Interim report
Page 1
Interim results for the six months ended 30 June 2026 Unaudited interim results for the 6 months ended 30 June 2026
Page 2
Contents 134 Earnings per share and weighted-average shares 135 Nedbank Group employee incentive schemes 137 Long-term debt instruments 138 External credit ratings 139 Additional tier 1 capital instruments 140 Shareholders' analysis 142 Basel III balance sheet credit exposure by business cluster and asset class 144 Nedbank Limited consolidated statement of comprehensive income 145 Nedbank Limited consolidated financial highlights 146 Nedbank Limited consolidated statement of financial position 147 Definitions 150 Abbreviations and acronyms IBC Company details 108 Loans and advances 118 Investment securities 118 Investments in associate companies 119 Intangible assets 120 Amounts owed to depositors 122 Liquidity risk and funding 125 Equity analysis 126 Capital management 132 Assets under management 107 133 2026 interim results commentary Financial results Segmental analysis Results presentation Message from our Chief Executive 39 Financial highlights 40 Consolidated statement of comprehensive income 42 Consolidated statement of financial position 44 Consolidated statement of changes in equity 48 Return-on-equity drivers 52 Organisational structure, financial outcomes, and products and services 54 Operational segmental reporting 58 Nedbank Corporate and Investment Banking 62 Nedbank Business and Commercial Banking 68 Nedbank Personal and Private Banking 82 Nedbank Africa Regions: SADC 86 Geographical segmental reporting 88 Income statement analysis 89 Net margin analysis 92 Impairments 100 Non-interest revenue and income 102 Expenses 104 Headline earnings reconciliation 105 Taxation charge Supplementary information Statement of financial position analysis 1 2 28 38 51
Page 3
Our guidance and targets are not profit forecasts and the group’s joint auditors have not reviewed or reported on them. Focused execution and growth The US–Iran war and the closure of the Strait of Hormuz weighed on the global economy in the second quarter of 2026. Higher energy prices pushed global inflation higher, prompting a more hawkish monetary policy stance in some markets. The operating environment in SA during the first half of 2026 was mixed. Real GDP growth in the first quarter surprised on the upside, while higher fuel prices drove local consumer inflation up from a low of 3% in February and, in response, SARB’s Monetary Policy Committee increased interest rates by 25 bps in May, taking the prime lending rate up to 10.5%. Industry credit growth strengthened modestly, with corporate credit growth accelerating off a low base, while household credit growth improved gradually but remained constrained by affordability pressures. SA’s economic outlook continues to show encouraging signs of improvement, underpinned by a more credible fiscal trajectory, progress on structural reforms, and recent credit rating upgrades. Many of the country’s positive prospects as an attractive investment destination remain intact despite global uncertainties and the conflict in the Middle East. Headline earnings (HE) for the 6 months to 30 June 2026 were flat yoy at R8.4bn, outperforming our expectations at the start of the year. HE benefited from improving net interest income growth, strong non-interest revenue growth and very disciplined expense management, offset by a higher impairment charge and no further recognition of associate income from Ecobank Transnational Incorporated (ETI) following the disposal of our investment in 2025. When excluding the ETI base effect, HE growth was strong at 12%, reflecting a strong underlying operational performance. Diluted HEPS increased by 2% to 1 803 cents and growth was ahead of HE growth due to the run rate impact of the well-timed share buybacks executed in 2025. Return on equity (ROE) of 15.0% (H1 2025: 15.2%) remained above the group’s cost of equity of 14.0%. Balance sheet metrics remained strong, supporting the declaration of an interim dividend of 1 052 cents per share. Following the bold strategic decisions we made in 2025 to become more client-centred, unlock growth and cross-sell opportunities, diversify earnings, and enhance productivity, benefits have become more evident across our business clusters in the first half of 2026. In CIB, growth momentum improved as stronger, more diversified, pipeline conversion and participation in larger transactions supported advances growth, while trade finance and commission and fee income benefited from strong deal flow. In BCB, investments in the new cluster and recent acquisitions have started to deliver revenue benefits, with advances growth accelerating, commission and fees increasing strongly, and early synergies emerging from the iKhokha and Eqstra acquisitions. In PPB, growth and efficiency initiatives supported continued advances momentum, market share gains in advances and deposits, very strong growth in insurance and payments, and further productivity improvements. In NAR: SADC, strategic execution supported strong advances and NIR growth, improved operational efficiency, and an increase in ROE. In Q1 2026 we announced our intention to acquire a controlling interest in NCBA Group plc, a leading East African financial services group, supporting our ambition to grow and diversify earnings in attractive markets. The offer closed on 10 July 2026 and was accepted by shareholders representing 79.9% of NCBA shares in issue, enabling us to achieve our targeted 66% shareholding. Key regulatory approvals have been obtained, with the remaining approvals expected towards the end of Q3 or early in Q4 of 2026. We continued to make good progress on our strategic value unlocks. Digital volumes and values increased strongly as more clients across all our businesses embraced the benefits and convenience of digital channels. Our AI and data capabilities are delivering tangible benefits across revenue generation, credit effectiveness, client experiences, productivity, cost optimisation, and fraud processes. Client satisfaction metrics remained at the top end of the peer group, while the value of the Nedbank brand increased by 16% to R24bn. T otal clients increased by 4% to 8 million, supported by growth across individuals and SMEs. Under strategic portfolio tilt, we recorded market share gains in home loans, credit cards, wholesale term loans, and retail deposits. Our increased focus on insurance and payments saw strong growth, with MyCover insurance gross earned premiums increasing by 23% and digital payments NIR in PPB increasing by 15%. Lastly, lending to clients that creates lasting positive impacts, sustainable development finance, increased to R213bn, representing around 21% of total gross loans. Looking forward, SA GDP growth is expected to improve modestly to around 1.3% in 2026 and 1.4% in 2027, supported by resilient consumer spending but constrained by weak business confidence, subdued fixed investment and global energy price risks. Inflation is expected to average around 4.0% in 2026, remaining above SARB’s 3% target but within its tolerance band, and the prime lending rate is expected to increase by a further 25 bps in September 2026 before declining in 2027. Banking conditions should improve gradually, with credit growth projected to remain positive and end the year at around 7%, although risks remain tilted to the downside. We expect the underlying growth momentum across all our businesses to continue in H2 2026, supporting an improvement in HE growth from the flat outcome reported in the first half. ROE is expected to remain above 15% in 2026, heading towards 2025 levels. In the medium term, we remain focused on delivering an ROE of around 17% in 2028, underpinned by stronger revenue growth and continued operational efficiency gains. I thank all our Nedbank colleagues for their contribution to the strong underlying momentum evident in the first half of the year. We deeply value the continued trust of our clients and the constructive engagements with investors, regulators and other stakeholders. As Nedbank, we remain committed to using our financial expertise to do good. Jason Quinn Chief Executive Headline earnings DHEPS ROE CET 1 Cost to incomeCLRNA V per shareDividend per share 1 803 cents 15.0% 12.6% 1 052 cents R8 405m 25 486 cents 95 bps 56.2% (H1 2025: R8 399m) (H1 2025: 1 028 cents) (H1 2025: 1 762 cents) (H1 2025: 24 522 cents) (H1 2025: 15.2%) (H1 2025: 81 bps) (H1 2025: 13.1%) (H1 2025: 56.9%) 0.1% 2% 0.2% 0.5% 2% 4% 14bps 0.7% Financial highlights Message from our Chief Executive 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Results presentation Nedbank Group unaudited interim results 2026 1
Page 4
Notes: Notes: 2 Jason Quinn Chief Executive Overview Operating environment Strategic progress Financial overview Outlook & guidance 1 2026 Interim Results for the 6 months ended 30 June 2026 Nedbank Group unaudited interim results 20262
Page 5
Notes: Notes: 4 6 8 10 12 25 26 100 200 300 25 26 Rand vs US$ Cumulative SA foreign bond sales (Rbn) Operating environment SA government bond yields (%) SA CDS spreads (bps) 12 14 16 18 20 22 25 26 (1 300) (1 200) (1 100) (1 000) (900) 25 26 o Solid progress on structural reforms – Eskom EAF1 up to 66% (2023: 55%) – Port processing of bulk commodities up by +17% (vs 2023) – Rail volumes up by +11% (vs 2023) o Stronger collaboration on public-private partnership initiatives o Continued fiscal discipline – evident in a primary budget surplus & declining debt o Sovereign credit rating upgrades – S&P upgraded SA to BB (outlook +) – Moody’s affirmed SA at Ba2 rating (revised outlook to +) – Fitch upgraded SA’s rating to BB (outlook stable) SA investment case – positive prospects remain structurally & broadly intact, despite global uncertainties & the ongoing Middle East conflict 1 Electricity Availability Factor. 3 H1 2026 overview – focused execution & growth Operating environment Financial performanceStrategic progress o SA investment case – positive prospects for SA remain structurally & broadly intact, despite global uncertainties & the ongoing Middle East conflict o Corporate SA – healthy balance sheets with the fixed investment cycle still ahead of us o SA consumer – credit growth gradually improving. The health of the consumer was negatively impacted by higher levels of inflation in Q2 26 o Growth & momentum – PPOP growth of +8% (excl. ETI +15%) highlights the outcomes of a strong underlying operational performance & growing momentum across all our business clusters o NCBA – offer accepted, resulting in Nedbank securing a 66% shareholding in NCBA. The transaction is on track for completion in Q3/early Q4 o Earnings – DHEPS growth of +2%, excl ETI +15% – ROE of 15.0% o Strong balance sheet – Declared an interim dividend of 1 052 cents per share – CET1 ratio of 12.6%, above the top end of our TTC range Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 3
Page 6
Notes: Notes: 6 0 2 4 6 8 10 22 23 24 25 26 -4 -2 0 2 4 6 8 22 23 24 25 26 Operating environment Consumers – household credit growth gradually improving off a low base. Although personal disposable income continues to grow, the health of the consumer was negatively impacted by higher levels of inflation in Q2 2026 Credit growth – gradually improving, but still relatively weak given affordability constraints. Secured lending benefiting from lower interest rates, but unsecured lagging Consumer health – negatively impacted by higher levels of inflation, mainly from fuel prices Personal disposable income (nominal growth %) 20 000 30 000 40 000 50 000 60 000 70 000 22 23 24 25 26 15 20 25 30 22 23 24 25 26 Fuel prices Rand/litre Household credit growth (%, BA900) 0 5 10 15 22 23 24 25 26 SA prime interest rate (monthly, %) 5 8 10 13 22 23 24 25 26 Down 125 bps since 2024 Vehicle sales (monthly, 000k) SA inflation (monthly, %) 5 Operating environment Corporates & businesses – healthy balance sheets with the fixed investment cycle still ahead of us Corporate credit growth (%, BA900) 0 5 10 15 22 23 24 25 26 -10 -5 0 5 10 22 23 24 25 26 Healthy balance sheets – SA corporates remain conservative Credit demand – benefits from fixed capital investment still ahead of us, although corporate credit growth is expected to normalise downwards from current levels Gross fixed capital formation (% growth) SA public sector infrastructure investment1 needs R1.1 trillion by 2030, including: Energy R214bn Water/Sanitation R185bn Transport/Logistics R418bn 1 National Treasury: Medium Term Expenditure Framework. NGEU Capital Investment Schedule (Rbn, constant 2025 prices) 0 200 400 600 800 22 23 24 25 Private sector General government Public corporations Nedbank Group unaudited interim results 20264
Page 7
Notes: Notes: 8 o SME – enhanced client experiences through relationship-led banking, digital solutions & tailored offerings o Commercial – progressed strategic sector-focused solutions, including sustainability, Islamic banking & global trade o Mid-corporate – merger & acquisition advisory capabilities in line with evolving client needs o iKhokha – a key growth asset for Nedbank, expanded digital payment acceptance among SMEs & strengthened our position in SA’s evolving payments market o Eqstra – reverse integration of NedFleet into Eqstra finalised. 12k fleet cards now issued by Nedbank o Payments – strong adoption of digital payment solutions supported revenue growth, underpinned by continued momentum in PayShap (+81% yoy) o Sustainability finance – delivered R1.8bn in sustainable finance payouts while advancing strategic sustainability partnerships, EV financing solutions & carbon emissions initiatives o Stronger advances growth – up by +8% yoy & up by +5% ytd, driven by: – Sector-focused execution – pipeline conversion, driving origination & increased participation in transactions across leverage finance, structured commodities, renewables & agriculture o Trade finance revenue up by +18% yoy, driven by firm flows in commodity trading & agriculture o NIR, including associate income, growth – up by +15% from deal activity o Commission & fees up by +16%, driven by Mining, Property Finance & Technology, Media & Telecoms o Markets’ Africa expansion – early traction with the first repo & credit-linked note transaction closed with an East African counterparty o Improved funding mix – reflecting early progress in our focus on operational deposits From bold strategic decisions to focused execution & growth Growth & momentum continued in H1 2026 Corporate & Investment Banking Corporates, financial institutions, governments & parastatals Business & Commercial Banking Mid-corporate, commercial & SME clients Additional info 7 From bold strategic decisions to focused execution & growth Growth & momentum continued in H1 2026: PPOP up by +8% & when excluding ETI up by +15% 1. Completed the organisational restructure – become more client- centred, drive enhanced execution & unlock transformational growth 2. Acquired 100% of iKhokha to expand in the SME market & progressed the integration of Eqstra to lead in fleet management 3. Sold our 21% ETI investment 4. Made an offer to acquire c66% of NCBA to expand into East Africa Strategic decisions 1 2 3 4 CIB o Advances1 ▲8% yoy – IB ▲7% – PF ▲5% – TS ▲22% o Net origination – R49bn o Sector-focused execution – improved client flows & increased participation in larger transactions o Deposits ▲14% o Trade finance revenue ▲18% o NIR C&F ▲16% from strong deal flow o Productivity CIR ▼3% to 47.5% BCB o Advances1 ▲6% (vs ▼2% in H1 25). New loan payouts: – Mid-corporate ▲>30% – Commercial ▲>30% o Deposits ▲7% o iKhokha synergies – POS devices sold via branches, host-to-host live o Eqstra synergies – all fleet clients now using Eqstra’s Quest system; Fleet cards now fully issued by Nedbank o NIR C&F ▲14% o Productivity CIR up marginally to 69.1%, given investment in the cluster PPB o Advances1 ▲6%. New loan payouts: – HL ▲16% – VAF ▲9% – Card ▲10% o Deposits – retail market share ▲0.2% to 17.0% o Digital – Money app users ▲13% | 76% of sales o NIR C&F ▲7%, driven by VAS (▲28%), client gains (▲4%) & cross-sell (up) o Insurance – total GEP▲10% & insurance income ▲21% o Productivity CIR ▼1% to 59.6% NAR: SADC – Advances1 ▲21% | Deposits ▲15% | NIR C&F ▲12%, # of clients ▲6% Digital – Mobile app ▲17% | Productivity CIR ▼3% to 68.1% | Capital optimisation 1 Gross banking advances. Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 5
Page 8
Notes: Notes: 10 Intention to make an offer submitted on 21 January 2026 Strategic rationale Aligns with Nedbank’s strategy to grow & diversify in East Africa through a controlling stake in a tier 1 bank, with a scalable regional platform; complementary strengths & exciting growth prospects (in the region & through synergies, particularly CIB) o Offer to acquire effective control, with the remaining 34% continuing to be traded on the NSE (Kenya) o Offer 80% in Nedbank shares (at R250) & 20% in cash o Subject to regulatory approvals Offer to acquire c66% of NCBA NCBA acquisition Finalisation of the transaction – accepted by 79.9% of shareholders & key regulatory approvals received on track Transaction update o Offer to NCBA shareholders closed on 10 July 2026 o Total acceptances: 79.9% (NCBA ordinary shares), subject to confirmation once all conditions have been met – Number of new NED shares to be issued: c43.6m, amounting to c8.4% of Nedbank Group ordinary shares post transaction – Estimated cash settlement: cR3.0bn o NCBA shareholding structure following settlement of the offer: – Nedbank Group 66% – Other NCBA shareholders 34% Regulatory approvals Regulatory approvals received from the Prudential Authority (SARB), Financial Surveillance (SARB) & other non-SA regulators, including CMA Kenya, COMESA Competition & Consumer Commission, East African Community Competition Authority, Tanzania Fair Competition Commission & Ecowas Regional Competition Authority. Balance of approvals tracking well. Expected finalisation by Q3 /Q4 2026 9 o Primacy & funding advantage – 7.6m clients (+4%), main-banked clients +2%, deposits +5% & cross-sell improved to 2.04, strengthening primacy & relationship depth o Wealth & advisory growth – Private, Wealth & Stockbroking clients +8%, driving higher brokerage income, advice fees & participation across banking & wealth solutions o NIR diversification & ecosystem growth – NIR +7%, VAS revenue +28%, insurance income +21%, supported by Greenbacks (2.2m members) & SimplyBiz (168k users) o Quality credit origination – Card balances +10%, driven by +34% growth in new sales leading to market-share gains, while improved origination quality in Home Loans supported sustainable growth & portfolio quality o Client experience & loyalty – Money app users +13% to 3.2m, 73% of clients digitally active & 76% of new sales digitally originated, reinforcing an app-first franchise o Cost optimisation & efficiency – CIR down to 59.6%, driven by moderated expense growth of 4%, workforce optimisation, branch network redesign & digital enablement o Portfolio growth through innovation – Quick Loans & revolving credit facility contributed 8% of unsecured lending production, supporting new growth opportunities & enhanced client value o Improving returns – ROE increased by 3% yoy, with performance on track to meet our medium- term target of above COE o Technology modernisation – post the termination of the Harmonisation programme, a new technology solutions partner has been approved & implementation will commence shortly o Revenue diversification – generated additional revenue outside of the 5 current markets we operate in – through partnerships o Improving efficiency – action taken to align cost structures to revenue generation – rightsizing the business & improving efficiencies o Capital optimisation – continued to optimise excess capital, across the regions o iKhokha – advanced engagements underway to support the phased rollout of the offering across selected markets in the region From bold strategic decisions to focused execution & growth Growth & momentum continued in H1 2026 Nedbank Africa Regions: SADC Corporates, businesses & individuals Personal & Private Banking Youth, entry-level, middle, affluent & high-net-worth clients Additional info Nedbank Group unaudited interim results 20266
Page 9
Notes: Notes: 12 86% 3% 11% 91% 3% 6% NCBA acquisition NCBA will diversify the group’s assets & earnings beyond SA. Post transaction the impact of the transaction is currently estimated to be broadly neutral on ROE & DHEPS growth Additional info Assets1 (FY 2025, Rbn) Headline earnings1 (FY 2025, Rbn) Impact – post transaction o Nedbank ROE – neutral o Nedbank DHEPS growth – neutral Impact – medium term to long term o Leverage the investment to unlock synergies Estimated Nedbank CET1 impact o c40 bps, including the transitional Basel 2 to Basel 3 impact Nedbank SA & other Nedbank NAR, excl ETI NCBA 1 Excluding ETI & NCBA funding costs. 11 o Strong macroeconomic fundamentals o Size of the economies & attractive growth prospects [>5% GDP growth] o A large & growing population o Primary trade corridor that links Africa with the Middle East, India & Asia o A robust regulatory environment o Relatively stable operating environment East Africa – a region of significant strategic importance o Top tier 1 bank in Kenya – Assets1: KES 716bn (6% of Nedbank) – Earnings1: KES 23.3bn (11% of Nedbank @ c66%) – ROE1: 19.7% | CIR1: 52.3% – Total CAR1: 21.2% o Strong brand presence o Strong & extensive regional presence – operates across Kenya, Uganda, Tanzania & Rwanda, with a digital presence in Ivory Coast & Ghana o 123 branches & over 70 million clients o Established reputation for innovation, advanced digital banking services & excellence in asset finance NCBA – one of East Africa's most prominent financial institutions o Nedbank to benefit from NCBA’s strong financial position & growth prospects, regional presence, client base & technology capabilities to diversify & grow earnings o NCBA to benefit from Nedbank’s established CIB expertise, cross-border structuring capabilities & strong balance sheet o NCBA will … – retain its brand – retain its local leadership team – remain independently governed – retain its NSE listing Nedbank & NCBA – potential synergies 1 Based on NCBA & Nedbank’s 12M results to 31 December 2025. NCBA acquisition Strategic rationale Additional info Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 7
Page 10
Notes: Notes: 14 Modern technology platform Strategic value drivers Market-leading client experiences (CX) Digital leadership & experiences (DX) Growth vectors Focusing on areas that create value (SPT) Creating positive impacts (purpose delivery) Strategic value unlocks Our purpose To use our financial expertise to do good for individuals, families, businesses & society Growth Productivity Risk & Capital Management Our employees & differentiated corporate culture (EX) Our strategy Leveraging our strong foundations to grow & enhance productivity Additional info 13 Strategic progress Mfundo Nkuhlu Chief Operating Officer Nedbank Group unaudited interim results 20268
Page 11
Notes: Notes: 16 Digital experiences (DX) & client experiences (CX) Leveraging AI, data & automation – early successes across revenue generation, enhanced client experiences, productivity improvements & fraud processes Dedicated data, analytics & decisioning capability – enabling personalisation, credit decisioning, cross-sell, fraud analytics & risk management at scale Integrated AI-driven next-best-action capabilities increased sales from 5% (pre- AI) to 13% of total sales (excl. HL & MFC), reducing manual lead sourcing & offering personalised offers at the right moment to clients across digital & frontline channels. In H1 2026, this contributed to an improved PPB cross-sell ratio ▲2.04 (H1 2025: 2.00) Enhancing cross-sell BCB’s AI-powered intelligence platform (JAS) provides a 360° view of >25 000 juristic clients, helping bankers unlock growth opportunities, manage risk proactively & deepen client relationships. Outcomes include: NPS ▲ by 3.5% & ~37 minutes saved per engagement through enhanced efficiency & actionable insights Juristic Advisory Solution Enbi, our conversational AI Digital assistant, handles more than 370k chats per month, fully resolving almost 80% of queries & transferring to the contact centre consultants only where human assistance is required. This unlocks operational efficiencies & leads to enhanced client experiences Contact centre productivity AI-assisted fraud case creation & registration: o Time savings – case creation efforts ▼ by 95% from 30–45 minutes to under 2 minutes o Faster processing – case registrations ▼ from 3–5 days to under 2 minutes Fraud process automation Improved efficiency & consistency of CIB’s origination processes through opportunity tracking, process visibility & standardisation. Improvements evident in turnaround times, client servicing & effective origination, providing foundations for agentic AI development Origination processes 15 Digital experiences (DX) & client experiences (CX) Ongoing strong growth in digital activity, clients and usage & sales – supporting enhanced client experiences PBB App logins (ave logins per client/month) 2.4 3.2 3.5 H1 22 H1 25 H1 26 1.8 2.8 3.2 H1 22 H1 25 H1 26 PPB digitally active clients (# m) ▲8% ▲13% PPB Money app active users (# m) 50% 70% 76% H1 22 H1 25 H1 26 PPB retail digital sales (% of new sales) ▲ Nedbank brand value2 ▲16% R24bn Ranked #8 among all SA companies Consumer NPS1 77 #2 among main-banked clients of the large SA banks 40% 50% 56% 24 25 H1 26 CIB NBH adoption rate (%, year) ▲ CIB client satisfaction3 82% Above the global benchmark of 80% & up on 2025 (81%) 69% 76% 77% 24 25 H1 26 BCB NBH adoption rate (%, year) ▲ Mid-corporate client satisfaction score4 92 Ranked #1 in the peer group 1 Kantar. 2 Brand Finance. 3LF Media research. 4 Customer satisfaction study by KPI research.19.4 21.2 22.8 H1 22 H1 25 H1 26 Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 9
Page 12
