Old Mutual's Nedbank to suffer from South African turmoilStaff Writer | May 18, 2017
Old Mutual said Thursday its majority-owned subsidiary Nedbank Group Ltd will face challenges in 2017 due to political and macro-economic issues in South Africa.
Banking "...it will now be more challenging"
South Africa's President Jacob Zuma has faced protests amid a string of corruption scandals. Zuma also sacked his popular finance minister Pravin Gordhan in late March, prompting two credit ratings agencies to downgrade South Africa.
"We anticipate... it will now be more challenging to achieve the full 2017 year guidance provided at the time of the release of our 2016 annual results," said Nedbank.
In its full-year results for 2016, released in February, Nedbank had said its performance guidance for 2017 was for growth in diluted headline earnings per share "to be greater than the consumer price index plus GDP growth". ■