Nedbank Group registers 11% growth in headline earnings

The Nedbank Group has announced its 2023 financial annual results showing 11% growth in headline earnings and reaching all its 2023 targets.

According to the Nedbank Group chief executive Mike Brown, this was in the face of a challenging economic landscape and difficulties faced in the South African operating environment.

“In 2023, record levels of load-shedding, logistical constraints and higher-than-expected inflation created pressure on consumers’ finances and impacted business confidence and investment in most sectors other than energy,” says Brown.

The group recorded headline earnings of R15,7 billion.

“Progress, albeit slow, is being made in the partnership between government and business to address key issues of energy security, transport and logistics, and crime and corruption.”

According to Brown, the highlight of the year was achieving all the group’s post-Covid-19 targets for 2023, announced in March 2021.

“In 2023, we further increased diluted headline earnings per share to N$31,99, up by 14% year-on-year, and we maintained our number one Net Promoter Scores ranking among South African banks.”

Return on equity reached 15,1%, exceeding the target of 15%, while cost-to-income ratio improved to 53,9%, surpassing the target of 54%.

A final dividend of N$10,22 per share was declared, up 18% year-on-year.

Nedbank Africa Regions managing executive Terence Sibiya says digital initiatives played a pivotal role in Nedbank’s growth.

“Our focus currently across Nedbank’s Southern African Development Community (SADC) operations is to transform the business and converge our technology infrastructure, enabling closer alignment to the South Africa business,” says Sibiya.

According to Sibiya, these digital initiatives helped Nedbank increase the number of digitally active retail clients in South Africa by 11% year-on-year to 2,9 million, representing 69% of retail main-banked clients.

Retail digital transaction volumes in South Africa increased by 12% and transaction values were up by 10%.

“Active Nedbank Money app clients reached 2,3 million in 2023, up by 16% year-on-year and transaction volumes on the Money app increased by 18%, while transaction values increased by 19%,” says Sibiya.

“I am delighted that the Nedbank Africa Regions business delivered a stellar performance because of improved performances from the SADC managed operations and strong earnings from our Ecobank Transnational Incorporated associate investment,” says Sibiya.