Nedbank has reported modest earnings growth for the year ended 31 December 2025, as strategic restructuring and shifting macroeconomic conditions shaped performance at one of South Africa’s largest lenders. The group’s headline earnings increased 2% to R17.2bn, while headline earnings per share rose to 3,706 cents and diluted headline earnings per share climbed 3% to 3,628 cents. Revenue advanced 3% to R73.9bn, and a final dividend of 1,104 cents per share was declared, up 3% year on year.
The results reflect a year of internal reorganisation and capital repositioning. Nedbank restructured its Retail and Business Banking and Wealth clusters, exited its shareholding in Ecobank Transnational Incorporated, acquired fintech firm iKhoka and tabled an offer to purchase a 66% stake in Kenya-based NCBA Group. The strategic moves signal a dual focus on domestic consolidation and regional expansion, particularly into East Africa’s banking markets, which have delivered higher structural growth rates than South Africa in recent years.
Despite the limited earnings uplift, management pointed to a shift in macroeconomic sentiment during the second half of 2025. Sovereign bond yields declined to multi-year lows, South Africa’s credit outlook improved and the country exited the Financial Action Task Force grey list, developments that reduce funding costs for banks and support credit extension. The easing interest rate cycle, following cumulative cuts since late 2024, has also improved affordability in retail lending segments.
Private sector credit growth has remained uneven. Consumer lending recorded high single-digit growth, while wholesale and corporate lending pipelines were slower to convert, reflecting subdued fixed investment and cautious business confidence.
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The group’s revenue trajectory was supported by consumer lending growth, although margin expansion was limited by competitive pricing and slower deal flow in corporate and investment banking. A R600m settlement related to historic interest rate swap transactions with Transnet was recognised as a once-off cost item, affecting the expense line rather than core operating income.
Return metrics were not detailed in the announcement, but the restrained earnings growth underscores the divergence between improving macro indicators and still-fragile domestic demand conditions. South Africa’s GDP growth remained below 2% in 2025, constraining balance sheet expansion across the sector.
Nedbank’s capital allocation signals confidence in longer-term regional prospects. East Africa’s banking sector, particularly in Kenya, has benefited from mobile payments penetration, higher credit growth rates and a more diversified SME base. The proposed NCBA acquisition would deepen Nedbank’s footprint beyond Southern Africa, positioning it within faster-growing financial ecosystems.
While 2025 delivered only incremental earnings progress, the bank’s results indicate a repositioning phase, combining cost discipline, digital acquisition and geographic diversification as it navigates a domestic recovery that remains uneven but increasingly supported by improved fiscal credibility and lower interest rates.