Nedbank results for the year ended 31 December 2025

The South African economy outperformed expectations. Real GDP growth more than doubled to 1.2% year on year during the first three quarters of 2025. Despite persistent infrastructure challenges, structural reforms stabilised energy and transport networks. Consequently, private enterprises operated in an improved environment.

Macroeconomic recovery supports momentum

The economic recovery, stronger business confidence, and higher fixed investment supported corporate credit growth off a low prior-year base. In addition, a stronger Rand, lower global oil prices and moderating inflation expectations reduced inflation to an average of 3.2% in 2025. This level remained marginally above the Reserve Bank’s revised 3% target.

In response, the central bank reduced interest rates by a further 100 basis points. It brought the repo rate down to 6.75%, reflecting a cumulative 150 basis point cut since the August 2024 peak. As a result, household credit demand, although subdued for much of the year, recovered in the final months. These macroeconomic dynamics provide important context for the Nedbank results.

Against this backdrop, the Nedbank results reflect steady financial performance. Nedbank Group’s diluted headline earnings per share (HEPS) increased by 3%. Headline earnings (HE) increased by 2% to R17.2 billion. Return on equity (ROE) measured 15.4% (2024: 15.8%) and remained above the group’s 2025 cost of equity (COE).

Improved impairment charges drove the increase in HE. However, revenue growth remained slow. Associate income declined in the second half following the sale of our 21% shareholding in Ecobank Transnational Incorporated (ETI). In addition, Nedbank reported a higher expense base due to a once-off settlement with Transnet. Nevertheless, balance sheet metrics remained strong and supported the declaration of a final dividend of 1 104 cents per share. Overall, these outcomes underpin the Nedbank results.

Strategic execution and portfolio repositioning

The Nedbank results also reflect a transformative year marked by bold and swift strategic decisions. The Nedbank Group restructured their Retail and Business Banking (RBB) and Nedbank Wealth Clusters into a more focused, client-centred design. On 1 July 2025, the group created the Personal and Private Banking (PPB) and Business and Commercial Banking (BCB) Clusters.

Stakeholders responded positively to these changes. The Nedbank Group filled key leadership positions and continues to build momentum, as strong underlying growth metrics indicate. The group also finalised the acquisition of 100% of fintech company iKhokha. This acquisition enhances its strategy and accelerates support for SMEs through digital innovation and inclusive financial services.

In December 2025, the group disposed of its ETI shareholding. This step reset a broader African strategy and sharpened Nedbank’s focus on SADC and East Africa. Furthermore, in Q1 2026, the group announced an intention to acquire a controlling interest in NCBA Group plc, a leading East African financial institution, for an estimated R13.9 billion.

Client growth, sustainability and outlook

The Nedbank Group progressed well on their strategic value unlocks. Digital volumes and values increased strongly as clients embraced digital channels across all businesses. Client satisfaction metrics remained at the top end of the peer group. However, the group recognise that further improvement remains necessary. The value of the Nedbank brand increased by 20% to R20 billion.

Total clients reached 8 million for the first time in the group’s history. Growth occurred across individuals, small and medium-sized businesses and corporates. Under Nedbank’s strategic portfolio tilt, the group gained market share in home loans, vehicle finance, overdrafts and retail deposits.

The Nedbank Group’s stronger focus on payments and insurance also increased product volumes. Moreover, lending to clients who create positive impacts and support sustainable development finance increased to R207 billion. This amount represents 21% of total gross loans and advances. It exceeds the 20% ambition we set in 2021 and aligns with the United Nations Sustainable Development Goals.

Looking ahead, South Africa’s growth prospects appear more positive. Economists estimate GDP growth at 1.5% in 2026. Consumer spending will likely drive growth as lower interest rates boost confidence and borrowing. Fixed investment should also recover steadily, which will benefit the group’s wholesale banking clusters.

Inflation should remain around the Reserve Bank’s 3% target during the latter part of the year. A stable Rand, low global oil prices, lower inflation expectations, and fewer supply-side constraints support this outlook. Interest rates could decline by another 50 basis points, reducing the repo rate to 6.25% by the end of 2026. Thereafter, rates may remain flat for the foreseeable future. Credit growth should remain robust and may end the year at around 7.7%. These assumptions inform our forward-looking view embedded in the Nedbank results outlook.

In 2026, a strong underlying growth momentum across all businesses is expected. However, the normalisation of wholesale impairments from a low 2025 base will partially offset this momentum. Endowment pressure from lower interest rates and the absence of ETI associate income will also weigh on performance. Consequently, ROE for 2026 is also expected to exceed 15%. It should trend toward 2025 levels and remain above a lower COE of 14.0%. Over the medium term, the group expect ROE to build toward approximately 17%, supported by stronger revenue growth and disciplined expense management.

We thank all Nedbank employees for their dedication and resilience, particularly during the organisational restructuring. We also value our clients’ ongoing trust and the engagement of investors, regulators, and other stakeholders. As Nedbank, we remain committed to using our financial expertise to do good. Our guidance and targets do not constitute profit forecasts. The group’s joint auditors have not reviewed or reported on them. This short-form announcement derives from the audited annual financial statements (AFS) for the year ended 31 December 2025. However, the announcement itself has not been audited.

– Jason Quinn, Chief Executive

The directors accept responsibility for this announcement. It summarises information contained in the AFS and does not include full details. Investors should base any investment decision on the AFS, available from Tuesday, 3 March 2026, via the JSE cloudlink and on our website.

The joint auditors, Ernst & Young Inc and KPMG Inc, issued an unmodified report, including key audit matters, to the shareholders of Nedbank Group. This report forms part of the AFS.

Final dividend declaration

We declare a final dividend of 1 104 cents per ordinary share for the year ended 31 December 2025. The dividend derives from income reserves.

The dividend will attract a 20% dividend withholding tax in South Africa, equal to 220.8 cents per ordinary share. This results in a net dividend of 883.2 cents per ordinary share, unless the shareholder qualifies for exemption or a reduced rate under an applicable double taxation agreement.

Nedbank Group’s tax reference number is 9375/082/71/7. The number of ordinary shares in issue at the declaration date was 477 272 628.

In line with the provisions of Strate, the electronic settlement and custody system used by JSE Limited, the dividend timetable is as follows:

Share certificates may not be dematerialised or rematerialised between Wednesday, 8 April 2026, and Friday, 10 April 2026, both days inclusive.

Where applicable, we will transfer dividends on certificated shares electronically to shareholders’ bank accounts on the payment date. If shareholders have not provided banking details, we will withhold payment until they do so. Holders of dematerialised shares will receive credits through their participant or broker on Monday, 13 April 2026.