Staff Writer
Nedbank Group Limited says South Africa’s GDP growth is expected to improve modestly to around 1.3% in 2026 and 1.4% in 2027, supported by resilient consumer spending but constrained by weak business confidence, subdued fixed investment and global energy price risks.
Inflation is expected to average around 4% in 2026, remaining above SARB’s 3% target but within its tolerance band, and the prime lending rate is expected to increase by a further 25 bps in September 2026 before declining in 2027.
Banking conditions should improve gradually, with credit growth projected to remain positive and end the year at around 7%, although risks remain tilted to the downside.
“We expect the underlying growth momentum across all our businesses to continue in H2 2026, supporting an improvement in headline earnings growth from the flat outcome reported in the first half. Return on Equity is expected to remain above 15% in 2026, heading towards 2025 levels. In the medium term, we remain focused on delivering an ROE of around 17% in 2028, underpinned by stronger revenue growth and continued operational efficiency gains,” the group said.
Client satisfaction metrics remained at the top end of the peer group, while the value of the Nedbank brand increased by 16% to N$24bn. Total clients increased by 4% to 8 million, supported by growth across individuals and SMEs.
Nedbank Group reported headline earnings of N$8.4 billion for the six months ended 30 June 2026, largely unchanged from the prior year, as higher revenue growth was offset by increased credit impairments and operating costs.
The group’s headline earnings rose marginally by 0.1% to N$8.4billion from N$8.39 billion reported in the first half of 2025.
Nedbank’s revenue increased by 6% to N$38.23 billion, compared with N$35.981 billion in the corresponding period last year, supported by growth across its operations.
However, the bank reported a higher credit loss ratio of 95 basis points, up from 81 basis points in June 2025, reflecting increased pressure from credit impairments.
Earnings per share showed stronger growth, with diluted headline earnings per share rising by 2%, while headline earnings per share also increased.
The group declared an interim dividend of 1,052 cents per share, up from 1,028 cents per share a year earlier.
