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long-term view hasn't changed on this one, banks are getting squeezed by rate cycle but NED's got decent deposit franchise and their net interest margin held up better than most through the hikes, rand weakness is masking the real story which is just waiting for inflation to come down so rates can follow, i'll keep holding as long as it takes
Finally some momentum on NED
@jse_tttrading yeah rand weakness helping too
rates staying sticky means net interest margins compress even if they're wide now, thats the real problem for the banks. ncd and household debt already under pressure so lending growth slows. long-term view hasn't changed but you're right, the headroom isnt what it looked like 18 months ago when rates were still climbing. absa and firstrand showing the same squeeze so its not unique to ned but doesnt make it less real.
@jse_tttrading how much headroom do they really have if rates stay higher for longer though?
NED holding up decent given the rand's been under pressure and rates staying sticky. balance sheet is solid compared to the other big banks, and net interest margin still fat enough to weather this. long-term view hasn't changed, these financials are cheap on a yield basis if you can stomach the macro noise.
NED holding up ok given the rand weakness and rate cycle we're in. Net interest margin still decent relative to the majors, and their corporate book's been resilient even with load-shedding hitting some clients. Long-term view hasn't changed, just watching if they can keep deposit costs down as the SARB finally pauses. R275.75 isn't a screaming bargain but not panic territory either.
Pulled the latest results, net interest margin holding up decent given the rate environment
NED catching a bit of momentum today, up 2.9% which is decent but nothing to write home about. The real question is whether this sticks or if we're just seeing a relief bounce - the fundamentals haven't changed much so I'm watching the volume to see if there's real conviction behind this move.
@jse_tttrading deposits the real story here imo
@jse_tttrading but how long before rate cuts change the picture though
@jse_tttrading impairments the real watch tbh
Pulled the latest results, nim compression real but deposits holding strong
R268.00 holding, nim doing work today
@jse_tttrading yep, nim holding up well tbh
Loan impairments staying reasonable even with load-shedding hitting small business hard. Credit quality holding.