Nedbank Group’s results for the six months to 30 June 2025, amid a challenging operating environment, reflect 6% growth in headline earnings (HE) to R8.4 billion and return on equity (ROE) that improved slightly to 15.2% (H1 2024: 15.0%). 

The increase in HE was driven by non-interest revenue (NIR) and associate income growth. 

This is an ongoing improvement in the impairment charge and good management of underlying expenses, partially offset by muted net interest income growth.

“The operating environment during the first half of the year was challenging,” said Jason Quinn, Nedbank chief executive. “Uncertainty relating to United States (US) policies, in particular tariffs, and geopolitical conflicts, resulted in significant financial market volatility and reduced business confidence. In South Africa, economic recovery momentum slowed, resulting in real gross domestic product growth declining to 0.1% in Q1 2025. Against this backdrop, we did well to increase our diluted earnings per share by 7%.”

Meanwhile, the group’s balance sheet remained very strong, as CET1 and tier 1 capital ratios of 13.1% and 14.7% were well above board-approved target ranges and SARB minimum requirements. 

An interim dividend of 1 028 cents per share was declared by the group, up by 6% (2024 interim dividend: 971 cents per share) at a payout ratio of 57%.

Following the announcement of the organisational restructuring of Nedbank’s Retail and Business Banking and Wealth Clusters to unlock revenue growth as well as further efficiencies and productivity enhancements, the group has since completed the formation of its Personal and Private Banking cluster, led by Ciko Thomas as managing executive. It announced the appointment of Andiswa Bata as managing executive of Business and Commercial Banking.  

“Regarding our investment in Ecobank Transnational Incorporated (ETI), we have concluded a strategic review of the group’s financial investment, recognising the risks of continuing to hold onto the investment due to regulatory uncertainty and potential increasing capital requirements. As a result of the review, the group’s financial investment in ETI has, from 30 June 2025 been classified as a non-current asset held for sale in terms of IFRS 5,” said Quinn. 

“The board has approved a formal plan to dispose of the investment. We are currently engaging interested parties and, if a sale is concluded, it will be a clean deal subject only to normal regulatory approvals. This change represents a reset of Nedbank’s strategy on the rest of the continent, with a clear focus on the Southern African Development Community and East Africa regions in businesses we own and control, as well as areas where we can play to our strengths,” he added.

The latest results indicate that the group’s retail is active. 

 Main banked clients grew at 6% to 7.3 million and 3.8 million, respectively. 

The Nedbank Africa Regions (NAR) client base increased by 11% to over 419 000, of
which around 163 000 are main banked. 

It retained 24% market share in small and medium enterprises clients, ranking number one for best bank for start-ups and the most approachable bank for funding.  

Digital volumes grew at double digits, and digital sales recorded 70%. 

Retail digital transaction volumes and values in SA grew by 15% and 16%, respectively. 

Digitally active retail clients increased by 8% to 3.2 million, representing more than 70% of retail main-banked clients. 

Digitally active clients across the NAR business increased from 67% to 69% of its total active client base.

“In line with our commitment to making a positive impact in the societies in which we operate, demonstrated by our continuous efforts towards the delivery of the United Nations Sustainable Development Goals (SDGs), lending that supports sustainable development finance increased to R189 billion, including strong growth in renewable energy exposures to R47 billion, where we are market leaders,” said Quinn. 

He added that global trade risk elevated, as US tariffs are expected to negatively impact business confidence, capital investment, global trade volumes, supply chains and export volumes in most countries.

Moreover, SA’s economic recovery is expected to improve, driven by increased consumer spending given higher real incomes, subdued inflation, reduced interest rates and continued withdrawals from contractionary savings.

“On the back of the negative impact of a more difficult-than-expected SA environment on revenue growth and change in our strategy regarding ETI, we have revised our 2025 guidance. We now expect DHEPS’ growth for the year to be low single digits and ROE to end the period around 15%. From there, we target an improvement in the group’s ROE to 17% in the medium term, supported by various growth initiatives and active capital management. In the long term, our focus remains on achieving an ROE of more than 18%,” Quinn said. 

“I value the dedication of our Nedbank colleagues and ongoing support of the investment community, regulators and our other stakeholders during the past six months. I remain grateful to our 7.9 million retail and wholesale clients for choosing Nedbank. As Nedbank, we will continue to play our role in society as we fulfil our purpose of using our financial expertise to do good,” he stated. 

The Nedbank Group is listed on the JSE Limited, with a market capitalisation of R118 billion as at 30 June 2025. 

Nedbank remains one of Africa’s largest banking groups, with operations in South Africa, Namibia, Eswatini, Mozambique, Lesotho and Zimbabwe as well as offshore in the Isle of Man and Jersey. 

It also has representative offices in other African countries, including Kenya.