Nedbank’s investment in artificial intelligence (AI), automation and digital banking is delivering measurable returns, with its Intelligent Hyper Automation (NIHA) strategy generating more than R375 million in annualised value as the banking group accelerates its digital transformation.
The bank highlighted the milestone as part of its interim results for the six months ended 30 June, in which it reported headline earnings (HE) of R8.4 billion, supported by stronger net interest income, non-interest revenue growth and disciplined expense management.
According to Nedbank, the NIHA strategy combines AI, generative AI, analytics, machine learning and robotic process automation to improve revenue generation, credit effectiveness, client experience, productivity, cost optimisation and fraud management.
The bank says the initiative has already unlocked more than R375 million in annualised benefits, underlining the growing role of AI in driving operational efficiency and supporting business growth.
The automation programme forms part of a broader digital strategy that is seeing customers increasingly migrate to digital banking channels.
“Our clients continue to embrace the benefits and convenience of digital channels, evident in the increase of digital volumes and values,” says group CEO Jason Quinn.
Digital gains
Digitally-active retail clients in the Personal and Private Banking (PPB) division increased 8% to 3.5 million, while active Nedbank Money app users grew 13% to 3.2 million, helping drive a 16% increase in transaction values.
Across the bank’s Southern African Development Community (SADC) operations, digital adoption also continued to grow, with digitally-active customers increasing from 69% to 72% of the active client base.
Mobile app usage in the region rose 17%, reinforcing the app as customers’ preferred banking channel.
Nedbank also reported growing adoption of its Nedbank Business Hub (NBH) digital platform among business customers.
According to the big-four bank, approximately 77% of Business and Commercial Banking (BCB) clients now actively use the self-service platform, while adoption among Corporate and Investment Banking (CIB) clients increased to 56%.
Beyond digital banking, AI-powered innovation is also contributing directly to lending growth.
The bank says innovation initiatives, including Quick Loans with Jumo and a new revolving credit facility, contributed 8% of unsecured lending production during the period.
The digital momentum supported a solid operational performance across the group.
Headline earnings reached R8.4 billion, while return on equity remained strong at 15%, allowing the board to declare an interim dividend of 1 052 cents per share.
“In 2025, we took bold steps to become more client-centred, unlock growth and diversify earnings,” Quinn says.
“This included implementing and finalising the strategic organisational restructure, progressing the integration of Eqstra, concluding the acquisition of iKhokha, concluding the sale of Nedbank’s 21% shareholding in ETI, and announcing our intended acquisition of approximately 66% of NCBA to support growth in East Africa. These strategic shifts are starting to yield benefits, evident in the growth across our businesses.”
Segment advances
CIB recorded 8% growth in advances, while BCB returned to growth, with advances increasing 6% after declining in the prior period.
PPB maintained 6% advances growth, supported by double-digit increases in new home loan and card lending, while PPB clients increased 4% to 7.6 million.
Nedbank Africa Regions: SADC also delivered strong growth, with advances rising 21% and non-interest revenue increasing 12%, supported by stronger client activity.
“We are pleased to have reached the target of 66% shareholding in NCBA after shareholders representing 79.9% of NCBA’s shares in issue accepted our offer, an important milestone in the proposed acquisition,” adds Quinn.
Looking ahead, the bank expects digital transformation, AI adoption and continued business momentum to support stronger earnings in the second half of the year.
“We expect the underlying growth momentum across all our businesses to continue in H2 2026, supporting an improvement in HE growth,” says Quinn.
He adds that the bank’s progress in AI and innovation also received external recognition.
Nedbank also announced that chief operating officer Mfundo Nkuhlu will retire at the end of the year after more than two decades with the banking group.
Quinn says: “I’d like to acknowledge Mfundo Nkuhlu, who, after 22 years of dedicated service to Nedbank, has decided to retire and will step down as chief operating officer at the end of the year when he reaches 60 years of age.
“On behalf of the board, the group executive committee and all our colleagues, I extend to Mfundo our heartfelt thanks for his exceptional service, wise counsel and unwavering dedication to Nedbank.”
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