03-31 0.708 7.278
2014-02-24 0.708 7.304
2013-03-28 195.610 1,938.243
2013-02-25 0.731 6.908
2012-12-27 10.300 96.711
2012-09-14 0.713 6.541
2012-03-30 0.675 6.184
2012-02-29 0.675 6.226
2011-02-28 0.743 7.144
2011-02-25 0.743 7.137
2010-03-01 0.891 8.404
2010-02-25 0.891 8.153
2009-01-15 1.133 11.196
2008-12-31 1.133 11.255

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Nedbank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (33x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Nedbank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nedbank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nedbank has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NBKP Management

 What is the CEO of Nedbank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Thomas Brown
COMPENSATION ZAR41,075,000
AGE 52
TENURE AS CEO 9.7 years
CEO Bio

Mr. Michael William Thomas Brown, also known as Mike, BCom, Dip Acc, CA (SA), AMP, serves as the Chief Executive and Executive Director of Nedbank Corporate. Mr. Brown has been the Chief Executive Officer of Nedbank Group Limited at Old Mutual Plc since March 2010. Mr. Brown has been the Chief Executive of Nedbank Limited since March 1, 2010. He served as the Chief Financial Officer of Nedbank Group Limited from June 2004 to September 1, 2009 and its subsidiary, Nedbank Limited from June 2004 to September 1, 2009. He served as Head of Property Finance at Nedcor Ltd. He served as Deputy Managing Director of BoE Corporate and then Managing Director of the division since 1999. After working in the United States and England, he joined NBS Treasury Department in 1993. Mr. Brown then moved to BoE Corporate and was instrumental in establishing the Specialised Finance and Private Equity Divisions. He has been an Executive Director of Nedbank Group Limited since June 17, 2004. He has been an Executive Director of Nedbank Limited since June 17, 2004. He served as an Executive Director of BoE Limited since October 2001. He served as an Executive Director of Nedbank Investment Bank Ltd and Cape of Good Hope Bank Ltd. He completed his articles with Deloitte & Touche in Durban and qualified as a Chartered Accountant in 1990. Mr. Brown is a Commerce graduate of Natal University. He holds BCom, Dip Acc, CA (SA), AMP (Harvard Business School, USA).

CEO Compensation
  • Mike's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mike's remuneration is higher than average for companies of similar size in South Africa.
Management Team Tenure

Average tenure and age of the Nedbank management team in years:

4.8
Average Tenure
52
Average Age
  • The tenure for the Nedbank management team is about average.
Management Team

Mike Thomas Brown

TITLE
Chief Executive & Executive Director
COMPENSATION
ZAR41M
AGE
52
TENURE
9.7 yrs

Raisibe Morathi

TITLE
CFO & Executive Director
COMPENSATION
ZAR24M
AGE
49
TENURE
10.2 yrs

Mfundo Nkuhlu

TITLE
COO & Executive Director
COMPENSATION
ZAR25M
AGE
52
TENURE
4.8 yrs

Brian Kennedy

TITLE
Group Managing Executive of Corporate & Investment Banking
COMPENSATION
ZAR33M
AGE
58
TENURE
0.3 yrs

Fred Swanepoel

TITLE
Chief Information Officer
AGE
55
TENURE
11 yrs

Alfred Visagie

TITLE
Head of Investor Relations

Anna Isaac

TITLE
Group Chief Compliance Officer
AGE
49
TENURE
0.8 yrs

Khensani Nobanda

TITLE
Group Executive of Group Marketing & Corporate Affairs
AGE
40
TENURE
1.5 yrs

Deb Fuller

TITLE
Group Executive of Human Resources
AGE
46
TENURE
1.4 yrs

Trevor Adams

TITLE
Chief Risk Officer
AGE
56
TENURE
5.3 yrs
Board of Directors Tenure

Average tenure and age of the Nedbank board of directors in years:

4.7
Average Tenure
53.5
Average Age
  • The tenure for the Nedbank board of directors is about average.
Board of Directors

Vassi Naidoo

TITLE
Independent Non-Executive Chairman
COMPENSATION
ZAR6M
AGE
64
TENURE
4.5 yrs

Mike Thomas Brown

TITLE
Chief Executive & Executive Director
COMPENSATION
ZAR41M
AGE
52
TENURE
15.4 yrs

Raisibe Morathi

TITLE
CFO & Executive Director
COMPENSATION
ZAR24M
AGE
49
TENURE
10.2 yrs

Mfundo Nkuhlu

TITLE
COO & Executive Director
COMPENSATION
ZAR25M
AGE
52
TENURE
4.8 yrs

Mantsika Matooane

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR902K
AGE
43
TENURE
5.5 yrs

Stanley Subramoney

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR2M
AGE
60
TENURE
4.2 yrs

Errol Kruger

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR2M
AGE
62
TENURE
3.3 yrs

Hubert Brody

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
55
TENURE
2.3 yrs

Paul Makwana

TITLE
Lead Independent Director
COMPENSATION
ZAR1M
AGE
49
TENURE
0.5 yrs

Joel Netshitenzhe

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR860K
AGE
62
TENURE
9.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (ZAR) Value (ZAR)
X
Management checks
We assess Nedbank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nedbank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NBKP News

Simply Wall St News

NBKP Company Info

Description

Nedbank Limited, through its subsidiaries, provides a range of banking and financial services to individuals, small businesses, and government and public sectors. The company accepts various deposit products, including current accounts, savings accounts, call and notice deposits, fixed deposits, negotiable certificates of deposit, term deposits, and cash management deposits, as well as investment accounts. It also provides credit cards; home, vehicle, student, and personal loans; overdrafts; and financial planning and foreign exchange services. In addition, the company offers assets, life, income and credit protection, and funeral insurance; and general business, specialized, general liability, business overheads, business owner, and key person insurance, as well as direct business cover, investment services, and capital guarantees. Further, it provides a mix of listed offshore equity portfolios; investment plans; portfolio management services; corporate finance, stock broking, trading, debt advisory, and wealth management services; start-up, business growth, and short term loans, as well as structured, property finance, and asset finance solutions; financial assistance and debtor management solutions; and aircraft, carbon, export credit, global commodity, leveraged, mining, oil and gas, private equity, property, public sector, infrastructure, energy, and telecomm finance, as well as corporate lending and advances. Additionally, the company offers payment and receipts, documentary credits and collections, guarantees, trade finance, customer foreign currency accounts, and treasury services; cash management, electronic banking, trade, and custodial services; and merchant payment and support solutions. It operates in South Africa, other African countries, Europe, Asia, the United States, and internationally. The company is headquartered in Sandown, South Africa. Nedbank Limited is a subsidiary of Nedbank Group Limited.

Details
Name: Nedbank Limited
NBKP
Exchange: JSE
Founded:
ZAR3,687,770,413
386,153,970
Website: http://www.nedbank.co.za
Address: Nedbank Limited
Nedbank 135 Rivonia Campus,
135 Rivonia Road,
Sandown,
Gauteng, 2196,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE NBKP Preference Shares The Johannesburg Securities Exchange ZA ZAR 24. Dec 2002
Number of employees
Current staff
Staff numbers
30,877
Nedbank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 16:32
End of day share price update: 2019/11/14 00:00
Last earnings filing: 2019/08/06
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.