Notes: Notes: 18 Total clients 8m (H1 25: 7.7m) PPB active clients 7.6m (H1 25: 7.3m) ▲ 4% NAR: SADC clients 445k (H1 25: 419k) ▲6% ▲4% Strategic portfolio tilt Building stronger transactional franchises & enhancing client primacy BCB cross-sell ratio1 (# of products/client) 4.70 4.75 Merchants accepting Amex on their POS (000) 405 488 ND H1 22 H1 25 H1 26 H1 22 H1 25 H1 26 Greenbacks loyalty & reward clients (# million) 1.5 1.9 2.2 ▲2% H1 22 H1 25 H1 26 PPB main-banked clients (# million) 3.0 3.8 3.9 PPB cross-sell ratio (# of retail products/client) 1.92 2.00 2.04 H1 22 H1 25 H1 26 H1 24 H1 25 H1 26 POS devices3 (000) 108 110 162 ▲48% H1 24 H1 25 H1 26 Personal Private Small Business ▲ 4% ▲ 8% ▲ 5% ND 1 Commercial & Mid-corporate. ▲20% ▲13% BCB clients Commercial & Mid-corporate client groups 12k SME clients2 17k ▲ 2% ▲ > 10% 3 Includes iKhokha from 1 Dec 2025.2 Growth in SME clients includes the migration of clients from PPB. 17 External recognition received in H1 2026 Across business excellence, technology & innovation and purpose & ESG Additional info Business-impact- & expertise-related. Technology- & innovation-related. Winner 2026 The Digital Banker Global SME Banking Innovation Awards Best SME Beyond Banking Service Initiative – SimplyBiz Winner 2026 Global Banking & Finance Awards Best Investment Bank in SA Best SME Beyond Banking Service Initiative – SimplyBiz Purpose- & ESG-related. Winner 2026 Global Finance & Sustainable Finance Awards Best Bank for Sustainability Transparency Winner Euromoney Awards for Excellence 2026 Africa's Best Bank for Sustainable Finance Winner 2026 The Asian Banker Best Retail Bank in Africa & SA Winner 2026 Global Finance Magazine Awards Best SME Bank in SA ESG Loan House of the Year Winner 2026 Global Finance & Sustainable Finance Awards Best Platform/ Technology Facilitating Sustainable Finance Winner 2026 The Digital Banker Global SME Banking Innovation Awards Corporate Liability Management Deal of the Year Winner 2026 Global Banking & Markets Africa Awards Winner 2026 Global Banking & Markets Africa Awards Winner 2026 The Digital Banker: MEA Innovation Awards Best AI Initiative in Africa Winner 2026 The Digital Banker: MEA Innovation Awards Best AI Powered Business Intelligence & Advisory Platform Nedbank Group unaudited interim results 202610
Page 13
Notes: Notes: 20 Maintained level 1 BBBEE status for the 8th year in a row Disclosed financed emissions for heavy industries, transport & in BCB: commercial real estate & thermal coal 84.5% ACI employee representation (83% in 2024) African senior & middle management representation ▲5% (vs 2024) Cash taxation payments1 of R9bn in H1 2026 > 2 100 unemployed youth (YES) intake for 2026 (total: > 19 000 since 2019) Independent ESG ratings of Nedbank Top 24% of global banks AAA Top 10% of global banks Top 11% of global banks 4.3 C+ Top 5% of global banks 11.2 63 Top 12% of global banks 1 Tax payments relate to direct, indirect & employee taxes, as well as other taxation. Change pic Sustainable development finance exposures 21% of GLAA R50bn renewable energy exposures CSIA Global Governance Award Excellence in Governance (listed companies) Creating positive impacts Highlights & ESG ratings Additional info 19 Jun 25 Dec 25 May 26 Trend Target Core corporate loans 19.6 19.2 19.4 ▲ Wholesale term loans 15.1 14.5 15.3 ▲ > 18 Commercial mortgages 35.6 34.7 34.7 ► Lead Home loans 14.9 15.1 15.2 ▲ > 16 Retail vehicle finance 36.2 36.1 35.4 ▼ Lead Retail overdrafts 15.1 17.5 16.6 ▼ > 17 Personal loans 10.0 9.9 9.8 ▼ > 12 Credit card 9.5 9.6 9.8 ▲ > 12 Retail deposits 16.9 16.8 17.0 ▲ > 17 Commercial deposits 15.4 15.3 14.9 ▼ > 16 BA900 market share (%) Retail deposits, a common lens used in the industry, is the sum of BA900 lines 26, 27, 28 & 35. Wholesale lending Retail lendingDeposits Strategic portfolio tilt Good progress in growing in key areas o CIB – banking advances1 +8% yoy, reflecting sustained pipeline conversion & larger-ticket participations o BCB – banking advances1 +6% yoy, with payout momentum supported by deep sector expertise, growth in SDG-linked finance, & the rollout of pre- approved overdraft & revolving credit facilities o PPB – banking advances1 +6% yoy, resulting in overall retail market share gain – Secured lending – differentiated strategies & JVs in home loans & vehicle finance – Unsecured lending – enhanced personal loans fulfilment processes & launched Quick Loans with Jumo & a new revolving credit facility o Deposits – ongoing focus on transactional deposits 1 Gross banking advances. Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 11
Page 14
Notes: Notes: 22 15 19 20 21 22 23 24 25 H1 26 REIPPPP Private power 82 69 Renewable energy financing ( drawn exposures1, limits, Rbn) 32 25 10 2730 30 40 Nedbank has supported 10 GW of government & private power projects to date 1 Exposures include on-balance-sheet drawdowns of R50bn & off-balance-sheet exposures *Includes rooftop solar, which may be understated given use of access bonds. (contingent liabilities & hedges). 2 Some renewable energy financing could be distributed. o Closed 9 deals in 2026 (5 private power generation and 4 government power generation), supporting clients' energy requirements & contributing to SA's energy transition o Strong deal pipeline expected to drive sustainable book growth over the medium term o 36 deals worth at least R33bn expected to close during H2 2026 & H1 2027 o Uncertainty remains around the project pipeline closing in 2026 due to final grid capacity allocations, grid commitment timelines, & delays in the issuance of budget quotes o Supporting clients in the transmission & gas programmes > R26bn in the pipeline of deals for H2 2026 50 Creating positive impacts Building on our leadership in renewable energy. Exposures increased to R56bn with strong pipelines in place Additional info 56 * 21 At 30 June 2026 we had R213bn sustainable development finance (SDF) exposures that represent 20.5% of GLAA. After achieving our 2025 target of 20%, a new ambition of 25% was set for 2030 Additional info 2022 2023 2024 H1 2025 H1 2026 2030 ambition 123 25% Sustainable development finance exposures1 (Rbn) xx% % of gross loans & advances 145 R6bn financing for clean water & sanitation, up by +80% yoy R28bn lending exposure to small businesses & their owners R32bn support for farmers & the agriculture sector R50bn total renewable energy exposures1 183 16% 19% R34bn for green-certified buildings & affordable home loans 14% 189 19.6% Key highlights R42bn for industry, innovation & infrastructure, including R7bn for municipal infrastructure Creating positive impacts 213 20.5% 1 Exposures include on-balance-sheet drawdowns of R50bn. Additionally, we have off-balance-sheet exposures of R6bn (contingent liabilities & hedges). Nedbank Group unaudited interim results 202612
Page 15
Notes: Notes: 24 Financial performance Strong operational performance, partially offsetting the impact of ETI in the H1 2025 base ▲7% R1 010bn Banking advances ▲7% R1 250bn Banking deposits 12.6% (Dec 25: 12.9%) CET1 ratio ▲2% 1 052 cents Interim dividend per share ▲4% 25 486 cents NAV/share ▲95 bps (H1 25: 81 bps) Credit loss ratio ▼56.2% (H1 25: 56.9%) Cost-to-income ratio 0% R8.4bn Headline earnings ▲ 12% excl ETI 15.0% (H1 25: 15.2%) Return on equity 13.6% excl ETI (H1 25) ▲2% 1 803 cents DHEPS ▲ 15% excl ETI ▲16% 1 830 cents Basic EPS ▲8% R15.6bn PPOP ▲ 15% excl ETI 58.4% excl ETI (H1 25) 23 Financial overview Mike Davis Chief Financial Officer Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 13
Page 16
Notes: Notes: 26 8 399 8 405 841 1 413 (699) (986) (629) 66 HE H1 25 NII NIR Associate income Impairments Expenses Direct tax & other HE H1 26 Headline earnings (Rm) ▲4% ▲10% ▲26% ▲3% 1Other includes indirect tax and minority & preference shareholders. 1 ▼66% Headline earnings flat, excluding ETI up by 12% ►0% 25 20 964 22 548 23 097 24 522 25 486 H1 22 H1 23 H1 24 H1 25 H1 26 13.6 14.2 15.0 15.2 15.0 H1 22 H1 23 H1 24 H1 25 H1 26 NAV per share (cents) 1 028 1 052 1 104 22 23 24 25 26 Interim: bottom bar | Final: top bar ROE & cost of equity (%) Dividend per share (cents) ▲4% 57% payout ratio Cost of equity Cost of Equity: 15.0 14.8 15.0 14.8 14.0 Shareholder value creation ROE ahead of COE, an interim dividend declared at a payout ratio of 57% & NAV growth of 4% Additional info Nedbank Group unaudited interim results 202614
Page 17
Notes: Notes: 28 397 425 440 395 425 458 H1 24 H1 25 H1 26 CIB gross banking advances (Rbn) ▲8% ▲3% 96 94 98 100 97 103 H1 24 H1 25 H1 26 BCB gross banking advances (Rbn) 388 410 436 395 420 446 H1 24 H1 25 H1 26 PPB gross banking advances (Rbn) New BCB loan disbursements +>30% Commercial – new payouts +>30% Mid-Corporate – new payouts +>30% SME – new payouts +4% New PPB loan disbursements +6% HL – new payouts +16% MFC – new payouts +9% PL – new payouts -5% Card – new payouts +10% Private & Wealth – new payouts +5% ▲6% ▲ 4% ▲6% ▲6% Average Actual IB advances +7% – driven by growth across diversified industrials, structured commodities, renewables & agriculture PF advances +5% – good growth in the SA portfolio Markets – driven by leveraged loans TS advances +22% – supported by improved client utilisation Gross actual banking advances up by 7% & average up by 5% Actual advances growth ahead of average advances growth, highlighting solid momentum Additional info 27 209 206 215 187 27 18 31 222 226 228 203 28 19 34 Commercial mortgages Term loans Home loans Instalment debtors Personal loans Credit cards Overdrafts H1 22 H1 23 H1 24 H1 25 H1 26 969 1 038 Gross actual banking advances ▲7% (▲8%) ▲6% (▲12%) ▲10% (▲16%) ▲6% (▲6%) ▲9% (▲8%) ▲4% (►0%) ▲6% (▲12%) ▲10% (▲22%) Gross banking advances (Rbn, ▲yoy growth) 1 172 1 250 Amounts owed to banking depositors ▲7% (▲4%) Gross actual banking advances up by 7% & banking deposits up by 7% Good growth across all loan categories, with the exception of unsecured, which is still lagging (▲x%) refers to ytd annualised growth since December 2025. Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 15
Page 18
Notes: Notes: 30 NII sensitivity for 1% change in interest rates: R1.3bn. Endowment hedging implemented to date: 40%**** 385 418 413 387 375 (19) 0 0 7 H1 22 H1 23 H1 24 H1 25 Endowment & BSM Asset mix & pricing Liability mix & pricing Other H1 26 Net interest margin (bps) *Active BSM management: HQLA NII optimisation & endowment hedge. | **Stage 3 interest reversal. | ***Other includes basis risk & NAR: SADC | ****Percentage of designated portfolios. (1) Mix (2) (1) Pricing +2 +2 Stage 3** . Average SA prime rate: 7.7% 11.1% 11.8% 11.0% 10.3% Mix (12) Rate (9) BSM* +2 NII sensitivity /AIEBA: 17 bps 18 bps 13 bps 10 bps 11 bps NII up by 4% AIEBA growth of +7%, offset by 12 bps NIM compression *** 29 Total deposits up by 10% 148 115 504 81 120 265 52 151 118 561 83 136 304 52 CASA Cash management Call & term Fixed deposits NCDs Other deposits Long-term debt instruments H1 22 H1 23 H1 24 H1 25 H1 26 ▲13% ►0% Deposits & long-term debt (Rbn) ▲2% ▲11% ▲15% Call & term deposits driven by growth in Retail & Commercial Banking deposits due to targeted campaigns, as well as CIB Transactional Services. Deposit % of growth group CIB +14% 46% BCB +7% 17% PPB +4% 24% NAR: SADC +15% 3% Centre +12% 10% Driven by franchise call & term deposits and other deposits as clients extend tenure, leveraging Nedbank's competitive term offerings. First-time Flac issuances – oversubscribed & attractive pricing Additional info ▲2% ▲3% Issued R5.7bn of Flac at the lower quartile of market pricing Nedbank Group unaudited interim results 202616
Page 19
Notes: Notes: 32 PPB NIR growth NIR increased by +7% underpinned by good progress on insurance & digital payments, & supported by client gains, high-levels of cross-sell & an enhanced loyalty & rewards programme NIR from digital payments is growing in double-digit, while cash is declining in line with client behaviours. Digital payments are driven by strong growth in PayShap, including VAS & card payments Payments NIR (PPB) (growth %, yoy) Digital payments (PPB) (growth %, yoy) Digital payments Cash payments 15% (5%) VAS Insurance income (Rbn) 0.58 0.74 0.41 0.45 0.27 0.26 H1 25 H1 26 Electronic banking Card interchange VAS 1.26 1.45 1.15 1.10 0.71 0.85 3.28 3.43 H1 25 H1 26 Other Insurance income Cash Digital PPB NIR (Rbn) Digital payments (Rbn) +15% +4% +10% +28% +7% 6.40 6.83 (5%) +21% (2%) Modernising payments Total active clients ▲4% 7.6m Cross-sell ratio ▲2.04 (H1 25: 2.00) Greenbacks members ▲13% 2.2m Client growth & cross-sell Digitally active clients ▲8% 3.5m Additional info PayShap Vouchers & Prepaids 89% 28% Pay- To-Cell Card payments 23% 10% 0.63 0.73 0.08 0.12 H1 25 H1 26 MyCover suite Traditional +46% +17% 31 Strong growth supported by insurance income and commission & fees 10 633 2 513 720 935 11 768 2 646 866 934 Commission & fees Trading income Insurance income Other H1 25 H1 26 NIR up by 10% Non-interest revenue & income (Rm) o Commission & fees – CIB +16% – improved client activity & strong fee generation – BCB +14% – good growth in the client segments & card + benefit from the iKhokha acquisition – PPB +7% – strong growth in VAS (+28%), client gains & higher levels of cross-sell, partially offset by lower ATM cash volumes (-5%) – NAR: SADC +13% – strong client activity o Trading income +5% – supported by strong performance in equities o Insurance – improved claims experience in non-life portfolio & strong premium growth in the MyCover suite (+23%) ▲11% ►0%▲20% Key drivers ▲5% Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 17
Page 20
Notes: Notes: 34 3.4 5.3 4.7 3.8 4.8 22 23 24 25 26 7.4 Impairment charge (Rbn) H1 H2 8.0 9.6 ▲26% ▲95 bps (H1 25: 81 bps) Group CLR CIB 0 bps BCB 40 bps PPB 205 bps NAR:SADC 67 bps Cluster CLR ▲ ▲ ▲ ▼ Stage 1 12% Stage 2 (10%) Stage 3 (6%) Gross loans & advances ▲7% yoy R1 038bn Gross loans & advances ▲ ▼ ▼ 6.6 Coverage ratios ▼2.93% (H1 25: 3.21%) Total coverage ratio Stage 1 0.50% Stage 2 7.9% Stage 3 41.8% ▲ ▼ ▲ Impairment charge up by 26% to R4.8bn Higher impairments driven by a 13% increase in PPB, with CIB & BCB increasing off low H1 2025 bases CoverageLoans & advancesCredit loss ratio CIB (R5m) 98% BCB R191m >100% PPB R4 425m 13% NAR:SADC R188m 2% ▲ ▲ ▲ ▲ 33 Insurance Good progress continues across the MyCover range Additional info MyCover Funeral MyCover Personal Lines ▲32% yoy MyCover Life ▲61% yoy ▲14% yoy Grow & enhance insurance cross-sell Grow & cross-sell traditional bancassurance & the MyCover suite to Nedbank clients o Target – improve product penetration through integrated client journeys & data-driven targeted offers o Target – grow gross earned premiums (GEP) by >50% (medium term) from the R4.3bn reported in 2025. GEP for H1 2026 increased by +23% to R2.3bn (H1 2025: R2.1bn) Gross earned premiums (Rbn) Credit product penetration (%) Personal loans Card Overdraft Home loans Vehicle finance H1 25 H1 26 100 50 0 Opportunity to increase as we include insurance in client journeys 1.5 0.5 1.6 0.6 Traditional MyCover H1 25 H1 26 ▲5% ▲23% Slower traditional insurance GEP growth, given subdued policy growth across PL & declines in HL & MFC Nedbank Group unaudited interim results 202618
Page 21
Notes: Notes: 36 PPB impairments Proactively improved front-book origination quality since 2023. H1 2026 negatively impacted by macroeconomic changes & higher defaults Home loans MFC (vehicle finance) Personal loans Credit card Front-book quality (ave. origination bureau score) H1 262023 ▲11 ▲6 ▲6 ▲11 ▲ CLR up off a low H1 2025 base ▲ Updated forward-looking macro parameters ▲ Pressure in early-stage arrears stabilising ► Asset prices stable ▼ CLR improving ▲ Updated forward-looking macro parameters ▲ Asset prices marginally down ▼ CLR improved slightly, but remains sticky ▲ Updated forward-looking macro parameters ▼ Early-stage inflows improving ▲ Late-stage remains challenging ▲ CLR up off a low H1 25 base ▲ New business charge due to higher growth ▲ Deterioration in late-stage Credit loss ratio (bps) 57 1 059 810 H1 26H1 22 211 Drivers of higher PPB CLR (% contribution) 20 35 100 45 Total increase Higher arrears & defaults Accounting update Macro/FLI Model impacts: o Fuel inflation in Q2 o Prime +25 bps vs expected 50 bps cuts Increased coverage on overdrawn transactional accounts Collection efforts: o Enhancing collection processes o Investments in technology & AI Additional info 35 Credit loss ratios (bps) 85 121 104 81 95 H1 22 H1 23 H1 24 H1 25 H1 26 CIB – below its TTC target range BCB – at the bottom of its TTC target range PPB – above its TTC target range. Higher CLRs in HL & Card; & still elevated in PL. Quality of front-book origination improved since 2023. Negative impacts from updated forward looking macro assumptions & marginally higher arrears & defaults. Group CLR up to 95 bps Good outcomes across wholesale & NAR: SADC portfolios, with PPB above its TTC range *BCB’s TTC target range has been revised from 50–70 bps to 40–70 bps. H1 26 H1 25 TTC CIB ▲ 0 (15) 15–45 CIB excl CPF ▲ (5) (26) CPF ▲ 6 (2) BCB ▲ 40 11 40–70* PPB ▲ 205 192 130–190 Home loans ▲ 57 39 VAF ▼ 211 231 Unsecured lending ▼ 926 945 Card ▲ 810 554 NAR: SADC ▼ 67 154 85–120 Group ▲ 95 81 60–100 Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 19
Page 22
Notes: Notes: 38 9 985 1 945 3 788 1 546 3 802 10 466 1 953 3 859 1 533 3 885 Salaries & wages Incentives (STI & LTI) Computer processing Communication, travel & accommodation Other H1 25 H1 26 Expenses (Rm) o Employee-related costs ‒ Salaries & wages: annual average salary increase (+4%) ‒ Variable-pay incentives aligned to flat HE growth o Computer processing – well managed despite ongoing technology investment & higher digital volumes o Other − Optimisation benefits across communication, travel & accommodation − Various productivity initiatives o Cluster expenses – CIB +3% – BCB +11% (+6.5% excl iKhokha) – PPB +3% – NAR: SADC +3% ▲5% ▲2% ▼1% Key drivers ►0% ▲2% Expenses up by 3% Well managed across all key drivers 37 1 Total balance sheet ECL includes FVOCI & off-balance-sheet ECL, while ECL coverage excludes FVOCI & off-balance-sheet ECL. I 2 R983bn includes amortised cost of instruments as part of the coverage & excludes R73bn of FVOCI loans and hedge adjustments from the total GLAA. 668 679 713 782 822 873 80 80 75 71 66 64 52 57 51 49 47 46 H1 22 H1 23 H1 24 H1 25 FY 25 H1 26 Stage 1 Stage 2 Stage 3 Gross loans & advances (Rbn) 816 840 Coverage (%) 1 3.21 2.96 2.93 39.5 39.4 41.8 6.8 7.1 7.9 0.61 0.53 0.50 H1 25 FY 25 H1 26 o Stage 1 loans – Front-book growth across all clusters & loan migrations from stage 2 & 3 o Stage 2 loans – Benefit of stage migrations o Stage 3 loans – CIB stage 3 loans ▼ – BCB stage 3 loans ▼ – PPB stage 3 loans ▼ yoy, ▲ ytd – Stage 3 coverage increase driven by mix change o Total overlays of R2.0bn (Jun 2025: R0.9bn, Dec 2025: R1.6bn) to cater for known risks not yet reflected in models 902 799 Key drivers 9832 Gross loans & advances and coverage Strong growth in stage 1 loans & reductions in stage 2 & 3 loans. Stage 2 & 3 coverage increased Additional info 935 Nedbank Group unaudited interim results 202620
Page 23
Notes: Notes: 40 o CET1 ratio – above the top end of our 11.0– 12.5% target range o Growth – appropriately capitalised to support wholesale lending opportunities & targeted SPT growth o Dividends – we remain comfortable with our board-approved payout range & retain flexibility in the management of our capital o Absorb regulatory impacts – Directive 2 of 2025 requires the exclusion of post-acquisition insurance entity reserves from qualifying capital o NCBA acquisition – expected to close in Q3/Q4 2026 (c40 bps impact) Capital management SARB PA minimum CET1 Board CET1 target CET1 ratio (%) 12.9 12.6 1.0 (0.7) (0.3) (0.3) Dec 25 Capital generation Dividends Regulation (D2) RWA Jun 26 11% to 12.5% 9.5% Common equity tier 1 ratio at 12.6% CET1 ratio above the top end of our target range – absorbed regulatory changes & appropriately capitalised to support growth & the NCBA acquisition 39 o PPB – reorganisation benefits, including headcount rightsizing, distribution optimisation etc o NAR: SADC – headcount rightsizing, branch optimisation & productivity initiatives o Shared services optimisation – Group Technology – enhance engineering effectiveness & operating model efficiencies – Human Resources – system & operating model changes leading to greater FTE productivity – Other shared services initiatives – Organisation review & optimisation o AI-related & productivity initiatives across all businesses Key group-wide initiatives (examples) Productivity More than R1.5bn productivity enhancements planned over the medium term Progress in H1 2026 Headcount1 PPB ▼1% NAR: SADC ▼9% Group Technology ▼>3% Operations PPB outlets | ATMs ▼7 | ▼112 NAR: SADC outlets | ATMs ▼2 | ▲51 PPB outlets – floor space ▼9k sqr metres yoy Cash recycling 44% of ATM cash recycled Branch productivity Channel cost/active client ▼5% Contact centre cost/sale ▼2% AI-related productivity – more than R375m annualised benefits to date Additional info 1 Optimisation & right-sizing of workforce. Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 21
Page 24
Notes: Notes: 42 47.5% ▼cost-to- income ratio (H1 25 : 50.3%) R4.4bn ▲11% headline earnings 23.7% ▲ROE (H1 25 : 21.6%) 0 bps ▲credit loss ratio (H1 25 : -15 bps) o NII up by 4% ‒ Ave banking advances growth of +3% & strong deposit growth of +15% ‒ NIM compression (-4 bps) – improving credit margins offset by lower endowment & liability spreads o NIR up by 7%, incl associate income up by 15% ‒ C&F income up by 16% – improved origination & client activity ‒ Markets NIR up 5%; trading income up by 5% with strong performance in equities, offset by weaker performances in foreign exchange & fixed income o CLR at 0 bps ‒ Below the CIB TTC range of 15bps to 45 bps, reflecting a quality portfolio o Operating expenses up by 3% o Equity investment portfolio income1 (NIR & associate income) up by 51% 1 Equity investment portfolio income includes revaluations, dividends & associate income. CIB financial performance & outlook ROE of 23.7%, supported by solid underlying franchise activity, strong NIR growth & continued credit & cost discipline Additional info 2026 outlook NII growth Low-to-mid single digits NIR growth High single digits CIR Improve yoy (expense growth of low single digits) CLR Below the CIB target range MT outlook ROE >21% CIR <45% Loan growth (CAGR) Double digits in IB, high single digits overall CLR In the bottom half of the CIB target range 41 47.5% cost-to- income ratio (H1 25 : 50.3%) R4.4bn ▲11% headline earnings 23.7% ROE (H1 25 : 21.6%) 0 bps credit loss ratio (H1 25 : (15) bps) Corporate & Investment Banking 4.0 4.4 H1 25 NII NIR Imp Exp Other H1 26 68.1% cost-to- income ratio (H1 25: 70.9%) R0.4bn ▲39% headline earnings 9.9% ROE (H1 25: 6.7%) 67 bps credit loss ratio (H1 25 : 154 bps) NAR: SADC 0.3 0.4 H1 25 NII NIR Imp Exp Other H1 26 ▲4% ▲7% ▲3% 69.1% cost-to- income ratio (H1 25 : 68.5%) R1.2bn ▲0% headline earnings 18.8% ROE (H1 25 : 21.4%) 40 bps credit loss ratio (H1 25 : 11 bps) Business & Commercial Banking 1.2 1.2 H1 25 NII NIR Imp Exp Other H1 26 ▲5% ▲15% ▲>100%▲11% 59.6% cost-to- income ratio (H1 25: 60.7%) R2.0bn ▲5% headline earnings 11.8% ROE (H1 25 : 11.8%) 205 bps credit loss ratio (H1 25 : 192 bps) ▲5% ▲12% ▲2% ▲3% ▲98% Personal & Private Banking 1.9 2.0 H1 25 NII NIR Imp Exp Other H1 26 ▲5% ▲7% ▲13% ▲3% Cluster financial performance Good GOI growth & expenses well managed across all clusters Nedbank Group unaudited interim results 202622
Page 25
Notes: Notes: 44 59.6% ▼cost-to- income ratio (H1 25: 60.7%) R2.0bn ▲5% headline earnings 11.8% ►ROE (H1 25 : 11.8%) 205 bps ▲credit loss ratio (H1 25 : 192 bps) o NII up by 5% ‒ Ave banking advances growth of +7%, underpinned by double-digit growth in payouts, ave deposit growth of +5% ‒ NIM impacted by lower endowment income o NIR up by 7% ‒ Strong VAS growth (+28%) & higher maintenance fees (+6%), offset by lower cash volumes to alternative cash access channels ‒ Insurance NIR growth of +6% largely due to improved claims experience in non-life portfolio o Impairments up by 13% ‒ CLR increased to 205 bps (TTC range 130 bps to 190 bps), driven by loan growth, updated forward looking macro assumptions & marginally higher arrears & defaults o Expense growth of 3% ‒ Strong focus on expense management & digitisation benefits PPB financial performance & outlook HE increased on the back of solid advances, transactional NIR & insurance growth & good expense management, partially offset by higher impairments & lower endowment Additional info 2026 outlook NII growth Around mid- single digits NIR growth Mid-to-upper single digits CIR Improve yoy (expense growth of low single digits) CLR Around the top end of the PPB target range MT outlook ROE >18% (>20% LT) CIR <56% (<55% LT) Loan growth (CAGR) Upper single digits CLR Within the top half of the PPB target range 43 69.1% ▲cost-to- income ratio (H1 25 : 68.5%) R1.2bn ▲ 0.4% headline earnings 18.8% ▼ ROE (H1 25 : 21.4%) 40 bps ▲credit loss ratio (H1 25 : 11 bps) o NII up by 5% ‒ Solid balance sheet growth & higher product volumes with NIM stable at 2.77%, despite lower endowment income o NIR up by 15% (+9% excl iKhokha) – Benefiting from the acquisition of iKhokha as well as good growth in Commercial, Mid-corporate & Card o CLR increased to 40 bps ‒ Primarily due to a once-off impairment on a large single client exposure. CLR at the bottom end of the TTC target range of 40 bps to 70 bps ‒ Excluding the single client ECL, the core performance of the book remained healthy o Expenses up by 11% (+6.5% excl iKhokha) ‒ Driven by the inclusion of iKhokha, continued investment in digital capabilities & costs associated with the organisational restructure, including those required for running a stand-alone cluster o iKhokha consolidated from 1 December 2025 BCB financial performance & outlook HE up 0.4% at an ROE of 18.8%, with strong GOI growth of +10%, despite lower endowment income & higher impairments Additional info 2026 outlook NII growth Improve from H1 26 NIR growth Early double digits CIR To be maintained despite higher costs in setting up a new cluster CLR At the bottom end of the BCB target range MT outlook ROE >20% (>25% LT) CIR <65% (<55% LT) Loan growth (CAGR) Double digits CLR At the bottom half of the BCB target range Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 23
Page 26
Notes: Notes: 46 Outlook Jason Quinn Chief Executive 45 68.1% ▼cost-to- income ratio (H1 25: 70.9%) R356m headline earnings 9.9% ▲ROE (H1 25: 6.7%) 67 bps ▼credit loss ratio (H1 25 : 154 bps) ▲39% o NII up by 5% ‒ Ave banking advances growth of +21%, underpinned by increased activity across key strategic sectors ‒ NIM impacted by lower endowment income o NIR up by 12% ‒ Increased transactional activity resulting in higher commission & fee income, mainly in Lesotho & Mozambique ‒ Client growth +6%, offset by dormant-account closures o Impairments increased by 2% ‒ Higher charges on sovereign exposures in Mozambique ‒ CLR improved to 67 bps & is below the TTC target range of 85 bps to 120 bps o Expense growth of 3% ‒ Strong focus on expense management & synergies NAR: SADC financial performance & outlook HE up strongly, driven largely by growth in GOI & costs that were well managed Additional info 2026 outlook NII growth Improve from H1 26 NIR growth Low double digit growth CIR Improve yoy (expense growth of low single digits) CLR Within the target range MT outlook ROE >COE (LT >18%) CIR <60% Loan growth (CAGR) Double digits CLR Within the target range Dividends Optimise excess capital Nedbank Group unaudited interim results 202624
Page 27
