Nedbank Group has reported a 77% increase in impairments across its Southern African Development Community (SADC) operations to R184 million for the six months ended 30 June 2025, driven primarily by write-offs in Namibia’s retail home loan portfolio.
In a trading update, the group said: “Impairments [were] up 77% to R184m, driven by write-offs in Namibia on the retail home loan portfolio, adequacy of impairments reviews in Eswatini and ratings downgrade on Mozambique sovereign debt.”
The sharp rise in impairments contributed to a 5% decline in headline earnings for the SADC region, falling to R257 million, with return on equity (ROE) easing to 6.7%.
However, net interest income from the region grew 15% to R1.4 billion, supported by an 11% increase in average loans and advances and a net interest margin expansion to 8.08%.
Nedbank Chief Executive Jason Quinn said the operating environment remained challenging. “In SA, economic recovery momentum slowed, resulting in real GDP growth declining to 0.1% in Q1 2025. Against this backdrop, we did well to increase our diluted earnings per share by 7%,” he said.
Non-interest revenue from SADC operations fell by 4% to R857 million, reflecting a tough trading environment. Still, the region recorded an 11% year-on-year increase in client numbers, with 69% of the client base now digitally active, despite a selective investment approach during technology harmonisation across Namibia, Eswatini, Lesotho, and Zimbabwe.
On Nedbank’s broader strategy in Africa, Quinn said the group had completed a strategic review of its financial investment in Ecobank Transnational Incorporated (ETI), citing regulatory uncertainty and possible higher capital requirements.
“As a result of the review, the group’s financial investment in ETI has from 30 June 2025 been classified as a non-current asset held for sale in terms of IFRS 5,” he said.
“The board has approved a formal plan to dispose of the investment, and we are currently engaging interested parties and, if a sale is concluded, it will be a clean deal subject only to normal regulatory approvals,” Quinn added.
“This change represents a reset of Nedbank’s strategy on the rest of the continent with a clear focus on the SADC and East Africa regions in businesses we own and control, and in areas where we can play to our strengths.”
Across the group, diluted headline earnings per share rose by 7%, with headline earnings increasing 6% to R8.4 billion.
Return on equity improved to 15.2%, up slightly from 15.0% in the same period last year. An interim dividend of 1 028 cents per share was declared, reflecting a 6% increase.
Quinn noted the group’s progress in impact-driven finance: “In line with our commitment to making a positive impact in the societies in which we operate… lending that supports sustainable development finance increased to R189bn, including strong growth in renewable energy exposures to R47bn, where we are market leaders.”
The Nedbank Africa Regions (NAR), which includes Namibia, reported a 63% increase in headline earnings to R1.18 billion, delivering an ROE of 28.6%. Excluding the ETI-related accounting adjustment, headline earnings rose 24%.
“I value the dedication of our Nedbank colleagues and ongoing support of the investment community, regulators and our other stakeholders during the past 6 months, and remain grateful to our 7.9 million retail and wholesale clients for choosing Nedbank,” Quinn said. “As Nedbank, we will continue to play our role in society as we fulfil our purpose of using our financial expertise to do good.”
