Nedbank Group (NED) H1 2025 earnings summary

Executive summary

• Headline earnings rose 6% to R8.4bn, with diluted HEPS up 7% and ROE improving to 15.2% for H1 2025, slightly ahead of guidance, driven by NIR, associate income, and lower impairments.

• Strategic reorganization completed, creating new clusters (Personal & Private Banking, Business & Commercial Banking) to enhance client focus and efficiency, effective July 2025.

• ETI investment reclassified as non-current asset held for sale, with a formal disposal plan approved and future associate income to be recognized at fair value.

• Interim dividend declared at 1,028 cents per share, up 6%, with strong capital and liquidity metrics maintained.

• Digital sales reached 70% of total, with double-digit growth in digital volumes and values, and significant client base and market share gains.

Financial highlights

• Net interest income increased to R21.2bn, non-interest revenue grew to R15.2bn, and headline earnings per share up 6% to 1,800 cents.

• Gross banking advances up 6% to R969bn, deposits up 10% to R1,232bn year-over-year.

• Cost-to-income ratio increased to 57.4% (from 55.3%), while credit loss ratio improved to 81 bps (from 104 bps prior year).

• CET1 ratio at 13.1%, above the 11%-12% target range; LCR at 127%, NSFR at 118%.

• Net asset value per share increased 6% to over ZAR 245.

Outlook and guidance

• 2025 GDP forecast for South Africa revised down to 1%, with moderate improvement expected in H2.

• NII growth expected at low to mid-single digits; DHEPS to grow by low single digits, and ROE targeted at 15% for 2025, with medium-term ambition of 17% and long-term target above 18%.

• No ETI-related associate income expected in H2 2025 and beyond; CET1 ratio to remain above 11-12% target range.

• Further share buybacks and M&A activity planned, with capital ratios to remain above board ranges.