Notes: Notes: 48 This guidance is not a profit forecast, has not been reviewed or reported on by the group's joint auditors & is based on the gro up's economic forecasts at the time. H1 2026 2026 guidance (March 2026) 2026 guidance (August 2026) NII growth +4% Around mid-single digits Slightly above mid-single digits NIR growth +10% Upper single digits CLR 95 bps Around mid-70 bps (below the mid point of our 60 bps to 100 bps TTC target range) Around mid-80 bps (above the mid point of our 60 bps to 100 bps TTC target range) ETI associate income R0m No further contribution in 2026 & beyond Expense growth +3% Below mid-single digits CET1 ratio 12.6% Operating within our revised target range (TTC 11.0% to 12.5%) Dividend per share 1.75x Within our board-approved target range (TTC 1.75 to 2.25 times cover) Short-term guidance (2026) NII & CLR guidance revised slightly higher, with faster DHEPS growth expected in H2 2026 Unchanged Unchanged Unchanged Unchanged Unchanged 47 0.5% 1.1% 1.3% 1.4% 1.9% 24 25 26 27 28 Source: Nedbank Group Economic Unit. | * When compared to February 2026 forecast. SA GDP growth (%) 10.50% 11.25% 10.25% 10.75% 10.00%9.75% 22 23 24 25 26 27 28 Prime interest rate (YE, %) 16.5 18.5 18.4 17.8 16.3 16.0 16.4 22 23 24 25 26 27 28 Rand/US$ (average) Inflation (average, %) 6.9% 5.9% 4.4% 3.2% 4.0% 3.5% 3.3% 22 23 24 25 26 27 28 9.2% 4.8% 4.2% 7.2% 7.3% 6.3% 6.6% 22 23 24 25 26 27 28 Total overall credit growth (YE, %) Macroeconomic forecasts GDP slightly lower; inflation & interest rates higher in 2026 than we anticipated at the start of the year 2026* ▼0.2% 2026* ▲0.6% 2026* ▼0.4% 2026* ▲100 bps 2026* ► 0 bps Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 25
Page 28
Notes: Notes: 50 2026 Tailwinds o Organisational restructure – complete o Underlying business momentum – strong o Productivity gains – ongoing Headwinds o Wholesale impairments – normalising off a low base o PPB impairments – higher than expected o ETI base effect – negative Medium term o A more constructive macroeconomic environment – Energy & infrastructure finance opportunities – intact – Retail credit growth & consumer financial health – to improve – Lower interest rates & lower inflation – from 2027 o Transform initiatives – starting to scale – Growing contributions from insurance, payments, strategic portfolio tilt-related market share gains (lending & deposits), portfolio diversification, etc – Synergies from the Eqstra & iKhokha acquisitions – emerging – NCBA – contribution benefits (transaction expected to be finalised in H2 2026, subject to regulatory approvals) o Capital – flexible capital management; remain good stewards of capital ROE Above 15%* ROE 17% CIR Improve CIR 54% * Heading towards 2025 level. Conclusion In H1 2026 we delivered on our commitments to accelerate growth & unlock value as we progress towards our medium-term targets 49 1 This guidance is not a profit forecast, has not been reviewed or reported on by the group's joint auditors & is based on the group's economic forecasts at the time. | * Heading towards 2025 level. Financial targets Strong foundations in place as we commit to our medium - & long-term targets Additional info H1 2026 2026 Medium term Long term (5+ years) DHEPS growth1 +2% Faster DHEPS growth in H2 2026 > CPI + GDP + 3% (CAGR) > CPI + GDP + 3% (CAGR TTC) Return on equity1 15.0% Above 15%* 17% > 18% CIB BCB PPB NAR: SADC 23.7% 18.8% 11.8% 9.9% > 21% > 20% 18% COE > 21% > 25% > 20% > 18% Cost to income ratio1 56.2% Improve yoy 54% 50% CIB BCB PPB NAR: SADC 47.5% 69.1% 59.6% 68.1% < 45% < 65% < 56% < 60% < 45% < 55% < 55% < 60% Nedbank Group unaudited interim results 202626
Page 29
Notes: Notes: 52 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 legislation. Forward-looking statements may be identified by words such as ‘believe’, 'anticipate', 'expect', 'plan', 'estimate', 'intend', 'project', 'target', 'predict' and 'hope'. Forward-looking statements are not statements of fact, but statements by the management of Nedbank Group based on its current estimates, projections, expectations, beliefs and assumptions regarding the group's future performance. No assurance can be given that forward-looking statements are correct and undue reliance should not be placed on such statements. The risks and uncertainties inherent in the forward-looking statements contained in this document include, but are not limited to: changes to IFRS and the interpretations, applications and practices subject thereto as they apply to past, present and future periods; domestic and international business and market conditions, such as exchange rate and interest rate movements; changes in the domestic and international regulatory and legislative environments; changes to domestic and international operational, social, economic and political risks; and the effects of both current and future litigation. Nedbank Group does not undertake to update any forward-looking statements contained in this document and does not assume responsibility for any loss or damage arising as a result of the reliance by any party thereon, including, but not limited to, loss of earnings or profits, or consequential loss or damage. 51 Thank you Results presentation 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Message from our Chief Executive 2026 interim results commentary Nedbank Group unaudited interim results 2026 27
Page 30
2026 Interim results commentary
Page 31
2026 interim results commentary Economic and banking environment The US–Iran war and the closure of the Strait of Hormuz weighed on the global economy in the second quarter of 2026. Although the pace of economic activity softened, the world nonetheless weathered the storm relatively well, with most large countries relying on ample oil inventories and exports from other oil producers to compensate for the loss of oil flows from the Gulf countries. The International Monetary Fund (IMF) ascribes this resilience to the net effects of 2 competing forces, with the drag from the energy shock partly offset by the ongoing boost from large investments in Artificial Intelligence (AI). However, performances differed considerably among countries. The US economy strengthened, while China and other Asian countries, well placed in the technology value chain, remained relatively robust. In contrast, growth in most other countries weakened. Global inflationary pressures increased, driven almost exclusively by higher energy prices. In response, monetary policy turned slightly more hawkish. Most central banks adopted a wait-and-see approach, but some opted for pre-emptive tightening. Financial markets have stayed relatively calm despite some volatility. The spike in geopolitical risks was most visible in the foreign exchange markets, where the US dollar regained lost ground, leading to renewed pressure on emerging market (EM) currencies, albeit to varying degrees. Elsewhere, long bond yields remained elevated, discounting mounting fiscal and inflation risks. Despite growing unease about valuations, equity markets rose further, with the US AI drive still leading the charge. SA's economic outlook, as we have noted at the start of 2026, continued to show encouraging signs of improvement, supported by a more credible fiscal trajectory, progress on structural reforms, and recent credit rating upgrades. Many of the country's positive prospects as an attractive investment destination remain intact despite global uncertainties and the conflict in the Middle East. Progress on structural reforms started to yield real economic dividends. Between 2023 and 2026, Eskom lifted its electricity availability factor from 55% to 66%, the rail network raised rail volumes by 10%, and the ports increased bulk commodity turnover by 17% and container processing by 11%. Collaboration on public– private partnership initiatives also continues to progress well. Fiscal discipline strengthened, as evidenced by 2 years of a primary budget surplus and expectations of declining debt financing. Municipalities are also increasingly being held accountable for their finances. Following S&P's rating upgrade of the SA sovereign debt to BB (positive outlook) in November 2025, during the first few months of 2026, Moody's affirmed its SA sovereign Ba2 rating and revised the outlook to positive, while Fitch upgraded SA's long-term foreign currency rating from BB- to BB, with a stable outlook in June this year. Financial market indicators continue to reflect the progress towards greater macroeconomic stability, with SA government bond yields and the SA CDS spread well below Q1 2025 levels, and a resilient rand. The operating environment in SA during the first half of 2026 was mixed. Real GDP growth surprised on the upside in the first quarter, expanding by a slightly faster 0.5% qoq in Q1 2026, supported by strong contributions from finance, agriculture, domestic trade and transport. Most of the momentum came from a significant improvement in SA's net trade position, but domestic demand contracted over the quarter, hurt by a sharp rundown in inventories, a relapse in fixed investment, and a marked slowdown in consumer spending. Higher fuel prices drove local inflation up from a low of 3.0% in February to 4.0% in April. In response, SARB's Monetary Policy Committee (MPC) increased interest rates by 25 bps in May, taking the prime lending rate up to 10.5%. Inflation subsequently increased to 5.0% in June. Industrywide credit extension strengthened modestly, with private sector credit growth rising to almost 8% yoy in June. Corporate credit growth increased to high-single digits off a low prior-year base, driven by increased activity in general loans, although demand remains sensitive to weak business confidence and subdued fixed investment despite early signs of a recovery. Household credit growth has improved gradually but remains relatively weak at around 5%, reflecting ongoing affordability constraints. The health of the consumer was negatively impacted by rising inflation in Q2 2026. Strategic progress In 2025 the group made various bold strategic decisions to become more client-centred, unlock growth and cross-sell opportunities, diversify earnings, and enhance productivity. These included implementing and finalising the strategic organisational restructure, progressing the integration of Eqstra (fleet management business), concluding the acquisition of iKhokha (SME payments and business solutions platform) and concluding the sale of Nedbank’s 21% shareholding in Ecobank Transnational Incorporated (ETI). Separately, in H2 2025, we reached a commercial settlement with Transnet to avoid lengthy litigation and support the continuation of a long-standing partnership that advances infrastructure investment and economic growth. In the first quarter of 2026 we announced our intention to acquire approximately 66% of NCBA to grow and diversify earnings in East Africa. The benefits from these strategic decisions and focused execution on our strategy were evident across our business clusters in the first half of 2026. Highlights include the following: Corporate and Investment Banking (CIB) – Growth prospects for CIB, given its underlying leading sector capabilities, and attractive and diversified pipelines, have started to emerge. Advances growth improved to 8% yoy, reflecting sustained momentum in deal execution and pipeline conversion. In addition, through sector-focused execution CIB has started to participate in larger transactions. Trade finance revenue increased by 18% and commission and fees increased by 16% as a result of strong deal flow. Early progress in the cluster’s focus on transactional deposits resulted in an improvement in funding mix. Business and Commercial Banking (BCB) – While the establishment of the new BCB Cluster resulted in a planned investment curve, new business momentum and early revenue benefits have started to emerge. Advances growth of 6% accelerated when compared with the 2% decline in the prior year, which was supported by strong double-digit growth in new loan payouts in both the Mid-corporate and Commercial segments. Commission and fees increased by 14%, supported by improved client activity and ongoing franchise expansion. Synergies from the recent acquisitions include iKhokha POS devices that are now being sold in Nedbank branches and all Eqstra fleet cards now being issued by Nedbank. 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 29
Page 32
Personal and Private Banking (PPB) – Accelerating growth and unlocking efficiencies in PPB continued as the focus on improving the cluster's ROE intensified. Advances growth of 6% retained its momentum from the prior year as new loan payouts in Home Loans and Card increased by double digits, resulting in market share gains, while MFC retained its market-leading position as its book grew by 8%. Innovation initiatives, including Quick Loans with Jumo and a new revolving credit facility, contributed 8% of unsecured lending production. Pleasingly, PPB’s focus on insurance growth and cross-sell saw MyCover gross earned premiums (GEP) increase by 23% and insurance income increase by 21% overall. Franchise growth continued, with client acquisition momentum maintained across main-banked and targeted segments, while Wealth scaled through enhanced advisory, investment and fiduciary propositions. Payments and digital ecosystems continued to scale further, as value-added services (VAS) revenues and volumes grew strongly, underpinned by the adoption of PayShap, Cardless Cashout and voucher solutions. Productivity initiatives supported cost optimisation, including workforce optimisation, ATM cash recycling, distribution optimisation, and scaled self-service capabilities, moderating expense growth to 3% and supporting a 1% improvement in the CIR to 59.6%. Nedbank Africa Regions (NAR): SADC – Strategic execution supported revenue growth and operational efficiency, which led to the cluster’s ROE increasing by 3% to 9.9%, on track to meet its medium-term target of above COE. Advances grew by 21%, while NIR increased by 12% on the back of strong client activity and higher commission and fee income. Efficiency initiatives included a business rightsizing programme that reduced headcount by 9%. Capital optimisation continues through the repatriation of excess capital to the group via dividends. Following our decision not to proceed with our Harmonisation core systems replacement technology programme, we have approved a new technology solutions partner. Implementation will commence shortly and is expected to be completed over the next few years. NCBA transaction update In the first quarter of 2026 we announced our intention to acquire approximately 66% of NCBA and offer documents were distributed to all NCBA shareholders on 4 May 2026. The opening date of the offer (for purposes of accepting the offer) commenced on 28 May 2026 and closed on 10 July 2026. On 21 July 2026 we announced that the offer was accepted by NCBA shareholders representing 79.9% of NCBA shares in issue. Based on indicative acceptances, Nedbank Group achieved its targeted 66% shareholding in NCBA. The transaction will result in the issue of approximately 43.6 million new Nedbank Group ordinary shares to participating NCBA shareholders and a cash payment of approximately KES23.2bn, which amounted to around R3.0bn at the spot KES/ZAR exchange rate of 7.80 at 20 July 2026. The final results of the offer will be announced by no later than the 10th trading day after settlement date (being the date of announcement by Nedbank Group that all conditions to which the offer is subject have been fulfilled or waived). Post-implementation of the transaction, NCBA shareholders will hold a shareholding of just over 8% in Nedbank Group on the JSE, while NCBA will continue to be listed on the Nairobi Securities Exchange. Regulatory approvals required for the offer have been obtained from the Prudential Authority and Financial Surveillance Department of SARB and other regulators outside of South Africa, including the Capital Markets Authority of Kenya, National Bank of Rwanda, Bank of Tanzania, COMESA Competition and Consumer Commission, East African Community Competition Authority, Tanzania Fair Competition Commission, and ECOWAS Regional Competition Authority. The outstanding regulatory approvals are progressing in accordance with their timelines and are expected to be received towards the end of the third quarter or early in the fourth quarter of 2026. Strategic value unlocks To drive faster revenue growth and unlock productivity improvements, our strategy is executed through 5 strategic value unlocks: digital experiences (DX), market-leading client experiences (CX), strategic portfolio tilt, strategic growth vectors, and creating positive impacts. The following progress and highlights were achieved in H1 2026: • Digital experiences (DX) • Digital activity – In PPB, digitally active retail clients increased by 8% to 3.5 million. Digitally active clients across the NAR: SADC business increased from 69% to 72% of its total active client base. • Retail apps – Active Nedbank Money app clients increased by 13% to 3.2 million, supporting a 16% increase in transaction values. Average app logins per client per month increased to 22.8 (H1 2025: 21.2), reflecting deeper digital engagement and stronger client activity on the platform. PPB digital sales, already at market-leading levels, rose further to 76% of total sales (H1 2025: 70%), demonstrating continued migration of client acquisition and fulfilment journeys to digital channels. App users in NAR: SADC reported a 17% increase in app usage, as the app remains the preferred channel of choice for our clients. • Wholesale digital channels – Higher levels of 'self-service' and the delivery of enhanced digital features have resulted in more juristic clients using the Nedbank Business Hub (NBH). In BCB approximately 77% (H1 2025: 75%) of clients are actively using the NBH, while CIB client adoption increased to 56% (H1 2025: 50%). • Systems availability – We maintained high levels of system availability and stability, recording no major IT outages or severity incidents in H1 2026, reflecting the sustained impact of disciplined operational management, targeted technology investment, and an enhanced focus on resilience. • Artificial intelligence, data and automation – Following the early phase of experimentation with individual AI use cases, our focus on AI and automation has progressed to being domain-focused for scaling of execution and increasing of impact. Our Intelligent Hyper Automation (NIHA) strategy, combining AI, generative AI, analytics, machine learning, and robotic process automation, is delivering tangible benefits across revenue generation, credit effectiveness, client experiences, productivity, cost optimisation, and fraud processes, with more than R375m in annualised benefits unlocked to date. Proof points of AI in practice include Enbi, our conversational AI assistant, which handles more than 370 000 chats a month and resolves 80% without contact centre agent intervention; fraud automation that reduces case creation and registration times; AI-driven next-best-action capabilities that support relevant product offers and help lift PPB’s cross-sell ratio; and AI-enabled credit decisioning through Jumo and alternative data that enables faster growth in new personal loan origination. These capabilities are supported by dedicated data, analytics and decisioning platforms. We are also using data-driven reporting and personalised analytics to help our commercial clients better understand transaction patterns, market insights, consumer behaviour, location planning, and promotion timing. BCB's AI-powered intelligence platform (Juristic Advisory Solutions) provides a 360° view of more than 25 000 juristic clients, helping bankers unlock growth opportunities, manage risk proactively, and deepen client relationships. The implementation resulted in higher advocacy scores (NPS up by 3.5%) and an average of 37 minutes saved per engagement through enhanced efficiency and actionable insights. AI adoption accelerated across CIB to improve productivity, streamline workflows, and support differentiated client experiences. Nedbank Group unaudited interim results 202630
Page 33
We maintained our market-leading positions in commercial mortgages (34.7%) and retail vehicle finance (35.4%). On the funding side, retail deposit market share improved from 16.8% to 17.0%, while commercial deposit market share declined from 15.3% to 14.9%. Increasing our share of transactional deposits remains a strategic priority across all clusters. • Growth vectors Various strategic initiatives across the group are aimed at growing and diversifying revenue streams in SA, SADC and East Africa. These include the cross-sell of insurance products into the Nedbank client base; unlocking growth opportunities in key segments such as Private Clients, Commercial and SME banking; leveraging our CIB expertise and strong positioning in infrastructure and energy finance; optimising returns in SADC; and concluding the NCBA transaction. We highlight the progress we have made on 2 of these initiatives in H1 2026. • Insurance growth – Penetration of traditional bancassurance and newer solutions such as the MyCover suite continued to accelerate into the Nedbank client base, supported by the organisational restructure in 2025. Insurance offerings are being seamlessly integrated into client journeys at points of need, ensuring that clients can easily take them up when they need them. Leveraging enhanced digital experiences, data-driven and targeted offers are being presented, resulting in our clients experiencing a personalised connection in a convenient manner. This approach aims to increase product penetration and grow GEP by more than 50% in the medium term. In H1 2026 MyCover GEP grew by 23%, contributing to the 20% growth in insurance income. • Payment modernisation – Our fully interoperable payments hub accelerates innovation and enables real-time, embedded payments, while supporting the shift from cash to secure digital payments. Nedbank remains a market leader in pricing on PayShap among the large SA banks with zero fees for payments to ShapIDs. In H1 2026 PPB recorded 15% growth in digital payments NIR, including 28% growth in value-added services (VAS) revenues and 11% growth in Card NIR. VAS revenues were supported by 89% growth in PayShap, 28% growth in vouchers and prepaid, and 23% growth in the send-money-to-cellphone service. Cash-related NIR declined by 5%, as client behaviour continued to shift. In response, we continued to focus on cash optimisation, with 44% (R4.5bn) of ATM cash funded through recycled cash, generating cumulative savings of R1.25bn since 2019. • Creating positive impacts • Sustainable development finance (SDF) – Our commitment to supporting the United Nations (UN) Sustainable Development Goals (SDGs) and making a positive impact in the communities where we operate is evident in our SDF initiatives. After meeting our 2025 target of deploying 20% of our loan book as SDF at the end of December 2025, we have set a new ambition to increase this to 25% of gross loans and advances (GLAA) by 2030, through originated growth of SDF assets being higher than overall GLAA growth. At 30 June 2026, SDF exposures amounted to R213bn (June 2025: R189bn), which represents around 21% of the group's gross loans and advances (June 2025: 19.6%). Key contributions include SDF-qualifying renewable energy exposures of R50bn (SDF 7), reflecting our continued support for the energy transition, infrastructure-related finance of R42bn (SDF 9) and green-certified building and affordable home loans of R34bn (SDF 11). Financing for clean water and sanitation (SDF 6) increased by more than 80% yoy to R6bn. • Positive impacts through our own operations – We maintained our level 1 BBBEE status for the eighth year in a row, supported by a workforce that is highly diverse, with black employee (African, Coloured or Indian) representation improving to 84.5% (H1 2025: 84%). Representation of African talent at both senior and middle management levels increased by a further 1% yoy. Our seventh intake of YES participants for 2026 exceeded 2 100 as we continued to make an impact on the South African youth and their families and communities. T o date we have • External recognition – Our AI maturity and leadership were externally recognised in the Evident AI Index, where we ranked #4 overall in the Middle East and Africa and #2 in SA, reflecting the strength of our AI strategy, use cases, governance, talent, and outcomes. At the Digital Banker MEA Innovation Awards 2026, we received awards for Best AI Initiative in Africa and Best AI-Powered Business Intelligence and Advisory Platform. • Client experiences (CX) • Great client experiences – PPB's Consumer Net Promoter Score (NPS) of 77 ranks #2 among the 5 large South African banks (Kantar survey). In BCB, we achieved a mid-corporate client satisfaction score of 92, placing Nedbank first within the SA peer group, while CIB achieved a client satisfaction outcome of 82%, above the global benchmark of 80% and above prior-year outcomes. In NAR: SADC, Nedbank is the market leader in client experience (NPS) in Mozambique and the leader in brand sentiment scores across four markets. • Brand – Following the value of the Nedbank brand increasing by 24% to R20bn in 2025, in 2026 Nedbank’s brand value increased by a further 16% to R24bn while retaining a #8 ranking among all South African companies. • External recognition – In recognition of the value-add to our more than 8 million clients and our leadership position in key industries, segments and products, we have won various awards in H1 2026, including SA’s Best Investment Bank at the Global Banking and Finance Awards, Best SME Bank in SA at the Global Finance Magazine Awards, Best Retail Bank in Africa and SA at the 2026 Asian Banker awards, and Best Boutique Private Bank at the 2026 Wealth Briefing MENA Awards. • Focusing on areas that create value (SPT) • Client gains and cross-sell – Total clients across the group increased by 4% to 8 million. Clients in PPB increased by 4% to 7.6 million, with main-banked clients increasing by 2% to 3.9 million and cross-sell penetration improving to 2.04 (H1 2025: 2.00) per client. Greenbacks clients increased by 13% to 2.2 million on the back of enhancements to our loyalty and rewards scheme and expansion of Nedbank Connect. Within PPB, Personal clients increased by 4%, Private and Wealth clients by 8% and small-business clients by 5%. In BCB Commercial and Mid-corporate client groups remained stable at above 12 000, while SME clients increased by more than 10%, benefiting from the migration of additional clients from PPB. Cross-sell in the Commercial and Mid-corporate segments increased from 4.70 to 4.75 products per client, reflecting the early stages of initiatives aimed at deepening client engagement and broadening product penetration. In NAR: SADC total clients increased by 6% to around 445 000, while 52% of these clients are main-banked. • Lending and deposit-taking market shares: Based on BA900 disclosures, since December 2025 we increased our market share in home loans (from 15.1% to 15.2%), credit cards (from 9.6% to 9.8%) and wholesale term loans (14.5% to 15.3%), with the latter benefiting from the conversion of strong pipelines. As a result, our core corporate loans market share increased to 19.4%. Market share in personal loans declined marginally from 9.9% to 9.8%. To support growth in higher-return lending segments, PPB launched Quick Loans in partnership with Jumo and a new revolving credit facility (RCF) during H1 2026. Quick Loans leverages AI-enabled credit decisioning and alternative data to provide fast, responsible short-term credit through a fully digital journey, offering loans from R500 to R50 000 with repayment terms of 1 to 12 months, while RCF provides flexible access to preapproved credit facilities of up to R1 million for higher-income clients. Together, the products contributed 8% of unsecured lending production in their first month, supporting new growth opportunities, enhanced client value, and improved risk-adjusted returns. Retail overdrafts decreased from 17.5% to 16.6%, although up strongly over the past few years (H1 2022: 11.1%). 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 31
