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Results for the year ended 31 December 2025 and Cash Dividend Declaration
NEDBANK GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1966/010630/06
JSE share code: NED
NSX share code: NBK
A2X share code: NED
ISIN: ZAE000004875
JSE alpha code: NEDI
('Nedbank Group' or 'Nedbank' or the 'group')
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025 AND CASH DIVIDEND DECLARATION
A transformative year
The operating environment in 2025 remained volatile and uncertain, evident in geopolitical
conflict, uncertainty around policies and US tariffs. Closer to home, SA made progress across
several fronts, resulting in financial markets, corporates and individuals having a more optimistic
outlook. The South African economy performed better than many anticipated, with real GDP
growth more than doubling to 1.2% yoy during the first 3 quarters of 2025. Notwithstanding
persistent infrastructure challenges, structural reforms contributed to the stabilisation of energy
and transport networks, leading to an improved operating environment particularly for private
enterprises. Supported by the economic recovery, higher business confidence, and greater fixed
investment, corporate credit increased strongly off a low prior-year base. A stronger rand,
decreasing global oil prices, and moderating inflation expectations resulted in inflation falling to an
average of 3.2% in 2025, marginally above the Reserve Bank's revised target of 3%. In response,
the central bank enacted a further 100 basis point reduction in interest rates, bringing the repo
rate down to 6.75%, which reflects a cumulative decrease of 150 basis points since its peak in
August 2024. As a result, household credit demand, although subdued for much of the year,
showed signs of recovery in the final months.
Nedbank Group's diluted headline earnings per share (HEPS) increased by 3%, headline earnings
(HE) increased by 2% to R17.2bn and return on equity (ROE), at 15.4% (2024: 15.8%), remained
above the group's 2025 cost of equity (COE). The increase in HE was driven by an improvement in
the impairment charge while revenue growth was slow, associate income declined in the second
half of the year given the sale of our 21% shareholding in Ecobank Transnational Incorporated (ETI),
and we reported a higher expense base given a once-off settlement with Transnet. Balance sheet
metrics remained strong, enabling the declaration of a final dividend of 1 104 cents per share.
2025 was a transformative year in which we made bold and swift strategic decisions. We
successfully restructured our Retail and Business Banking (RBB) and Nedbank Wealth Clusters
into a more focused, client-centred organisational design, and created the Personal and Private
Banking (PPB) and Business and Commercial Banking (BCB) Clusters from 1 July 2025. These
changes were well received by stakeholders, key leadership positions were filled, and momentum
is building as is evident in strong underlying growth metrics. We also finalised the acquisition of
100% of fintech company iKhokha to enhance our strategy and fast-track our support for SMEs
through digital innovation and inclusive financial services. In December 2025, we disposed of our
shareholding in ETI as part of a reset of our strategy on the broader African continent with a clear
focus on the SADC and East Africa regions. In this context, in Q1 2026 we announced our intention
to acquire a controlling interest in NCBA Group plc, a leading financial services institution in East
Africa, for an estimated total consideration of R13.9bn.
We also made good progress on our strategic value unlocks. Digital volumes and values increased
strongly as more clients across all our businesses embrace the benefits and convenience of digital
channels. Client satisfaction metrics remained at the top end of the peer group, although more can
be done here, while the value of the Nedbank brand increased by 20% to R20bn. Total clients
reached 8 million for the first time in the group's history, supported by growth across individuals,
small and medium-sized businesses and corporates. Under strategic portfolio tilt we recorded solid
market share gains in home loans, vehicle finance, overdrafts and retail deposits. Our increased
focus on payments and insurance saw good growth in product volumes. And lastly, lending to
clients that create positive impacts and support sustainable development finance, in line with the
United Nations Sustainable Development Goals, increased to R207bn and, at 21% of total gross
loans and advances, exceeded the ambition of 20% we set back in 2021.
Looking forward, SA's growth prospects are more positive, with GDP growth estimated at 1.5% in
2026. Consumer spending will be a key driver as lower interest rates boost confidence and
borrowing. Fixed investment is also predicted to recover steadily, benefitting our wholesale
banking clusters. Inflation should remain around the Reserve Bank's target of 3% during the latter
part of the year due to a stable rand, low global oil prices, lower inflation expectations, and fewer
supply-side challenges. Interest rates could reduce by another 50 basis points, which would bring
the repo rate down to 6.25% by the end of 2026, with a plausible scenario of interest rates
remaining flat from then on for the foreseeable future. Credit growth is projected to be robust,
ending the year around 7.7%.
In 2026 we expect that strong underlying growth momentum across all our businesses will be
partially offset by the normalisation of wholesale impairments off a low 2025 base, endowment
pressure from lower interest rates and associate income from ETI that will not repeat. As a result,
ROE for 2026 is likely to be above 15%, heading towards 2025 levels, and above a lower COE of
14.0%. We expect ROE to build in the medium term to around 17%, supported by stronger revenue
growth and a well-managed expense base.
