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NEDBANK GROUP LTDNEDBANK GROUP LTDNEDBANK GROUP LTD

NEDBANK GROUP LTD

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NED trade ideas

Our opinion on the current state of NEDBANK(NED)Nedbank (NED) is the smallest of South Africa's five big banks with a client base of just over 8 million. It has (10-10-18) separated from Old Mutual (which is busy selling its remaining stake). In its results for the year to 31st December 2023, the company reported revenue up 11% and headline earnings up by 11%. The company said, "In 2023 we further increased DHEPS to 3 199 cents, up 14% yoy, and we maintained our #1 NPS ranking among South African banks. Growth trends across average interest-earning banking assets (AIEBA) (+7%), net interest income (NII) (+14%), non-interest revenue (NIR) (+6%) and associate income (+64%) remained robust. Levels of productivity improved, evident in our cost-to-income ratio declining to 53.9% from 55.8% in 2022." At current levels, it is on a P:E of 6.9 with a dividend yield (DY) of 6.63% and looks like good value. In an update on the first 4 months to 30th April 2024, the company said, "The financial performance of the group in the first four months to 30 April 2024 compared to the first four months to 30 April 2023 ('the prior period') reflects headline earnings growth of around mid-single digits, supported by strong growth in Retail and Business Banking (RBB), albeit off a low base, and solid growth in Corporate and Investment Banking (CIB), partially offset by a decline in headline earnings in Nedbank Wealth and Nedbank African Regions (NAR)." Nedbank is extremely well-capitalised and is making good progress in managing costs and implementing technical improvements. The company is clearly benefiting from higher interest rates. Overall, we view this share as being a solid blue chip which is undervalued at current prices. Nedbank's share peaked at 31300 in March 2018 at the height of Ramaphoria. The share's price fell to 7320c in March 2020 and is now recovering from these levels in a steady upward trend which we expect to continue. On 22nd November 2023, the company announced that Jason Quinn would take over from Mike Brown as chief executive with effect from 31st May 2024.
JSE:NED
by PDSnetSA
Our opinion on the current state of NEDNedbank, recognized as the smallest of South Africa's five major banking institutions, boasts a client base exceeding 8 million individuals. Following its separation from Old Mutual on 10th October 2018, which included the latter selling its remaining stake, Nedbank has continued to carve out a distinct identity in the banking sector. For the fiscal year ending 31st December 2023, Nedbank reported a commendable 11% increase in both revenue and headline earnings, highlighting its financial resilience and growth trajectory. In 2023, Nedbank demonstrated strong financial performance, with an increase in diluted headline earnings per share (DHEPS) by 14% year-over-year to 3,199 cents. The bank has successfully maintained its top Net Promoter Score (NPS) ranking among South African banks, reflecting its commitment to customer satisfaction. The growth trends observed across various financial metrics such as average interest-earning banking assets (AIEBA), which increased by 7%, net interest income (NII) by 14%, non-interest revenue (NIR) by 6%, and associate income by a remarkable 64%, underscore the robustness of Nedbank's operations. Additionally, improvements in productivity are evident through a reduction in the cost-to-income ratio to 53.9% from 55.8% in 2022, indicating efficient management and operational optimization. Currently, with a price-to-earnings (P:E) ratio of 6.76 and a dividend yield (DY) of 6.77%, Nedbank presents itself as a value proposition for investors. The bank's strong capitalization and progressive strides in cost management and technological advancements further bolster its market position. The positive impact of higher interest rates on the bank's performance suggests that Nedbank is well-positioned to capitalize on the prevailing economic environment. Nedbank's share price journey reflects its market resilience and growth potential. From reaching a peak of 31,300c in March 2018, buoyed by "Ramaphoria," to a decline to 7,320c in March 2020 amidst global uncertainties, the bank's shares have since embarked on a steady recovery. This recovery trajectory, coupled with the appointment of Jason Quinn as the new chief executive effective from 31st May 2024, taking over from Mike Brown, points towards a promising future for the bank. Given the confluence of strong financial performance, strategic leadership changes, and a favorable market position, Nedbank is viewed as a solid blue-chip investment that is currently undervalued at its present price. Investors looking for stable returns and growth potential in the South African banking sector might find Nedbank an attractive option, especially considering its ongoing recovery and strategic initiatives aimed at sustaining growth and enhancing shareholder value.