Page 34
Cluster financial performance Double-digit HE growth in CIB and NAR: SADC, mid-single-digit growth in PPB, and marginally higher HE in BCB were offset by a decline in HE in the Centre, which now includes the contribution from ETI in the prior-year base. HE in CIB increased by 11% to R4 435m, delivering a multi-year high ROE of 23.7%. NII increased by 4%, reflecting average gross banking advances growth of 3% and a slight decline in net interest margin (NIM). NIM was impacted by lower interest rates and liability earnings but supported by improving asset margins, which were slightly offset by the continued growth in strategically important but lower-margin sectors. NIR increased by 7% on the back of strong fee and commission growth of 16% and a solid trading performance. This growth was supported by the equity investment portfolio, which delivered growth of 51%, driven by associate income. The cluster reported a net release of impairments and a credit loss ratio (CLR) of 0 bps (H1 2025: -15 bps), below its through-the-cycle (TTC) target range. Operating expenses were well managed, increasing by 3%. HE in BCB was marginally up by 0.4% at R1 180m, delivering an ROE of 18.8%. NII increased by 5%, reflecting the impact of average gross banking advances that increased by 4%, with a stable NIM at 2.77%, despite lower endowment income on the back of lower average interest rates in 2026. NIR increased by 15%, benefiting from the acquisition of iKhokha, increased Card Acceptance and Commercial Issuing volumes, and good growth in the client segments (particularly Commercial and Mid-corporate). Impairments increased off a low prior-year base, with the cluster CLR rising to 40 bps (H1 2025: 11 bps), but remained at the bottom end of its TTC target range; the outcome was negatively impacted by a once-off single-client impairment, which masked strong underlying asset quality, recoveries and collections performance. Expenses increased by 11%, reflecting the first-time consolidation of iKhokha post its acquisition, the investment required to establish BCB as a new cluster, and continued investment in digital capabilities. HE in PPB increased by 5% to R1 997m, delivering an ROE of 11.8%. NII increased by 5%, driven by 6% growth in average gross banking advances and partly offset by continued margin pressure and lower endowment income from lower average interest rates. NIR increased by 7% on the back of transactional activity, higher maintenance fees, strong growth in value-added services, and insurance income that increased by 21%. This growth was partially offset by lower cash volumes as client migration towards digital solutions continued. Impairments increased by 13%, driven by loan growth, updated forward looking macro assumptions and marginally higher arrears and defaults. As a result, the cluster CLR increased from 192 bps in H1 2025 to 205 bps, slightly above the top end of its TTC target range. Expenses were tightly controlled and increased by only 3%. HE (Rm) ROE (%) Change Jun Jun Dec Jun Jun Dec (%) 2026 2025 2025 2026 2025 2025 CIB 11 4 435 3 984 7 943 23.7 21.6 21.4 BCB 0 1 180 1 175 2 380 18.8 21.4 20.8 PPB 5 1 997 1910 5 123 11.8 11.8 15.6 NAR: SADC 39 356 257 672 9.9 6.7 9.0 Centre (59) 437 1073 1082 Group 0 8 405 8 399 17 200 15.0 15.2 15.4 Overview of H1 2026 results Headline earnings (HE) for the 6 months to 30 June 2026 were flat at R8 405m when compared with that for the 6 months to 30 June 2025 (prior period). This outcome was better than management’s expectations and the guidance provided to the market at the start of the year of negative HE growth. HE was supported by improving net interest income (NII) growth, strong non-interest revenue (NIR) growth and very disciplined expense management, resulting in pre-provisioning operating profit (PPOP) growth of 8%. This growth was offset by a higher impairment charge and no further recognition of associate income from ETI following the disposal of our investment in 2025 (ETI contributed R927m to HE in H1 2025). When excluding the ETI base effect, HE growth was strong at 12%, reflecting the strong underlying operational performance of the business. The group's increase in expenses of 3% was lower than the 4% increase in revenue resulting in a positive JAWS ratio of 1.2%, while the group cost-to-income ratio (CIR) improved to 56.2% (H1 2025: 56.9%). Headline earnings per share (HEPS) increased by 2% to 1 841 cents, while diluted HEPS (DHEPS) increased by 2% to 1 803 cents. DHEPS growth was ahead of HE growth due to the run rate impact of the well-timed share buybacks executed in 2025. Basic earnings per share (EPS) increased by 16% to 1 830 cents, benefiting from the non-repeat of the impairment loss recognised in the prior period relating to the accounting treatment of Nedbank's share of ETI's Q2 2025 unrealised foreign exchange gains. Return on equity (ROE) declined marginally to 15.0% (H1 2025: 15.2%) but remained well above the group's cost of equity (COE) of 14.0%. On a comparable basis, the group’s ROE improved by 1.4% when excluding ETI in the base (H1 2025: 13.6%). Return on assets declined from 1.16% to 1.06%. Net asset value per share (NAV/share) of 25 486 cents reflects an increase of 4% when compared with the 24 522 cents in the prior period. The group's balance sheet remained strong. The common-equity tier 1 (CET 1) ratio of 12.6% and the tier 1 capital ratio at 14.4% were both above our board-approved targets and the SARB minimum requirements. The average liquidity coverage ratio (LCR) of 127% for the second quarter and a net stable funding ratio (NSFR) of 119% were well above the 100% regulatory minimums and board-approved targets. An interim dividend of 1 052 cents per share was declared (2025 interim dividend: 1 028 cents per share) at a payout ratio of 57%. provided more than 19 000 one-year job experiences to YES participants. Cash taxation payments relating to direct, indirect and employee taxes as well as other taxation increased by 7% to R9bn. • Environmental, social and governance (ESG) ratings and external recognition – We retained our top-tier ESG ratings with the following scores and rankings: MSCI – AAA (within the top 11% of global banks in the MSCI Index); Sustainalytics – low-risk score of 11.2 (top 5% of 972 global banks); S&P Global – score of 63 out of 100 (top 12% of global banks); ISS – C+ rating (within the top 10% of global banks); and FTSE Russell – 4.3 rating out of 5 (top 24% of global banks and an FTSE4Good Index constituent). Our commitment to sustainability and ESG initiatives has been acknowledged through several prestigious accolades, including Best Bank for Sustainable Finance in Africa at the 2026 Euromoney Awards for Excellence, Best Bank for Sustainability Transparency and Best Platform/T echnology Facilitating Sustainable Finance at the 2026 Global Finance and Sustainable Finance Awards, and ESG Loan House of the Year at the 2026 Global Banking and Markets Africa Awards. Nedbank Group unaudited interim results 202632
Page 35
Financial performance Net interest income NII increased by 4% to R22 021m, driven by 7% growth in average interest-earning banking assets (AIEBA) to R1 185bn and a decrease in the group's NIM. AIEBA growth was underpinned by 3% growth in average gross banking loans and advances in CIB, 4% growth in BCB, and 6% growth in PPB, as well as higher levels of HQLA held in the banking book. NIM decreased by 12 bps to 3.75% from the 3.87% reported in H1 2025. This decrease was driven primarily by a negative endowment mix impact (-12 bps) due to net capital and current account and savings account (CASA) balances growing slower than AIEBA, a negative endowment rate impact (-9 bps) due to lower interest rates partly offset by endowment hedging benefits (2 bps). To date we have put in place 40% of approved endowment interest rate hedges across our CIB and BCB businesses and the Centre. Lower Stage 3 interest reversals (2 bps) and positive liability pricing impact (2 bps) offset a negative asset and liability mix impact (-3 bps). A positive basis risk impact further increased NIM. Impairments charge on loans and advances The group's impairment charge, which is cyclically higher in the first half of the year, increased by 26% to R4 804m and the CLR increased to 95 bps (H1 2025: 81 bps), moving into the upper half of the group's TTC target range of 60 bps to 100 bps. The increase was primarily driven by higher impairment charges in PPB, BCB increasing off a low base, and CIB achieving a smaller impairment release when compared to the prior year. CIB reported an impairment release of R5m (H1 2025: R324m release) and a CLR of 0 bps that remained below its TTC range of 15–45 bps, reflecting disciplined risk management and a high-quality portfolio. This outcome continued to be supported by a decline in stage 3 loans to 1.49% (H1 2025: 1.81%) of gross loans and advances. BCB impairments increased to R191m primarily due to a once-off impairment on a large single client exposure. As a result, the cluster CLR increased to 40 bps (H1 2025: 11 bps), at the bottom end of the TTC target range of 40 bps to 70 bps. Excluding the single client credit loss, the core performance of the book remained healthy. CLR (%) Average banking advances (%) Jun 2026 Jun 2025 Dec 2025 TTC target ranges CIB 49 0.00 (0.15) (0.17) 0.15–0.45 BCB 9 0.40 0.11 0.21 0.40–0.70 PPB 39 2.05 1.92 1.63 1.30–1.90 NAR: SADC 3 0.67 1.54 0.89 0.85–1.20 Group 100 0.95 0.81 0.68 0.60–1.00 HE in NAR: SADC increased by 39% to R356m, albeit off a low base, delivering an ROE of 9.9%. The strong earnings growth was driven by robust advances growth, double-digit NIR growth that was supported by increased client activity, a sound credit performance, and disciplined expense management. HE in the Centre declined by 59% to R437m primarily due to the sale of ETI, which resulted in no associated income in H1 2026 (H1 2025: R927m). PPB impairments increased by 13% to R4 425m. The increase was driven by stronger loan growth at improving credit quality, the impacts of incorporating updated macroeconomic assumptions, and a challenging macroeconomic environment (particularly higher fuel prices) and marginally higher arrears and defaults, primarily in the Home Loans and Card portfolios in Q2 2026. This was partially offset by lower charges in Personal Loans and MFC, supported by improved credit origination and collections initiatives. The cluster CLR increased to 205 bps (H1 2025: 192 bps), higher than the PPB TTC target range of 130 bps to 190 bps. NAR: SADC impairments increased by 2% to R188m due to higher charges on sovereign exposures in Mozambique, partly offset by lower impairments across the other regions. The cluster CLR, which excludes impairments on sovereign exposures, improved to 67 bps, below its TTC target range of 85–120 bps. Total overlays increased to R2.0bn (June 2025: R0.9bn; December 2025: R1.6bn), mostly from macro and reground adjustments to incorporate known risks that are not yet evident in models. The group's balance sheet ECL declined slightly to R29.2bn (June 2025: R29.6bn). The decrease was the net outcome of a higher impairment charge of R4.8bn, which included post-write-off recoveries of R0.7bn and lower write-offs at R5.3bn (H1 2025: R5.6bn). The group's overall ECL coverage ratio decreased to 2.93% (2025: 2.96%; H1 2025: 3.21%), mainly as a result of a 6% decrease in stage 3 loans to R46.3bn (June 2025: R49.0bn) and a 10% decrease in stage 2 loans to R63.7bn (June 2025: R70.9bn). Stage 1 loans increased by 12%. The stage 1 coverage ratio decreased to 0.50% (June 2025: 0.61%), the stage 2 coverage ratio increased to 7.91% (June 2025: 6.78%), and the stage 3 coverage ratio increased to 41.8% (June 2025: 39.5%). Non-interest revenue and income NIR increased by 10% to R16 214m, driven by strong growth in commission and fees and underlying insurance activity. The growth was partially offset by lower equity income and negative impacts from fair-value adjustments. • Commission and fees income increased by 11%, benefiting from strong growth in CIB that was driven by higher client flows and increased participation in larger transactions; and double-digit growth in BCB that benefited from the iKhokha acquisition and higher transactional client activity in the client segments (particularly Commercial and Mid-corporate); and increased Card Acceptance and Commercial Issuing volumes. Within PPB, growth of 7% was supported by client gains, growth in maintenance fees, VAS momentum, and continued digital adoption. • Insurance income increased by 20%, underpinned by strong underwriting, favourable non-life claims experience, and continued growth in premiums and policies within the MyCover suite. • Trading income growth of 5% was driven by strong equities trading outcomes, partially offset by weaker foreign exchange and fixed income trading. • Equity investment income declined by 15% following a particularly strong prior period. However, overall, the equity investment portfolio delivered strong growth on the back of significant revaluations within the CIB associate portfolio. Expenses Expenses increased by 3% to R21 696m, reflecting the outcome of good cost management and productivity initiatives. • Employee-related costs increased by 6% due to the following: • A 5% increase in salaries, wages and other staff costs, which includes average annual salary increases of 4%. • A 0% increase in the incentive charge that aligns with HE that was flat yoy. 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 33
Page 36
• Other staff costs increased due to lower project recoveries associated with reduced IT project capitalisation and lower pension fund benefits. • Computer-processing costs increased by 2%, reflecting our commitment to enhancing efficiency, notwithstanding higher IT volumes and ongoing investments in digital, data and cloud solutions. The amortisation charge declined by 9%, given the natural run-off of amortisation on previously capitalised intangible assets. • Communication and travel costs decreased by 3%, fees and insurance costs decreased by 1%, and occupation and accommodation costs remained flat as we continue to benefit from the group's real estate optimisation initiatives across both campus and branch environments. • Marketing costs increased as we heightened our focus on sales growth and due to the impact of the reclassification of YES programme costs, with a greater proportion recognised within marketing expenses in the current period. Earnings from associates Associate income declined by 66% to R361m, primarily due to the sale of ETI in 2025, which resulted in Nedbank not recognising any ETI-related income in the first half of 2026. Associate income in CIB increased by more than 100% to R364m driven by significant revaluations within the associate portfolio. Statement of financial position Banking loans and advances Gross banking loans and advances increased by 7% to R1 038bn on the back of solid growth in the CIB, PPB, BCB and NAR: SADC businesses. Gross banking loans and advances growth by cluster was as follows: Change Jun Jun Dec Rm (%) 2026 2025 2025 CIB 8 458 020 425 403 435 865 BCB 6 103 420 97 464 97 179 PPB 6 446 266 419 528 433 835 NAR: SADC 21 30 119 24 950 28 335 Centre1 (60) 486 1 211 1 846 Group 7 1 038 311 968 556 997 060 Jun 2026 Jun 2025 Dec 2025 HQLA (Rm) 305 739 297 800 311 182 Net cash outflows (Rm) 241 603 234 873 236 592 Liquidity coverage ratio (%)2 126.5 126.8 131.5 LCR regulatory minimum (%) 100.0 100.0 100.0 NSFR (%) 119.0 118.0 116.3 NSFR regulatory minimum (%) 100.0 100.0 100.0 2 Average for the quarter. 1 Includes macro fair-value hedge-accounted portfolios and disclosure reallocations. CIB actual gross banking loans and advances increased by 8% yoy to R458bn. The Investment Banking business reported growth of 7%, supported by power and renewables, structured commodity finance, and telecommunications. Commercial property loans and advances increased by 5%, reflecting resilient domestic client demand. BCB gross banking loans and advances increased by 6% to R103bn, on the back of strong double-digit growth in new loan payouts, particularly in the Commercial and Mid-corporate segments. PPB gross loans and advances increased by 6% to R446bn, ahead of the growth reported in the industry. Home loans grew by 7%, supported through deepened relationships and collaboration with our mortgage originator and business partners. Vehicle finance grew by 8% as we continued to leverage our strong position Liquidity risk, funding, and long-term debt The group achieved a quarterly average long-term funding ratio of 35%, which is above the industry average of around 25% given the proactive management of Nedbank's long-term funding profile. The group's Q2 2026 quarterly average LCR of 127% (Q2 2025: 127%) exceeded the minimum regulatory requirement of 100%, with the group maintaining appropriate operational buffers to absorb seasonal, cyclical, and systemic volatility. Nedbank's proactive management of its HQLA buffers resulted in the bank operating well within its risk tolerance levels. The group maintained significant sources of quick liquidity, which totalled R359bn, including HQLA of R306bn, and collectively represented 22% of total assets. Nedbank exceeded the minimum regulatory NSFR requirement of 100% with the June 2026 ratio of 119% (December 2025: 116%). The structural liquidity position of the group remains strong, supported by the effective management of balance sheet growth, alongside proactive responses to evolving regulatory developments. During the period we issued R5.7bn of Flac instruments as part of proactive build-up of bail-inable loss-absorbing capacity ahead of the phased implementation requirements from 2028 and full compliance by 2031. in MFC. The Personal Loans book decreased by 1%. Positively, new-sales levels improved in Q2 2026, enabled by enhanced personal loans fulfilment processes and the launch of Quick Loans with Jumo, as well as a new revolving credit facility. Card balances increased by 10%, off a low base. NAR: SADC gross loans and advances increased by 21%, supported by increased activity in strategic sectors, including mining and agriculture, across the regions. Deposits Deposits increased by 10% to R1.4tn, while the group's loan-to-deposit ratio decreased slightly to 80% (H1 2025: 81%). Within our business clusters CIB deposits grew by 14%, BCB by 7%, PPB by 4%, and NAR: SADC by 15%. Growth was primarily driven by an 11% increase in franchise call and term deposits and a 15% increase in other deposits, as clients extended tenure in response to Nedbank's competitive term offerings. Cash management deposits increased by 2%, current accounts by 5%, and negotiable certificates of deposit (NCDs) by 13%, in line with funding requirements. Foreign client liabilities and savings accounts declined by 9% and 5%, respectively. Nedbank Group unaudited interim results 202634
Page 37
Jun 2026 Jun 2025 Dec 2025 Internal target range3 Regulatory minimum3 CET 1 12.6 13.1 12.9 11.0–12.5 9.50 Tier 1 14.4 14.7 14.5 > 12.5 11.25 T otal CAR 16.5 16.9 16.6 > 15.0 13.50 3 Internal target range and regulatory minimum in 2026. Capital The group remains appropriately capitalised with a CET 1 capital adequacy ratio (CAR) ratio of 12.6% (December 2025: 12.9%) and a tier 1 CAR ratio of 14.4% (December 2025: 14.5%). Both ratios remain above the minimum regulatory requirements and the board-approved target ranges. The change in the CET 1 ratio reflects the collective impact of H1 2026 earnings; the payment of the final 2025 dividend; movements in risk-weighted assets (RWAs) primarily driven by credit, equity and operational risk; and the implementation of Prudential Authority Directive 2 of 2025, which resulted in a reduction in regulatory capital following the exclusion of post-acquisition insurance entity reserves from the group's consolidated regulatory reserves. We remain committed to maintaining an optimal capital structure by utilising a wide range of capital instruments. The group's total tier 1 capital position benefited from the issuance of additional tier 1 capital instruments amounting to R2.7bn, offset by redemptions of R0.9bn during H1 2026. Furthermore, the group's overall capital position was impacted by the issuance of tier 2 capital instruments valued at R2.5bn, offset by R2.5bn of redemptions in H1 2026, in alignment with its capital plan. Economic outlook The US–Iran war still eclipses the global economic outlook, which remains dependent on an enduring end to hostilities to ensure the free flow of trade through the Strait of Hormuz. While acknowledging these downside risks, the IMF still expects the world economy to remain resilient, predicting a modest slowdown from 3.5% in 2025 to 3.0% in 2026, followed by a recovery to 3.4% in 2027. Demand for energy and other commodities is likely to sustain the economies of sub-Saharan Africa, with the IMF forecasting a slight moderation in growth from 4.5% in 2025 to 4.3% in 2026 before regaining momentum to 4.5% in 2027. With the war oscillating between escalation and de-escalation and global energy markets balanced on a knife's edge, inflation will stay elevated, keeping most central banks cautious with a tightening bias. Against this backdrop, global investor sentiment will likely remain volatile, posing downside risks to EM capital flows and currencies, which could further amplify price pressures and lead to tighter financial conditions in the second half of the year. All said, global financial and economic conditions will be less supportive. SA growth prospects for 2026 remain reasonable. The adverse implications of the global energy shock will subdue activity and weigh on confidence, but fundamentals remain sound enough to sustain the economic recovery, albeit slower than anticipated at the start of the year. Higher fuel prices and expectations of further interest rate hikes will lead to greater caution, but household finances are better placed to absorb these strains. Consumers have enjoyed almost 2 years of real income growth. At the same time, net wealth levels have increased materially, overall debt burdens remain manageable, and debt service costs are still meaningfully lower than a year ago. Given the muted use of credit in this cycle, there is potential for further growth in consumer spending. Fixed investment will likely remain subdued, as business confidence wanes amid mounting global headwinds and rising domestic cost pressures. On the upside, continued investment in renewable energy and continued progress in the rollout of the public sector's infrastructure programme will provide some counterweight. GDP growth is expected to improve slightly, expanding by around 1.3% in 2026 and 1.4% in 2027, revised down from 1.4% and 1.7% respectively as anticipated in February 2026. Inflation will remain elevated, driven mainly by high global oil prices, albeit contained by subdued local food prices and a relatively steady rand. Headline inflation is forecast to hover above SARB's 3% target for the rest of the year, averaging 4.0% in 2026. With inflation already above target, the war intensifying, the risk of physical oil shortages rising, and local inflation expectations increasing, it is anticipated that SARB will hike interest by another 25 basis points in September, followed by a prolonged pause before rates decline in 2027. A return to monetary policy easing only appears likely once inflation resumes a clear downward path towards the 3% target. Over the next two years, the risks to interest rate outlook are skewed to the upside. Overall, credit growth across both corporates and households is expected to remain positive in H2 2026, albeit at more moderate levels, as heightened uncertainty and cautious borrowing behaviour persist. Credit growth is projected to remain relatively robust, ending the year around 7%, supported by ongoing economic recovery and lower interest rates. However, risks to the credit outlook remain tilted to the downside. We maintain that sound economic policies, accelerated structural reforms, and significant fiscal consolidation remain key to reducing SA's risk premium and unlocking private sector efficiencies, thereby setting the stage for faster growth, higher employment, and low inflation and interest rates over the medium term. Prospects Our updated financial guidance for 2026 is as follows: • NII growth is expected to be slightly above mid-single digits, revised up from our expectations at the start of the year of around mid-single digits. • The group's CLR is expected to end the year above the midpoint of our TTC target range of 60 bps to 100 bps, revised up from our initial expectation of mid-70 bps to around mid-80 bps. CLRs in CIB and BCB are expected to normalise off their 2025 lows and the PPB CLR is expected to improve from H1 2026 levels. • NIR growth is expected to be upper single digits, driven by execution of various growth initiatives across all clusters. • Expenses growth is expected to remain below mid-single digits, given our focus on productivity enhancements. • Associate income from our historical financial investment in ETI, which totalled R986m in 2025, will not recur in 2026 and beyond. • The group's CET 1 capital ratio is expected to be within our board-approved target range of 11.0% to 12.5% at the end of the year. • Dividends are expected to be declared within our board-approved target range of 1.75 to 2.25 times cover. 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 35
