Nedbank delivers improved financial performance.

Nedbank Group delivered an improved financial performance for the year ended 31 December 2024 as headline earnings increased by 8% to R16.9 billion, diluted headline earnings per share increased by 11%, and the group’s return-on-equity (ROE) strengthened to 15,8%, from 15,1% in the prior period, reflecting steady progress towards its ROE targets. Headline earnings growth was underpinned by good non-interest revenue growth, a lower impairment charge and targeted expense management, offsetting muted net interest incomegrowth given slower loan growth and margin pressure. Balance sheet metrics all remained very strong, enabling the declaration of a final dividend of 1 104 cents per share, up by 8%at a payout ratio of 57%. Nedbank chief executive Jason Quinn highlighted that despite a challenging economic environment, the bank achieved significant successes from a strategic perspective. “A key highlight of 2024was the fundamental completion of our Managed Evolution IT transformation, which has delivered a refreshed and modern technology platform. This platform, along with ourenhanced digital capabilities, supported ongoing strong digital growth, market-leading client satisfaction metrics, solid main-banked client gains, and higher levels of cross-sell.” “With our strategic portfolio tilt, we achieved market share gains in key areas such as home loans, vehicle finance, wholesale term-lending and retail deposits. We also continued tomake strides in creating positive impacts through R183 billion of lending that supports sustainable development finance, aligned with the United Nations Sustainable DevelopmentGoals. The increase in renewable energy exposures of 32% to almost R40 billion, and Nedbank being awarded significant renewable energy mandates in the fourth quarter of 2024, reinforce our leadership in this space.”To sharpen execution of the Nedbank strategy, compete more effectively in the market, enhance cross-sell and unlock new growth opportunities, the bank has embarked on an organisational restructure of its Retail and Business Banking (RBB) and Nedbank Wealth clusters, evolving into an organisational design more focused on client centricity. The new group structure will see the creation of Personal and Private Banking (PPB), an individual/non-juristic focused cluster, that will provide a full suite of solutions to individual clients across the youth, entry-level, mass, middle, affluent and high-net-worth segments. The reorganisation will also see the creation of Business and Commercial Banking (BCB), ajuristic-focused cluster, that will cover the spectrum of SME, Commercial and Mid-corp clients, to unlock accelerated growth opportunities through new compelling valuepropositions, while elevating this business to a group executive level. As part of the reorganisation, Nedbank Insurance and Nedbank Wealth Management will be incorporated into PPB as the group seeks to grow insurance and unlock cross and upsellopportunities into the existing Nedbank client base, create scale, leverage capability synergies between Wealth Management and Private Clients to strengthen the group’s value position in the market. The Asset Management business will move into Corporate Investment Banking and focus on building out its product offerings while improving newbusiness origination on the back of our new client-centric model. Nedbank Wealth will no longer exist as a stand-alone cluster. “We anticipate substantial benefits for all our stakeholders. Employees will be more empowered as we break down structural barriers to collaboration, create increased focus and align incentives across the organisation.” “For clients, the reorganisation represents a transformative leap forward in how they will experience Nedbank. By unifying our personal and juristic business segments into distinct,focused clusters, we will be able to offer more seamless and integrated banking experiences. Clients will benefit from relevant holistic financial solutions, enhanced client service, more tailored business solutions from BCB, greater access to financial expertise in PPB, and increased investment and innovation in product offerings enabled by efficiencies and accelerated growth.” “Our shareholders can expect improving financial performance from Nedbank over time, underpinned by delivering of focused growth strategies, including the unlock of cross-sellopportunities and increased productivity. Streamlining our operations and creating increased segment focus, would contribute to us achieving our long-term ROE of greater than 18%,”Quinn said. The changes will become effective from 1 July 2025.

Nedbank delivers improved financial performance.

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Republikein 2025-04-30

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Nedbank delivers improved financial performance.

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Republikein 2025-04-30

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