Nedbank Group has reported a 6% increase in headline earnings (HE), reaching E8.4 billion for the six months ended 30 June 2025. Chief Executive Officer Jason Quinn announced the results amid a tough operating climate, highlighting that the group’s return on equity (ROE) also rose slightly to 15.2% from 15% in 2024.
Quinn attributed the growth to increased non-interest revenue (NIR), associate income, and improved impairment charges, coupled with effective cost management. However, muted net interest income (NII) growth partially offset these gains.
He affirmed the strength of Nedbank’s balance sheet, citing a CET1 ratio of 13.1% and a Tier 1 capital ratio of 14.7%—both comfortably above the South African Reserve Bank’s minimum requirements.
An interim dividend of E10.28 per share was declared, up 6% from E9.71 in 2024, with a pay-out ratio of 57%. Additional highlights include:
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Diluted HEPS up 7%
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Strategic reorganisation completed
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ROE increased to 15.2%
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Multiple sustainability awards from African Banker and Euromoney
Challenging Conditions
Quinn acknowledged the difficult operating environment, marked by geopolitical tensions and tariff uncertainty from the United States, which impacted global markets and reduced business confidence. South Africa’s economic momentum also slowed, with GDP growth declining to 0.1% in Q1.
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Despite this, Nedbank improved its diluted HEPS and maintained strong fundamentals.
Outlook Revised
Looking ahead, Quinn said global risk remains elevated, but he anticipates a recovery in South Africa led by:
– Higher real incomes
– Lower inflation
– Reduced interest rates
– Continued consumer spending
The Group has revised its 2025 guidance due to revenue pressures and a change in its ETI strategy. Now, diluted HEPS is expected to grow in low single digits, and ROE is projected to remain at around 15%.
“In the medium term, we aim to reach 17% ROE and over 18% in the long term,” said Quinn. “We remain committed to using our financial expertise to do good in society.”
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