Page 38
3 COE is currently forecast to be 14.0% in 2026 to 2028. Shareholders are advised that all guidance is based on organic earnings and our latest macroeconomic outlook. The group’s joint auditors have not reviewed or reported on this guidance. HE growth in FY 2026 is expected to improve from the 0% reported in H1 2026, while DHEPS growth will remain ahead of HE growth given the run rate benefit of the shares cancelled after the share buybacks in 2025. We still aim to deliver an ROE of greater than 15%, heading towards 2025 levels, and the group's CIR is expected to improve yoy as revenue growth exceeds expense growth (positive JAWS). The group's CLR is expected to end the year above the midpoint of our TTC target range of 60 bps to 100 bps. In the medium term, we remain focused on achieving an ROE of 17% and a CIR of around 54%, while in the long term we are committed to achieving an ROE of 18% or more and improving our CIR to below 50%. The guidance provided and key targets are detailed below: Metric H1 2026 Full-year Medium-term Long-term performance 2026 outlook target target ROE 15.0% Above 15% (towards 2025 levels) 17% > 18% Growth in DHEPS 2% Ahead of > Consumer price index HE growth + GDP growth + 3% CAGR CLR 95 bps Around mid-80 bps above the mid-point of Between 60 bps and 100 bps our group's TTC target range of average banking advances Cost-to-income ratio (including associate income) 56.2% Improve 54% < 50% CET 1 capital adequacy ratio 12.6% Within our target range of 11.0–12.5% 11.0–12.5% Dividend cover 1.75 times 1.75–2.25 times 1.75–2.25 times Nedbank Group unaudited interim results 202636
Page 39
Board and executive leadership changes Independent non-executive director appointments in the period include Dixit Joshi, Natasha Davydova and Sanat Rao on 15 January 2026, and Peter Wharton-Hood with effect from 3 March 2026. Hubert Brody and Brian Dames retired from the board on 29 May 2026. Ray Naicker (Chief Information Officer) resigned with effect from 31 January 2026. On 31 July 2026 we announced that Nikos Angelopoulos has been appointed as Chief Information Officer, with effect from 1 September 2026. Priya Naidoo (Group Executive Strategy) resigned with effect from 30 June 2026. The Group Strategy Cluster was disbanded, and its responsibilities reallocated to relevant enterprise owners. Mfundo Nkuhlu, Chief Operating Officer (COO) and executive director has elected to take early retirement at the end of 2026, when he reaches the age of 60. Following his retirement, the role of COO will be discontinued and the responsibilities associated with the role will be reallocated within the existing Group Executive Committee structure. Forward-looking statements This announcement is the responsibility of the directors and contains certain forward-looking statements with respect to the financial condition and results of operations of Nedbank Group and its group companies that, by their nature, involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. Factors that could cause actual results to differ materially from those in the forward-looking statements include global, national, and regional health; political and economic conditions; sovereign credit ratings; levels of securities markets; interest rates; credit or other risks of lending and investment activities; as well as competitive, regulatory, and legal factors. The group's joint auditors have not reviewed or reported on the financial information on which all forward-looking statements are based. The group, in the ordinary course of business, enters into transactions that expose it to taxation, legal and business risks. The group does not expect the ultimate resolution of any of these other matters to have a material adverse effect on the group's consolidated financial position. Interim dividend declaration Notice is given that an interim dividend of 1 052 cents per ordinary share has been declared, payable to shareholders for the 6 months ended 30 June 2026. The dividend has been declared from income reserves. The dividend will be subject to a dividend withholding tax rate of 20% (applicable in SA) or 210.4 cents per ordinary share, resulting in a net dividend of 841.6 cents per ordinary share, unless the shareholder is exempt from paying dividend tax or is entitled to a reduced rate in terms of an applicable double taxation agreement. Nedbank Group's tax reference number is 9375/082/71/7, and the number of ordinary shares in issue at the date of declaration was 477 272 628. In line with the provisions of Strate, the electronic settlement and custody system used by JSE Limited, the relevant dates for the dividend are as follows: 2026 Last day to trade (cum dividend) Tuesday, 25 August Shares commence trading (ex dividend) Wednesday, 26 August Record date (date shareholders recorded in shareholders' register) Friday, 28 August Payment date Monday, 31 August Share certificates may not be dematerialised or rematerialised between Wednesday, 26 August 2026, and Friday, 28 August 2026, both days inclusive. Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders' bank accounts on the payment date. In the absence of specific mandates, the dividend will be withheld until shareholders provide their banking information. Holders of dematerialised shares will have their accounts credited at their participant or broker on Monday, 31 August 2026. For and on behalf of the board Daniel Mminele Jason Quinn Chairperson Chief Executive Directors AD Mminele (Chairperson) JP Quinn* (Chief Executive) MS Bomela MH Davis* (Chief Financial Officer) N Davydova NP Dongwana OD Fortuin FR Grobler MA Hermanus DA Joshi P Langeni (Lead Independent Director) RAG Leith L Makalima GK Njenga MC Nkuhlu* (Chief Operating Officer) TM Nombembe S Rao S Subramoney PG Wharton-Hood * Executive 2026 interim results commentary Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 37
Page 40
Financial results Financial highlights 39 Consolidated statement of comprehensive income 40 Consolidated statement of financial position 42 Consolidated statement of changes in equity 44 Return-on-equity drivers 48
Page 41
yoy % Jun Jun Dec change 2026 2025 2025 Statistics Number of shares listed m 477.3 486.9 477.3 Number of shares in issue, excluding shares held by group entities m (2) 456.7 465.4 456.9 Weighted-average number of shares m (2) 456.5 466.7 464.1 Diluted weighted-average number of shares m (2) 466.2 476.8 474.1 Headline earnings Rm 8 405 8 399 17 200 Profit attributable to ordinary shareholders Rm 14 8 354 7 331 7 799 Total comprehensive income Rm 8 971 8 877 16 197 Preprovisioning operating profit Rm 8 15 587 14 483 28 825 Economic profit Rm 74 938 538 1 472 Headline earnings per share cents 2 1 841 1 800 3 706 Diluted headline earnings per share cents 2 1 803 1 762 3 628 Basic earnings per share cents 16 1 830 1 571 1 681 Diluted basic earnings per share cents 17 1 792 1 538 1 645 Ordinary dividends declared per share cents 2 1 052 1 028 2 132 Interim cents 2 1 052 1 028 1 028 Final cents 1 104 Ordinary dividends paid per share cents 1 104 1 104 2 132 Dividend cover times 1.75 1.75 1.74 T otal assets administered by the group Rm 6 2 112 440 1 989 982 2 059 824 Total assets Rm 8 1 609 997 1 493 975 1 558 628 Assets under management Rm 1 502 443 496 007 501 196 Net life insurance contractual service margin Rm (3) 969 1 003 942 Nedbank life insurance value of new business Rm (1) 282 286 640 Net asset value per share cents 4 25 486 24 522 24 956 Tangible net asset value per share cents 3 22 555 21 834 22 012 Closing share price cents 11 26 995 24 305 26 626 Price-to-earnings ratio historical 7.3 6.7 7.2 Price-to-book ratio historical 1.1 1.0 1.1 Market capitalisation Rbn 9 128.8 118.3 127.1 Number of employees (permanent) 25 731 25 700 25 795 Number of employees (permanent and temporary) 26 151 26 169 26 227 Key ratios (%) ROE 15.0 15.2 15.4 Return on tangible equity 17.1 17.2 17.4 ROA 1.06 1.16 1.15 Return on average RWA 2.21 2.29 2.32 NII to average interest-earning banking assets 3.75 3.87 3.81 NIR to total income 42.0 40.0 41.3 NIR to total operating expenses 74.7 70.3 71.5 CLR – banking advances 0.95 0.81 0.68 Cost-to-income ratio 56.2 56.9 57.8 Gross operating income growth less expense growth rate (JAWS ratio) 1.2 (2.9) (4.1) Effective taxation rate 20.7 19.8 21.2 Group capital adequacy ratios (including unappropriated profits): – CET 1 12.6 13.1 12.9 – Tier 1 14.4 14.7 14.5 – Total 16.5 16.9 16.6 Financial highlights for the period ended As reported at 31 December 2025, an amount of R425m related to fleet management expenses, previously presented in total operating expenses for the period ended 30 June 2025, was reallocated to non-interest revenue and income. This restatement represents a reallocation between line items only and has no impact on the profit or headline earnings for the period ended 30 June 2025 at either cluster or group level. Financial results Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 39
Page 42
Consolidated statement of comprehensive income for the period ended yoy % Jun Jun Dec Rm Note change 2026 2025 2025 Interest and similar income 62 168 62 046 124 622 Interest expense and similar charges (2) 40 147 40 865 81 744 Net interest income 1 4 22 021 21 181 42 878 Non-interest revenue and income 3 10 16 214 14 800 31 046 Net commission and fee income 11 768 10 633 22 156 Commission and fee revenue 16 040 14 243 30 521 Commission and fee expense (4 272) (3 610) (8 365) Net insurance income 866 720 1 652 Fair-value adjustments (140) (55) (263) Net trading income 2 646 2 513 5 099 Equity investment income 343 402 892 Investment income 151 142 319 Net sundry income 580 445 1 191 Share of gains of associate companies 9 (66) 361 1 068 1 192 Total net income before impairment charge on financial instruments 4 38 596 37 049 75 116 Impairments charge on financial instruments 2 26 4 804 3 818 6 550 Total net income 2 33 792 33 231 68 566 Total operating expenses 4 3 21 696 21 067 43 395 Indirect taxation (15) 586 691 1 275 Impairments charge on non-financial instruments and other (gains)/losses 5 (94) 68 1 097 9 616 Profit before direct taxation 10 11 442 10 376 14 280 Total direct taxation 6 5 2 361 2 246 4 869 Direct taxation 2 378 2 266 5 075 Taxation on impairments charge on non-financial instruments and other gains and losses (17) (20) (206) Nedbank Group unaudited interim results 202640
Page 43
yoy % Jun Jun Dec Rm Note change 2026 2025 2025 Profit for the period 12 9 081 8 130 9 411 Other comprehensive (losses)/gains (OCI) net of taxation >(100) (110) 747 6 786 Items that may subsequently be reclassified to profit or loss Exchange differences on translating foreign operations (202) (192) (1 211) Share of OCI of investments accounted for using the equity method 1 205 1 204 Debt investments at FVOCI – net change in fair value 54 (152) (526) Cash flow hedge gains 30 23 62 Items that may not subsequently be reclassified to profit or loss Share of OCI of investments accounted for using the equity method 3 Remeasurements on long-term employee benefit assets 97 75 (62) Property revaluations (15) 81 Equity instruments at FVOCI – net change in fair value (74) (215) (198) Items reclassified to profit or loss Amounts reclassified to profit or loss on disposal of associate companies 7 436 T otal comprehensive income for the period 1 8 971 8 877 16 197 Profit attributable to: – Ordinary shareholders 14 8 354 7 331 7 799 – Non-controlling interest – ordinary shareholders 21 74 61 151 – Holders of participating preference shares (6) 50 53 142 – Holders of additional tier 1 capital instruments (12) 603 685 1 319 Profit for the period 12 9 081 8 130 9 411 Total comprehensive income attributable to: – Ordinary shareholders 2 8 251 8 103 14 643 – Non-controlling interest – ordinary shareholders 86 67 36 93 – Holders of participating preference shares (6) 50 53 142 – Holders of additional tier 1 capital instruments (12) 603 685 1 319 T otal comprehensive income for the period 1 8 971 8 877 16 197 Headline earnings reconciliation Profit attributable to equity holders of the parent 14 8 354 7 331 7 799 Non-headline earnings items 95 (51) (1 077) (9 410) Impairments charge on non-financial instruments and other gains and losses (68) (1 097) (9 616) Taxation on impairments charge on non-financial instruments and other gains and losses 17 20 206 Less: Share of associate (ETI) impairments charge on non-financial instruments and other gains and losses 9 9 Headline earnings 5 8 405 8 399 17 200 As reported at 31 December 2025, an amount of R425m related to fleet management expenses, previously presented in total operating expenses for the period ended 30 June 2025, was reallocated to non-interest revenue and income. This restatement represents a reallocation between line items only and has no impact on the profit or headline earnings for the period ended 30 June 2025 at either cluster or group level. Financial results Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 41
Page 44
Consolidated statement of financial position at yoy % Jun Jun Dec Rm Note change 2026 2025 2025 Assets Cash and cash equivalents (6) 56 726 60 398 64 829 Other short-term securities (17) 62 691 75 807 71 467 Derivative financial instruments 3 21 790 21 149 21 654 Government securities 13 253 687 224 789 250 889 Other dated securities 78 11 320 6 353 7 942 Banking loans and advances 7 7 1 009 534 939 623 969 413 Trading loans and advances 7 36 72 398 53 096 61 164 Other assets 22 53 587 43 788 44 409 Current taxation assets (4) 1 024 1 072 262 Insurance contract assets 18 493 419 483 Investment securities 8 (3) 30 171 31 210 30 077 Non-current assets held for sale (62) 737 1 952 140 Investments in associate companies 9 18 1 886 1 605 1 546 Deferred taxation assets (4) 353 366 396 Investment property 289 290 289 Property and equipment (1) 13 520 13 673 14 165 Long-term employee benefit assets 9 6 405 5 869 6 054 Intangible assets 10 7 13 386 12 516 13 449 T otal assets 8 1 609 997 1 493 975 1 558 628 Equity and liabilities Ordinary share capital 457 465 457 Ordinary share premium (17) 11 504 13 843 11 935 Reserves 5 104 427 99 828 101 631 T otal equity attributable to equity holders of the parent 2 116 388 114 136 114 023 Non-controlling interest attributable to ordinary shareholders 3 879 854 887 Holders of participating preference shares (6) 50 53 88 Holders of additional tier 1 capital instruments 15 13 733 11 991 11 969 T otal equity 3 131 050 127 034 126 967 Derivative financial instruments (24) 10 313 13 517 10 872 Amounts owed to depositors 11 10 1 352 504 1 231 947 1 305 596 Provisions and other liabilities (10) 42 320 46 956 42 081 Current taxation liabilities 34 340 254 274 Deferred taxation liabilities 11 1 349 1 216 787 Long-term employee benefit liabilities 24 61 49 59 Investment contract liabilities (6) 17 958 19 074 18 435 Insurance contract liabilities 9 1 645 1 506 1 569 Long-term debt instruments 52 457 52 422 51 988 T otal liabilities 8 1 478 947 1 366 941 1 431 661 T otal equity and liabilities 8 1 609 997 1 493 975 1 558 628 Nedbank Group unaudited interim results 202642
Page 45
Notes Financial results Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 43
Page 46
Consolidated statement of changes in equity Number of ordinary shares Ordinary share capital Ordinary share premium Foreign currency translation reserve Property revaluation reserve Share- based payment reserve Other non- distributable reserves1 FVOCI reserve Other distri- butable reserves2 T otal equity attributable to equity holders of the parent Holders of participating preference shares Holders of additional tier 1 capital instruments Non- controlling interest attributable to ordinary shareholders T otal equity Balance at 1 January 2025 466 994 770 467 14 351 (4 703) 1 450 2 039 508 874 97 278 112 264 103 12 798 921 126 086 Share movements in terms of long-term incentive and BEE scheme3 431 764 (1) (755) (67) (823) (823) Share buyback (2 061 521) (2) (507) (509) (509) Additional tier 1 capital instruments issued – 2 022 2 022 Additional tier 1 capital instruments redeemed – (2 829) (2 829) Preference share dividend paid – (103) (103) Additional tier 1 capital instruments distributions – (685) (685) Dividends paid to shareholders (5 384) (5 384) (103) (5 487) Total comprehensive income/(losses) for the period 768 – – – (97) 7 432 8 103 53 685 36 8 877 Profit attributable to ordinary shareholders and non-controlling interest4 7 331 7 331 53 685 61 8 130 Exchange differences on translating foreign operations (167) (167) (25) (192) Cash flow hedge gains 23 23 23 Movement in fair-value reserve (367) (367) (367) Remeasurements on long-term employee benefit assets 75 75 75 Share of OCI of investments accounted for using the equity method 935 270 3 1 208 1 208 Transfer (from)/to reserves (20) (89) 8 101 – – Value of employee services (net of deferred tax) 487 487 487 Other movements (2) (2) (2) Balance at 30 June 2025 465 365 013 465 13 843 (3 935) 1 430 1 771 419 785 99 358 114 136 53 11 991 854 127 034 Share movements in terms of long-term incentive and BEE scheme3 19 534 1 3 (19) 3 (12) (12) Share buyback (8 479 646) (9) (1 911) (1 920) (1 920) Additional tier 1 capital instruments issued – 950 950 Additional tier 1 capital instruments redeemed – (972) (972) Preference share dividend paid – (54) (54) Additional tier 1 capital instruments distributions – (634) (634) Dividends paid to shareholders (4 990) (4 990) (30) (5 020) Total comprehensive income/(losses) for the period 6 485 79 – – (395) 371 6 540 89 634 57 7 320 Profit attributable to ordinary shareholders and non-controlling interest4 468 468 89 634 90 1 281 Exchange differences on translating foreign operations (988) (988) (31) (1 019) Cash flow hedge gains 39 39 39 Movement in fair-value reserve (357) (357) (357) Property revaluations 79 79 2 81 Remeasurements on long-term employee benefit assets (133) (133) (4) (137) Share of OCI of investments accounted for using the equity method (1) (3) (4) (4) Amounts reclassified to profit or loss on disposal of associate companies 7 473 (37) 7 436 7 436 Transfer (from)/to reserves (21) 180 (159) – – Value of employee services (net of deferred tax) 330 330 330 Other non-distributable reserves movements (64) (64) 6 (58) Other movements 3 3 3 Nedbank Group unaudited interim results 202644
Page 47
Number of ordinary shares Ordinary share capital Ordinary share premium Foreign currency translation reserve Property revaluation reserve Share- based payment reserve Other non- distributable reserves1 FVOCI reserve Other distri- butable reserves2 T otal equity attributable to equity holders of the parent Holders of participating preference shares Holders of additional tier 1 capital instruments Non- controlling interest attributable to ordinary shareholders T otal equity Balance at 1 January 2025 466 994 770 467 14 351 (4 703) 1 450 2 039 508 874 97 278 112 264 103 12 798 921 126 086 Share movements in terms of long-term incentive and BEE scheme3 431 764 (1) (755) (67) (823) (823) Share buyback (2 061 521) (2) (507) (509) (509) Additional tier 1 capital instruments issued – 2 022 2 022 Additional tier 1 capital instruments redeemed – (2 829) (2 829) Preference share dividend paid – (103) (103) Additional tier 1 capital instruments distributions – (685) (685) Dividends paid to shareholders (5 384) (5 384) (103) (5 487) Total comprehensive income/(losses) for the period 768 – – – (97) 7 432 8 103 53 685 36 8 877 Profit attributable to ordinary shareholders and non-controlling interest4 7 331 7 331 53 685 61 8 130 Exchange differences on translating foreign operations (167) (167) (25) (192) Cash flow hedge gains 23 23 23 Movement in fair-value reserve (367) (367) (367) Remeasurements on long-term employee benefit assets 75 75 75 Share of OCI of investments accounted for using the equity method 935 270 3 1 208 1 208 Transfer (from)/to reserves (20) (89) 8 101 – – Value of employee services (net of deferred tax) 487 487 487 Other movements (2) (2) (2) Balance at 30 June 2025 465 365 013 465 13 843 (3 935) 1 430 1 771 419 785 99 358 114 136 53 11 991 854 127 034 Share movements in terms of long-term incentive and BEE scheme3 19 534 1 3 (19) 3 (12) (12) Share buyback (8 479 646) (9) (1 911) (1 920) (1 920) Additional tier 1 capital instruments issued – 950 950 Additional tier 1 capital instruments redeemed – (972) (972) Preference share dividend paid – (54) (54) Additional tier 1 capital instruments distributions – (634) (634) Dividends paid to shareholders (4 990) (4 990) (30) (5 020) Total comprehensive income/(losses) for the period 6 485 79 – – (395) 371 6 540 89 634 57 7 320 Profit attributable to ordinary shareholders and non-controlling interest4 468 468 89 634 90 1 281 Exchange differences on translating foreign operations (988) (988) (31) (1 019) Cash flow hedge gains 39 39 39 Movement in fair-value reserve (357) (357) (357) Property revaluations 79 79 2 81 Remeasurements on long-term employee benefit assets (133) (133) (4) (137) Share of OCI of investments accounted for using the equity method (1) (3) (4) (4) Amounts reclassified to profit or loss on disposal of associate companies 7 473 (37) 7 436 7 436 Transfer (from)/to reserves (21) 180 (159) – – Value of employee services (net of deferred tax) 330 330 330 Other non-distributable reserves movements (64) (64) 6 (58) Other movements 3 3 3 Financial results Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 45
Page 48
Balance at 31 December 2025 456 904 901 457 11 935 2 550 1 488 2 082 535 390 94 586 114 023 88 11 969 887 126 967 Share movements in terms of long-term incentive and BEE scheme3 (232 897) (431) (767) 23 (1 175) (1 175) Additional tier 1 capital instruments issued – 2 674 2 674 Additional tier 1 capital instruments redeemed – (910) (910) Preference share dividend paid – (88) (88) Additional tier 1 capital instruments distributions – (603) (603) Dividends paid to shareholders (5 256) (5 256) (75) (5 331) T otal comprehensive (losses)/income for the period (195) (15) – – (20) 8 481 8 251 50 603 67 8 971 Profit attributable to ordinary shareholders and non-controlling interest4 8 354 8 354 50 603 74 9 081 Exchange differences on translating foreign operations (195) (195) (7) (202) Cash flow hedge gains 30 30 30 Movement in fair-value reserve (20) (20) (20) Property revaluations (15) (15) (15) Remeasurements on long-term employee benefit assets 97 97 97 Transfer (from)/to reserves (28) (6) 13 21 – – Value of employee services (net of deferred tax) 551 551 551 Other movements (6) (6) (6) Balance at 30 June 2026 456 672 004 457 11 504 2 355 1 445 1 866 529 383 97 849 116 388 50 13 733 879 131 050 Number of ordinary shares Ordinary share capital Ordinary share premium Foreign currency translation reserve Property revaluation reserve Share- based payment reserve Other non- distributable reserves1 FVOCI reserve Other distri- butable reserves2 T otal equity attributable to equity holders of the parent Holders of participating preference shares Holders of additional tier 1 capital instruments Non- controlling interest attributable to ordinary shareholders T otal equity Consolidated statement of changes in equity (continued) 1 Represents other non-distributable revaluation surpluses on capital items and non-distributable reserves transferred from other distributable reserves to comply with various banking regulations. 2 Represents the accumulated profits after distributions to shareholders and appropriations of retained earnings to other non-distributable reserves. 3 The 232 897 decrease in shares (June 2025: 431 764 increase; December 2025: 451 298 increase) represents the net of the shares purchased and shares vested in terms of LTI and BEE schemes as follows: • 3 858 491 shares (June 2025: 3 326 776; December 2025: 3 412 343) vested in the year, which had the following impact on reserves: the cost of the shares increased share capital by R4m (credit) (June 2025: R3m credit; December 2025: R4m credit) and the share premium by R740m (credit) (June 2025: R819m credit; December 2025: R834m credit); the grant date fair value of the shares released from the share-based payment reserve amounted to R767m (debit) (June 2025: R755m debit; December 2025: R774m debit); and the difference between the grant date fair value of the shares and the cost of the shares is accounted for directly in other distributable reserves as R23m (credit) (June 2025: R67m debit; December 2025: R64m debit). • 4 220 343 shares (June 2025: 2 897 140; December 2025: 2 960 665) purchased for LTI awards to be made in 2026, which reduced the share capital by R4m (debit) (June 2025: R3m debit; December 2025: R3m debit) and the share premium by R1 183m (debit) (June 2025: R820m debit; December 2025: R832m debit) as these shares are accounted for as treasury shares over the vesting period. • A total of 306 shares (June 2025: nil; December 2025: 380) were purchased by Foundation Trust which reduced share capital and share premium, the impact was less than R1m. 4 The R50m gains (June 2025: R53m; December 2025: R142m) attributable to holders of participating preference shares relate to economic gains allocated to participating preference shareholders in line with an operating-profit-share preference share agreement. Nedbank Group unaudited interim results 202646
Page 49
Balance at 31 December 2025 456 904 901 457 11 935 2 550 1 488 2 082 535 390 94 586 114 023 88 11 969 887 126 967 Share movements in terms of long-term incentive and BEE scheme3 (232 897) (431) (767) 23 (1 175) (1 175) Additional tier 1 capital instruments issued – 2 674 2 674 Additional tier 1 capital instruments redeemed – (910) (910) Preference share dividend paid – (88) (88) Additional tier 1 capital instruments distributions – (603) (603) Dividends paid to shareholders (5 256) (5 256) (75) (5 331) Total comprehensive (losses)/income for the period (195) (15) – – (20) 8 481 8 251 50 603 67 8 971 Profit attributable to ordinary shareholders and non-controlling interest4 8 354 8 354 50 603 74 9 081 Exchange differences on translating foreign operations (195) (195) (7) (202) Cash flow hedge gains 30 30 30 Movement in fair-value reserve (20) (20) (20) Property revaluations (15) (15) (15) Remeasurements on long-term employee benefit assets 97 97 97 Transfer (from)/to reserves (28) (6) 13 21 – – Value of employee services (net of deferred tax) 551 551 551 Other movements (6) (6) (6) Balance at 30 June 2026 456 672 004 457 11 504 2 355 1 445 1 866 529 383 97 849 116 388 50 13 733 879 131 050 Number of ordinary shares Ordinary share capital Ordinary share premium Foreign currency translation reserve Property revaluation reserve Share- based payment reserve Other non- distributable reserves1 FVOCI reserve Other distri- butable reserves2 T otal equity attributable to equity holders of the parent Holders of participating preference shares Holders of additional tier 1 capital instruments Non- controlling interest attributable to ordinary shareholders T otal equity Financial results Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 47
