MBABANE – Headline earnings at Nedbank Group increased by 2 per cent to R17.2 billion for the year ended December 31, 2025.
This comes as the banking group which comprises of different banks, including Nedbank Eswatini, navigated a challenging operating environment marked by slow revenue growth, strategic disposals and restructuring initiatives aimed at positioning the business for long-term growth.
The group’s return on equity (ROE) came in at 15.4 per cent, slightly lower than the 15.8 per cent recorded in 2024, but remained above its cost of equity (COE), underlining management’s focus on value creation despite macroeconomic headwinds.
In a statement accompanying the results, Nedbank Group Chief Executive Jason Quinn described 2025 as a ‘transformational year’for the financial institution, characterised by bold strategic decisions and disciplined capital management.
The marginal growth in headline earnings was underpinned by an improvement in impairment charges, although this was partly offset by slow revenue growth, lower associate income in the second half of the year following the disposal of the group’s shareholding in Ecobank Transnational Incorporated (ETI), and expense growth that included a once-off settlement with Transnet.
Despite these pressures, balance sheet metrics remained robust. The group reported a Common Equity Tier 1 (CET1) capital ratio of 12.9 per cent and a Tier 1 capital ratio of 14.5 per cent, reinforcing its solid capital position.
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… digital drive boosts client engagement
MBABANE – A notable milestone during the year was the group surpassing eight million total clients for the first time in its history.
Digital adoption continued to strengthen across operations. In PPB, digital transaction volumes rose by 10 per cent and values by 16 per cent, supported by a 9 per cent increase in digitally active retail clients to 3.4 million.
Active users of the Nedbank Money app increased by 14 per cent to three million, driving a 15 per cent rise in transaction values. Across Nedbank Africa Regions (NAR), 70 per cent of retail clients were digitally active, enabling the business to meet its 2025 digital target.
This acceleration in digital usage not only enhances customer convenience, but also improves cost efficiencies and data-driven decision-making – critical levers for profitability in modern banking.
Performance in Nedbank Africa Regions was mixed.
Headline earnings in NAR declined by 1 per cent to R1.6 billion, largely due to the absence of associate income in the second half following the ETI disposal.
However, the SADC cluster delivered a strong performance, with headline earnings up 15 per cent to R672 million. Net interest income in SADC rose 9 per cent to R2.9 billion, while average loans and advances grew 17 per cent to R26 billion, driven by increased corporate activity.
Non-interest revenue increased by 5 per cent to R1.84 billion, supported by higher commission and fee income in Lesotho and stronger trading income in Mozambique.
Impairments in the region fell by 7 per cent to R292 million, reflecting improved recoveries and lower expected credit losses in Namibia.
For Eswatini and neighbouring markets, these results underscore the importance of regional integration and cross-border corporate activity in driving earnings growth.
Looking ahead, management expressed cautious optimism. South Africa’s GDP growth is projected at 1.5 per cent in 2026, with consumer spending expected to improve as lower interest rates boost confidence and borrowing.
Fixed investment is also forecast to recover steadily, potentially supporting wholesale banking activities.
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