Nedbank to Sell Stake in Ecobank, Classifies Shares as Held for Sale

Nedbank to Sell Stake in Ecobank, Classifies Shares as Held for Sale  

Nedbank Group said it has concluded a plan to sell interest in Ecobank Transnational Incorporation, according to its official release. 

The Group said its first-half of 2025 financial performance was slightly ahead of guidance, with ongoing strategic progress in a difficult environment.

Details on its website revealed that Nedbank Group’s results for the six months to 30 June 2025, amid a challenging operating environment, reflect 6% growth in headline earnings to R8.4 billion and a return on equity (ROE) that improved slightly to 15.2% from 15.0% in the equivalent period in 2024.

 The increase in headline earnings was driven by non-interest revenue (NIR) and associate income growth, an ongoing improvement in the impairment charge, and good management of underlying expenses, partially offset by muted net interest income (NII) growth.

“The operating environment during the first half of the year was challenging,” said Jason Quinn, Nedbank Chief Executive. “Uncertainty relating to US policies, in particular tariffs, and geopolitical conflicts resulted in significant financial market volatility and reduced business confidence.

In South Africa, economic recovery momentum slowed, resulting in real gross domestic product growth declining to 0.1% in Q1 2025. Against this backdrop, Ned said it did well to increase our diluted earnings per share by 7%.”

The group’s balance sheet remained very strong. CET1 and tier 1 capital ratios of 13.1% and 14.7% were well above board-approved target ranges and SARB minimum requirements.

It revealed that an interim dividend of 1 028 cents per share was declared by the group, up by 6% from 971 cents per share in 2024 at a payout ratio of 57%.

“Regarding our investment in Ecobank Transnational Incorporated (ETI), we have concluded a strategic review of the group’s financial investment, recognising the risks of continuing to hold onto the investment due to regulatory uncertainty and potential increasing capital requirements.

As a result of the review, the group’s financial investment in ETI has from 30 June 2025 been classified as a non-current asset held for sale in terms of IFRS 5,” said Quinn.

“The board has approved a formal plan to dispose of the investment, and we are currently engaging interested parties and, if a sale is concluded, it will be a clean deal subject only to normal regulatory approvals.

“This change represents a reset of Nedbank’s strategy on the rest of the continent with a clear focus on the SADC and East Africa regions in businesses we own and control, and in areas where we can play to our strengths.” #Nedbank to Sell Stake in Ecobank, Classifies Shares as Held for Sale #

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