Page 50
Return-on-equity drivers for the period ended Jun Jun Dec Rm 2026 2025 2025 NII 22 021 21 181 42 878 Impairments charge on financial instruments (4 804) (3 818) (6 550) NIR 16 214 14 800 31 046 Income from normal operations 33 431 32 163 67 374 Total operating expenses (21 696) (21 067) (43 395) Share of gains of associate companies 361 1 059 1 183 Net profit before taxation 12 096 12 155 25 162 Indirect taxation (586) (691) (1 275) Direct taxation (2 378) (2 266) (5 075) Net profit after taxation 9 132 9 198 18 812 Non-controlling interest (727) (799) (1 612) Headline earnings 8 405 8 399 17 200 Daily average interest-earning banking assets 1 185 035 1 103 410 1 125 031 Daily average total assets 1 595 469 1 458 623 1 493 927 Daily average shareholders’ funds 112 870 111 119 111 863 Note: Averages calculated on a 365-day basis. Nedbank Group unaudited interim results 202648
Page 51
Jun 2026 Jun 2025 Dec 2025 NII/average interest-earning banking assets 3.75% 3.87% 3.81% less less less Impairments/average interest-earning banking assets 0.82% 0.70% 0.58% add add add NIR/average interest-earning banking assets 2.76% 2.70% 2.76% 5.69% 5.87% 5.99% less less less Total expenses/average interest-earning banking assets 3.69% 3.85% 3.86% add add add Associate income/average interest-earning banking assets 0.06% 0.19% 0.11% 2.06% 2.21% 2.24% multiply multiply multiply 100% – effective direct and indirect taxation rate 0.76 0.76 0.75 multiply multiply multiply 100% – income attributable to minorities 0.92 0.91 0.91 Headline earnings/average interest-earning banking assets 1.43% 1.53% 1.53% multiply multiply multiply Interest-earning banking assets/daily average total assets 74.3% 75.7% 75.3% = = = Return on total assets 1.06% 1.16% 1.15% multiply multiply multiply Leverage 14.1 13.1 13.4 = = = ROE 15.0% 15.2% 15.4% As reported at 31 December 2025, an amount of R425m related to fleet management expenses, previously presented in total operating expenses for the period ended 30 June 2025, was reallocated to non-interest revenue and income. This restatement represents a reallocation between line items only and has no impact on the profit or headline earnings for the period ended 30 June 2025 at either cluster or group level. Financial results Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 49
Page 52
Notes Nedbank Group unaudited interim results 202650
Page 53
Segmental analysis Organisational structure, financial outcomes, and products and services 52 Operational segmental reporting 54 Nedbank Corporate and Investment Banking 58 Nedbank Business and Commercial Banking 62 Nedbank Personal and Private Banking 68 Nedbank Africa Regions: SADC 82 Geographical segmental reporting 86
Page 54
The group’s frontline business clusters are supported by various shared-services functions related to compliance, finance, human resources, marketing and corporate affairs, risk management, technology and strategy, as well as sustainability. Full suite of wholesale banking solutions across advisory, lending, trading, equity investments, transactional services and asset management solutions. Nedbank Corporate and Investment Banking Nedbank Business and Commercial Banking Full range of banking solutions, including transactional banking; card and payment solutions; lending solutions; deposit-taking services; risk management; investment products; fleet management; and card- acquiring services. Nedbank Africa Regions: SADC Full range of banking services, including transactional, lending and deposit-taking services; products; select wealth management offerings, and bancassurance offerings in certain markets. End-to-end financial solutions spanning banking, payments, lending, deposits, value-added services, insurance, Wealth management, risk management and investments for individuals and small businesses. Nedbank Personal and Private Banking Clusters Focused on corporates, institutions, governments and parastatals. Focused on juristic clients, including SMEs, commercial businesses and mid-sized corporates. Serving clients from youth and emerging segments to affluent, high-net-worth and internationally connected clients, as well as sole proprietors and small businesses. Present in 5 SADC countries and positioned for growth, supported by ongoing technology investments to build scale and increase contributions to group earnings. Organisational structure, financial outcomes, and products and services Nedbank Group unaudited interim results 202652
Page 55
Return on equity Cost-to-income ratioHeadline earnings Headline earnings Return on equity Cost-to-income ratio Return on equity Cost-to-income ratioHeadline earnings Return on equity1 Cost-to-income ratio1Headline earnings1 21.6 23.7 21 Jun 2025 Jun 2026 MT target > 21.4 18.8 20 Jun 2025 Jun 2026 MT target > 11.8 11.8 18 Jun 2025 Jun 2026 MT target > 6.7 9.9 15 Jun 2025 Jun 2026 MT target > Jun 2026 Jun 2025 MT target Jun 2025 Jun 2026 MT target 50.3 47.5 45 Jun 2026 Jun 2025 MT target Jun 2025 Jun 2026 MT target 68.5 69.1 65 Jun 2026 Jun 2025 MT target Jun 2025 Jun 2026 MT target 60.7 59.6 57 Jun 2026 Jun 2025 MT target Jun 2025 Jun 2026 MT target 70.9 68.1 62 1 NAR: SADC excludes ETI, reallocated to the Centre. Contribution to group H1 2025: R1 175m R1 180m • Market leader in structured lending across key sectors, including commercial property, renewable energy, mining, telecommunications, infrastructure, construction, the public sector and commodities. • Strong South African Markets franchise with reach across interest rates, credit, foreign exchange, equities and commodities. • T op fund managers contracted through the Nedgroup Investments Best of Breed investment approach. • Leading secured lending franchise, supported by disciplined origination and scaled partner ecosystems. • Strong digital and AI leadership, driving personalised client engagement through ADAM next-best-action capability and reinforcing market-leading digital sales penetration. • Differentiated rewards, payments and lifestyle ecosystem, anchored by American Express®, Greenbacks, Avo and VAS, driving compelling everyday value. • Differentiated value propositions, including Migoals, Private Bundles, Focus account, Quick Loans, Revolving Credit Facilities and 2-year, R0-monthly Start-Up Bundles for small businesses. • Integrated banking, insurance and wealth solutions, delivering end-to-end financial solutions through a single trusted relationship. • An innovation-led culture with proven execution excellence, accelerating growth through partnerships, technology and continuous innovation. • South Africa's leading bank for small businesses across multiple awarding bodies. • Commercial Banking is well positioned and has distinctive industry sector CVPs. • Highly competitive offering for our mid-corporate clients, with a dedicated end-to-end service offering. • Eqstra: enhances the fleet management business and facilitates an integrated approach to fleet management. • iKhokha: unlocks revenue through cross-selling, payments integration, channel expansion, merchant acquisition, and geographic expansion. • Presence and positioned for growth in 5 SADC countries, with ongoing technology investments to enhance CVPs and achieve scale. • Strong brand, with market-leading brand sentiment in 4 countries and a top-2 ranking in one of the countries. • Competitive digital offering, with the majority of the client base being digitally active. H1 2025: R3 984m R4 435m H1 2025: R1 910m R1 997m H1 2025: R257m R356m Areas of strength and differentiation 4.2% 23.8% 14.0% 52.8% Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 53
Page 56
R456bn H1 2025: R423bn 1 Total equity includes non-controlling interests in the Centre. Total equity of the client-facing clusters is based on average allocated capital while the group's equity is based on actual equity. The difference between average allocated capital and actual equity resides in the Centre. Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Summary of consolidated statement of financial position (Rm) Assets Cash and cash equivalents 56 726 60 398 64 829 1 377 2 230 1 643 27 11 29 5 470 4 462 5 971 11 187 8 998 10 087 38 665 44 697 47 099 Other short-term securities 62 691 75 807 71 467 31 227 41 813 39 975 24 664 25 778 24 659 5 045 6 248 4 962 1 755 1 968 1 871 Derivative financial instruments 21 790 21 149 21 654 21 773 21 131 21 613 2 3 12 14 32 3 1 9 Government and other securities 265 007 231 142 258 831 121 572 103 462 118 298 234 228 234 3 226 3 456 3 256 139 975 123 996 137 043 Banking loans and advances 1 009 534 939 623 969 413 455 991 423 226 433 973 100 903 95 234 94 739 423 299 396 501 411 880 28 876 23 474 26 998 465 1 188 1 823 Trading loans and advances 72 398 53 096 61 164 72 398 53 096 61 164 Other assets 121 851 112 760 111 270 52 084 40 231 46 239 7 593 4 380 7 666 31 781 37 190 28 668 3 241 2 709 2 881 27 152 28 250 25 816 Intergroup assets – – – 132 198 124 772 133 668 3 033 4 051 2 982 (135 231) (128 823) (136 650) T otal assets 1 609 997 1 493 975 1 558 628 756 422 685 189 722 905 240 721 224 397 236 102 485 450 464 162 471 412 54 620 48 950 51 198 72 784 71 277 77 011 Equity and liabilities Total equity1 131 050 127 034 126 967 37 673 37 130 37 168 12 674 11 049 11 443 34 158 32 740 32 818 7 225 7 709 7 484 39 320 38 406 38 054 Total equity attributable to ordinary shareholders1 116 388 114 136 114 023 37 673 37 130 37 168 12 674 11 049 11 443 34 158 32 740 32 818 7 225 7 709 7 484 24 658 25 508 25 110 Non-controlling interest attributable to ordinary shareholders 879 854 887 879 854 887 Holders of participating preference shares 50 53 88 50 53 88 Holders of additional tier 1 capital instruments 13 733 11 991 11 969 13 733 11 991 11 969 Derivative financial instruments 10 313 13 517 10 872 10 285 13 452 10 848 10 50 17 18 15 7 Banking amounts owed to depositors 1 250 006 1 171 695 1 221 554 519 464 486 559 502 826 225 106 211 103 221 894 326 132 314 701 323 049 45 672 39 674 42 270 133 632 119 658 131 515 Trading amounts owed to depositors 102 498 60 252 84 042 102 498 60 252 84 042 Provisions and other liabilities 63 673 69 055 63 205 21 870 26 772 23 956 2 941 2 245 2 765 27 879 29 331 24 897 1 428 1 277 1 160 9 555 9 430 10 427 Long-term debt instruments 52 457 52 422 51 988 520 520 520 277 275 277 51 660 51 627 51 191 Intergroup liabilities – – – 64 632 61 024 64 065 96 751 86 820 90 111 (161 383) (147 844) (154 176) T otal equity and liabilities 1 609 997 1 493 975 1 558 628 756 422 685 189 722 905 240 721 224 397 236 102 485 450 464 162 471 412 54 620 48 950 51 198 72 784 71 277 77 011 Banking advances contribution to the group Operational segmental reporting for the period ended 45.2% Nedbank Group unaudited interim results 202654
Page 57
R423bn R29bn R101bn H1 2025: R95bn H1 2025: R397bn H1 2025: R23bn Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Summary of consolidated statement of financial position (Rm) Assets Cash and cash equivalents 56 726 60 398 64 829 1 377 2 230 1 643 27 11 29 5 470 4 462 5 971 11 187 8 998 10 087 38 665 44 697 47 099 Other short-term securities 62 691 75 807 71 467 31 227 41 813 39 975 24 664 25 778 24 659 5 045 6 248 4 962 1 755 1 968 1 871 Derivative financial instruments 21 790 21 149 21 654 21 773 21 131 21 613 2 3 12 14 32 3 1 9 Government and other securities 265 007 231 142 258 831 121 572 103 462 118 298 234 228 234 3 226 3 456 3 256 139 975 123 996 137 043 Banking loans and advances 1 009 534 939 623 969 413 455 991 423 226 433 973 100 903 95 234 94 739 423 299 396 501 411 880 28 876 23 474 26 998 465 1 188 1 823 Trading loans and advances 72 398 53 096 61 164 72 398 53 096 61 164 Other assets 121 851 112 760 111 270 52 084 40 231 46 239 7 593 4 380 7 666 31 781 37 190 28 668 3 241 2 709 2 881 27 152 28 250 25 816 Intergroup assets – – – 132 198 124 772 133 668 3 033 4 051 2 982 (135 231) (128 823) (136 650) T otal assets 1 609 997 1 493 975 1 558 628 756 422 685 189 722 905 240 721 224 397 236 102 485 450 464 162 471 412 54 620 48 950 51 198 72 784 71 277 77 011 Equity and liabilities Total equity1 131 050 127 034 126 967 37 673 37 130 37 168 12 674 11 049 11 443 34 158 32 740 32 818 7 225 7 709 7 484 39 320 38 406 38 054 Total equity attributable to ordinary shareholders1 116 388 114 136 114 023 37 673 37 130 37 168 12 674 11 049 11 443 34 158 32 740 32 818 7 225 7 709 7 484 24 658 25 508 25 110 Non-controlling interest attributable to ordinary shareholders 879 854 887 879 854 887 Holders of participating preference shares 50 53 88 50 53 88 Holders of additional tier 1 capital instruments 13 733 11 991 11 969 13 733 11 991 11 969 Derivative financial instruments 10 313 13 517 10 872 10 285 13 452 10 848 10 50 17 18 15 7 Banking amounts owed to depositors 1 250 006 1 171 695 1 221 554 519 464 486 559 502 826 225 106 211 103 221 894 326 132 314 701 323 049 45 672 39 674 42 270 133 632 119 658 131 515 Trading amounts owed to depositors 102 498 60 252 84 042 102 498 60 252 84 042 Provisions and other liabilities 63 673 69 055 63 205 21 870 26 772 23 956 2 941 2 245 2 765 27 879 29 331 24 897 1 428 1 277 1 160 9 555 9 430 10 427 Long-term debt instruments 52 457 52 422 51 988 520 520 520 277 275 277 51 660 51 627 51 191 Intergroup liabilities – – – 64 632 61 024 64 065 96 751 86 820 90 111 (161 383) (147 844) (154 176) T otal equity and liabilities 1 609 997 1 493 975 1 558 628 756 422 685 189 722 905 240 721 224 397 236 102 485 450 464 162 471 412 54 620 48 950 51 198 72 784 71 277 77 011 During the year, the group reviewed its segmental reporting following changes in the manner in which information relating to the investment in ETI was reported to and reviewed by Group Exco. As a result, amounts related to the investment in ETI, including internal funding, were reallocated from the NAR: SADC Cluster to the Centre to align the segmental disclosure with the group's internal management reporting structure. This resulted in the restatement of previously disclosed NAR: SADC and Centre segmental information. The restatement represents a reallocation between segments only and has no impact on group profit for the year, headline earnings or total group equity. The investment in ETI was sold in Q4 2025. 41.9% 2.9%10.0% Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 55
Page 58
Operational segmental reporting (continued) for the period ended Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Summary of consolidated statement of comprehensive income (Rm) NII 22 021 21 181 42 878 4 620 4 445 8 805 3 221 3 058 6 189 11 536 11 006 22 528 1 496 1 428 2 928 1 148 1 244 2 428 NIR 16 214 14 800 31 046 5 363 5 002 10 386 2 903 2 520 5 355 6 826 6 404 13 381 957 857 1 841 165 17 83 Share of income of associate companies 361 1 059 1 183 364 75 158 (3) 984 1 025 Total net income before impairment charge on financial instruments 38 596 37 040 75 107 10 347 9 522 19 349 6 124 5 578 11 544 18 362 17 410 35 909 2 453 2 285 4 769 1 310 2 245 3 536 Impairments charge on financial instruments 4 804 3 818 6 550 (5) (324) (718) 191 54 204 4 425 3 900 6 779 188 184 292 5 4 (7) Total net income 33 792 33 222 68 557 10 352 9 846 20 067 5 933 5 524 11 340 13 937 13 510 29 130 2 265 2 101 4 477 1 305 2 241 3 543 Total operating expenses 21 696 21 067 43 395 4 916 4 787 10 033 4 233 3 822 7 885 10 936 10 571 21 491 1 670 1 620 3 241 (59) 267 745 Indirect taxation 586 691 1 275 133 164 309 88 86 184 297 362 667 45 49 96 23 30 19 Profit before direct taxation 11 510 11 464 23 887 5 303 4 895 9 725 1 612 1 616 3 271 2 704 2 577 6 972 550 432 1 140 1 341 1 944 2 779 Direct taxation 2 378 2 266 5 075 868 911 1 782 432 441 891 650 614 1 698 131 117 330 297 183 374 Profit after taxation 9 132 9 198 18 812 4 435 3 984 7 943 1 180 1 175 2 380 2 054 1 963 5 274 419 315 810 1 044 1 761 2 405 Profit attributable to: – Non-controlling interest – ordinary shareholders 74 61 151 7 9 63 58 138 4 3 4 – Holders of preference shares 50 53 142 50 53 142 – Holders of additional tier 1 capital instruments 603 685 1 319 603 685 1 319 Headline earnings 8 405 8 399 17 200 4 435 3 984 7 943 1 180 1 175 2 380 1 997 1 910 5 123 356 257 672 437 1 073 1 082 Selected ratios Average interest-earning banking assets (Rm) 1 185 035 1 103 410 1 125 031 460 897 434 704 441 993 234 737 220 798 224 480 438 735 412 689 419 211 44 476 40 356 41 288 6 190 (5 137) (1 941) Average risk-weighted assets (Rbn) 766 654 740 953 742 967 311 959 318 666 313 233 106 004 84 947 89 543 252 681 234 461 240 834 53 211 54 530 53 627 42 799 48 349 45 730 ROA (%) 1.06 1.16 1.15 1.19 1.18 1.14 0.99 1.05 1.04 0.84 0.85 1.11 1.34 1.07 1.35 RORWA (%) 2.21 2.29 2.32 2.87 2.52 2.54 2.24 2.79 2.66 1.59 1.64 2.13 1.35 0.95 1.25 ROE (%) 15.0 15.2 15.4 23.7 21.6 21.4 18.8 21.4 20.8 11.8 11.8 15.6 9.9 6.7 9.0 Interest margin (%)1 3.75 3.87 3.81 2.02 2.06 1.99 2.77 2.79 2.76 5.30 5.38 5.37 6.78 7.14 7.09 NIR to total income (%) 42.0 40.0 41.3 51.8 52.5 53.7 47.4 45.2 46.4 37.2 36.8 37.3 39.0 37.5 38.6 NIR to total operating expenses (%) 74.7 70.3 71.5 109.1 104.5 103.5 68.6 65.9 67.9 62.4 60.6 62.3 57.3 52.9 56.8 CLR – banking advances (%) 0.95 0.81 0.68 0.00 (0.15) (0.17) 0.40 0.11 0.21 2.05 1.92 1.63 0.67 1.54 0.89 Cost-to-income ratio (%) 56.2 56.9 57.8 47.5 50.3 51.9 69.1 68.5 68.3 59.6 60.7 59.8 68.1 70.9 68.0 Effective taxation rate (%) 20.7 19.8 21.2 16.4 18.6 18.3 26.8 27.3 27.2 24.0 23.8 24.4 23.8 27.1 28.9 Contribution to group economic profit/(loss) (Rm) 938 538 1 472 1 820 1 259 2 442 300 364 687 (374) (493) 266 (146) (309) (436) (662) (283) (1 487) Number of employees (permanent) 25 731 25 700 25 795 2 437 2 430 2 414 2 775 2 317 2 689 13 883 14 125 13 977 2 016 2 216 2 166 4 620 4 612 4 549 1 Cluster margins include internal assets. An amount of R425m related to fleet management expenses, previously presented in total operating expenses for the period ended 30 June 2025, was reallocated to non-interest revenue and income. This restatement represents a reallocation between line items only and has no impact on the profit or headline earnings for the period ended 30 June 2025 at either cluster or group level. Nedbank Group unaudited interim results 202656
Page 59
Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Summary of consolidated statement of comprehensive income (Rm) NII 22 021 21 181 42 878 4 620 4 445 8 805 3 221 3 058 6 189 11 536 11 006 22 528 1 496 1 428 2 928 1 148 1 244 2 428 NIR 16 214 14 800 31 046 5 363 5 002 10 386 2 903 2 520 5 355 6 826 6 404 13 381 957 857 1 841 165 17 83 Share of income of associate companies 361 1 059 1 183 364 75 158 (3) 984 1 025 Total net income before impairment charge on financial instruments 38 596 37 040 75 107 10 347 9 522 19 349 6 124 5 578 11 544 18 362 17 410 35 909 2 453 2 285 4 769 1 310 2 245 3 536 Impairments charge on financial instruments 4 804 3 818 6 550 (5) (324) (718) 191 54 204 4 425 3 900 6 779 188 184 292 5 4 (7) Total net income 33 792 33 222 68 557 10 352 9 846 20 067 5 933 5 524 11 340 13 937 13 510 29 130 2 265 2 101 4 477 1 305 2 241 3 543 Total operating expenses 21 696 21 067 43 395 4 916 4 787 10 033 4 233 3 822 7 885 10 936 10 571 21 491 1 670 1 620 3 241 (59) 267 745 Indirect taxation 586 691 1 275 133 164 309 88 86 184 297 362 667 45 49 96 23 30 19 Profit before direct taxation 11 510 11 464 23 887 5 303 4 895 9 725 1 612 1 616 3 271 2 704 2 577 6 972 550 432 1 140 1 341 1 944 2 779 Direct taxation 2 378 2 266 5 075 868 911 1 782 432 441 891 650 614 1 698 131 117 330 297 183 374 Profit after taxation 9 132 9 198 18 812 4 435 3 984 7 943 1 180 1 175 2 380 2 054 1 963 5 274 419 315 810 1 044 1 761 2 405 Profit attributable to: – Non-controlling interest – ordinary shareholders 74 61 151 7 9 63 58 138 4 3 4 – Holders of preference shares 50 53 142 50 53 142 – Holders of additional tier 1 capital instruments 603 685 1 319 603 685 1 319 Headline earnings 8 405 8 399 17 200 4 435 3 984 7 943 1 180 1 175 2 380 1 997 1 910 5 123 356 257 672 437 1 073 1 082 Selected ratios Average interest-earning banking assets (Rm) 1 185 035 1 103 410 1 125 031 460 897 434 704 441 993 234 737 220 798 224 480 438 735 412 689 419 211 44 476 40 356 41 288 6 190 (5 137) (1 941) Average risk-weighted assets (Rbn) 766 654 740 953 742 967 311 959 318 666 313 233 106 004 84 947 89 543 252 681 234 461 240 834 53 211 54 530 53 627 42 799 48 349 45 730 ROA (%) 1.06 1.16 1.15 1.19 1.18 1.14 0.99 1.05 1.04 0.84 0.85 1.11 1.34 1.07 1.35 RORWA (%) 2.21 2.29 2.32 2.87 2.52 2.54 2.24 2.79 2.66 1.59 1.64 2.13 1.35 0.95 1.25 ROE (%) 15.0 15.2 15.4 23.7 21.6 21.4 18.8 21.4 20.8 11.8 11.8 15.6 9.9 6.7 9.0 Interest margin (%)1 3.75 3.87 3.81 2.02 2.06 1.99 2.77 2.79 2.76 5.30 5.38 5.37 6.78 7.14 7.09 NIR to total income (%) 42.0 40.0 41.3 51.8 52.5 53.7 47.4 45.2 46.4 37.2 36.8 37.3 39.0 37.5 38.6 NIR to total operating expenses (%) 74.7 70.3 71.5 109.1 104.5 103.5 68.6 65.9 67.9 62.4 60.6 62.3 57.3 52.9 56.8 CLR – banking advances (%) 0.95 0.81 0.68 0.00 (0.15) (0.17) 0.40 0.11 0.21 2.05 1.92 1.63 0.67 1.54 0.89 Cost-to-income ratio (%) 56.2 56.9 57.8 47.5 50.3 51.9 69.1 68.5 68.3 59.6 60.7 59.8 68.1 70.9 68.0 Effective taxation rate (%) 20.7 19.8 21.2 16.4 18.6 18.3 26.8 27.3 27.2 24.0 23.8 24.4 23.8 27.1 28.9 Contribution to group economic profit/(loss) (Rm) 938 538 1 472 1 820 1 259 2 442 300 364 687 (374) (493) 266 (146) (309) (436) (662) (283) (1 487) Number of employees (permanent) 25 731 25 700 25 795 2 437 2 430 2 414 2 775 2 317 2 689 13 883 14 125 13 977 2 016 2 216 2 166 4 620 4 612 4 549 During the year, the group reviewed its segmental reporting following changes in the manner in which information relating to the investment in ETI was reported to and reviewed by Group Exco. As a result, amounts related to the investment in ETI, including internal funding, were reallocated from the NAR: SADC Cluster to the Centre to align the segmental disclosure with the group's internal management reporting structure. This resulted in the restatement of previously disclosed NAR: SADC and Centre segmental information. The restatement represents a reallocation between segments only and has no impact on group profit for the year, headline earnings or total group equity. The investment in ETI was sold in Q4 2025. Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 57
Page 60
21.6 23.7 Jun 2025 Jun 2026 Headline earnings (Rm) Return on equity (%) Financial performance In the first half of 2026, headline earnings (HE) of Corporate and Investment Banking (CIB) increased by 11% yoy to R4.4bn, while return on equity (ROE) improved to 23.7% (H1 2025: 21.6%). Gross operating income (GOI) expanded by 9% (H1 2025: -4%), driven by strong performances in Investment Banking (IB) and Markets, reflecting improved client activity, higher fee income and continued balance sheet expansion, alongside a significant equity investment revaluation. Earnings growth was further supported by cost discipline and tax efficiencies, although a lower impairment recovery relative to the prior period moderated the translation of revenue growth into bottom-line performance. Net interest income (NII) increased by 4% yoy, (H1 2025: -3%), supported by balance sheet growth. The net interest margin (NIM) decreased by 4 bps to 2.02%, restrained by lower endowment and liability earnings but supported by improving asset margins. Average and actual gross banking loans and advances (GLAA) grew by 3% and 8% yoy respectively, supported by sustained momentum in deal execution and strong pipeline conversion. In H1 2026, ytd actual banking GLAA growth was a strong 5%, supported by IB (7%) and Property Finance (PF) (5%). Average deposits grew by 15%, reflecting strong client demand and continued optimisation of the funding mix through growth in operational deposits. CIB recorded a net recovery in impairments of R5m, resulting in a credit loss ratio (CLR) of 0 bps, well below the through-the-cycle target (TTC) range of 15 bps to 45 bps. Credit outcomes continue to reflect disciplined risk management and a high-quality portfolio. Stage 3 exposures declined to 1.49% of GLAA from 1.81% in the prior period, while stage 2 exposures declined both in absolute terms and as a proportion of the portfolio. Stage 1 exposures increased, as actual GLAA grew by a strong 8% yoy. As a result, the total coverage ratio decreased to 0.50% (H1 2025: 0.60%), while stage 3 coverage increased to 25.7% (H1 2025: 23.6%). Non-interest revenue (NIR) grew by 7% yoy (H1 2025: -4%), reflecting improved client flows and increased participation in larger transactions. Growth was driven by a 16% increase in commission and fee income, primarily from PF and IB, as well as a 5% rise in Markets revenue supported by a strong equity trading performance. The Equity Investment Portfolio including associate income grew by 51% yoy. As a result, the growth in Equity Investments lifted NIR, including associate income, by 15% yoy. Nedbank Corporate and Investment Banking Strategic progress In H1 2026, CIB continued to execute on its strategy, supported by strong client activity, robust deal flow and increased participation in larger, more complex transactions across key sectors. The Africa Regions business delivered resilient underlying performance and continued to make strategic progress across its franchise. In H1 2026, CIB originated R49bn (H1 2025, R22bn) and distributed R25bn (H1 2025, R15bn) of net loans. More importantly, capital mobilisation, defined as the value of capital and risk facilitated through CIB, reached R167bn. Supported by strong distribution and syndication capabilities, this active redistribution of risk enabled larger client transactions, increased capital velocity and enhanced return on equity, while maintaining a disciplined focus on capital efficiency and portfolio optimisation. CIB continued to strengthen its lead-arranger credentials, increasing participation in lead roles across complex transactions. This contributed to positive client feedback on the franchise's appetite, innovation and quality of execution. IB delivered several large and complex transactions during the period, acting as Global Coordinator, Mandated Lead Arranger, Bookrunner, Co-underwriter and Lender on the largest mining investment in SA in more than a decade. The IB team also financed a utility-scale solar project under SA’s first multi-energy trader offtake model, reinforcing its leadership in large-scale renewable energy financing and supporting the country’s energy transition. PF structured funding for a leading insurer to acquire a landmark Sandton office asset and executed an associated interest rate hedge, delivering a comprehensive funding and risk management solution. Trade finance strengthened, providing a clear link between higher client activity and revenue growth. Trade finance revenue increased 18% yoy. Cost growth remained well contained at 3% yoy (H1 2025: 4%), reflecting disciplined cost management, resulting in an improvement in the cost-to-income ratio (CIR) to 47.5% (H1 2025: 50.3%), trending towards medium-term targets. 3 984 4 435 Jun 2025 Jun 2026 R4.4bn Headline earnings (H1 2025: R4.0bn) 23.7% ROE (H1 2025: 21.6%) 0 bps Credit loss ratio (H1 2025: (15) bps) 47.5% Cost-to-income ratio (H1 2025: 50.3%) R458bn Actual gross banking advances (H1 2025: R425bn) R231bn Actual credit RW A (H1 2025: R226bn) Nedbank Group unaudited interim results 202658
