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MBABANE – Nedbank Group’s results for the six months to June 30, 2025, amid a challenging operating environment, reflect a 6 per cent growth in headline earnings to R8.4 billion.
According to the group, return on equity (ROE) improved slightly to 15.2 per cent compared to the first half (H1) in 2024 where it 15.0 per cent).
The increase in HE was driven by non-interest revenue (NIR) and associate income growth an ongoing improvement in the impairment charge, and good management of underlying expenses, partially offset by muted net interest income (NII) growth.
“The operating environment during the first half of the year was challenging,” said Jason Quinn, Nedbank Chief Executive.
“Uncertainty relating to US policies, in particular tariffs and geopolitical conflicts resulted in significant financial market volatility and reduced business confidence.
In SA, economic recovery momentum slowed, resulting in real GDP growth declining to 0.1 per cent in Q1 2025. Against this backdrop, we did well to increase our diluted earnings per share by 7 per cent.”
The group’s balance sheet remained very strong. CET1 and tier 1 capital ratios of 13.1 and 14.7 per cent 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 per cent (2024 interim dividend: 971 cents per share) at a payout ratio.
Following the announcement of the organisational restructure of our Retail and Business Banking (RBB) and Wealth Clusters to unlock revenue growth and further efficiencies and productivity enhancements, we have since completed the formation of our Personal and Private Banking (PPB) cluster lead by Ciko Thomas as Managing Executive and announced the appointment of Andiswa Bata as Managing Executive of Business and Commercial Banking (BCB).
“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 from June 30, 2025 has 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 and 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 SADC and East Africa regions in businesses we own and control and in areas where we can play to our strengths.”
“We continue to make good progress with our strategic value unlocks,” said Quinn.
Full article available in our paper.
