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Nedbank Group

JSE:NED
Snowflake Description

Adequate balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NED
JSE
ZAR113B
Market Cap
  1. Home
  2. ZA
  3. Banks
Company description

Nedbank Group Limited, through its subsidiary, Nedbank Limited, provides various wholesale and retail banking services in South Africa and internationally. The last earnings update was 101 days ago. More info.


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NED Share Price and Events
7 Day Returns
-2.9%
JSE:NED
-1.8%
ZA Banks
-1%
ZA Market
1 Year Returns
-10%
JSE:NED
6.6%
ZA Banks
-2%
ZA Market
NED Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nedbank Group (NED) -2.9% -1.9% 8.3% -10% 2.5% -3.6%
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
  • NED underperformed the Banks industry which returned 6.6% over the past year.
  • NED underperformed the Market in South Africa which returned -2% over the past year.
Price Volatility
NED
Industry
5yr Volatility vs Market

Value

 Is Nedbank Group 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 Group 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 Group.

JSE:NED Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 6 analysts.
= Stable Book Value * Return on Equity
= ZAR198.60 * 16.2%
ZAR32.27
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. ZAR198.60
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:NED
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%) (106.7%))
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:NED using Excess Returns Model Model

The calculations below outline how an intrinsic value for Nedbank Group 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:NED Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (16.2% – 10.28%) * ZAR198.60)
ZAR11.85
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ZAR11.85 / (10.28% - 2.73%)
ZAR157.04
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ZAR198.60 + ZAR157.04
ZAR355.64
JSE:NED Discount to Share Price
Calculation Result
Value per share (ZAR) From above. ZAR355.64
Current discount Discount to share price of ZAR235.50
= -1 x (ZAR235.50 - ZAR355.64) / ZAR355.64
33.8%

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

Current Discount
Amount off the current price Nedbank Group is available for.
Intrinsic value
34%
Share price is ZAR235.5 vs Future cash flow value of ZAR355.64
Current Discount Checks
For Nedbank Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Nedbank Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Nedbank Group's share price is below the future cash flow value, but not 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 Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nedbank Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
JSE:NED PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in ZAR ZAR28.08
JSE:NED Share Price ** JSE (2019-11-14) in ZAR ZAR235.5
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 Group.

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

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

= 235.5 ÷ 28.08

8.39x

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

  • Nedbank Group is good value based on earnings compared to the ZA Banks industry average.
  • Nedbank Group is good value based on earnings compared to the South Africa market.
Price based on expected Growth
Does Nedbank Group's expected growth come at a high price?
Raw Data
JSE:NED PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
7.4%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 .

JSE:NED PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.39x ÷ 7.4%

1.13x

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

  • Nedbank Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Nedbank Group's assets?
Raw Data
JSE:NED PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in ZAR ZAR177.95
JSE:NED Share Price * JSE (2019-11-14) in ZAR ZAR235.5
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:NED PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 235.5 ÷ 177.95

1.32x

* Primary Listing of Nedbank Group.

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

  • Nedbank Group is overvalued based on assets compared to the ZA Banks industry average.
X
Value checks
We assess Nedbank Group'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 Group has a total score of 3/6, 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.

Future Performance

 How is Nedbank Group expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

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
7.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nedbank Group expected to grow at an attractive rate?
  • Nedbank Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Nedbank Group's earnings growth is positive but not above the South Africa market average.
  • Nedbank Group's revenue growth is positive but not above the South Africa market average.
Annual Growth Rates Comparison
Raw Data
JSE:NED Future Growth Rates Data Sources
Data Point Source Value (per year)
JSE:NED Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 7.4%
JSE:NED Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 7.8%
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:NED Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
JSE:NED Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 66,455 16,297 8
2020-12-31 61,791 14,771 7
2019-12-31 57,836 14,133 7
2019-11-15
JSE:NED Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-06-30 51,792 -38,251 13,512
2019-03-31 51,435 -41,335 13,444
2018-12-31 51,078 -44,419 13,376
2018-09-30 50,088 -23,603 13,206
2018-06-30 49,098 -2,786 13,035
2018-03-31 48,710 -4,807 12,328
2017-12-31 48,322 -6,828 11,621
2017-09-30 47,059 -17,721 10,778
2017-06-30 45,796 -28,613 9,934
2017-03-31 45,076 -30,008 10,033
2016-12-31 44,356 -31,402 10,132
2016-09-30 43,784 -57,170 10,484

