Nedbank Group · JSE:NED
Nedbank — FY2025 Earnings Presentation
50 slides from Nedbank's earnings presentation, February 2026
Slide 1: 2025 Annual Results
2025 Annual Results for the year ended 31 December 2025 NEDBANK GROUP LIMITED – 2025 Annual Financial Results 1
Slide 2: Agenda
Jason Quinn Chief Executive Overview Agenda Operating environment Strategic progress Jason Quinn Chief Executive Financial overview Outlook & guidance NEDBANK GROUP LIMITED – 2025 Annual Financial Results 2
Slide 3: 2025 overview – a transformative year
2025 overview – a transformative year o Volatile & uncertain – global geopolitical conflict, US tariffs, multiple SA budget delays, etc. o Cautious optimism – financial markets pricing in a more supportive macroeconomic Operating environment & good progress on multiple fronts environment o Banking e
Slide 4: Operating environment – financial markets reflect optimism
Operating environment – financial markets reflect optimism given good progress on various fronts & GDP growth of around 1.4% from 0.5% in 2024 SA government bond yields (%) SA CDS spreads (bps) 14 Lowest level in 500 Back at investment >10 years grade levels o Improved GNU working 13 400 relationshi
Slide 5: Operating environment – corporate lending up, household credit improving
Operating environment – corporate lending up off a low 2024 base, while household credit growth is improving on the back of higher real disposable income, lower interest rates & lower inflation Private sector loans & advances growth SA inflation Nedbank Capital Investment Schedule (%, BA900) (monthl
Slide 6: Bold strategic decisions – group reorganisation and cluster momentum
Bold strategic decisions – completed the group reorganisation into a more client-focused design, with momentum building across all clusters Corporate & o Advances – increased origination appetite to serve clients on high-grade larger ticket deals. Lots Investment Banking of client activity & robust
Slide 7: Bold strategic decisions – Eqstra and iKhokha acquisitions
Bold strategic decisions – to become more competitive, reduce risk, and grow & diversify earnings and returns Acquisition of 100% Acquisition of 100% o Provider of end-to-end fleet management o Provider of payment, business management & services to corporate & public sector clients financial solutio
Slide 8: Bold strategic decisions – ETI sale and NCBA offer
Bold strategic decisions – to become more competitive, reduce risk, and grow & diversify earnings and returns Sale of Nedbank’s 21% Offer to acquire c66% shareholding o Disposal successfully concluded o Offer to acquire effective control, with the remaining 34% continuing to be traded on the NSE (Ke
Slide 9: NCBA offer – strategic rationale
NCBA offer – strategic rationale East Africa – a region of significant NCBA – one of East Africa's most prominent financial Nedbank & NCBA – potential synergies strategic importance institutions o Strong macroeconomic o Top tier 1 bank in Kenya o Nedbank to benefit from NCBA’s fundamentals strong fi
Slide 10: NCBA offer – details, terms, conditions and assumptions
NCBA offer – offer details, salient terms, conditions, calculations & current assumptions Additional info Key numbers/ Potential impact on Nedbank earnings & o Offer to acquire c66% of NCBA shares calculations/assumptions ROE (step-by-step guide) o CMA exemption – received exemption from the Estimat
Slide 11: Strategic value drivers – growth, productivity, risk & capital management
Strategic value drivers – growth, productivity and risk & capital management outcomes Risk & Capital Growth Productivity Management • Wholesale advances – client activity • Cost-to-income ratio increased, Strong balance sheet improving & pipelines robust, but mostly as revenue growth has been drawdo
Slide 12: Strategic progress
Strategic progress Mfundo Nkuhlu Chief Operating Officer NEDBANK GROUP LIMITED – 2025 Annual Financial Results 12
Slide 13: Our strategy – leveraging strong foundations to grow & enhance productivity
