Chamwe Kaira
Nedbank Group Limited reported a 2% increase in headline earnings to R17.2 billion for the year ended 31 December 2025, describing the period as a transformative year marked by strategic restructuring, portfolio repositioning and balance sheet resilience.
Headline earnings per share increased by 2% to 3 706 cents, while diluted headline earnings per share rose by 3% to 3 628 cents. Return on equity measured 15.4%, slightly down from 15.8% in 2024 but still above the group’s cost of equity.
Revenue grew by 3% to R73.9 billion. Expense growth of 7% to R43.4 billion pushed the cost-to-income ratio to 57.8% from 55.6%. The credit loss ratio improved to 68 basis points from 87 basis points in 2024.
Basic earnings per share declined by 53% to 1 681 cents. This reflected non-recurring items, including the impact of a once-off settlement with Transnet and portfolio changes during the year. The group declared a final dividend of 1 104 cents per share, supported by strong capital and liquidity levels.
The 2025 financial year unfolded amid geopolitical tensions, policy uncertainty and concerns about US tariffs. South Africa’s economy performed better than expected. Real GDP growth more than doubled to 1.2% year-on-year during the first three quarters of 2025, supported by structural reforms that stabilised energy and transport networks.
During the year, the group acquired fintech company iKhokha to strengthen its digital offering and expand support for small and medium-sized enterprises through enhanced payments and inclusive financial services.
In December 2025, Nedbank disposed of its 21% shareholding in Ecobank Transnational Incorporated as part of a reset of its broader African strategy, narrowing its focus to the SADC and East Africa regions. In the first quarter of 2026, the group announced plans to acquire a controlling stake in NCBA Group plc for about R13.9 billion to expand in East Africa.
Total clients exceeded 8 million for the first time. Growth came from retail, SME and corporate segments. Digital adoption increased, with higher transaction volumes and values across business lines.
The value of the Nedbank brand rose by 20% to R20 billion. The group gained market share in home loans, vehicle finance, overdrafts and retail deposits. It also reported growth in payments and insurance products.
Sustainable finance lending aligned to the United Nations Sustainable Development Goals reached R207 billion, accounting for 21% of total gross loans and advances. This exceeded the 20% target set in 2021.