Thank you to all Nedbank employees for your dedication and resilience, particularly during the
organisational restructuring. We appreciate our clients' ongoing trust, as well as the engagement
of investors, regulators, and other stakeholders. As Nedbank, we remain committed to using our
financial expertise to do good.
Jason Quinn
Chief Executive
Our guidance and targets are not profit forecasts and the group's joint auditors have not reviewed
or reported on them.
FINANCIAL HIGHLIGHTS
- Headline earnings of R17 200m, up by 2% (2024: R16 934m).
- Revenue of R73 924m, up by 3% (2024: R71 721m).
- Credit loss ratio of 68 bps (2024: 87 bps).
- Expenses of R43 395m, up by 7% (2024: R40 577m).
- Cost-to-income ratio of 57.8% (2024: 55.6%).
- Diluted headline earnings per share of 3 628 cents, up by 3% (2024: 3 538 cents).
- Headline earnings per share of 3 706 cents, up by 2% (2024: 3 631 cents).
- Basic earnings per share of 1 681 cents, down by 53% (2024: 3 610 cents).
- Final dividend per share of 1 104 cents, flat (2024: 1 104 cents).
- Full-year dividend per share of 2 132 cents, up by 3% from the prior year (2024: 2 075
cents).
- Net asset value per share of 24 956 cents, up by 4% (2024: 24 039 cents).
- Common-equity tier 1 ratio of 12.9% (2024: 13.3%).
The information contained in this short-form announcement is derived from the audited annual
financial statements (AFS) for the year ended 31 December 2025, though the announcement itself
has not been audited. This announcement is the responsibility of the directors. It is only a summary
of the information contained in the AFS and does not contain full or complete details. Any
investment decision should be based on the AFS, which can be accessed from Tuesday,
3 March 2026, via the JSE cloudlink:
https://senspdf.jse.co.za/documents/2026/jse/isse/ned/ye2025.pdf
Alternatively, the AFS are available on our website:
https://group.nedbank.co.za/explore-investor-relations/results-and-reports.html
The joint auditors, Ernst & Young Inc and KPMG Inc, have issued an unmodified report (including
key audit matters) to the shareholders of Nedbank Group, which forms part of the AFS.
FINAL DIVIDEND DECLARATION
Notice is given that a final dividend of 1 104 cents per ordinary share has been declared, payable to
shareholders for the year ended 31 December 2025. The dividend has been declared from income
reserves.
The dividend will be subject to a dividend withholding tax rate of 20% (applicable in SA) or 220.8
cents per ordinary share, resulting in a net dividend of 883.2 cents per ordinary share, unless the
shareholder is exempt from paying dividend tax or is entitled to a reduced rate in terms of an
applicable double taxation agreement.
Nedbank Group's tax reference number is 9375/082/71/7, and the number of ordinary shares in
issue at the date of declaration was 477 272 628.
In line with the provisions of Strate, the electronic settlement and custody system used by JSE
Limited, the relevant dates for the dividend are as follows:
2026
Last day to trade (cum dividend) Tuesday, 7 April
Shares commence trading (ex dividend) Wednesday, 8 April
Record date (date shareholders recorded in shareholders' Friday, 10 April
register)
Payment date Monday, 13 April
Share certificates may not be dematerialised or rematerialised between Wednesday, 8 April 2026,
and Friday, 10 April 2026, both days inclusive.
Where applicable, dividends in respect of certificated shares will be transferred electronically to
shareholders' bank accounts on the payment date. In the absence of specific mandates, the
dividend will be withheld until shareholders provide their banking information. Holders of
dematerialised shares will have their accounts credited at their participant or broker on Monday,
13 April 2026.
For and on behalf of the board
Daniel Mminele Jason Quinn
Chairperson Chief Executive
3 March 2026
Directors
AD Mminele (Chairperson) JP Quinn** (Chief Executive) MS Bomela HR Brody* BA Dames MH
Davis** (Chief Financial Officer) N Davydova NP Dongwana OD Fortuin FR Grobler MA Hermanus
DA Joshi P Langeni RAG Leith L Makalima GK Njenga MC Nkuhlu** (Chief Operating Officer) TM
Nombembe S Rao S Subramoney
* Lead Independent Director ** Executive
Registered office
Nedbank Group Limited, Nedbank 135 Rivonia Campus, 135 Rivonia Road, Sandown, Sandton,
2196
PO Box 1144, Johannesburg, 2000
group.nedbank.co.za
Sponsor to Nedbank Group in SA
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Independent sponsor to Nedbank Group in SA
Tamela Holdings Proprietary Limited
Sponsor to Nedbank Group in Namibia
Old Mutual Investment Services (Namibia) Proprietary Limited
Company Secretary: J Katzin
Transfer secretaries in SA
JSE Investor Services Proprietary Limited, 1 Exchange Square, Gwen Lane, Sandown, Sandton,
2196
PO Box 4844, Johannesburg, 2000
Transfer secretaries in Namibia
NSX Financial Market Services, 4 Robert Mugabe Avenue, Windhoek, Namibia
PO Box 2401, Windhoek, Namibia
Date: 03-03-2026 07:05:00
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