Our strategy – leveraging our strong foundations to grow & enhance productivity Our purpose To use our financial expertise to do good for individuals, families, businesses & society Strategic value drivers Risk & Growth Productivity Capital Management Strategic value unlocks Digital Market-leading F
Slide 14: Digital experiences (DX) – strong growth in digital activity
Digital experiences (DX) – strong growth in digital activity, clients, usage & sales PPB app transaction PPB digitally active PPB retail digital sales CIB NBH adoption rate volumes (# m) clients (# m) (% of new sales) (%, year) Current focus ▲12% ▲9% Leverage AI ▲ ▪ Intelligent Hyper ▲ Automation –
Slide 15: Market-leading client experiences (CX)
Market-leading client experiences (CX) – good outcomes across client metrics but more to do, particularly around digital experiences Client satisfaction metrics Consumer NPS 1 SME NPS Brand value2 77 2nd ▲24% (2024: 70) #2 among main-banked clients of the large SA banks 1 highest level in 9 years R2
Slide 16: External recognition received in 2025
External recognition received in 2025 – across business excellence, technology & innovation and purpose & ESG Additional info 2025 Environmental 2025 The Digital 2025 The Digital 2025 Global Finance 2025 The Digital Banker: Global Finance Awards Banker: MEA Banker: Africa 2025 Euromoney Awards Trans
Slide 17: Strategic portfolio tilt – building stronger franchises
Strategic portfolio tilt – building stronger franchises & enhancing primacy to drive faster revenue growth PPB main-banked clients Greenbacks loyalty & Commercial banking Total group clients (# million) reward clients (# million) market share1 8.0m ▲7% (R30m to R750m, %) (2024: 7.5m) ▲19% ▲5% ▲ 3.7
Slide 18: Strategic portfolio tilt – scaling key product lines
Strategic portfolio tilt – good progress in scaling key product lines BA900 market share Dec Dec Yoy MT (%) 24 25 change target Wholesale Wholesale term loans 16.2 14.4 ▼ > 18 lending ▪ CIB – strong underlying client activity, but drawdowns slow. Well positioned for growth with a strong pipeline Com
Slide 19: Growth vectors – payments & insurance
Growth vectors – good progress on payments & insurance Modernise payments Grow & enhance insurance cross-sell Advance digital payments growth through our fully Traditional bancassurance & new solutions to Nedbank clients interoperable enterprise payment service hub, in line with ▪ Improve client pen
Slide 20: Creating positive impacts – highlights & ESG ratings
Creating positive impacts – highlights & ESG ratings Independent ESG ratings of Nedbank Sustainable Disclosed financed Top 10% development finance emissions for home 84% AAA of global exposures loans, vehicle ACI representation banks finance, commercial Change pic (78% in 2019 & 83% 21% property & m
Slide 21: Creating positive impacts – R207bn sustainable development finance
Creating positive impacts – R207bn sustainable development finance (SDF) representing 21% of GLAA resulted in meeting our 2025 ambition of 20% Additional info Sustainable development finance exposures 1 (Rbn) Key highlights 21% R30bn support for farmers & the agriculture 207 20% sector 19% 183 R34bn
Slide 22: Creating positive impacts – leadership in renewable energy
Creating positive impacts – building on our leadership in renewable energy. Exposures increased to R50bn with strong pipelines in place Renewable energy financing Additional info ( drawn exposures1, limits, Rbn) > R48bn in awarded facilities2 69 ▪ Closed 5 deals in 2025 (4 private power generation &
Slide 23: Financial overview
Financial overview Mike Davis Chief Financial Officer NEDBANK GROUP LIMITED – 2025 Annual Financial Results 23
Slide 24: Financial performance – muted, slightly ahead of guidance
Financial performance – muted, although slightly ahead of guidance & market expectations ▲3% 15.4% ▲57.8% ▲6% 12.9% ▲4% 3 628 cents (24: 15.8%) (24: 55.6%) R997bn (24: 13.3%) 24 956 cents DHEPS Cost-to-income Gross banking ROE advances CET1 ratio NAV / share ratio ▲ 5% excl once-off 15.8% excl once-
Slide 25: Shareholder value creation – ROE ahead of COE, final dividend
