LONDON, July 30, 2002 (PRIMEZONE) -- Nedcor Ltd. ("Nedcor") (NED SJ), the South African banking group, in which Old Mutual plc ("Old Mutual") has a 53% holding, has today issued financial results for the six months ended June 30, 2002.
Pretax earnings from operations, excluding currency translation gains/losses, movements in the exceptional general risk provision, and all exceptional items, were 98 million pounds (R1 560 million), representing growth of 18% in local currency terms. Headline earnings at 96 million pounds (R1 524 million) grew by 3% in Rand terms compared to the previous year. Headline earnings per share of 630c (39.7p) rose 2% in local currency.
Total income rose 4% in local currency to 322 million pounds (R5 111 million) after charging 27 million pounds (R436 million) of exceptional currency translation losses in respect of international operating assets as the Rand recovered against major currencies during the period. Net income of 312 million pounds (R4 951 million) was struck after release of 25 million pounds (R400 million) in exceptional credit provisions established in the second half of 2001. Net after tax income at 50 million pounds (R799 million) reflects an exceptional charge for the write down and amortisation of goodwill and investments including 52 million pounds (R830 million) in respect of the Group's shareholding in Dimension Data plc, and an associated tax credit of 9 million pounds (R140 million).
Operating profit attributable to Old Mutual shareholders after tax and minority interests was 24 million pounds (R378 million). The result for Old Mutual has been impacted by a significant devaluation of the Rand between the first half of 2001 and the first half of 2002.
The full text of the Nedcor announcement is available on SENS, the JSE Securities Exchange News Service and on Old Mutual's website, www.oldmutual.com. It should be noted that in the interim accounts for Old Mutual, certain items in the Nedcor results will be treated under U.K. Generally Accepted Accounting Practice (GAAP) rather than South African GAAP used by Nedcor. There is no significant restatement impact on headline earnings.
Old Mutual will release its preliminary results on August 12, 2002.
Commenting on Nedcor's results, Julian Roberts, Finance Director of Old Mutual said: "Nedcor has once again shown its resilience in producing good core operating earnings in difficult market conditions. In the second half Nedcor will begin the process of integrating the business of the recently acquired BOE which will provide an enhanced platform for taking the two businesses forward."
*Exchange rate: R15.87996 : 1 Pounds