• Nedbank reached 8 million total clients for the first time in its nearly 140-year history
  • Nedbank completed the sale of its 21% ETI stake in December 2025 and advanced its focused regional strategy with an offer (announced January 2026) to acquire approximately 66% of NCBA Group in East Africa
  • Nedbank expects return on equity to remain above 15% in 2026 and build toward approximately 17% in the medium term, supported by accelerating revenue growth, continued expense discipline, digital transaction momentum, and potential integration benefits from the NCBA transaction

Harare - Nedbank Group, one of South Africa's four major banks, has achieved a historic milestone by reaching 8 million clients for the first time in its nearly 140-year history according to the latest circular.

The growth  was  attributed to well-executed initiatives, including the bank's digital push and internal restructuring, which have driven deeper client relationships and broader market penetration.

This landmark reflects the bank's successful efforts in retail expansion, digital transformation, and enhanced client engagement, as announced in its full-year financial results for the period ended 31 December 2025, released on 3 March 2026.

“For the first time in the group’s history, total clients reached 8 million.” Chief Executive Officer Jason Quinn said.

A major contributor to this client surge has been the Nedbank Money app, where active users increased by 14% to 3 million. This growth highlights the bank's focus on digital scaling, with digital transaction volumes rising by 10% and values by 16% across key segments.

In Personal and Private Banking (PPB), digitally active retail clients grew by 9% to around 3.4 million, while insurance premiums in the MyCover suite jumped 26%, demonstrating stronger product penetration and cross-selling success, with the cross-sell ratio now exceeding two products per client.

Financially, headline earnings for 2025 rose modestly by 2% to R17.2 billion, while diluted headline earnings per share increased by 3% to approximately 3,628 cents. Return on equity moderated slightly to 15.4% from 15.8% in 2024 but remained comfortably above the group's cost of equity.

Revenue grew slowly by 3% to around R73.9 billion, constrained by a challenging economic environment, while earnings were supported by improved impairments with the credit loss ratio declining to 68 basis points from 87 bps and disciplined cost management.

The group's balance sheet stayed strong, featuring a CET1 ratio of 12.9% and Tier 1 capital at 14.5%, which provided the foundation for declaring a final dividend of 1,104 cents per share (bringing the full-year dividend to around 2,132 cents, up 3%).

The year 2025 marked a transformative year with a decisive reset of Nedbank's African operations. The bank shifted away from broad, minority pan-African exposures toward a more focused regional strategy emphasizing control in high-growth markets, particularly in the Southern African Development Community (SADC) and East Africa.

In December 2025, Nedbank completed the disposal of its 21% stake in Ecobank Transnational Incorporated (ETI) for approximately $100 million (around R1.6–1.8 billion). This transaction, finalized on 17 December 2025, reduced associate income in the second half and contributed to a decline in Nedbank Africa Regions (NAR) headline earnings by 1% to R1.6 billion.

However, SADC operations delivered strong results, with headline earnings up 15%, net interest income rising 9%, and average loans and advances increasing 17% to R26 billion.

Building on this repositioning, Nedbank announced in January 2026 its offer to acquire approximately 66% of NCBA Group, a leading East African financial institution operating in Kenya, Uganda, Tanzania, Rwanda (with digital presence in Ghana and Côte d’Ivoire).

The proposed cash-and-stock deal, valued at around R13.9 billion (approximately $855–856 million), would make NCBA a subsidiary while allowing the remaining shares to continue trading on the Nairobi Securities Exchange.

Subject to regulatory approvals and shareholder acceptance, the transaction is expected to close by the third quarter of 2026 and would significantly expand Nedbank's footprint in dynamic, high-growth East African markets, serving over 60 million customers through NCBA's network.

Internally, the bank restructured its Retail and Business Banking (RBB) and Wealth clusters into two new divisions: Personal and Private Banking (PPB) and Business and Commercial Banking (BCB). This client-centric reorganization has already shown positive momentum, with PPB achieving notable gains in active clients, cross-selling, and digital adoption, while BCB reported accelerated loan payouts in the second half of 2025 and stronger lending pipelines entering 2026.

Looking ahead, Nedbank anticipates return on equity to remain above 15% in 2026, with a medium-term target of around 17%, supported by accelerating revenue growth, continued expense discipline, and the benefits of its strategic reset including potential integration advantages from the NCBA transaction and sustained digital and client momentum.

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