Nedbank’s improved financial performance has bolstered the bank’s confidence in achieving a return on equity (ROE) of over 16% by 2025.
In the medium term, the bank aims for an ROE exceeding 17%, with a long-term target surpassing 18%.
This progress aligns with the bank’s strategic execution, its new transformation agenda, and improving economic conditions.
For the first half of 2024, which ended on December 31, Nedbank Group delivered strong results, with headline earnings (HE) increasing by 8% to M16.9 billion, despite a challenging operating environment. ROE rose to 15.8% during the same period.
On Tuesday, the group reported that this growth in HE was driven by strong non-interest revenue, lower impairment charges, and targeted expense management. These factors offset the muted net interest income growth, which was constrained by slower loan growth and margin pressure.
Strategic and Digital Advancements
Nedbank Chief Executive Jason Quinn highlighted that, despite economic challenges, the bank achieved major strategic milestones in 2024. A key success was the near completion of its Managed Evolution IT transformation, which has introduced a refreshed and modern technology platform.
“This platform, coupled with enhanced digital capabilities, has supported strong digital growth, market-leading client satisfaction, increased main-banked client acquisitions, and higher cross-sell rates,” Quinn said.
To enhance strategic execution, improve market competitiveness, and drive new growth opportunities, Nedbank is restructuring its Retail and Business Banking (RBB) and Nedbank Wealth clusters. This transformation aims to enhance client-centric services.
“The new structure, effective from July 1, 2025, will introduce Personal and Private Banking (PPB), which will offer a comprehensive suite of solutions for individual clients across various segments, from youth to high-net-worth individuals,” Quinn explained.
“Additionally, Business and Commercial Banking (BCB) will be established as a dedicated cluster focused on SME, commercial, and mid-corporate clients, elevating this sector to a group executive level,” he added.
Africa Region Performance and Digital Expansion
Presenting the financial results, Nedbank Africa Regions (NAR) Managing Executive Terence Sibiya noted that while NAR’s financial performance was impacted by non-recurring items, the region remains resilient and focused on driving growth and transformation.
“Our financial performance in 2024 reflects our ongoing commitment to resilience and innovation,” Sibiya stated.
He highlighted key achievements within the Southern African Development Community (SADC), including:
- Winning five awards, such as Best Mobile Banking Application in Lesotho and Best Digital Bank in Mozambique from Global Banking and Finance Review.
- The successful launch of Zaca, a remittance solution that enables clients to transfer money between South Africa and Lesotho.
- Positive client growth, with the December 2023 customer base increasing by over 13%.
- Maintaining leadership in customer satisfaction (NPS) in Mozambique and holding the top position in brand sentiment across all NAR markets.
- Growth in digitally active clients, who now make up 70.6% of the active retail customer base.
Sibiya also reported an improvement in employee Net Promoter Scores (NPS) through the Pulse Survey, aimed at fostering a supportive workplace environment.
He further highlighted collaboration with Nedbank Corporate and Investment Banking (NCIB) to drive growth in Namibia and Mozambique, unlocking new opportunities aligned with the region’s anticipated economic expansion.
With a strengthened financial foundation, technological advancements, and strategic restructuring, Nedbank remains on course to achieve its ambitious targets in the coming years.