Shareholder value creation – ROE ahead of COE, final dividend declared at a payout ratio of 58% & ongoing growth in NAV/share Additional info ROE & cost of equity (%) Dividend per share (cents) NAV per share (cents) 58% payout ▲4% ratio Cost of equity 1,104 1,104 24,956 20,493 24,039 21,533 23,192 1
Slide 26: Headline earnings up by 2%
Headline earnings up by 2% Headline earnings (Rm) ▲3% ▲4% ▼8% ▼18% ▲7% (105) 1 447 (2 818) 1 131 (461) 1 072 Excl. Transnet ▲5% 16 934 17 200 HE NII NIR Associate Impairments Expenses Direct tax HE 2024 income & other 1 2025 1Other includes indirect tax and minority & preference shareholders. NEDBAN
Slide 27: Gross banking advances up by 6% & deposits up by 11%
Gross banking advances up by 6% & deposits up by 11% Gross banking advances (Rbn) Strong pipelines, but Front book sales growth ▲11% delayed drawdowns & of +18% & +7%, aggressive competition respectively ▲2% ▲3% ▲6% ▲9% ▲6% No further market share losses in H2 2025 ▲2% ▲7% ▲7% 30 28 29 27 1,306 1,17
Slide 28: Gross banking advances up by 6% – PPB, BCB, CIB
Gross banking advances up by 6% – supported by good growth in PPB & higher H2 2025 payouts in BCB. Underlying client activity in CIB good & pipelines remain strong Additional info CIB gross banking advances (Rbn) BCB gross banking advances (Rbn) PPB gross banking advances (Rbn) 500 150 500 ▲7% 450 ▲
Slide 29: Deposits up by 11%
Deposits up by 11% – driven by transactional cash management balances, franchise call & term deposits and other deposits as clients extend tenure, leveraging Nedbank's competitive term offerings Additional info Deposits (Rbn) Deposit % of growth group CIB +17% 45% ▲10% BCB +4% 17% PPB +6% 25% NAR +5
Slide 30: NII up by 3% – AIEBA growth offset by NIM
NII up by 3% – AIEBA growth of 9% offset by 24 bps NIM compression, mostly from endowment mix & rate. The NIM decline in H2 2025 (6 bps) slowed vs H1 2025 (18 bps) Net interest margin (bps) (23) (5) 6 (2) Mix (12) (4) Mix - Rate (11) (2) Pricing (2) +1 Stage 3* . 373 393 421 405 381 21 22 23 24 Endo
Slide 31: NIR up by 4% – commission & fees and insurance
NIR up by 4% – supported by good growth in commission & fees and insurance Non-interest revenue & income1 (Rm) Key drivers ▪ Commission & fees ▲6% o BCB – benefit of Eqstra acquisition & good growth in the client segments & card o PPB – strong growth in VAS, client gains & higher levels of cross-sel
Slide 32: Impairment charge down by 18% to R6.6bn
Impairment charge down by 18% to R6.6bn – the outcome of decisive management actions, workout & derisking strategies, as well as better quality front-book origination Impairment charge (Rbn) ▼68 bps ▲6% ▼2.96% (24: 87 bps) R997bn (24: 3.32%) Credit Gross loans Total 9.6 loss ratio & advances coverag
Slide 33: Group CLR down to 68 bps
Group CLR down to 68 bps – sustained risk management effort has resulted in the CLR moving towards the bottom end of our TTC range Additional info Credit loss ratios (bps) 25 24 TTC 109 CIB ▼ (17) 14 15–45 Successful execution of CIB excl CPF ▼ (33) 13 workout & 89 87 CPF ▼ 3 16 derisking 83 strateg
Slide 34: Gross loans & advances and coverage
Gross loans & advances and coverage – strong growth in stage 1 loans & reduction in stage 2 & 3 loans Additional info Gross loans & advances (Rbn) Coverage (%) 1 Key drivers ▪ Stage 1 loans 935 2 3.62 3.32 2.96 ‒ Front-book growth across all clusters 47 34.2 40.5 39.4 & loan migrations from stage 2
Slide 35: Underlying expenses up by 5%
Underlying expenses up by 5% – including Transnet settlement up by 7% Expenses (Rm) Key drivers ▲8% ▪ Employee-related costs ‒ Salaries & wages: annual average salary increase (+6%); Eqstra staff costs not fully in the base ‒ Variable-pay incentives aligned with ▼2% ▲5% ▲3% ▲40% profitability metric
Slide 36: ETI associate investment – lifetime outcome
ETI associate investment – ETI lifetime outcome from original investment to sale, recycled through profit & loss in year of sale as previously guided ETI lifetime value (Rbn) On sale accounting treatment: R8.6bn crystalised through the IS, but a non-HE item (0.7) 6.8 (7.4) (1.8) (0.4) $100m x FX les
Slide 37: Common equity tier 1 ratio at 12.9%