JSE:NED
by PDSnetSA
NED MonthlyA chart from today's research. For more research insights, including trade ideas, get in touch today. Wednesday 25-October-2023, 10h20 Nedbank Group (NED, 19730c). Monthly Chart. The R200 level is one which I have highlighted in recent months as one to monitor for downside risk. This is a range that been supported by buyers for 19 months and is currently being breached. While this is well-known to market participants who keep a close eye on the share, the following additional points could provide further insight: (1) The 14-month RSI has shifted to below the 50 level. During previous cycles, crossed below the 50 level has been a negative technical development. At current levels, the 14-month RSI is at 47 (how will it close for the month? Let's monitor it.) (2) The MACD has developed a bearish cross with both the MACD 'Line' and 'Signal' gradually starting to turn lower. In the short term, oversold conditions may develop, opening up opportunities to buy for tactical rallies, however, market participants should keep the long term structure (monthly chart) in mind.
JSE:NED
by techpers
NED View #1 (Short Term)Published this morning on our client platform. For more research insights, including trade ideas, get in touch today. Tuesday 19-Sep-2023, 08h14 Nedbank (NED, 20107c). Technical views on both the short term and long term time frames. View #1 (Short Term): At yesterday's close of trade, the Tactical Trading Guide for the share stated the following for the SHORT TERM time frame: "Reward-to-risk becoming attractive for a buy/long position" while the MEDIUM TERM time frame stated: "Aggressive Selling. Wait for the lower time frames (1H, 2H, 4H) to stabilize". Considering the momentum readings, the short term price trend ranks as oversold while the medium term price trend ranks as high bearish momentum/approaching oversold. Incorporating the 'distance' vs the 50/100-EMA, I've noticed a bullish divergence which often signals a pending reversal. The current pivot is yesterday's low of 20020c. As a risk management measure, I would like to see today's candle confirm that the aggressive selling is starting to slow down which will support the aforementioned readings. Preferably, a 'doji', 'long lower tail', 'bullish engulfing' could be developed which could be an early indication of some buying activity.
JSE:NED
by techpers
JSE's Nedbank Group gearing up to reach for R316.50 ~ R359.00?JSE:NED has been caught in a bullish flag consolidation since March 2022. Considering the most recent price action, the instrument closed strongly bearish approaching the support at R200.00 Scenario 1 (Probable): On the downward break of the support at R200.00, price will continue further consolidation towards R176.60 until March 2024 where it is expected to find support to reach higher towards R316.50 and most likely R359.00. Scenario 2 (Possible): Price finds support at the R200.00 level, holds well above it and starts its upward journey to the target levels.
JSE:NED
by Source_Sailor
UPDATE Nedbank heading nicely up to R238.56UPDATE from last time. I thought we would get a bit of a pull back before the upside push, but I was mistaken. Regardless, the price was expected to move up and up it is going. This W Formation that formed and broke out gave a decent Risk to reward 1:2. And At this point where the R:R =1 it's even safe to bank half profits and move stop loss to breakeven. 7>21 RSI>50 Target remains at R238.56 ABOUT THE COMPANY ~ Nedbank Group Limited, commonly known as Nedbank, is one of the largest banking groups in South Africa. (Part of the Big Five!) ~ The company was established in 1888 and is headquartered in Johannesburg, South Africa. ~ Nedbank is a subsidiary of Old Mutual Limited, a financial services conglomerate. ~ The bank operates in various segments, including Retail and Business Banking, Corporate and Investment Banking, and Wealth Management. ~ Nedbank offers a wide range of financial products and services, including personal and business banking, loans, mortgages, investments, insurance, and asset management. ~ The company has a significant presence in South Africa, with a network of branches and ATMs across the country. ~ Nedbank has also expanded its operations internationally and has representative offices in several African countries, as well as operations in other regions such as the United Kingdom. HOW NEDBANK GOT ITS NAME Nedbank's name is derived from its historical roots. When the bank was established in 1888, it was originally known as the Nederlandsche Bank en Credietvereeniging voor Zuid-Afrika (Dutch Bank and Credit Union for South Africa). Over time, the name was shortened to Nederlandsche Bank voor Zuid-Afrika (Dutch Bank for South Africa) and eventually to Nedbank. The name "Nedbank" reflects the bank's Dutch heritage and its focus on providing banking services in South Africa.
JSE:NEDLong
by Timonrosso