Nedbank Reports Strong H1 2026 Results as Digital Banking Surge Drives 3.5 Million Active Clients
South African bank delivers strong operational performance with 15% earnings growth excluding Ecobank disposal, as digital adoption accelerates across all business units
Nedbank Group has reported robust financial results for the six months ending 30 June 2026, with headline earnings reaching R8.4 billion, significantly outperforming the bank’s initial expectations for the year.
The results reflect a robust combination of digital adoption, strategic restructuring, and disciplined expense management that has positioned the bank for sustained growth in an evolving economic landscape.
Digital Banking Momentum Drives Client Growth
The bank’s digital transformation strategy continues to yield impressive results, with digitally active retail clients increasing by 8% to 3.5 million in Personal and Private Banking (PPB).
In the Nedbank Africa Regions (NAR):: SADC business, digital adoption grew from 69% to 72% of the total active client base.
“Our clients continue to embrace the benefits and convenience of digital channels, evident in the increase of digital volumes and values,” said Jason Quinn, Nedbank Chief Executive.
The Nedbank Money app has emerged as a cornerstone of this digital strategy, with active clients surging by 13% to 3.2 million, supporting a 16% increase in transaction values.
App users in NAR: SADC reported a 17% increase in app usage, confirming the platform’s position as the preferred channel of choice.
Business Banking Digital Adoption Accelerates
The adoption rate of the Nedbank Business Hub (NBH) by juristic clients has increased significantly, driven by higher levels of self-service and enhanced digital features.
In Business and Commercial Banking (BCB), approximately 77% of clients are actively using the NBH, while Corporate and Investment Banking (CIB) client adoption increased to 56%.
AI-Driven Efficiencies Unlock R375 Million in Benefits
Nedbank’s Intelligent Hyper Automation (NIHA) strategy, which combines AI, generative AI, analytics, machine learning, and robotic process automation, is delivering tangible benefits across multiple areas of the business.
The initiative has unlocked more than R375 million in annualised benefits to date, spanning revenue generation, credit effectiveness, client experiences, productivity, cost optimisation, and fraud processes.
Financial Performance Exceeds Expectations
The group’s headline earnings of R8.4 billion were supported by stronger net interest income and non-interest revenue growth, alongside very disciplined expense management. These positive factors were partially offset by a higher impairment charge and no further associate income from Ecobank Transnational Incorporated (ETI) following the disposal of Nedbank’s investment.
When excluding the ETI base effect, diluted headline earnings per share (DHEPS) growth was very strong at 15%, reflecting a substantial underlying operational performance.
Return on equity (ROE) was 15.0% across the business (H1 2025: 15.2%), also ahead of expectations. Balance sheet metrics remained robust, supporting the declaration of an interim dividend of 1,052 cents per share.
Strategic Restructuring and Acquisitions Drive Growth
“In 2025, we took bold steps to become more client-centred, unlock growth and diversify earnings,” said Jason Quinn, Nedbank Chief Executive.
Jason Quinn, Nedbank Group CEO
“This included implementing and finalising the strategic organisational restructure, progressing the integration of Eqstra, concluding the acquisition of iKhokha, concluding the sale of Nedbank’s 21% shareholding in ETI, and announcing our intended acquisition of approximately 66% of NCBA to support growth in East Africa.
“These strategic shifts are starting to yield benefits, evident in the growth across our businesses.”
South African Economic Outlook Remains Mixed
“SA’s operating environment remained mixed in the first half of 2026, with stronger than expected GDP growth in Q1 2026 contrasting rising inflation, higher interest rates and continued affordability pressure on households,” added Quinn.
“However, we are encouraged by an improving economic outlook, supported by a more credible fiscal path, structural reforms and recent credit rating upgrades, while South Africa’s investment appeal remains intact despite global uncertainty.”
Personal and Private Banking Shows Strong Momentum
Accelerating growth and unlocking efficiencies in Personal and Private Banking continued with advances growth of 6% retaining momentum from the prior year.
New loan payouts in Home Loans and Card increased by double digits, resulting in market share gains, while MFC retained its market-leading position as payouts increased by 9%.
Innovation initiatives, including Quick Loans with Jumo and a new revolving credit facility, contributed 8% of unsecured lending production. Clients in PPB increased by 4% to 7.6 million, with main-banked clients increasing by 2% to 3.9 million.
Africa Regions Deliver Strong Performance
In Nedbank Africa Regions (NAR): SADC, strategic execution supported revenue growth and operational efficiency.
Advances grew by 21%, while non-interest revenue increased by 12% on the back of strong client activity and higher commission and fee income.
East African Expansion Milestone
“We are pleased to have reached the target of 66% shareholding in NCBA after shareholders representing 79.9% of NCBA’s shares in issue accepted our offer, an important milestone in the proposed acquisition,” added Quinn.
The acquisition represents a significant step in Nedbank’s strategy to expand its presence in East Africa and diversify its earnings base across the continent.
