Big-four bank Nedbank has reported digital gains in its financial results for the year ended 31 December, published today.
During the period, headline earnings increased by 2% to R17.2 billion and return on equity at 15.4% (2024: 15.8%) remained above the group's cost of equity, says Nedbank.
It notes the increase in headline earnings was driven by an improvement in the impairment charge, slow revenue growth, a decline in associate income in the second half of the year, given the sale of the group’s shareholding in Ecobank Transnational Incorporated (ETI) and expense growth that included a once-off settlement with Transnet.
According to the bank, balance sheet metrics remained strong, enabling the declaration of a final dividend of 1 104c per share.
Nedbank Group chief executive Jason Quinn says 2025 was a transformative year for the bank, marked by bold strategic decisions.
“Well-executed initiatives included the restructuring of our Retail and Business Banking and Nedbank Wealth Clusters, the sale of the group’s ETI shareholding, the acquisition of fintech innovator iKhoka, and, more recently, an offer to acquire a 66% stake in NCBA Group.
“Our strategic value unlocks, which focus on driving faster revenue growth and enhancing productivity, are making good progress,” says Quinn. “For the first time in the group’s history, total clients reached eight million.”
Nedbank adds that digital volumes and values increased strongly as more clients across all the bank’s businesses embrace the benefits and convenience of digital channels.
In Personal and Private Banking, the firm says digital transaction volumes and values increased by 10% and 16%, respectively, supported by digitally-active retail clients that increased by 9% to 3.4 million.
In Nedbank Africa Regions (NAR) digitally-active retail clients made up 70% of NAR's total active client base, which resulted in the achievement of NAR's 2025 target.
According to the financial services firm, active Nedbank Money app clients increased by 14% to three million, supporting a 15% increase in transaction values. App users in NAR reported an 18% increase in app usage.
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