A transformational year as Nedbank positions for growth
Johannesburg – 3 March 2026
Salient features
- Diluted HEPS increased by 3%
- Headline earnings increased by 2% to R17.2bn
- Return on equity at 15.4% (2024: 15.8%), remained above the group's COE
- Balance sheet strong with CET1 and tier 1 capital ratios of 12.9% and 14.5%
- Final dividend of 1104 cents per share
- CIB positioned for growth, with green shoots in PPB and BCB following the restructure
Headline earnings for the year ended 31 December 2025 increased by 2% to R17.2bn and return on equity (ROE) at 15.4% (2024: 15.8%), remained above the group's cost of equity (COE). The increase in HE was driven by an improvement in the impairment charge, slow revenue growth, a decline in associate income in the second half of the year given the sale of the group’s shareholding in Ecobank Transnational Incorporated (ETI) and expense growth that included a once-off settlement with Transnet. Balance sheet metrics remained strong, enabling the declaration of a final dividend of 1104 cents per share.
Nedbank Group Chief Executive Jason Quinn emphasised that 2025 was a transformative year for the bank, marked by bold strategic decisions. “Well executed initiatives included the restructuring of our Retail and Business Banking (RBB) and Nedbank Wealth Clusters, the sale of the group’s ETI shareholding, the acquisition of fintech innovator iKhoka, and, more recently, an offer to acquire a 66% stake in NCBA Group.
Bold and Strategic Decisions
The establishment of Personal and Private Banking (PPB) and Business and Commercial Banking (BCB), following the restructure of the RBB and Wealth Clusters, is showing early positive indicators.
In PPB this is evident in the 9% growth in active clients, a cross-sell ratio that improved to above 2.0 products per client, strong front book growth in the key lending portfolios and 26% growth in the MyCover suite insurance premiums. In BCB, Nedbank seeks to accelerate growth through new compelling value propositions and unlock benefits from the acquisitions of Eqstra and iKhokha. Initial signs of success include accelerated loan payouts in H2 2025 and stronger pipelines for 2026.
“In December 2025, we disposed of our 21% shareholding in ETI as part of a reset of our strategy on the broader African continent with a clear focus on the SADC and East Africa regions,” Quinn said.
“In January 2026 we announced that Nedbank Group had submitted an offer to acquire around 66% of the entire issued share capital of NCBA, one of East Africa's most prominent financial institutions, operating across Kenya, Uganda, Tanzania and Rwanda, and with a digital presence in Ivory Coast and Ghana,” he added.
Highlights and wins
“Our strategic value unlocks, which focus on driving faster revenue growth and enhancing productivity, are making good progress,” said Quinn. “For the first time in the group’s history, total clients reached 8 million.”
Digital volumes and values increased strongly as more clients across all the bank’s businesses embrace the benefits and convenience of digital channels. In PPB, digital transaction volumes and values increased by 10% and 16%, respectively, supported by digitally active retail clients that increased by
9% to 3.4 million. In Nedbank Africa Regions (NAR) digitally active retail clients made up 70% of NAR's total active client base, which resulted in the achievement of NAR's 2025 target.
Active Nedbank Money app clients increased by 14% to 3.0 million, supporting a 15% increase in transaction values. App users in NAR reported an 18% increase in app usage.
The bank’s focus on client centricity has seen satisfaction metrics remain at the top end of the peer group. PPB's Consumer Net Promoter Score (NPS) ranked #2 among the 5 large South African banks (Kantar survey), while Small Business Services (SBS) recorded their second highest levels of NPS in 9 years and CIB’s client satisfaction metrics were in line with global standards.
Outlook
Looking forward, SA's growth prospects are optimistic, with GDP growth estimated at 1.5% in 2026. Consumer spending will be a key driver as lower interest rates boost confidence and borrowing. Fixed investment is also predicted to recover steadily, benefiting wholesale banking activities.
“In 2026 we expect that strong underlying growth momentum across all our businesses will be partially offset by the normalisation of wholesale impairments off a low 2025 base, endowment pressure from lower interest rates and associate income from ETI that will not repeat. As a result, ROE for 2026 is likely to be above 15%, heading towards 2025 levels, and above an improved COE of 14.0%. We expect ROE to build in the medium term to around 17%, supported by stronger revenue growth and a well-managed expense base,” he said.
“We appreciate the support of our employees and clients' ongoing trust, as well as the engagement of investors, regulators, and other stakeholders. As Nedbank, we remain committed to using our financial expertise to do good,” concluded Quinn.
Issued by Nedbank Integrated Communications Email: nedbankmedia@nedbank.co.za
Annaleigh Vallie
Phone: +27 (0)66 479 0936
Email: annaleighv@nedbank.co.za
Joanne Isaacs
Phone: +27 (0)78 800 4989
Email: joannei@nedbank.co.za
About Nedbank Group Limited:
Nedbank Group is a bank holding company listed on the JSE Limited, with a market capitalisation of R127 billion as at 31 December 2025. Nedbank is one of Africa’s largest banking groups, with
operations in South Africa, Namibia, Eswatini, Mozambique, Lesotho and Zimbabwe, and offshore in the Isle of Man and Jersey. It also has representative offices in other Africa countries, including Kenya, and has key global financial centres to provide international banking services for SA-based multinational and high-net-worth clients in London and Dubai. The group is a diversified financial
services provider, offering a wide range of wholesale and retail banking and financial services to more than 8 million clients. Nedbank has maintained its level 1 BBBEE status for the past 8 years and rates in the top quartile of local and international banks on ESG scores. group.nedbank.co.za
