Nedbank Group Limited Update Summary Company Overview - **Company**: Nedbank Group Limited (OTCPK:NDBK.Y) - **Date of Briefing**: December 03, 2025 Key Industry Insights - **Industry**: Banking and Financial Services - **Market Conditions**: The macroeconomic environment is improving, with lower interest rates and inflation contributing to better disposable income and growth in secured lending portfolios [5][6][14] Core Financial Performance - **Non-Interest Revenue (NIR)**: Expected to grow below mid-single digits for the full year, primarily due to delays in deal flow and the impact of a one-off commercial settlement with Transnet [1][15][80] - **Expenses**: Growth in expenses was mid- to upper-single digits, with expectations to remain above mid-single digits for 2025, excluding one-off settlements [1][2] - **Return on Equity (ROE)**: Projected to be around 15% or slightly higher for the full period [2] Strategic Developments - **Share Buybacks**: Approximately 10.5 million shares repurchased for ZAR 2.4 billion at an average price of just below ZAR 230 per share [3][21] - **Acquisition of ICORCA**: Completed on December 1, 2025, aimed at enhancing presence in the SME and mass market segments [3][26] - **Organizational Restructure**: Completed in July 2025, aimed at improving the profile and performance of the Commercial Banking business [3][10] Business Segment Performance - **Personal and Business Banking (PPB)**: Strong growth in value-added services and client gains, with a focus on cross-selling following the organizational restructure [1][70] - **Corporate and Investment Banking (CIB)**: Delays in deal closures, particularly in renewable energy and infrastructure sectors, pushing expected growth into 2026 [6][62] - **Retail Loan Growth**: Notable improvement in secured lending, with a halt in market share losses in personal loans, although card lending remains weak [5][30] Risk Management and Capital Adequacy - **CET1 Capital Adequacy Ratio**: Remains above the target range of 11%-12%, indicating strong capital position [2] - **Credit Quality**: Improvement across most portfolios, with a clean corporate book and reduced watch list clients compared to previous years [17][18] Future Outlook - **Growth Projections**: Anticipated mid- to upper-single digit growth in loans and advances for 2026, driven by infrastructure spending and improved macroeconomic conditions [78] - **Market Positioning**: Focus on leveraging the ICORCA acquisition to penetrate the mass market and enhance cross-selling opportunities [26][59] Additional Considerations - **Benchmark Reform**: Transitioning from JIBAR to ZARONIA is well-managed, with no expected risks to the business [46] - **Competitive Landscape**: Noted aggressive pricing in the renewable energy sector affecting deal closures, highlighting the importance of strong client relationships [66] This summary encapsulates the key points from the Nedbank Group Limited update, focusing on financial performance, strategic initiatives, and market outlook.