Bold strategic decisions to become more client-centred, unlock growth and diversify earnings are
beginning to deliver benefits.
Windhoek, Aug 5 – Nedbank Group’s results for the six months to 30 June 2026, reflect yoy headline earnings (HE) at R8.4bn, outperformed the bank’s expectations at the start of the year. HE was supported by stronger net interest income and non-interest revenue growth, very disciplined expense management, offset by a higher impairment charge and no further associate
income from Ecobank Transnational Incorporated (ETI) following the disposal of Nedbank’s
investment. When excluding the ETI base effect, diluted headline earnings per share (DHEPS) growth was very strong at 15%, reflecting a strong underlying operational performance.
Return on equity (ROE) was 15.0% across our business (H1 2025: 15.2%) also ahead of expectations. Balance sheet metrics remained strong, supporting the declaration of an interim dividend of 1 052 cents per share.
“In 2025, we took bold steps to become more client-centred, unlock growth and diversify earnings,” said Jason Quinn, Nedbank Chief Executive. “This included implementing and finalizing the strategic organizational restructure, progressing the integration of Eqstra, concluding the acquisition of iKhokha, concluding the sale of Nedbank’s 21% shareholding in ETI, and announcing our intended acquisition of approximately 66% of NCBA to support growth in East Africa. These strategic shifts are
starting to yield benefits, evident in the growth across our businesses.
”SA’s operating environment remained mixed in the first half of 2026, with stronger than expectedGDP growth in Q1 2026 contrasting rising inflation, higher interest rates and continued affordability pressure on households,” added Quinn. “However, we are encouraged by an improving economic outlook, supported by a more credible fiscal path, structural reforms and recent credit rating upgrades, while South Africa’s investment appeal remains intact despite global uncertainty.”
Bold decisions yielding benefits Corporate and Investment Banking (CIB) advances growth improved to 8% yoy, reflecting sustained momentum in deal execution and pipeline conversion. In Business and Commercial Banking (BCB), new business momentum and early revenue benefits have started to emerge. Advances growth of 6% accelerated when compared with the 2% decline in the prior year, which was supported by strong double-digit growth in new loan payouts in both the Mid-corporate and Commercial segments.
Accelerating growth and unlocking efficiencies in Personal and Private Banking (PPB) continued. Advances growth of 6% retained its momentum from the prior year as new loan payouts in Home Loans and Card increased by double digits, resulting in market share gains, while MFC retained its market-leading position as payouts increased by 9%. Innovation initiatives, including Quick Loans with Jumo and a new revolving credit facility, contributed 8% of unsecured lending production. Clients in
PPB increased by 4% to 7.6 million, with main-banked clients increasing by 2% to 3.9 million.
In Nedbank Africa Regions (NAR): SADC, strategic execution supported revenue growth and operational efficiency. Advances grew by 21%, while NIR increased by 12% on the back of strong client activity and higher commission and fee income.
“We are pleased to have reached the target of 66% shareholding in NCBA after shareholders representing 79.9% of NCBA’s shares in issue accepted our offer, an important milestone in the proposed acquisition,” added Quinn.
Digital growth and AI adoption
“Our clients continue to embrace the benefits and convenience of digital channels, evident in the increase of digital volumes and values,” said Quinn.
Digitally active retail clients increased by 8% to 3.5 million in PPB, while in the NAR: SADC business this increased from 69% to 72% of its total active client base. Active Nedbank Money app clients increased by 13% to 3.2 million, supporting a 16% increase in transaction values. App users in NAR: SADC reported a 17% increase in app usage, as the app remains the preferred channel of choice. The adoption rate of the Nedbank Business Hub (NBH) by juristic clients has increased as a result of higher levels of self-service and the delivery of enhanced digital features. In BCB approximately 77% of clients are actively using the NBH, while CIB client adoption increased to 56%.
Nedbank’s Intelligent Hyper Automation (NIHA) strategy, combining AI, generative AI, analytics, machine learning, and robotic process automation, is delivering tangible benefits across revenue generation, credit effectiveness, client experiences, productivity, cost optimisation, and fraud processes, with more than R375m in annualised benefits unlocked to date.
Looking ahead and accolades
Looking forward, SA GDP growth is expected to improve modestly to around 1.3% in 2026 and 1.4% in 2027, supported by resilient consumer spending but constrained by weak business confidence, subdued fixed investment and global energy price risks. Inflation is expected to average around 4.0% in 2026, remaining above the SARB’s 3% target but within its tolerance band, and the prime lending rate is expected to increase by a further 25 bps in September 2026, before declining in 2027. Banking
conditions should improve gradually, with credit growth projected to remain positive and end the year at around 7%, although risks remain tilted to the downside.
“We expect the underlying growth momentum across all our businesses to continue in H2 2026, supporting an improvement in HE growth,” said Quinn.
“I’m pleased that Nedbank’s leadership in sustainability, transformation, client value and AI was recognised through multiple awards and rankings in the first half of 2026.
These achievements reinforce our position as a leading African financial services provider and reflect the dedication of our people, the trust of the communities we serve, and the continued support of our clients, regulators and stakeholders as we deliver value,” he said.
“I’d like to acknowledge Mfundo Nkuhlu, who, after 22 years of dedicated service to Nedbank, has decided to retire and will step down as Chief Operating Officer (COO) at the end of the year when he reaches 60 years of age. On behalf of the Board, the Group Executive Committee and all our colleagues, I extend to Mfundo our heartfelt thanks for his exceptional service, wise counsel and
unwavering dedication to Nedbank,” concluded Quinn.
For a detailed breakdown of business unit performance, please refer to SENS announcement and analyst booklet.