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nedbank Group's earnings are expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
  • Nedbank Group's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
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:NED 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 9 Analyst Estimates (S&P Global) See Below

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

JSE:NED Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 32.75 33.76 32.02 5.00
2020-12-31 29.80 30.53 29.10 5.00
2019-12-31 28.31 28.68 27.79 3.00
2019-11-15
JSE:NED Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-06-30 28.08
2019-03-31 27.88
2018-12-31 27.68
2018-09-30 27.36
2018-06-30 27.03
2018-03-31 25.61
2017-12-31 24.17
2017-09-30 22.47
2017-06-30 20.75
2017-03-31 20.98
2016-12-31 21.21
2016-09-30 21.96

*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.
  • Nedbank Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Nedbank Group'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 Group 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.

Past Performance

  How has Nedbank Group 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 Group'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 Group's year on year earnings growth rate has been positive over the past 5 years.
  • Nedbank Group's 1-year earnings growth is less than its 5-year average (3.7% vs 7.1%)
  • Nedbank Group's earnings growth has not exceeded the ZA Banks industry average in the past year (3.7% vs 4.7%).
Earnings and Revenue History
Nedbank Group'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 Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:NED 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 51,792.00 13,512.00 3,051.00
2019-03-31 51,435.00 13,444.00 3,294.00
2018-12-31 51,078.00 13,376.00 3,537.00
2018-09-30 50,088.00 13,205.50 3,551.50
2018-06-30 49,098.00 13,035.00 4,897.00
2018-03-31 48,710.00 12,328.00 4,231.50
2017-12-31 48,322.00 11,621.00 3,566.00
2017-09-30 47,059.00 10,777.50 3,553.00
2017-06-30 45,796.00 9,934.00 3,540.00
2017-03-31 45,076.00 10,033.00 3,540.00
2016-12-31 44,356.00 10,132.00 3,540.00
2016-09-30 43,783.50 10,483.50 2,803.50
2016-06-30 43,211.00 10,835.00 2,067.00
2016-03-31 42,016.00 10,778.00 2,618.00
2015-12-31 40,821.00 10,721.00 3,169.00
2015-09-30 40,501.00 10,623.50 3,340.50
2015-06-30 40,181.00 10,526.00 3,512.00
2015-03-31 39,474.00 10,161.00 2,961.00
2014-12-31 38,767.00 9,796.00 2,410.00
2014-09-30 37,840.50 9,560.50 2,326.50
2014-06-30 36,914.00 9,325.00 2,243.00
2014-03-31 35,965.00 8,981.00 2,243.00
2013-12-31 35,016.00 8,637.00 2,243.00
2013-09-30 34,038.00 8,256.50 2,439.50
2013-06-30 33,060.00 7,876.00 2,636.00
2013-03-31 32,424.00 7,662.50 2,636.00
2012-12-31 31,788.00 7,449.00 2,636.00

*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 Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Nedbank Group used its assets more efficiently than the ZA Banks industry average last year based on Return on Assets.
  • Unable to establish if Nedbank Group 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 Group'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 Group has a total score of 2/6, 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.

Health

 How is Nedbank Group'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 Group'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 Group Company Filings, last reported 4 months ago.