Page 61
Markets gained early traction in East Africa, executing its first credit-linked note with an East African counterparty and expanding repo operations in the region. The unit also invested in digital enablement, enhancing pricing capabilities, strengthening real-time risk awareness, and deepening client insight. The research franchise gained further recognition, with a broader cluster of top 3 rankings across sectors and disciplines in the Financial Mail T op Analyst Awards. In Transactional Services (TS), operational deposits remained central to strengthening the franchise. Enhancements to deposit pricing and improved identification of stable deposits strengthened client focus and supported ongoing growth in both commercial call and wholesale deposits. These actions improved the funding mix, demonstrating early progress. Investment in digital capabilities remained a strategic focus, supporting enhanced client experiences and improved operational effectiveness. NBH digital adoption averaged 56% in June 2026, up 6% since December 2025, while client satisfaction improved to 82% ytd, supported by consistent delivery and proactive client engagement. Digital enhancements across the origination process improved transparency, strengthened workflow discipline and accelerated deal reviews and approvals. Concurrently, automation pilot projects addressed key client-servicing inefficiencies and established scalable foundations for future automation and agentic AI deployment. Nedgroup Investments (NGI) successfully launched and seeded the differentiated Core-Active Range, which will target both institutional and retail markets. Corporate and Investment Banking Property Finance Corporate and Investment Banking, excluding Property Finance yoy % change Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Headline earnings (Rm) 11 4 435 3 984 7 943 867 828 1 766 3 568 3 156 6 177 NII (Rm) 4 4 620 4 445 8 805 1 473 1 414 2 854 3 147 3 031 5 951 Impairments charge (Rm) 98 (5) (324) (718) 60 (19) 55 (65) (305) (773) NIR (Rm) 7 5 363 5 002 10 386 538 513 1 148 4 825 4 489 9 238 Gross operating income (Rm) 9 10 347 9 522 19 349 2 012 1 927 4 002 8 335 7 595 15 347 Operating expenses (Rm) 3 4 916 4 787 10 033 798 796 1 545 4 118 3 991 8 488 ROE (%) 23.7 21.6 21.4 ROA (%) 1.19 1.18 1.14 CLR – banking advances (%) 0.00 (0.15) (0.17) NIR to total operating expenses 109.1 104.5 103.5 Cost-to-income ratio (%) 47.5 50.3 51.9 Interest margin (%) 2.02 2.06 1.99 Total assets (Rm) 10 756 422 685 189 722 905 208 503 199 384 199 277 547 919 485 805 523 628 Average total assets (Rm) 10 753 805 682 389 697 415 198 311 193 985 194 679 555 494 488 404 502 736 Total net advances (Rm) 11 528 389 476 322 495 137 201 970 193 255 192 844 326 419 283 067 302 293 Actual gross banking advances (Rm) 8 458 020 425 403 435 865 203 396 194 367 194 084 254 624 231 036 241 781 Average gross banking advances (Rm) 3 439 560 425 180 424 831 193 306 189 163 189 771 246 254 236 017 235 060 Average net banking advances (Rm) 4 437 571 422 673 422 455 191 985 187 965 188 570 245 586 234 708 233 885 Total deposits (Rm) 14 621 962 546 811 586 868 161 139 141 621 801 546 672 586 727 Average total deposits (Rm) 15 607 830 529 108 545 539 147 144 148 607 683 528 964 545 391 Average allocated capital (Rm) 1 37 673 37 130 37 168 9 502 9 363 9 436 28 171 27 767 27 732 Financial highlights Our people are central to our success. Through continued investment in targeted training and development, we are strengthening the expertise and skills required to support ongoing delivery. CIB’s innovation continues to be recognised through industry awards and market rankings, including the following: • Global Banking & Finance Awards – Best Investment Bank South Africa (fourth consecutive year). • Euromoney Awards for Excellence – Africa’s Best Bank for Sustainable Finance (second consecutive year). • Global Finance Awards – Best Platform/Technology Facilitating Sustainable Finance. • Global Finance Awards – Best Bank for Sustainability Transparency. • Global Banking & Markets Awards – ESG Loan House of the Year. • Global Banking & Markets Awards – Corporate Liability Management Deal of the Year. • Dealmakers Awards – Private Equity Deal of the Y ear (East Africa). • Dealmakers Awards – Business Rescue/Turnaround Deal of the Year (South Africa). Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 59
Page 62
Property Finance Investment Banking Markets Nedgroup Investments Working Capital and Transactional Services Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Gross operating income (Rm) 2 012 1 927 4 002 2 955 2 401 4 969 3 208 2 918 5 892 581 563 1 164 1 591 1 713 3 322 Actual gross banking advances (Rm) 203 396 194 367 194 084 212 418 197 605 197 622 9 866 6 943 15 421 32 340 26 488 28 738 Average gross banking advances (Rm) 193 306 189 163 189 771 207 937 197 573 197 738 11 977 14 892 13 739 26 340 23 552 23 583 Average net banking advances (Rm) 191 985 187 965 188 570 207 374 196 418 196 744 11 974 14 883 13 732 26 238 23 407 23 409 Segmental performance Property Finance (PF) PF provides customised funding for development and operating assets, with selective use of equity investment and mezzanine finance. The portfolio remains well diversified and supported by disciplined risk management. The financial performance of PF was resilient, with GOI increasing by 4% yoy. NII rose by 4%, supported by 2% growth in average GLAA, although partially moderated by margin compression resulting from lower endowment. The domestic portfolio continued to benefit from healthy origination activity and client demand, although advances growth was tempered by elevated competition and surplus liquidity within the listed property sector. These same positive drivers of client activity, deal origination, and transaction execution underpinned strong underlying NIR growth of 17%, although this was largely offset by a significant negative fair-value adjustment. The credit loss ratio moved to 6 bps from a net recovery position of -2 bps, remaining well below the TTC target range of 15 bps to 35 bps. Stage 3 exposures increased to approximately 2.29% from 1.72% in the prior year, largely due to a single exposure. Overall asset quality remains underpinned by a diversified client base and robust collateral, with average loan-to-value (LTV) levels improving to approximately 50%. The listed property sector maintained its positive momentum into 2026, with performance increasingly supported by earnings growth rather than valuation rerating. Sector fundamentals remain supportive, underpinned by strong balance sheets, with average LTVs around 35%. Retail and logistics continue to outperform, while office market fundamentals are gradually improving. Investment Banking (IB) IB supports advisory services, capital-raising, private and alternative equity, as well as long-term and sustainable finance. It has expertise across mining, energy, infrastructure, telecommunications, transport, logistics and leisure. IB delivered a strong first-half performance, with GOI increasing by 23% yoy, driven by materially stronger NIR. NII rose by 3%, balancing 5% average GLAA growth and stable asset margins with lower endowment income. Actual GLAA growth remained robust across key sectors, led by structured commodity finance (+39%), telecommunications, media and technology (+24%), agriculture (+19%), power and renewables (+12%), and leveraged and diversified finance (+6%). NIR was the primary driver of performance, increasing by 23% yoy. Fee and commissions grew by 33%, reflecting resilient client flows and disciplined execution. The equity investment portfolio delivered growth of a 102%, driven by associate income. Debt capital market volumes also contributed positively. Credit performance remained resilient, with impairments in a net recovery position, albeit at lower levels than in the prior year. Markets Markets provides trading services across foreign exchange, fixed income, equities and commodities, as well as manages treasury activities for the group. GOI expanded by 10% yoy, reflecting a 31% rise in NII and 5% growth in NIR. NII was driven primarily by continued expansion of banking book assets, particularly holdings of high-quality liquid assets (HQLA) and leveraged loans. This reflects the strategic focus on building a more diversified and sustainable earnings base, which contributed meaningfully to revenue growth during the period. 1 927 2 401 2 918 563 1 7132 012 2 955 3 208 581 1 591 Property Finance Investment Banking Markets Nedgroup Investments Working Capital and Transactional Services Jun 2025 Jun 2026 4.4% 23.1% 9.9% -7.1% 3.2% Gross operating income by business unit (Rm) Nedbank Group unaudited interim results 202660
Page 63
<-20 -20 to -10 -10 to -0 0 to 10 10 to 20 20 to 30 30 to 40 40 to 50 50 to 60 >60 Work Days - 2025 Work Days - 2026 Daily trading income distribution (Rm) NIR was underpinned by trading income. Performance benefited from sustained client activity across markets, although outcomes varied by asset class. Equity trading delivered a record first-half performance, with revenues more than doubling (+121%), supported by heightened market volatility and stronger trading volumes. Foreign exchange sales and trading revenue increased by 22% yoy, supported by improved client activity and continued momentum in the foreign exchange (FX) digital strategy. Despite this strong underlying franchise performance, overall foreign exchange revenue declined due to the non-recurrence of a series of significant prior-period gains from structured funding. Fixed-income revenue declined due to the lower activity levels in rates markets during the period. Transactional Services (TS) TS provides transactional banking solutions to corporate clients, including working capital, payments, trade finance and liquidity management. GOI declined by 7% yoy, despite positive underlying trends. Business activity improved, reflected in growing trade finance volumes, stronger payment volumes, and a 7% increase in deposits. Average GLAA grew by 11%, supported by improved lending momentum towards the end of the period. NII declined by 8%, driven by lower endowment income and changes in the liability profile in a lower-interest-rate environment. NIR declined by 5% due to large once-off negative impacts from client and revenue cluster migration and capital optimisation initiatives. The CLR remained in a net recovery position at -9 bps, while stage 3 exposures declined to 0.32% of GLAA, reflecting the ongoing benefit of targeted restructures and portfolio optimisation. Nedgroup Investments (NGI) NGI is the asset management business of Nedbank, operating as a capital-light, high-return business built on a differentiated Best of Breed investment philosophy and 2 decades of consistent organic growth. The business partners with specialist boutique managers across asset classes and serves a diversified client base across advisers, fund selectors, corporates, and retirement funds locally and internationally. AUM grew by 1% to R432bn, demonstrating franchise resilience despite fee pressure, subdued net flows, and intensified competition. SA remained the main contributor to growth, offsetting weaker international outcomes, with both retail and institutional channels remaining resilient. Growth was supported by demand for cost-effective investment solutions. The Core Range grew 15% to R100bn, while the Select Range rose 27% to R15.5bn because of strong flows, a solid investment performance, and through the Nedbank Financial Planners and Nedbank Private Wealth partnerships. GOI rose by 3%, supported by higher average AUM and favourable markets, while expenses remained well controlled despite continued investment to support international expansion. CIB outlook While geopolitical tensions have softened the near-term economic outlook, the impact on CIB is expected to be manageable given the franchise's exposure to corporate, infrastructure and trade-related activity. Continued investment across key sectors, including energy, infrastructure, agriculture, resources, and commodity finance, is expected to support client activity, origination volumes and lending growth. However, heightened uncertainty may delay certain investment decisions and transaction execution. Against this backdrop, IB and PF remain well positioned to benefit from robust pipelines, with advances growth expected to be led by IB. Markets anticipates continued client activity across foreign exchange and fixed income, although equities revenues are expected to normalise following a particularly strong first half. TS is expected to benefit from higher payment volumes and deposit growth, while NGI is expected to continue delivering a stable performance, supported by client inflows and demand for cost-effective investment solutions. The NCBA acquisition is expected to strengthen Nedbank's presence across East Africa's key trade corridors, deepen sector-led origination opportunities, and support future growth. Full-year earnings growth is expected to be solid, underpinned by low-to-mid-single-digit NII growth, high-single-digit NIR growth, and continued loan growth. Although earnings momentum is expected to moderate in H2 2026 relative to the strong prior-year period, underlying franchise activity, deeper client engagement, and a high-quality portfolio are expected to continue supporting solid performance. Credit quality is expected to remain strong, with the CLR trending below the TTC range of 15–45 bps, although impairments are anticipated to normalise versus the prior period. The cost-to-income ratio is expected to remain below 50%, supported by disciplined cost management and ongoing efficiency gains. Across CIB, execution remains focused on balance sheet quality, capital efficiency, selective growth opportunities, and maintaining a diversified earnings base. Over the medium term, CIB remains focused on sustaining industry-leading profitability, targeting an ROE above 21%, a cost-to-income ratio below 45%, and high-single-digit loan growth. These objectives will be underpinned by disciplined capital allocation, prudent risk management, continued operating leverage, and a focus on optimising returns across the portfolio. Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 61
Page 64
21.4 18.8 Jun 2025 Jun 2026 1 175 1 180 Jun 2025 Jun 2026 Return on equity (%) Headline earnings (Rm) Business and Commercial Banking (BCB) generated headline earnings (HE) of R1.2bn, up by 0.4% yoy at a ROE of 18.8% (H1 2025: 21.4%). The marginal increase in earnings was primarily due to strong GOI growth of 10%, largely offset by higher impairments. We consider this a solid performance after accounting for the impact of lower endowment income on the back of lower average interest rates in 2026. The financial results include the first-time contribution of iKhokha, which was consolidated from the effective acquisition date 1 December 2025. NII increased by 5% to R3.2bn, largely due to improved balance-sheet growth, with NIM stable at 2.77%, despite lower endowment income. Gross banking loans and advances increased by 6% yoy, while average banking loans and advances increased by 4%, underpinned by double-digit growth in payouts, particularly in the commercial and mid-corporate segments. Deposits increased by 7% yoy, with average deposits increasing by 6%. The deposit growth was supported by 7% growth in non-transactional deposits. BCB remains a significant contributor to the group's funding profile, maintaining a net surplus funding position of R132bn. Impairments increased to R191m (H1 2025: R54m), primarily due to a once-off impairment on a large single client exposure. As a result, the cluster CLR increased to 40 bps (H1 2025: 11 bps), around the bottom end of the TTC target range of 40 bps to 70 bps. Excluding the single client credit loss, the core performance of the book remained healthy. NIR increased strongly by 15% to R2.9bn, benefiting from the inclusion of iKhokha as well as good NIR growth in the Client segments and Card business. Growth was particularly notable in the Commercial and Mid-corporate segments, reflecting improved client activity and ongoing franchise expansion. Excluding iKhokhka, NIR growth was pleasingly up by 9%. Revenue mix continued to improve, with NIR now contributing 47% of GOI (H1 2025: 45%), supporting our strategic objective of reducing dependence on balance-sheet-led growth and driving more diversified, sustainable revenue streams. Expenses increased by 11% to R4.2bn, driven by the inclusion of iKhokha, continued investment in digital capabilities and costs associated with the organisational restructure, including those required for running a stand-alone cluster. Excluding Ikhokha, expenses grew by 6.5% yoy. The higher expense base, coupled Nedbank Business and Commercial Banking yoy % change Jun 2026 Jun 2025 Dec 2025 Headline earnings (Rm) 1 180 1 175 2 380 NII (Rm) 5 3 221 3 058 6 189 Impairments charge (Rm) >100 191 54 204 NIR (Rm) 15 2 903 2 520 5 355 Operating expenses (Rm) 11 4 233 3 822 7 885 ROE (%) 18.8 21.4 20.8 ROA (%) 0.99 1.05 1.04 CLR – banking advances (%) 0.40 0.11 0.21 NIR to total operating expenses 68.6 65.9 67.9 Cost-to-income ratio (%) 69.1 68.5 68.3 Interest margin (%) 2.77 2.79 2.76 Total assets (Rm) 7 240 721 224 397 236 102 Average total assets (Rm) 7 240 610 225 495 229 462 Total net advances (Rm) 6 100 903 95 234 94 739 Actual gross banking loans and advances (Rm) 6 103 420 97 464 97 179 Average net total advances (Rm) 4 95 539 92 170 92 829 Total deposits (Rm) 7 225 106 211 103 221 894 Average total deposits (Rm) 6 225 753 213 254 216 565 Average allocated capital (Rm) 15 12 674 11 049 11 443 Financial highlights for the period ended with lower endowment income, resulted in a slight increase of the cluster cost-to-income ratio to 69.1% (H1 2025: 68.5%). Our focus on reducing this ratio over time is top of mind for management. Overall, BCB had a resilient financial performance in H1 2026, with improved advances growth and strong revenue momentum, offsetting the impact of the large once-off single client impairment and lower endowment income. R1.2bn Headline earnings (H1 2025: R1.2bn) 18.8% ROE (H1 2025: 21.4%) 40 bps Credit loss ratio (H1 2025: 11 bps) 69.1% Cost-to-income ratio (H1 2025: 68.5%) 77% NBH digital adoption (H1 2025: 75%) Nedbank Group unaudited interim results 202662
Page 65
BCB continued to make good progress across its strategic focus areas during H1 2026. Key highlights include the following: • Small and medium enterprise (SME) segment – We continue to distinguish ourselves through the expertise and professionalism of our bankers, while targeted segment strategies are being implemented to unlock growth and strengthen market share. • Commercial segment – Digital capabilities continue to be enhanced, strengthening personalised client interactions and supporting improved commercial outcomes through targeted product offerings. The Commercial segment maintained strong brand health, with awareness and consideration significantly exceeding internal benchmarks, underscoring the segment's strong market visibility and relevance. • Mid-corporate segment – We continued to gain market recognition and reinforce Nedbank's thought leadership position, retaining our May and October 2025 KPI Research Survey rankings in May 2026, with an overall client satisfaction score of 92 (ranked #1 among peers) and an NPS of 70% (ranked #2 among peers). Strong new-to-bank acquisition, growing cross-sell across deposits and advances, and sustained NIR growth provide a solid foundation for accelerating market share gains in H2 2026. • Payments – We continued to execute our payments transformation strategy through the expansion of the Nedbank Business Hub (NBH), which provides clients with an integrated domestic and cross-border payments experience. Strategic investments in capabilities, including iKhokha and PayShap, are strengthening our ability to deliver seamless payment acceptance and commerce solutions to clients. • Data and analytics – We continued to deliver measurable value through the scaling of analytical solutions and increased frontline adoption. Enhanced client segmentation and ecosystem intelligence are enabling more targeted engagement, supporting improved client retention, deeper Strategic progress client entrenchment, and business growth. Our strengthened analytics capabilities have enabled juristic lending pre-approvals of up to R20m per client, with more than R20bn in digital offers currently available. • Juristic lending – The portfolio is on a positive trajectory with strong fundamentals and clear digital progress. Strong momentum is underpinned by solid pre-approved lending performance, increased digital adoption with 74% of applications now being processed digitally (2025: 53%) and resilient core product pipelines. • People and culture – We continued to strengthen leadership effectiveness, succession pipelines, critical capabilities, employee well-being and transformation outcomes as part of embedding our new operating model. These initiatives are enhancing organisational resilience, supporting sustainable growth and improving both employee and client outcomes. The following awards recognise the strength of the solutions and services we deliver to our clients, including several offered in collaboration with other Nedbank clusters: • Best AI Powered Business Intelligence and Advisory Platform – Africa – Middle East & Africa Innovation Awards 2026. • Best Small and Medium Enterprises (SME) Bank in South Africa – 2026 Digital Banker Global SME Banking Innovation Awards. • Best Small and Medium Enterprises (SME) Bank in SA (2022–2026) – The Asian Banker Global Middle East and Africa Awards. • Best Small and Medium Enterprises (SME) bank in South Africa – 2026 Global Finance Magazine Awards. Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 63
Page 66
Segmental performance SME segment Small and medium enterprise (SME) segment – From 1 July 2026 Nedbank established a dedicated SME segment for juristic clients with annual turnovers of R5m to R30m, strengthening our focus on a key growth market. The SME segment operates in a dynamic and increasingly competitive environment, characterised by increasing digital adoption, changing client expectations, economic pressures, and growing competition from both traditional banks and fintechs. In response, the segment is focused on delivering a differentiated client experience through a combination of relationship-led banking, digital capabilities, streamlined processes, and tailored financial solutions. This approach positions Nedbank to support SME growth, capture emerging market opportunities, and drive sustainable market share expansion. The iKhokha partnership strengthened Nedbank's position in the SME market by combining innovative payment solutions, data-driven insights, and lending capabilities with the bank’s distribution reach and trusted brand. Early momentum is evident through increasing merchant onboarding and in the distribution of Ikhokha's products and offerings across Nedbank channels, coupled with targeted cross-sell initiatives. The partnership is expected to support client acquisition, deepen relationships, and drive sustainable revenue and market share growth while maintaining competitive pricing and portfolio profitability. The partnership continues to enhance Nedbank's SME value proposition through an integrated merchant offering that combines payments, transactional banking and lending solutions. Jun 2026 Jun 2025 Dec 2025 Number of client groups at period-end (Commercial + Mid-corporate) Thousands 12 12 12 Number of clients at period-end (SME)1 Thousands 17 15 15 POS devices Thousands 162 110 163 NBH digital adoption % 77 75 76 Average product holding (Commercial + Mid-corporate) 4.75 4.70 4.83 Commercial Banking segment Commercial segment – This segment serves businesses with annual turnovers of between R30m and R750m, typically ranging from companies growing their operations to more mature enterprises with varying levels of decision-making complexity and advisory requirements. It supports a sector-led, relationship-driven coverage model that delivers specialist insight and tailored solutions, enabling clients to improve operational efficiency, maintain effective financial control, and achieve sustainable growth. Financial performance across the segment's sector portfolios reflected resilient performance, with opportunities for growth despite a challenging operating environment. The manufacturing portfolio continued to navigate a challenging production environment and structural industry headwinds, which moderated domestic and cross-border transactional banking activity. Emerging risks continue to be closely monitored to enable proactive client support. In the retail services portfolio, pressure on household disposable income continued to weigh on consumer spending and transactional activity. While agribusiness confidence was impacted by disease outbreaks, commodity price volatility and broader market uncertainty, we continued to enhance our sector proposition through the progression of agriculture funding solutions as well as agriculture asset finance offerings, underpinned by collaborative developments. The sustainability portfolio delivered a strong performance, with outcomes across key SDGs well exceeding targets, driven primarily by growth in Water (SDG 6). Despite varying sector conditions, the segment remained focused on building primary-bank relationships, enhancing client engagement, and providing sector-specific financial solutions. Client numbers remained stable. Non-financial metrics 1 Growth in SME clients due to the migration of clients from PPB. Nedbank Group unaudited interim results 202664
Page 67
