One of South Africa’s biggest banks enters new era 

Nedbank has completed the transformation of its operating units, with its retail and business banking unit being split into personal and private banking and business and commercial banking. 

This structure mimics that of many of its competitors, which split out their personal and business banking units over the past decade. 

The restructuring was announced at the end of its 2024 financial year, the new structure came into effect from 1 July 2025. 

Nedbank revealed this in its interim results, with the bank delivering a solid performance amid a difficult operating environment, growing headline earnings by 6% to R8.4 billion in the six months to the end of June. 

This increase was driven by non-interest revenue and associate income growth, which rose by 6% to R15.3 billion. Commission and fee income is the largest component of this, contributing R11 billion.  

Net interest income growth remained relatively flat as household credit growth remained under pressure despite improving consumer finances, growing by only 2% to R21.1 billion. 

The performance was also boosted by an improvement in the bank’s impairment charge and tight control of expenses. As a result, the bank’s return on equity (ROE) marginally improved to 15.2% compared to 15% from a year ago. 

“The operating environment during the first half of the year was challenging,” Jason Quinn, Nedbank CEO, said. 

“Uncertainty relating to US policies, in particular tariffs, and geopolitical conflicts resulted in significant financial market volatility and reduced business confidence.”

However, many of Nedbank’s challenges remain local, with South Africa’s economic recovery slowing, resulting in real GDP growth declining to 0.1% in Q1 2025.

While ongoing reforms contributed to a more stable electricity supply and moderate improvements in logistical efficiency, challenged around water supply, municipal services, and crime and corruption remain, the bank said. 

Despite low business confidence, limited fixed investment and an uncertain economic outlook, corporate loans and advances growth rose to 8.1% in June. 

However, household credit growth remains flat at 3.1%, despite a steady improvement in consumer finances throughout 2025 as inflation remains historically low. 

One of the ways in which local banks have looked to continue growing despite South Africa’s poor economic growth is to expand outside of the country. 

Nedbank is set to join this trend, with the bank having reviewed its financial investment in pan-African financial services firm Ecobank Transnational. 

The bank is set to dispose of its investment in Ecobank and has classified it as a non-current asset held for sale in its interim results. 

Nedbank’s board has approved a formal plan to dispose of the investment, and the bank’s management team is currently engaging interested parties.

“This change represents a rest of our strategy on the rest of the continent with a clear focus on the SADC and East Africa regions in business we own and control,” Nedbank said.