Nedbank Group, the majority-owned South African banking subsidiary of Old Mutual, said today its “headline earnings” rose 1.7.5 per cent year-on-year to R4.599 billion in the six months to 30 June.

Nedbank Group, the majority-owned South African banking subsidiary of Old Mutual, said today its “headline earnings” rose 1.7.5 per cent year-on-year to R4.599 billion in the six months to 30 June, driven by strong net interest income and a drop in impairments.

Within its Nedbank Wealth segment, the firm logged headline earnings of R464 million ($43.5 million), a rise of 10.2 per cent from the same six-month period a year before.

“Growth in Nedbank Wealth's headline earnings was driven by strong earnings growth in wealth management and asset management, offset by a slowdown in retail volumes, lower credit life pricing and higher weather-related short-term insurance claims,” it said in its statement.

Diluted headline earnings per share rose by increased 16.1 per cent to 965 cents per share, year-on-year.

The group generated economic profit of R833 million, up 11.2 per cent, shrugging off the increased cost of equity of 13.5 per cent.

Nedbank Group had a Basel III common-equity tier 1 ratio at 12.1 per cent (December 2013: 12.l5 per cent).