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.

• Interim dividend declared at 1,028 cents per share, up 6%, with a 57% payout ratio and strong capital and liquidity metrics maintained.

• Strategic reorganisation completed, creating new clusters to enhance client focus and efficiency, effective July 2025.

• ETI investment reclassified as non-current asset held for sale, with a formal plan to dispose and redeploy capital.

Financial highlights

• Net interest income rose 2% to R21.2bn, while non-interest revenue grew 6% to R15.2bn, driven by commission, fees, and digital growth.

• Cost-to-income ratio increased to 57.4% due to slow revenue growth and higher expenses; credit loss ratio improved to 81 bps.

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

• Net asset value per share increased 6% to 24,522 cents.

Outlook and guidance

• 2025 guidance revised: DHEPS growth expected in low single digits, ROE targeted at 15%, and CIR to increase year-over-year.

• NII growth expected at low to mid-single digits, NIR mid-single digits, and expense growth above mid-single digits.

• Medium-term ambition to reach 17% ROE and cost-to-income ratio near 54%; long-term targets are ROE above 18% and cost-to-income below 50%.

• No further ETI associate income expected from H2 2025 onward.