South Africa · Delayed Price · Currency is ZAR · Price in ZAc Nedbank Group Earnings Call Transcripts
Fiscal Year 2026
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Strong operational momentum and disciplined cost management led to improved profitability, with ROE at 15% and DHEPS up 2% (15% excluding ETI base effects). Credit loss ratio rose to 95 bps, mainly from PPB, but guidance remains positive for H2. NCBA acquisition and digital investments support future growth.
Fiscal Year 2025
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Headline earnings rose 2% and ROE reached 15.4%, supported by strong loan and deposit growth, strategic acquisitions, and improved credit loss ratios. The group completed major restructuring, exited ETI, and is set to acquire NCBA, with robust digital and productivity initiatives underpinning medium-term targets.
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Strong fee and commission growth in PPB and market share gains in secured lending offset slower CIB deal flow, with advances growth expected to accelerate in 2026. Capital and liquidity remain robust, and strategic initiatives like the iKhokha acquisition target SME and mass market expansion.
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Diluted HEPS rose 7% and ROE improved to 15.2% in H1 2025, with strong capital and digital growth. ETI investment is now held for sale, and guidance for 2025 is more cautious amid macro headwinds, with a focus on cost control, digital, and capital optimization.
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The AGM highlighted improved financial results, new board appointments, and a refreshed strategy focused on digital transformation, sustainable finance, and market expansion. All resolutions were passed, and management addressed shareholder questions on climate, governance, and remuneration.
Fiscal Year 2024
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Diluted HEPS rose 11% and ROE reached 15.8% in 2024, driven by strong NIR growth, lower impairments, and cost control. Strategic initiatives and a major organizational restructure aim to boost long-term ROE above 18% amid a challenging macroeconomic environment.
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Strong H1 2024 results with headline EPS up 12%, ROE at 15%, and an 11.5% dividend increase, driven by lower impairments and NIR growth. Outlook is cautiously optimistic, with improved macro conditions and a focus on further cost and capital efficiencies.