South Africa’s Nedbank Group reported a modest 2% increase in headline earnings for the full year 2025, reaching $1.07 billion (R17.2 billion), as improved credit quality helped offset subdued revenue growth amid ongoing economic challenges in the country.
The Johannesburg-based lender said headline earnings rose from $1.05 billion (R16.9 billion) in 2024, driven primarily by an 18% reduction in impairment charges to $410 million (R6.6 billion). This reflected better credit origination practices and lower loss ratios, with the credit loss ratio improving to 68 basis points from 87 basis points the previous year.
Net interest income grew 3% to $2.67 billion (R42.9 billion), while non-interest revenue increased 4%, pushing total revenue up 3% to $4.59 billion (R73.9 billion). However, overall top-line expansion remained constrained by South Africa’s persistent economic headwinds, including slow growth and high interest rates.
The results also incorporated the impact of Nedbank’s completed divestment of its 21.2% stake in pan-African lender Ecobank Transnational Incorporated (ETI), sold for approximately $100 million in late 2025. The transaction streamlined the group’s portfolio and shifted its Africa strategy toward a stronger focus on Southern and East African markets, though it trimmed contributions from international associates.
Diluted headline earnings per share rose 3% to about $0.226 (3,628 cents), while return on equity eased slightly to 15.4% from 15.8%, still above the group’s cost of equity of 14.6%. Profit after tax declined significantly to around $584 million (R9.4 billion), influenced by the Ecobank disposal and a one-off settlement related to Transnet.
Nedbank declared a final dividend of about $0.069 (1,104 cents) per share, unchanged from the prior year, bringing the full-year payout to $0.133 (2,132 cents), up 3%.
Looking ahead, Chief Executive Jason Quinn indicated confidence in recovery, with ROE guidance for 2026 expected to exceed 15% and trend toward prior levels, supported by anticipated robust credit growth of around 7.7% and underlying momentum across business units.
The results mark a transitional period for Nedbank as it repositions for sustained performance in a challenging domestic environment while pursuing targeted expansion in priority African regions. Shares in Nedbank Group traded lower following the announcement.
(Exchange rate used: approximately 1 USD = 16.10 ZAR, based on prevailing mid-March 2026 rates around the announcement period.)
