Nedbank Group (NED) investor relations material

Executive summary

• Strong operational performance in H1 2026, with PPOP up 8% (15% excluding ETI), DHEPS up 2% (15% excluding ETI), and ROE at 15.0%, supported by a robust balance sheet and CET1 ratio of 12.6%.

• Interim dividend declared at 1,052 cents per share, payout ratio of 57%.

• NCBA acquisition on track, securing a 66% stake to expand in East Africa, with regulatory approvals progressing.

• Strategic execution included integration of iKhokha and Eqstra, driving new business momentum and revenue.

• Technology and AI investments are driving operational efficiency, digital adoption, and enhanced client experiences.

Financial highlights

• Net interest income up 4% to R22.0bn, non-interest revenue up 10% to R16.2bn, and disciplined expense growth at 3%.

• Pre-provision operating profit increased by 8% year-over-year, and by 15% excluding ETI base effects.

• Gross banking advances and deposits both grew by 7% year-on-year.

• Cost-to-income ratio improved to 56.2%.

• Credit loss ratio increased to 95 bps, mainly due to higher impairments in PPB.

Outlook and guidance

• NII growth expected slightly above mid-single digits, with NIR growth in upper single digits.

• Credit loss ratio guidance revised upward to mid-80 bps for the full year, with improvement expected in H2.

• Expense growth to remain below mid-single digits, with continued focus on productivity.

• ROE target remains above 15% for 2026, with medium-term ambition of 17% by 2028 and cost-income ratio of 54%.

• Dividend cover to remain within the 1.75–2.25x board-approved range.