Nedbank Corporate Property Finance reports sterling headline earnings 13.9% growth

Grant Rothman, Head of Finance at Nedbank Corporate Property Finance comments, “We continue to support activity in the marketplace, and pay constant attention to the quality of the assets we originate”

Nedbank Corporate Property Finance (NCPF) has attributed a strong 13.9% growth in headline earnings in the year to December 2012, compared to the year before, thanks to its selective growth strategy.

Nedbank Corporate, which has the largest market share of the commercial property finance business in South Africa, has experienced strong growth in loan demand from existing and new clients and this trend is expected to grow in 2013 despite challenging economic conditions.

“We continue to support activity in the marketplace, and pay constant attention to the quality of the assets we originate” says Grant Rothman, Head of Finance at NCPF.

Rothman says during the year to December 2012, NCPF increased its overall market share to 30.8%, which is the highest it has ever achieved, consolidating its position as the number one commercial property financier in the South African market. The division approved and paid out new loans of R14bn, and also paid out additional funds in respect of existing facilities of R18bn.

“This is a very pleasing result given the current market conditions and is in part the result of a considered and cautious strategy around origination when the market was more buoyant four years ago,” he says.

Rothman comments on the favourable decline in arrears, as well as the improvement in the levels of defaulted advances. This has resulted in a year on year reduction in the credit loss ratio (CLR) from 2011 to2012.He attributes the improving arrears and expected downward trend in the credit loss ratio to efforts by NCPF to pro-actively assist distressed clients..

“This will continue to remain a key focus area of the Division, seeking to enhance operational efficiency and service to our clients, without added costs,” Rothman says.

“I can equate running a business such as NCPF to running the marathon. The reality is it is not a sprint, rather a lengthy journey where a true measure of success is the ability to develop a long term sustainable business that is consistent year after year,” Rothman says.

“Consistency of performance is key to assuming a leadership position both within the bank and with our clients, and is the cornerstone of client success,” he says.