The Nedbank Group has posted strong financial results for the first half of 2025.
It says its next phase of growth will be led by its operations across the African continent.
The bank’s Africa Regions (NAR) cluster, which includes Eswatini, Lesotho, Mozambique, Namibia and Zimbabwe, along with representative offices in Kenya and Ghana, is playing an important role in Nedbank’s long-term strategy.
Despite global economic pressure and regional challenges, the NAR cluster delivered solid performance in the first half of the year.
Terence Sibiya, Group managing executive for Nedbank Africa Regions, said the results show that Africa is a key growth area for them.
“In a year full of global uncertainty, the Africa regions cluster still delivered strong results,” he said.
“This proves that our investment and focus on the continent are paying off,” he said.
Africa’s growth must be inclusive, and Nedbank is committed to supporting both businesses and communities.
Access to finance is fundamental to economic participation.
Through mobile-first platforms, such as Send Money, MobiMoney and USSD banking, we are reaching underserved communities and enabling financial inclusion on a scale.
Nedbank reported headline earnings of R8.4 billion for the six months ending 30 June 2025, which is a 6% increase from the same period last year.
The return on equity also improved slightly, rising from 15.0% to 15.2%.
The growth was mainly driven by higher non-interest revenue, better performance from associated businesses, improved handling of bad debts and effective cost control.
However, growth in net interest income remained weak due to the tough operating environment.
Jason Quinn, Nedbank’s chief executive, said the first half of the year was marked by major economic challenges.
Global uncertainty, especially around US trade policies and ongoing geopolitical tensions, created volatility in financial markets.
Business confidence was low, and economic growth in South Africa slowed significantly.
The country’s real GDP grew by just 0.1% in the first quarter of 2025.
Despite these conditions, Nedbank managed to grow its diluted earnings per share by 7%.
“Nedbank’s performance in its African regions markets shows promising signs of long-term growth. In Eswatini, digital banking and fintech are expanding rapidly. More people are using mobile-first banking services, and tech-driven small businesses are gaining momentum. Nedbank’s leadership in customer satisfaction in Eswatini shows that its digital strategy is working, and the bank plans to explore further digital expansion opportunities,” he said.
In Lesotho, the economy is shifting toward green growth.
The country is becoming a hub for sustainable textile production and renewable energy.
Nedbank is supporting this transition by offering financial products tailored to green industries and helping businesses trade across borders.
The bank continues to support small and medium-sized enterprises (SMEs) across the region, helping to grow local economies.
In Mozambique, Namibia and Zimbabwe, Nedbank remains focused on strengthening its core banking services, expanding credit access, and promoting financial inclusion.
These markets, though different, all contribute to the bank’s broader vision of growth through service, innovation and sustainability.
He added that the group’s balance sheet remained very strong.
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%.
“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.
“We continue to make good progress with our strategic value unlocks,” he added.
Retail active and main banked clients grew at 6% to 7.3 million and 3.8 million, respectively.
The Nedbank Africa Regions client base increased by 11% to over 419 000, of which around 163 000 are main-banked.
They retained their 24% market share in SME clients, ranking #1 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.
Nedbank Money app active clients increased by 10% to 2.8 million, while transaction volumes increased by 16% and transaction values increased by 14%.
Nedbank Money App (Africa) users reported a 17% increase in app usage.
The adoption rate of the Nedbank Business Hub (NBH) for activities across all juristic segments increased to 65% from 56% in the prior year.
With the introduction of a new mobile app and the migration of their domestic transaction platform to NBH in 2025, this trend is expected to continue.