South Africa’s Nedbank beat expectations with a nine percent increase in annual profit, helped by a fall in bad debts, and said it expected further growth in the coming year. South Africa’s fourth-largest bank, like its rivals, was lacerated by bad debts in 2009, after a recession slashed more than a million jobs and left many consumers with ballooning household debt. Faced with weak loan demand, South African banks are increasingly looking to cut costs and boost non-interest revenue, such as fees and commissions. “What was encouraging was non-interest revenue again. They keep on saying it and they keep on doing it. They definitely are improving that area and that’s the area that lagged the most against the other banks,” said Rob Nagel, senior portfolio manager at Cadiz Asset Management. “The other part that impressed us was the cost control. It is a difficult environment to control costs and they somehow managed to do that as well.” Nedbank rival Standard Bank last year cut more than 2,000 jobs in London and Johannesburg, to offset weaker revenue. Nedbank Chief Executive Mike Brown told Reuters he did not expect to follow suit. The bank will also focus on keeping cost growth below the rate of growth of non-interest revenue, he said. Retail unitNedbank, majority owned by insurer Old Mutual, has also been focused on righting its retail unit, which has been hit by a flood of bad mortgages. The unit returned to profit in 2010 after a loss a year earlier. Nedbank, […]

While crafting the accolade of Company of the Decade, it has become the opinion of the World Finance editorial team that – more than any other time in the past hundred years – the preceding 10 years has been the time for businesses to shine. During its highs and lows, the global economy of the past 10 years has shown favour to those who have adhered to conservative strategies, and crushed those who have been reckless. This most recent depression has left few unaffected, and the companies that have come through it face an increasingly competitive business environment. No one has been safe from the changes that have occurred, no matter their status or longevity. Exemplified by Lehman Brothers, global banking institutions have been brought to their knees through a combination of unscrupulous lending and poor investments. Those that have survived unscathed are those that have stuck fast to a sustainable model of investment, taking only moderate risks. The decade has also been one of awakenings. The terrible events of 2001’s terrorist attacks in New York fundamentally shaped the state of play of world politics. As an event it opened the eyes of all people to the accessible and yet exposed nature of the modern world – and how our political actions can have consequences far beyond our expectations. If anything has been learned from this in the corporate world, it is that it is no longer acceptable for companies to retreat into their own fields, ignorant of the wider […]

Peruvians are very proud of one important fact: the country is growing and World Bank figures prove it. 2011 will be remembered as the year the Peruvian economy grew nine percent, an incredible rate representing the highest individual economic growth in Latin America and indeed the world. Peru’s economic success is based in no small part on a clear legal framework allowing any individual or legal entity an easy entry into the market, as well as an orderly and relatively quick exit from it should financial problems arise. Insolvency – governing lawInsolvency matters in Peru are governed generally by the Bankruptcy Law (Ley General del Sistema Concursal). Other bodies of law, such as the General Companies Law (Ley General de Sociedades), complement the Bankruptcy Law and have subsidiary application. Jurisdiction Under the Bankruptcy Law, all insolvency matters fall initially within the administrative jurisdiction of the Bankruptcy Commission (Comisión de Procedimientos Concursales), which is one of seven specialised commissions of Peru’s National Institute for the Defence of Competition and the Protection of Intellectual Property (INDECOPI). Decisions issued by the Bankruptcy Commission can be appealed to INDECOPI’s Administrative Tribunal (Tribunal de Defensa de la Competencia y de la Propiedad Intelectual). The Tribunal’s decisions exhaust INDECOPI’s administrative jurisdiction. Decisions issued by the Tribunal may then be appealed to the Peruvian Courts for judicial review. In special circumstances, decisions issued by the Bankruptcy Commission and the Administrative Tribunal may also be challenged directly – not only on appeal – before Peru’s constitutional and commercial […]

Porvenir is a leading provider of pension and severance pay fund management services in Colombia, South America’s second most populous country after Brazil. The company has 33 offices and 10 service modules located in Colombia’s largest cities, as well as a strong nationwide sales force that rivals most of its competitors. Additionally, as part of Grupo Aval, one of the largest multinational financial companies operating in Colombia, customers have access to an additional 1,000 contact points through its branch network. This strong positioning means that in August 2010 the firm managing the mandatory pension savings funds of 2.9 million people (roughly six percent of the population) and the severance funds of 1.6 million affiliates. The organisation currently manages voluntary pension funds, mandatory pension funds, the severance fund and trust assets. Each of these areas are overseen by collegiate decision making bodies and approving bodies made up of experienced asset managers well versed in best practice. Indeed, one of the aspects of its business that Porvenir takes greatest pride in is the professionalism of its continuously trained staff. In order to ensure that its staff are equipped with the latest skills and knowledge, the company put in place an education project known as Universidad Porvenir. The purpose of this programme is to guide the performance of the team towards the achievement of the individual and organisational goals. The objective of the university is to develop company leaders in order to have high performance teams that will lead the administrating company to […]

In 1872, a young Italian engineer called Giovanni Battista Pirelli established Pirelli & C. in Milan and opened a plant manufacturing rubber articles. A century and a half later, Pirelli is now the world’s fifth largest tyre company in terms of sales, and a leader in high-end and high-tech development. Pirelli now has 20 plants on four continents, working in more than 160 countries all over the world, with a research centre in Italy and eight application centres the world over. It has more than 1,000 people working in research and development, and will continue to invest about three percent of its annual revenues in research over the next three years: one of the highest rates in the sector. Continuing an industrial tradition more than a century old, the group focuses on ongoing international expansion (as in Russia and Mexico), while maintaining strong roots in the local communities it works in.Pirelli stands out for its ability to innovate, quality products and brand strength. Since 2002 the brand has been supported by the PZero fashion and high-tech project, and now it has been given a further boost by the company’s return to Formula One, after a 20 year absence, as exclusive supplier for 2011-13. Pirelli focuses on research and development in line with its green performance strategy, maintaining a growing focus on top quality high-tech products and services with a low environmental impact. Its activity in this area is supported by Pirelli EcoTechnology, active in the areas of emissions control technologies, […]