Nedbank has finalised its organisational restructuring, as the group’s bid to increase profitability takes a hit from the poor economic environment.<\/p>\n\n\n\n
Nedbank CEO Jason Quinn said that the organisational restructuring of its Retail and Business Banking (RBB) and Nedbank Wealth Clusters was completed in time. <\/p>\n\n\n\n
Nedbank previously said that by unifying its personal and juristic business segments into distinct, focused clusters, it would be able to offer more seamless and integrated banking experiences. <\/p>\n\n\n\n
Since 1 July 2025, the Personal and Private Banking has provided a full suite of services to all clients from the youth to high-net-worth segments. <\/p>\n\n\n\n
Business and Commercial Banking (BCB) covers the SME, commercial and mid-corp client segments.<\/p>\n\n\n\n
\u201cThese changes have been well received by all stakeholders, including colleagues, clients and shareholders,\u201d said Quinn.<\/p>\n\n\n\n
\u201cKey leadership positions have been filled, and our efforts now shift to execution, unlocking transformational growth opportunities, as well as efficiency and productivity enhancements,\u201d said Quinn. <\/p>\n\n\n\n
\u201cI would like to express my appreciation to all Nedbankers for their dedication and steadfast support, particularly the resilience shown during the organisational restructure.\u201d<\/p>\n\n\n\n
The restructuring update came in the group\u2019s financial results for the first half of 2025, which Quinn said were impacted by a challenging operating environment. <\/p>\n\n\n\n
Uncertainty was elevated due to the US tariff regimes, while geopolitical conflicts resulted in major market volatility and reduced business confidence.\u00a0<\/p>\n\n\n\n
The economic recovery momentum slowed in South Africa, with issues around water supply, municipal services, and crime and corruption remaining. <\/p>\n\n\n\n
Despite low business confidence, limited fixed investment and an uncertain economic outlook, corporate loans and advances growth rose to 8.1% in June.<\/p>\n\n\n\n
Household credit growth remained muted at 3.1% despite reduced interest rates since September 2024. <\/p>\n\n\n\n
In this context, the group\u2019s headline earnings increased by 6% to R8.4 billion. The group\u2019s ROE improved slightly to 15.2%. <\/p>\n\n\n\n
The increase in headline earnings was driven by non-interest revenue and associate income growth, ongoing improvements in impairments and management of expenses. <\/p>\n\n\n\n
With Quinn stating that the balance sheet metrics remain strong, the group upped its interim dividend by 6% to 1,028 cents per share. <\/p>\n\n\n\n Looking ahead, the global economic outlook remains subdued and risks are elevated as US tariffs are expected to negatively impact business confidence, capital investment and global trade volumes.\u00a0<\/p>\n\n\n\n South Africa\u2019s economy is expected to improve amid higher consumer spending given higher real incomes, subdued inflation, reduced interest rates and withdrawals from savings. <\/p>\n\n\n\n \u201cHowever, the 30% tariffs on South Africa exports to the US, weaker global growth and sluggish commodity prices will likely undermine business confidence, hurt exports and discourage private sector fixed investment.\u201d <\/p>\n\n\n\n Nedbank forecasts GDP growth of 1.0% for 2025, followed by 1.5% in 2026, with downside risk. <\/p>\n\n\n\n Following the 25-basis-point interest rate cut in July 2025, the group expects rates to remain stable from here.\u00a0<\/p>\n\n\n\n Amid the challenging South African environment, Nedbank has revised its 2025 guidance. <\/p>\n\n\n\n It now expects Diluted headline earnings per share (DHEPS) growth for the year to be low single digits and ROE to end the period around 15%. <\/p>\n\n\n\n It hopes to increase its ROE to 17% in the medium term, and over 18% in the long term. <\/p>\n","protected":false},"excerpt":{"rendered":" Nedbank has finalised its organisational restructuring as the group streamlines its offerings. <\/p>\n","protected":false},"author":95,"featured_media":812747,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[961],"tags":[1799],"class_list":["post-834019","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-nedbank"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/834019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=834019"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/834019\/revisions"}],"predecessor-version":[{"id":834024,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/834019\/revisions\/834024"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/812747"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=834019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=834019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=834019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Metric<\/strong><\/th> June 2024<\/strong><\/th> Current Period<\/strong><\/th> Change<\/strong><\/th><\/tr><\/thead> Headline earnings<\/td> R7 911m<\/td> R8 399m<\/td> 6%<\/td><\/tr> Revenue<\/td> R35 159m<\/td> R36 406m<\/td> 4%<\/td><\/tr> Credit loss ratio<\/td> 104 bps<\/td> 81 bps<\/td> –<\/td><\/tr> Total operating expenses<\/td> R19 775m<\/td> R21 492m<\/td> 9%<\/td><\/tr> Cost-to-income ratio<\/td> 55.3%<\/td> 57.4%<\/td> –<\/td><\/tr> Diluted headline earnings per share<\/td> 1 650 cents<\/td> 1 762 cents<\/td> 7%<\/td><\/tr> Headline earnings per share<\/td> 1 699 cents<\/td> 1 800 cents<\/td> 6%<\/td><\/tr> Basic earnings per share<\/td> 1 700 cents<\/td> 1 571 cents<\/td> -8%<\/td><\/tr> Interim dividend per share<\/td> 971 cents<\/td> 1 028 cents<\/td> 6%<\/td><\/tr> Net asset value per share<\/td> 23 097 cents<\/td> 24 522 cents<\/td> 6%<\/td><\/tr> Common-equity tier 1 ratio<\/td> 13.3%<\/td> 13.1%<\/td> –<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n Outlook <\/h2>\n\n\n\n