Old Mutual, the UK-listed South African financial services group, has issued a profits warning after lending Nedcor, its South African banking subsidiary, South African Rand 2bn (€234m).

Last month Nedcor issued a profits warning and said that core earnings would be lower than analyst forecasts due to higher funding costs and lower non-interest income. Nedcor is now expected to make a loss for this full year and this will reduce Old Mutual's results adjusted operating earnings per share (ESP) by between 1.5p and 2.0p.