Nedbank Group on Tuesday 4 August 2026 reported headline earnings of R8,405 million for the six months to 30 June, flat on a year earlier, as revenue growth and disciplined expense management were offset by a higher impairment charge and the absence of associate income from Ecobank Transnational Incorporated (ETI), following the sale of its investment in 2025.
Excluding the ETI base effect, headline earnings rose 12%. Diluted headline earnings per share increased 2% to 1,803 cents, helped by share buybacks executed in 2025. Return on equity was 15.0%, compared with 15.2% a year earlier, and remained above the group’s 14.0% cost of equity. The interim dividend rose to 1,052 cents per share from 1,028 cents.
MARGIN LOWER, IMPAIRMENTS UP
Revenue rose 6% to R38,235 million. Net interest income increased 4% to R22,021 million on 7% growth in average interest-earning banking assets, while the net interest margin fell 12 basis points to 3.75%. Non-interest revenue rose 10% to R16,214 million, and expenses grew 3%.
The impairment charge rose 26% to R4,804 million, lifting the credit loss ratio to 95 basis points from 81 basis points, in the upper half of the group’s 60–100 basis point through-the-cycle target range. Nedbank said the increase was driven mainly by higher charges in Personal and Private Banking, a rise in Business and Commercial Banking off a low base and a smaller impairment release in Corporate and Investment Banking.
GUIDANCE RAISED
Nedbank raised its 2026 net interest income growth guidance to slightly above mid-single digits, from around mid-single digits, and now expects its credit loss ratio to end the year around the mid-80s basis points, up from around mid-70s. It expects ROE to remain above 15% in 2026 and is targeting an ROE of around 17% in 2028.
“We expect the underlying growth momentum across all our businesses to continue in H2 2026, supporting an improvement in HE growth,” said Chief Executive Jason Quinn. Nedbank’s offer for Kenya’s NCBA Group closed on 10 July with acceptances from holders of 79.9% of NCBA shares, enabling it to reach its targeted 66% stake; remaining regulatory approvals are expected towards the end of the third quarter or early in the fourth.