JSE:NED Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 94,637.00 117,459.00 46,737.00
2019-03-31 94,637.00 117,459.00 46,737.00
2018-12-31 91,271.00 97,467.00 50,807.00
2018-09-30 91,271.00 97,467.00 50,807.00
2018-06-30 88,962.00 79,074.00 39,280.00
2018-03-31 88,962.00 79,074.00 39,280.00
2017-12-31 88,539.00 99,748.00 69,011.00
2017-09-30 88,539.00 99,748.00 69,011.00
2017-06-30 84,659.00 68,949.00 38,041.00
2017-03-31 84,659.00 68,949.00 38,041.00
2016-12-31 81,711.00 84,774.00 64,211.00
2016-09-30 81,711.00 84,774.00 64,211.00
2016-06-30 80,886.00 96,869.00 61,897.00
2016-03-31 80,886.00 96,869.00 61,897.00
2015-12-31 78,751.00 94,141.00 77,641.00
2015-09-30 78,751.00 94,141.00 77,641.00
2015-06-30 72,574.00 60,246.00 43,624.00
2015-03-31 72,574.00 60,246.00 43,624.00
2014-12-31 70,911.00 63,769.00 47,203.00
2014-09-30 70,911.00 63,769.00 47,203.00
2014-06-30 67,078.00 50,949.00 27,080.00
2014-03-31 67,078.00 50,949.00 27,080.00
2013-12-31 64,336.00 62,106.00 60,028.00
2013-09-30 64,336.00 62,106.00 60,028.00
2013-06-30 59,817.00 43,256.00 29,788.00
2013-03-31 59,817.00 43,256.00 29,788.00
2012-12-31 57,375.00 60,313.00 52,595.00
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 Group has an acceptable proportion of non-loan assets held.
  • Nedbank Group's liabilities are made up of primarily low risk sources of funding.
  • Loans at Nedbank Group are broadly funded by customer deposits.
  • Nedbank Group's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Nedbank Group has a low allowance for bad loans.
  • Nedbank Group has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Nedbank Group'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 Group 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.

Dividends

 What is Nedbank Group'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
6.11%
Current annual income from Nedbank Group dividends. Estimated to be 6.75% next year.
If you bought ZAR2,000 of Nedbank Group shares you are expected to receive ZAR122 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 Group's pays a higher dividend yield than the bottom 25% of dividend payers in South Africa (3.3%).
  • Nedbank Group's dividend is below 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:NED 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 9 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:NED Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 17.35 10.00
2020-12-31 15.72 11.00
2019-12-31 14.64 10.00
2019-11-15
JSE:NED Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-08-06 14.400 6.248
2019-03-05 14.400 5.610
2019-03-04 14.400 5.300
2018-03-02 12.850 4.744
2017-02-28 12.600 5.527
2017-02-27 12.600 5.148
2016-03-02 11.070 5.367
2015-02-23 10.280 4.626
2014-02-24 8.950 3.869
2013-08-07 8.020 3.962
2013-02-27 8.240 4.538
2012-02-29 6.050 3.396
2011-02-28 4.800 3.369
2010-02-25 4.400 3.312
2009-01-15 6.200 6.076
2008-12-31 6.200 6.358

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 increased over the past 10 years.
Current Payout to shareholders
What portion of Nedbank Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Nedbank Group'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 Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nedbank Group has a total score of 4/6, see the detailed checks below.


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

Management

 What is the CEO of Nedbank Group'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 ZAR36,425,000
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 lower than average for companies of similar size in South Africa.
Management Team Tenure

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

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

Mike Thomas Brown

TITLE
Chief Executive & Executive Director
COMPENSATION
ZAR36M
AGE
52
TENURE
9.7 yrs

Raisibe Morathi

TITLE
CFO & Executive Director
COMPENSATION
ZAR22M
AGE
49
TENURE
10.2 yrs

Mfundo Nkuhlu

TITLE
COO & Executive Director
COMPENSATION
ZAR23M
AGE
52
TENURE
4.8 yrs

Brian Kennedy

TITLE
Group Managing Executive of Nedbank Corporate & Investment Banking
COMPENSATION
ZAR30M
AGE
58
TENURE
4.8 yrs

