Nedbank expected to merge corporate and capital units

In Nedbank's second shake-up in fewer than six months, following the resignation of the highly rated Ingrid Johnson, speculation is that Nedbank's capital and corporate divisions will merge.

Brian Kennedy, head of Nedbank Capital for 11 years and one of the bank's longest-serving executives, has been tipped to lead the merged entity.

This appointment could be his reward for delivering a 17% increase in headline earnings for the unit, although some view it as the continuation of BOE domination at the bank.

Nedbank merged with BOE in 2002.

In the past financial year, Kennedy's unit delivered 29.4% return on equity from 25.4% in the previous year. Profit rose 39% to R963-million from R693-million.

Sources close to the bank said this week that Nedbank Corporate would fold into Nebank Capital under Kennedy when Mfundo Nkuhlu stepped down next year as unit head. Nkuhlu would take up his new post as group chief operating officer, replacing Graham Dempster, who would be retiring.

An announcement on Kennedy's expanded role is expected this month.

The bank said this week it was still busy reviewing its wholesale business model. "[We] will be in a position to share more once it's finalised," said Esme Arendse, the group's communications executive.

Johnson, the former head of retail banking, was seconded to Nedbank's parent, Old Mutual, in the UK . She was replaced by Phillip Wessels, formerly chief risk officer.