Nedbank
The numbers speak for themselves. Nedbank, South Africa’s fourth largest bank, has been turned around. After plunging to a R1.3bn ($180m) loss in 2003, the group reported a R4.3bn profit in 2005.
The group’s weaknesses have been attacked on many fronts. For one, the strategic focus is back on banking, abandoning a flaky vision to be a global supplier of middle and back-office banking solutions and resulting in the disposal of non-core assets that has yielded more than R4bn. In the process, the group has been substantially restructured, with emphasis returning to the customer. In short, it has been back to the business of banking, stemming losses to market share and improving internal processes and systems, information systems, capital management, and branding.
“The group has undergone a major turnaround in the past two years, with significantly improved earnings and financial ratios, and substantial shareholder value being rebuilt. However, our results alone do not yet reflect the sheer amount of work that has been done in turning the bank around,” says group chief executive Tom Boardman.
“Our increasingly outward focus continues to boost financial performance. By constantly improving client service and investing for the future, we are confident of delivering on our commitments to shareholders, clients and staff.”
