Nedbank to spend on branches, ATMs
Nedbank said last week it was looking to spend R1bn over the next three years to expand its footprint.
Since 2009, Nedbank has spent about R1.5bn on automated teller machines (ATMs), kiosks and branches.
Nedbank CEO Mike Brown said the R1bn earmarked for the next three years would be spent on a combination of branches, retailer points of presence and ATMs.
This means that from 2009 to 2015 Nedbank would have spent R2.5bn on expanding its footprint.
Brown could not disclose the breakdown and the areas in which these branches, ATMs and kiosks would be deployed for competitive reasons.
"We have identified 30 growth nodes and we will focus on those," Brown said.
Nedbank has been trying to shed its perceived elitist image by attracting a broader customer base, including the low-income segment. Based on this, the bank could be looking to invest further in areas where it is underrepresented.
Through initiatives such as the Nedbank Cup sponsorship and Ke Yona product offering the banking group has made inroads in attracting a broader customer base.
As at the end of June, Nedbank had 536 branches, 176 banking outlets, including kiosks, 365 personal loan kiosks and 2,716 ATMs.
Nedbank is relatively underrepresented in terms of ATMs and branches when compared to Standard Bank, Absa and First National Bank (FNB).
In the period to end-June, FNB had 4,969 ATMs compared to 5,360 last year, and about 775 representation points, which includes branches.
Standard Bank had 587 branches, 74 loan centres, 9,070 access points, 7,200 ATMs, and 41 extended-hour outlets.
Absa had about 849 outlets, 5,971 Absa ATMs, 3,252 non-Absa-owned ATMs, and 706 subsidiary outlets and ATMs, the group's interim results to June show.
Absa is the largest bank by customers in SA with more than 11-million retail clients, followed by Standard Bank with about 9-million, FNB with about 7.5-million and Nedbank with about 5.6-million,
However, although Nedbank has the lowest retail customer base among the big four, it grew its headline earnings by 25.1% competing only with FirstRand, which grew normalised earnings by 26% in the period to end-June.
Source: Business Day
Source: I-Net Bridge
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