Africa: Nedbank Earnings Rise 2 Percent After Ecobank Exit and Transnet Settlement

AllAfrica

March 3, 2026

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Nedbank Group reported a 2% increase in headline earnings to R17.2 billion for the year ended December 31, 2025, driven by the sale of its 21% stake in Ecobank Transnational Incorporated and a R600 million settlement with Transnet over interest-rate swap litigation. The bank’s diluted headline earnings per share rose 3% to 3,628 cents, with revenue growing 3% to R73.9 billion. While basic earnings per share fell 53% due to non-headline items, the cost-to-income ratio improved slightly to 57.8%, and impairments declined as the credit loss ratio dropped to 68 basis points from 87 basis points in 2024. The sale of Ecobank’s stake, which fetched R100 million, marked a strategic shift for Nedbank away from a broad pan-African model toward a more focused approach on Southern and East Africa. The bank has announced plans to acquire a majority stake in Kenya’s NCBA Group and fintech iKhokha, signaling its intent to expand its digital capabilities and presence in key markets like Kenya, where mobile money usage is high and the financial sector is consolidating. Nedbank’s results highlight its strategic pivot toward selective expansion and digital scale. The planned acquisition of iKhokha, which processes over R20 billion in annual digital payments, underscores the growing importance of digital services in Africa’s banking landscape. With a strong capital position and a target return on equity of 17% over the medium term, Nedbank aims to leverage revenue growth and cost control to sustain its performance. This strategic shift aligns with broader trends in African banking, where digital innovation and regional consolidation are driving market dynamics. Nedbank’s focus on Southern and East Africa, coupled with its digital expansion efforts, positions it as a key player in the continent’s evolving financial landscape. These moves not only reflect the bank’s strategic priorities but also offer insights into the future direction of Africa’s banking sector, making them significant for

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Originally published on AllAfrica on 3/3/2026