Nedbank Private Wealth has announced strong growth in new business flows and profits, for the financial year ending 2016.
The Old Mutual-backed investment platform and wealth management specialists, said that growth in profit after tax was up 52% on the prior year in its wealth division, although this was distorted by what the company called a “one-off extraordinary item” in 2016. Nevertheless, when this is factored out, the underlying business growth still exceeded 20% for the third consecutive year, Nedbank said in a statement announcing the figures.
Excluding the extraordinary item which was due to a one-off Visa windfall payment following the merger in 2016 of Visa Europe and USA based Visa Inc., income was up over 16% as a result of steady growth in lending and strong flows in deposits, assets under management and assets under administration, the company said.
This has created a year-on-year increase of 15% on Nedbank Private Wealth’s fully integrated wealth management platform “Focus”, which now houses client wealth totalling £3.36bn as at the December 2016 financial year end.
On a consolidated basis, including its trust division, Nedbank posted a 12.9% return on capital.
Greg Horton, pictured left, executive head Nedbank Private Wealth – International, said that company’s principal aim has “remained unchanged in over two decades” and that he anticipates “further solid growth” during 2017, pointing to Nedbanks variety of geographical locations, all of which are now “highly profitable in their own right”.
“We are prioritising our technology solutions and over the next four years, we have an exciting programme of releases that will see our Focus service transition into a full multi-channel and omni-channel solution for our private clients and professional intermediaries,” said Horton.