Common equity tier 1 ratio at 12.9% – focus on growth opportunities, while we retain flexibility & optionality with regard to our capital levels CET1 ratio (%) Capital management approach (1.4) o CET1 ratio above our revised 11.0– 12.5% target range (incorporating Basel 3 PCN countercyclical buffer
Slide 38: Key regulatory changes – Basel 3 reforms and buffers
Key regulatory changes – Basel 3 reforms, countercyclical capital buffer, financial loss-absorbing capital & ZARONIA Additional info Effective date Nedbank impact Basel 3 Effective from Key underlying reforms: reforms 1 July 2025 o Amending the regulations related to banks o Credit risk (revisions t
Slide 39: Cluster financial performance
Cluster financial performance Corporate & Investment Banking Business & Commercial Banking R7.9bn 21.4% R2.4bn 20.8% ▲2% ▼2%▼2%▼>100%▲9% ▼7% ROE ▼1% ▲13% ▼32%▲12% ROE headline (24: 21.3%) headline (24: 25.7%) earnings earnings (17) bps 51.9% 21 bps 68.3% credit cost-to- credit cost-to- loss ratio in
Slide 40: CIB financial performance
CIB financial performance – ROE of 21.4%, supported by lower impairments & disciplined capital management, despite margin & revenue pressure Additional info R7.9bn ▪ NII down by 2% ▲2%* ‒ Average banking advances growth of +5% & strong deposit growth of headline +17% earnings ‒ NIM compression (-24
Slide 41: BCB financial performance
BCB financial performance – continued to demonstrate a good ROE profile (>20%) despite lower endowment income, benefitting from lower impairments Additional info R2.4bn ▪ NII down by 1% ▼ 7% headline ‒ Margin compression (NIM decreased by 19 bps) largely due to lower earnings endowment income ‒ Stro
Slide 42: PPB financial performance
PPB financial performance – HE increased on the back of strong transactional NIR growth from main-banked clients & improved impairments, offset by lower endowment Additional info R5.1bn ▲9% ▪ NII up by 1% headline ‒ Average advances growth of +6%, underpinned by double-digit growth in earnings payou
Slide 43: NAR financial performance
NAR financial performance – HE decline, driven largely by no associate income in H2 2025 following the sale of ETI Additional info R1.6bn ▼1% ▪ SADC operations – HE of R672m, up by 15% & ROE of 9.0% headline ‒ NII up by 9%, driven by 17% growth in gross average banking loans & earnings advances, par
Slide 44: Outlook
Outlook Jason Quinn Chief Executive NEDBANK GROUP LIMITED – 2025 Annual Financial Results 44
Slide 45: Operating environment – key macroeconomic forecasts
Operating environment – key macroeconomic forecasts SA GDP growth (%) Inflation (average, %) Total overall credit growth (YE, %) 7.8% 7.7% 7.4% 6.9% 9.2% 6.6% 5.9% 4.4% 3.2% 3.4% 3.0% 3.2% 4.8% 4.2% 22 23 24 25 26 27 28 22 23 24 25 26 27 28 Prime interest rate (YE, %) Rand/US$ (average) 10.50% 11.25
Slide 46: Short-term guidance (2026)
Short-term guidance (2026) – strong underlying momentum, partially offset by negative endowment impact, impairment normalisation off a low 2025 base & no further associate income from ETI in 2026 2025 2026 guidance NII growth +3% Around mid-single digits Around mid-70 bps CLR 68 bps (below the mid-p
Slide 47: Financial targets – medium- & long-term
Financial targets – strong foundations in place as we commit to our medium- & long-term targets Additional info Long term 2025 2026 Medium term (5+ years) DHEPS growth > > CPI + GDP + 3% > CPI + GDP + 3% DHEPS growth1 +3% HE growth (CAGR) (CAGR TTC) Return on equity1 15.4% Above 15%* 17% > 18% CIB 2
Slide 48: Conclusion – accelerating growth & unlocking value
Conclusion – heightened focus on accelerating growth & unlocking value as we progress towards our medium-term targets 2026 Medium term Tailwinds o A more constructive macroeconomic environment o Improving macroeconomic ▪ Large energy & infrastructure finance opportunities environment ▪ Stronger reta
Slide 49: Thank you
Thank you NEDBANK GROUP LIMITED – 2025 Annual Financial Results 49
Slide 50: Disclaimer
Disclaimer Nedbank Group has acted in good faith and has made every reasonable effort to ensure the accuracy and completeness of the information contained in this document, including all information that may be defined as 'forward-looking statements' within the meaning of United States securities le