Chamwe Kaira
Nedbank Group’s results for the six months ending June 30 revealed a 77% increase in impairments, totalling N$184 million.
This rise was driven by write-offs in Namibia’s retail home loan portfolio, impairment reviews in Eswatini, and a downgrade in Mozambique’s sovereign debt ratings.
Nedbank also extended its intelligent depositor device rollout across Eswatini, Lesotho, Namibia, and Zimbabwe, now offering cash recycling capabilities.
Terence Sibiya, Nedbank’s group managing executive for Africa Regions, emphasised that the future of the bank’s growth lies in Africa.
The Nedbank Africa Regions (NAR) cluster, which includes Eswatini, Lesotho, Mozambique, Namibia, and Zimbabwe, along with offices in Kenya and Ghana, has become a key growth driver, delivering strong results and opening new opportunities across the continent.
In Eswatini, digital innovation and fintech are thriving, supporting a growing ecosystem of mobile-first solutions and tech-enabled SMEs.
Lesotho is emerging as a hub for sustainable textiles and renewable energy, with Nedbank backing green industrialisation through specialised financial solutions and cross-border trade facilitation.
Mozambique is advancing in climate-smart agriculture and LNG development, driven by international investment in infrastructure and energy.
Namibia leads the continent in green hydrogen, sustainable finance, and mining, supported by a national strategy that aligns with Nedbank’s environmental, social, and governance (ESG) commitments.
Zimbabwe is seeing growth in creative industries and digital commerce, with youth-led enterprises reshaping the informal economy and fostering innovation.
Sibiya stated that Nedbank’s ESG-aligned lending and advisory services are helping countries like Namibia and Mozambique transition to more sustainable and inclusive economies.
In Namibia, the launch of Avo SuperShop is connecting merchants to digital marketplaces, expanding access to e-commerce and financial services.
Looking ahead, Nedbank warned of a subdued global economic outlook, with elevated risks due to US tariffs potentially affecting business confidence, capital investment, global trade volumes, supply chains, and exports.
Nedbank’s chief executive, Jason Quinn, noted that South Africa’s economic recovery is expected to improve, driven by increased consumer spending, higher real incomes, subdued inflation, and reduced interest rates. He added that despite a challenging operating environment, the group saw 6% growth in headline earnings (HE) to N$8.4 billion, with a slight increase in return on equity (ROE) to 15.2%.
This growth was driven by non-interest revenue (NIR) and associate income, ongoing improvements in impairments, and good management of expenses. However, net interest income growth remained muted.
Quinn also pointed to uncertainty caused by US policies, particularly tariffs, and geopolitical conflicts, which resulted in financial market volatility and reduced business confidence. In South Africa, real GDP growth declined to 0.1% in the first quarter of 2025.
Nedbank’s retail active clients grew by 6% to 7.3 million, while main-banked clients reached 3.8 million. The Nedbank Africa Regions client base increased by 11% to over 419,000, with around 163,000 main-banked clients.