Fred Swanepoel

TITLE
Chief Information Officer
AGE
55

Alfred Visagie

TITLE
Executive Head of Investor Relations

Anna Isaac

TITLE
Group Chief Compliance Officer
AGE
49
TENURE
0.8 yrs

Khensani Nobanda

TITLE
Group Executive for Group Marketing & Corporate Affairs
AGE
40
TENURE
2.2 yrs

Deb Fuller

TITLE
Group Executive for 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 Group board of directors in years:

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

Vassi Naidoo

TITLE
Independent Non-Executive Chairman
COMPENSATION
ZAR5M
AGE
64
TENURE
4.5 yrs

Mike Thomas Brown

TITLE
Chief Executive & Executive Director
COMPENSATION
ZAR36M
AGE
52
TENURE
15.4 yrs

Raisibe Morathi

TITLE
CFO & Executive Director
COMPENSATION
ZAR22M
AGE
49
TENURE
10.2 yrs

Mfundo Nkuhlu

TITLE
COO & Executive Director
COMPENSATION
ZAR23M
AGE
52
TENURE
4.8 yrs

Mantsika Matooane

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR826K
AGE
43
TENURE
5.5 yrs

Stanley Subramoney

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
60
TENURE
4.2 yrs

Errol Kruger

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
62
TENURE
3.3 yrs

Hubert Brody

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR562K
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
ZAR791K
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 Group'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 Group 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.

News

Simply Wall St News

Company Info

Description

Nedbank Group Limited, through its subsidiary, Nedbank Limited, provides various wholesale and retail banking services in South Africa and internationally. It offers personal banking solutions, including savings deposits and investment accounts; home and personal loans, student loans, vehicle finance products, private wealth finance solutions, overdrafts, and credit cards; and investment plans and services, financial and estate planning services, and wills and trust services, as well as professional banking, wealth management, non-resident and embassy banking, insurance, stock broking, and foreign exchange services. The company also provides business banking services, such as business and tender accounts; call, fixed, and flexi deposits; loans and structured solutions; property, asset, and vehicle finance products; value added services; card and cash solutions; treasury solutions; cash management, electronic banking, and merchant payment and support services; life, asset, income and credit protection, funeral, business cover, liability cover, revenue cover, and owners’ insurance products; asset management services; and commodities, equities, fixed income, and structured credit products. In addition, the company offers corporate banking services comprising aircraft, asset based, carbon, export credit, global commodity, infrastructure, energy, telecoms, leveraged, mining, oil and gas, private equity, and public sector finance; payments and receipts, documentary credits and collections, guarantees, and trade finance; structured solutions; corporate lending and advances, and specialized distribution products; custodial services; corporate finance and debt advisory services; beta solutions; and corporate and institutional investments. Further, it provides transactional banking services. The company was formerly known as Nedcor Limited and changed its name to Nedbank Group Limited in 2005. The company was founded in 1831 and is headquartered in Johannesburg, South Africa.

Details
Name: Nedbank Group Limited
NED
Exchange: JSE
Founded: 1831
ZAR113,275,407,448
480,999,607
Website: http://www.nedbank.co.za
Address: Nedbank Group Limited
Nedbank 135 Rivonia Campus,
135 Rivonia Road,
Johannesburg,
Gauteng, 2196,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE NED Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 02. Jan 1992
OTCPK NDBK.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB NCO Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
NMSE NBK Ordinary Shares Namibian Stock Exchange NA ZAR 02. Jan 1992
OTCPK NDBK.Y SPONSORED ADR Pink Sheets LLC US USD 08. Dec 1995
Number of employees
Current staff
Staff numbers
30,335
Nedbank Group employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 16:30
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/11/05
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.