Nedbank has successfully concluded a major organizational restructuring initiative, aimed at enhancing profitability and operational efficiency in the face of a challenging economic climate. The restructuring focused on streamlining its Retail and Business Banking (RBB) and Nedbank Wealth divisions, aligning them more closely with client needs and market dynamics.
CEO Jason Quinn confirmed that the restructuring was completed on schedule, marking a significant milestone in the group’s transformation journey. The bank had previously announced its intention to consolidate its personal and juristic segments into distinct, purpose-driven clusters to deliver more integrated and seamless banking experiences.
As of 1 July 2025, the newly formed Personal and Private Banking division now serves a broad spectrum of clients—from youth to high-net-worth individuals—with a comprehensive suite of financial services. Meanwhile, the Business and Commercial Banking (BCB) division has taken responsibility for servicing small and medium enterprises (SMEs), commercial entities, and mid-corporate clients.
“These structural changes have been positively received by our stakeholders, including employees, clients, and shareholders,” said Quinn. “We’ve successfully filled key leadership roles, and our focus now shifts to executing our strategy, unlocking transformational growth, and driving improvements in efficiency and productivity.”
Quinn also expressed gratitude to Nedbank employees for their resilience and commitment throughout the restructuring process, acknowledging their role in maintaining stability and continuity during a period of significant change.
Financial Performance: H1 2025
The restructuring update was shared alongside Nedbank’s financial results for the first half of 2025, which reflected the impact of a turbulent operating environment. Global uncertainty, driven by US tariff policies and geopolitical tensions, contributed to market volatility and dampened business sentiment.
Domestically, South Africa’s economic recovery remained sluggish, hindered by persistent issues such as unreliable water supply, deteriorating municipal services, and high levels of crime and corruption. Despite these challenges, Nedbank reported some positive developments:
- Corporate loans and advances grew by 8.1% year-on-year in June.
- Household credit growth remained subdued at 3.1%, despite interest rate cuts since September 2024.
In this context, Nedbank achieved a 6% increase in headline earnings, reaching R8.4 billion. The group’s Return on Equity (ROE) edged up to 15.2%, supported by:
- Growth in non-interest revenue and associate income
- Continued improvement in credit impairments
- Effective cost management
With a strong balance sheet, the group declared a 6% increase in its interim dividend, now at 1,028 cents per share.
| Metric | June 2024 | Current Period | Change |
|---|---|---|---|
| Headline earnings | R7 911m | R8 399m | 6% |
| Revenue | R35 159m | R36 406m | 4% |
| Credit loss ratio | 104 bps | 81 bps | – |
| Total operating expenses | R19 775m | R21 492m | 9% |
| Cost-to-income ratio | 55.3% | 57.4% | – |
| Diluted headline earnings per share | 1 650 cents | 1 762 cents | 7% |
| Headline earnings per share | 1 699 cents | 1 800 cents | 6% |
| Basic earnings per share | 1 700 cents | 1 571 cents | -8% |
| Interim dividend per share | 971 cents | 1 028 cents | 6% |
| Net asset value per share | 23 097 cents | 24 522 cents | 6% |
| Common-equity tier 1 ratio | 13.3% | 13.1% | – |
Outlook and Revised Guidance
Looking ahead, Nedbank remains cautious about the global economic outlook. Risks are elevated, particularly due to the 30% tariffs imposed on South African exports to the US, which are expected to negatively affect business confidence, investment, and trade volumes.
However, there are some positive signs for the domestic economy. Higher real incomes, subdued inflation, and lower interest rates are expected to support consumer spending. Nonetheless, weak global growth and falling commodity prices may continue to weigh on export performance and private sector investment.
Nedbank’s updated forecasts include:
- GDP growth of 1.0% in 2025, rising to 1.5% in 2026, with downside risks.
- Following a 25-basis-point interest rate cut in July 2025, rates are expected to remain stable.
- Diluted Headline Earnings Per Share (DHEPS) growth for 2025 is now projected to be in the low single digits.
- ROE is expected to end the year around 15%, with ambitions to reach 17% in the medium term and above 18% in the long term.