Mid-Corporate segment Mid-corporate segment – This segment serves large, privately owned businesses with complex structures and turnovers above R750m. These clients require specialist, strategic financial advice and bespoke solutions. BCB provides an advisory-led, relationship-driven service, with clients migrating to CIB when their needs evolve further to include event-driven milestones such as initial public offerings (IPOs) or advanced structuring requirements. The Mid-corporate segment delivered a strong first-half performance, driven by robust earnings growth, sustained revenue momentum, and disciplined risk management. Increased client engagement and deeper wallet share supported growth across revenue streams, while strong credit quality enhanced profitability. Continued momentum in new-to-bank client acquisitions and ongoing brand campaigns further strengthened Nedbank's market presence and thought leadership. The segment remains well positioned for continued growth in the second half of the year as recently acquired client relationships mature and contribute to higher earnings and returns. Client satisfaction remains a primary differentiator. In the May 2026 bi-annual client satisfaction survey conducted by KPI Research and Strategy, Nedbank's Mid-corporate segment retained it's first-place ranking among its SA peers. Eqstra Eqstra delivered a resilient financial performance despite a challenging used-vehicle market and continued pressure on disposal margins. Recurring leasing income remained the primary earnings contributor, supported by strong maintenance and value-added product performance, partially offsetting lower realised disposal profits and ongoing recovery of legacy legal debtors. The business continued to strengthen its operational platform through disciplined capital deployment, growth in the leasing portfolio and continued integration into Nedbank. The reverse integration of Nedfleet into Eqstra was finalised in May 2026, 2 months ahead of time. Fleet cards are now fully issued by Nedbank, and all fleet clients have migrated to Eqstra's Quest system to manage their fleet. Cross-sell opportunities continue to gain momentum, supporting revenue diversification, client acquisition and long-term value creation across the Nedbank franchise. iKhokha Strong momentum has been achieved in the first phase of iKhokha's integration into Nedbank, supporting the delivery of strategic, operational and commercial synergies. The iKhokha technology integration remains on track, reducing third-party dependency, lowering operating costs and increasing payment volumes on Nedbank infrastructure while strengthening readiness for future expansion opportunities. Additional H1 2026 milestones included frontline training on the iKhokha ecosystem and the successful pilot of device distribution through Nedbank branches, creating a platform for broader distribution and SME market growth. The bundled merchant proposition continues to gain traction, supporting client acquisition, deeper ecosystem participation and revenue diversification across payments, transactional banking and lending. Card and payments Our Card business provides commercial card issuing, card acceptance and payment solutions to business and corporate clients across BCB, extending into PPB, CIB, and NAR: SADC. The business also manages the American Express® merchant network in SA. HE increased to R105m (2025: -R7m), delivering an ROE of 25.1% (2025: -3.4%). NIR increased by 17%, supported by a 13% increase in card acceptance turnover and a 9% increase in commercial card use, offsetting higher processing costs and margin pressure. Impairments were relatively flat yoy, while expenses increased by 5% due to higher turnover and continued investment in partnerships, digital capabilities and growth opportunities. E-commerce delivered strong growth as consumer activity continued to shift towards digital channels, further strengthening our position in the market. Our collaboration with independent sales operator (ISO) and payment facilitator (PF) partners had a positive impact, and we continued to expand American Express acceptance among their merchant bases. American Express acceptance increased by 20% yoy. Commercial Card Issuing enhanced its value proposition during the first half of the year through the launch of Nedrecon and Nedbiz Expense Management. Both solutions have been well received by both travel management companies and corporate clients, contributing positively to client engagement, new acquisitions and value delivery. Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 65
Page 68
While economic growth is expected to improve modestly in 2026, business activity is likely to remain constrained by weak demand, elevated operating costs and ongoing global uncertainty. The extension of the African Growth and Opportunity Act (AGOA) and lower US tariffs should provide some support to exporters, while continued structural reforms and improvements in the domestic operating environment are expected to strengthen business confidence and support a gradual recovery in investment activity. Amid these market conditions, BCB remains well positioned to support clients and capture selective growth opportunities through disciplined risk management, deep sector expertise, sustainable finance solutions, digital innovation and ecosystem-led offerings. Key focus areas include the following: • SME – Building a scalable growth engine by deepening primary banking relationships through merchant acquiring and iKhokha, expanding lending and cross-sell opportunities, and driving growth in deposits, lending and NIR through data-led propositions and strategic partnerships. • Commercial Banking – Focused on retaining and growing high-value client relationships while capturing opportunities in priority sectors through improved pipeline conversion, enhanced credit enablement and refreshed sector propositions. • Mid-corporate – Accelerating market share growth through next-generation payments and lending solutions, leveraging blockchain-enabled capabilities and innovative hybrid funding structures to support entrepreneurial clients and attract high-value new-to-bank relationships. • Digital and credit transformation – Driving scalable growth and improved client experience through streamlined digital onboarding, automated credit decisioning, faster turnaround times and increased cross-sell opportunities. • Partnerships and investments – Supporting sustainable growth through targeted partnerships and increased value extraction from existing investments and strategic assets. • Eqstra – Accelerating growth through sector expansion, increased portfolio cross-sell, diversification into adjacent asset classes and the implementation of an integrated operating model. • iKhokha – Focused on merchant acquisition, increased product penetration and synergy realisation by leveraging Nedbank's distribution and client base to scale the business. Further growth opportunities, including merchant funding integration and selected African market expansion, are expected to enhance future earnings potential. In 2026 we expect BCB's NII to grow slightly faster than reported in H1 2026 and NIR to grow at early double digits. Expense growth and the cluster CIR are expected to remain contained through judicious cost management, despite the costs associated with establishing a new cluster, increased investment in capabilities and the skills to support future growth. The BCB CLR is expected to remain stable in H2 2026, ending the year at the lower end of our TTC target range. As a result, the cluster ROE is expected to remain in line with H1 2026 levels. While the 2026 performance reflects the short-term impact of recent acquisitions and endowment dynamics, the medium-term outlook is positive. A clear path to growth is supported by loan growth, prudent risk management, revenue initiatives and disciplined cost management as we reduce our CIR closer to 65% and progress towards our ROE target of >20% over the medium term. BCB outlook Nedbank Group unaudited interim results 202666
Page 69
Notes Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 67
Page 70
11.8 11.8 Jun 2025 Jun 2026 1 910 1 997 Jun 2025 Jun 2026 Financial performance Personal and Private Banking (PPB) delivered HE of R2.0bn, up by 5%, supported by continued growth in the client franchise, good NIR growth driven by higher card volumes, value-added services and insurance earnings, improved cross-sell, balance-sheet momentum, and disciplined expense management. This growth was partly offset by elevated credit impairments and lower endowment income as average interest rates declined yoy. ROE, seasonally lower in the first half of the year, was flat at 11.8%. NII increased by 5% to R11.5bn, supported by 6% growth in average advances and 5% growth in deposits, partly offset by an 8 bps decline in NIM, mainly due to lower endowment income and competitive pricing pressure in secured lending. Average gross advances increased by 6% to R436bn, driven mainly by good growth in secured lending. This was reflected in market share gains in Home Loans and the retention of a leading position in Vehicle Finance. Card balances grew by 10%, supported by stronger sales momentum (+34%) in higher-quality risk bands, contributing to a 0.2% gain in market share. Personal Loans balances and sales declined as the business maintained selective origination. Total household advances market share increased slightly to 18.1% in May 2026 (June 2025: 17.9%), while new-loan payouts rose by 6% to R55bn. Average deposits increased by 5% to R320bn, underpinned by sustained growth in transactional activity. Retail deposit market share increased to 17.0% in May 2026 (June 2025: 16.9%), supported by continued efforts to deepen primary-banking relationships and grow the savings franchise in targeted segments. Impairments increased by 13% to R4.4bn (H1 2025: R3.9bn), driven by loan growth, the impact of updated forward-looking macroeconomic assumptions, a challenging macroeconomic environment (particularly higher fuel prices), and marginally higher arrears and defaults, primarily in the Home Loans and Card portfolios. This was partially offset by lower charges in Personal Loans and MFC, supported by improved credit origination and collections initiatives. The cluster CLR increased to 205 bps (H1 2025: 192 bps), higher than the PPB through-the-cycle (TTC) target range of 130 bps to 190 bps. Stage 3 loans as a percentage of total loans improved to 7.5% (H1 2025: 8.1%) and stage 2 loans decreased to 9.7% (2025: 10.3%). The decrease in total coverage to 5.15% (H1 2025: 5.49%) was largely driven by improvement in stage distribution. NIR increased by 7% to R6.8bn, underpinned by 6% growth in maintenance fees from client gains across all segments and an 11% increase in Card NIR. Value-added services (VAS) continued to deliver strong growth, up by 28%, supported by a 29% increase in volumes from PayShap, cardless payouts, money transfers and vouchers. Insurance income increased by 21%, supported by improved claims experience in MyCover Personal Lines and Homeowners Cover (HOC), as well as strong premium growth of 23% across the MyCover suite. NIR growth was partly offset by lower-than-expected cash revenues. Expenses increased modestly by 3% to R10.9bn, reflecting disciplined discretionary spend and the benefits of optimisation programmes and efficiency gains from enhanced digital capabilities. Headcount decreased to 13 883 (H1 2025: 14 125) and the cluster cost-to-income ratio improved to 59.6% (H1 2025: 60.7%). Nedbank Personal and Private Banking Headline earnings (Rm) Return on equity (%) R2.0bn Headline earnings (H1 2025: R1.9bn) 11.8% Return on equity (H1 2025: 11.8%) 205 bps Credit loss ratio (H1 2025: 192 bps) 59.6% Cost-to-income ratio (H1 2025: 60.7%) 3.9m Main-banked clients (H1 2025: R3.8m) 3.5m Digitally active retail clients (H1 2025: R3.2m) Nedbank Group unaudited interim results 202668
Page 71
Strategic progress PPB made good progress in executing the key drivers of increasing ROE sustainably. Cost optimisation • Operating model benefits – delivered organisational efficiency benefits through workforce optimisation, with PPB headcount reduced by 1% following the Ignite redesign, supported by automation, process simplification and spans-and-layers improvements. • Cash efficiencies – 44% (R4.5bn) of ATM cash was funded through recycled cash, contributing to cumulative savings of R1.25bn since 2019. • Distribution optimisation – 57% of points of presence are below 200m² across 539 sites (390 branches and 149 kiosks). • Branch productivity – cost per active client reduced by 5% to R296, driven by automation, self-service migration and branch rightsizing, delivering R51m in efficiencies. Productivity per banker in-branch improved to 4.79 sales per day, supported by a continued shift from volume-led to value-led sales. • Contact centre efficiency – cost per completed sale reduced by 2%, reflecting channel optimisation and automation benefits. • Scaled self-service – there are 576 self-service kiosks in operation at June 2026. Monthly transaction volumes increased by 11% to 535 000, with 139 000 instant-issue cards dispensed through the channel and 112 A TM sites optimised. Client experiences • Client satisfaction – Nedbank ranked #2 in Net Promoter Score among main-banked clients and retained the joint #1 position across all clients in the 2025 Kantar study. A unified private banking franchise – Nedbank Private was launched as the overarching brand across the private segments, supporting a more seamless client experience. • In H1 2026, PPB received multiple local and international awards across retail banking, SME banking, private banking, digital innovation, financial inclusion and risk management. The recognitions included the following: • Best Retail Bank in Africa, Best Retail Bank in South Africa and Best Digital Bank in Africa – The Asian Banker (2026). • Best SME Bank in South Africa – Global Finance Awards (2026). • Best SME Bank in South Africa and Best SME Beyond Banking Service Initiative (SimplyBiz) – The Digital Banker Global SME Banking Innovation Awards (2026). • Africa's Best Private Bank for Discretionary Portfolio Management – Wealth Briefing (2026). • Best Bank for Payments & Collections, Best AI Initiative, Best Open Banking Ecosystem Innovation, and Outstanding Achievement in Credit and Operational Risk Management – The Digital Banker Middle East & Africa Innovation Awards (2026). Primacy and funding advantage • Client franchise growth – total PPB clients increased by 4% to 7.6 million, with main-banked clients up by 2%. • Deeper client relationships – cross-sell improved to 2.04 (H1 2025: 2.00), supported by strong growth in Card (+34%), Notice and Term Deposits (+16%) and Home Loans (+23%). • Digital-led engagement – Money app users increased by 13% to 3.2 million, with 73% of main-banked clients and digital channels accounting for 76% of new sales (H1 2025: 70%). • Enhanced loyalty proposition – Greenbacks membership increased by 13% to 2.2 million clients following the redesign of the programme. NIR diversification and ecosystem growth • Growing ecosystem scale – Avo Home reached 3 million registered users. • Scaling rewards participation – Greenbacks participation increased to 780 000 clients, with gross merchandise value (GMV) up by 35%. • Platform growth momentum – Avo Auto Virtual Dealer GMV increased by 120%, while Avo Renewables installations and GMV increased by 116% and by 142%, respectively. • Wealth and Small Business Services growth – strong client acquisition supported higher brokerage income and advice fees, while SimplyBiz users increased by 12% to almost 168 000. Quality credit origination • Portfolio growth through innovation – the newly launched Revolving Credit Facility and Quick Loans products contributed 8% of unsecured lending production within their first month of launch. • Enhanced risk selection – improved Home Loan and Credit Card origination quality, stable Vehicle Finance performance and stronger approval rates in target risk bands supported sustainable growth. Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 69
Page 72
Segmental view 1 The group underwent a strategic reorganisation that resulted in 2 new client-centred clusters, namely PPB and BCB. Further refinement of the reorganisation took place during the year and resulted in the reallocation of certain expenses within these clusters. The restatement relates solely to a reallocation between staff costs and transfer pricing line items within segment reporting and has no impact on the profit, headline earnings, net asset value or total segment results. 2 'Other' includes income and costs relating to Channel, Avo, Central and Shared Services. Nedbank Personal and Private Banking Personal Banking Private, Wealth and Small Business (SA and International)1 Other1,2 yoy % change Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Headline earnings (Rm) 5 1 997 1 910 5 123 1 224 1 041 3 498 748 833 1 911 25 36 (286) NII (Rm) 5 11 536 11 006 22 528 8 822 8 307 17 038 2 687 2 650 5 415 27 49 75 Impairments charge (Rm) 13 4 425 3 900 6 779 4 112 3 680 6 239 313 220 541 (1) NIR (Rm) 7 6 826 6 404 13 381 5 196 4 874 10 200 1 612 1 487 3 180 18 43 1 Operating expenses (Rm) 3 10 936 10 571 21 491 8 012 7 814 15 660 2 904 2 734 5 390 20 23 441 ROE (%) 11.8 11.8 15.6 9.6 8.4 14.2 20.2 24.4 26.4 ROA (%) 0.84 0.85 1.11 0.79 0.71 1.17 0.84 0.98 1.09 CLR – banking advances (%) 2.05 1.92 1.63 2.56 2.42 2.01 0.57 0.43 0.51 NIR to total operating expenses (%) 62.4 60.6 62.3 64.9 62.4 65.1 55.5 54.4 59.0 Cost-to-income ratio (%) 59.6 60.7 59.8 57.2 59.3 57.5 67.6 66.1 62.7 Interest margin (%) 5.30 5.38 5.37 5.86 5.88 5.89 3.03 3.15 3.12 Total net advances (Rm) 7 423 299 396 501 411 880 312 922 293 210 304 717 110 364 103 280 107 154 13 11 9 Actual gross banking advances (Rm) 6 446 266 419 528 433 835 333 323 313 998 324 333 112 930 105 519 109 493 13 11 9 Average net banking advances (Rm) 7 412 617 386 168 392 720 303 785 285 098 289 506 108 828 101 058 103 205 4 12 9 Total deposits (Rm) 4 326 132 314 701 323 049 155 025 148 035 150 913 170 952 166 516 171 990 155 150 146 Average total deposits (Rm) 5 319 821 304 587 311 073 149 507 143 012 145 834 170 168 161 421 165 088 146 154 151 Average allocated capital (Rm) 4 34 158 32 740 32 818 25 684 24 895 24 636 7 482 6 878 7 248 992 967 934 Costs remained well managed, increasing by 3%, well below inflation. T ogether with revenue growth of 6%, this improved the cost-to-income ratio to 57.2% (H1 2025: 59.3%). Strategic progress PB sustained its focus on growing in higher-ROE segments, with the continued scaling of MiGoals and the Greenbacks proposition, strengthening its competitive position and appeal to higher-value clients. App-led engagement and our AI-driven Next Best Action capability uses client data and AI to identify and surface the most relevant product offers across branch, the Nedbank Contact Centre, app and web channels, reducing the need for manual lead sourcing and enabling more targeted and personalised client engagement, increased cross-sell, stronger product penetration and NIR growth. Sales momentum remained strong, supported by improved approval rates in target risk bands, enhanced client onboarding journeys and a more deliberate focus on quality origination. Origination quality improved across Home Loans, Vehicle Loans, Credit Card, and Personal Loans, laying a foundation for enhanced future returns. Client growth was robust, with total clients increasing by 4% to 7 million and middle segment primary clients by 6%. The PB cross-sell ratio improved to 1.97 (H1 2025: 1.95). Money app users increased by 13% to 2.8 million, reinforcing digital as clients' primary engagement and distribution channel. The MiGoals transactional range reached 3.1 million clients, representing 57% of PB's transactional base. This supports stronger primacy, cross-sell and deeper relationships, enabled by simplified products and enhanced pricing. Personal Banking (PB) serves clients earning below R750 000 a year through integrated banking and insurance solutions. PB is anchored by the middle-income segment and supported by entry-level, student, graduate and senior segments. Financial performance HE increased by 18% to R1.2bn as revenue growth and continued cost discipline helped offset higher credit impairments. ROE increased to 9.6% (H1 2025: 8.4%), reflecting the benefit of a lower cost-to-income ratio of 57.2% (H1 2025 59.3%) as revenue growth exceeded cost growth. NII increased by 6%, supported by average advances and average deposit balances growth of 7% and 5%, respectively. Growth was partially offset by lower endowment income as average interest rates declined. NIR increased by 7%, supported by strong growth in card payments, VAS (PayShap and Pay-to-Cell) and monthly maintenance fees. Digital payments NIR grew by 16%, more than offsetting the 4% decline in cash NIR as client behaviour continued to shift. Insurance NIR increased by 9%, driven by strong premium growth across the MyCover suite and improved claims experience. CLR increased to 256 bps (H1 2025: 242 bps). The deterioration was driven by higher impairments in Home Loans and Card Issuing, partially offset by better performances in MFC and Unsecured Lending (personal loans and overdrafts). Origination quality continued to improve across all products, creating a good basis for improving ROEs over time, particularly in Personal Loans and Credit Card. Personal Banking Nedbank Group unaudited interim results 202670
Page 73
Nedbank Personal and Private Banking Personal Banking Private, Wealth and Small Business (SA and International)1 Other1,2 yoy % change Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Headline earnings (Rm) 5 1 997 1 910 5 123 1 224 1 041 3 498 748 833 1 911 25 36 (286) NII (Rm) 5 11 536 11 006 22 528 8 822 8 307 17 038 2 687 2 650 5 415 27 49 75 Impairments charge (Rm) 13 4 425 3 900 6 779 4 112 3 680 6 239 313 220 541 (1) NIR (Rm) 7 6 826 6 404 13 381 5 196 4 874 10 200 1 612 1 487 3 180 18 43 1 Operating expenses (Rm) 3 10 936 10 571 21 491 8 012 7 814 15 660 2 904 2 734 5 390 20 23 441 ROE (%) 11.8 11.8 15.6 9.6 8.4 14.2 20.2 24.4 26.4 ROA (%) 0.84 0.85 1.11 0.79 0.71 1.17 0.84 0.98 1.09 CLR – banking advances (%) 2.05 1.92 1.63 2.56 2.42 2.01 0.57 0.43 0.51 NIR to total operating expenses (%) 62.4 60.6 62.3 64.9 62.4 65.1 55.5 54.4 59.0 Cost-to-income ratio (%) 59.6 60.7 59.8 57.2 59.3 57.5 67.6 66.1 62.7 Interest margin (%) 5.30 5.38 5.37 5.86 5.88 5.89 3.03 3.15 3.12 Total net advances (Rm) 7 423 299 396 501 411 880 312 922 293 210 304 717 110 364 103 280 107 154 13 11 9 Actual gross banking advances (Rm) 6 446 266 419 528 433 835 333 323 313 998 324 333 112 930 105 519 109 493 13 11 9 Average net banking advances (Rm) 7 412 617 386 168 392 720 303 785 285 098 289 506 108 828 101 058 103 205 4 12 9 Total deposits (Rm) 4 326 132 314 701 323 049 155 025 148 035 150 913 170 952 166 516 171 990 155 150 146 Average total deposits (Rm) 5 319 821 304 587 311 073 149 507 143 012 145 834 170 168 161 421 165 088 146 154 151 Average allocated capital (Rm) 4 34 158 32 740 32 818 25 684 24 895 24 636 7 482 6 878 7 248 992 967 934 NIR increased by 8% to R1.6bn, driven by robust client growth across affluent, wealth and small-business segments, strong growth in brokerage income and higher advice fees. This growth was partly offset by strategic pricing reductions in the Small Business offering to attract clients and remain competitive. Credit outcomes remained within the PWS TTC target range, with the CLR increasing to 57 bps (H1 2025: 43 bps). Costs were well managed. However, the reduction in endowment earnings over a largely fixed cost base resulted in a deterioration in the cost-to-income ratio to 67.6% (H1 2025: 66.1%). Strategic progress The business continued to focus on unlocking synergies across Private Clients and Wealth Management by equipping the frontline with better digital tools and processes, strengthening value propositions and increasing market visibility. Enhancements to the structured lending capabilities ensured sustainable growth and improved risk-adjusted returns. Nedbank Private was introduced as the overarching brand across the 2 private segments to create a more seamless client experience. The migration to the iKhokha product suite enhanced the merchant-acquiring proposition for PWS's small-business clients while SimplyBiz, Nedbank's free business development platform, grew by 12% to almost 168 000 registered users (H1 2025: 150 000). Client growth remained robust, with Private Clients and Private Wealth clients increasing by approximately 8% and Small Business clients by 5%. This shift reflects deeper client relationships and increased participation across banking, wealth and advisory solutions, reinforcing PWS's role as a key driver of the PPB relationship-led growth strategy. The Private, Wealth and Small Business (PWS) (SA and international) serves affluent clients earning above R750 000 a year, high-net-worth clients earning above R2m a year and/or with investable assets of up to R5m, and globally mobile clients, families and trusts with assets above £1m through Nedbank Wealth Management International in the Isle of Man. PWS also serves early-stage registered businesses, sole proprietors, practices, associations, non-resident individuals and embassies. In addition, the division provides trust, estate, financial planning and stockbroking services to clients across the Nedbank franchise. At the end of H1 2026 approximately 17 300 small and medium entities (SME) clients with an annual turnover above R10m, as well as franchise and agriculture-related clients, were migrated to the Business and Commercial Banking (BCB) cluster to give effect to the establishment of the SME segment. The financials associated with these clients were already reported under SME. Financial performance HE decreased by 10% to R748m due to lower endowment earnings following the interest rate cuts in H2 2025 and higher credit impairments. ROE declined to 20.2% (H1 2025: 24.4%) but remained attractive, reflecting the resilience of the franchise despite lower earnings. NII remained flat, with the lower endowment income masking the benefit of strong balance-sheet growth. Average advances increased by 8%, supported by higher payouts across client segments. Average deposits increased by 5%, reflecting continued client acquisition and the benefits of building deeper relationships. Private, Wealth and Small Business (SA and international) Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 71
Page 74
Home loans VAF Unsecured Lending Transactional and Debit Cheque Card (Individual Issuing) Savings and deposits Forex Wealth management local and international1 Other2 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 NII (Rm) 2 066 1 884 3 665 3 328 1 956 1 863 1 562 1 612 766 689 738 749 4 7 683 734 97 141 Personal Banking 1 474 1 366 3 560 3 247 1 805 1 732 636 657 764 690 498 508 (2) (2) 87 109 Private, Wealth and Small Business (SA & international) 592 518 105 80 151 130 925 955 2 (1) 240 241 6 9 683 734 (17) (16) Impairments charge on financial instruments (Rm) 545 343 1 740 1 762 1 284 1 303 174 57 689 433 (6) 3 Personal Banking 377 211 1 691 1 716 1 251 1 290 104 30 689 433 Private, Wealth and Small Business (SA & international) 168 132 49 46 33 13 70 27 (6) 3 NIR (Rm) 311 278 435 375 456 465 3 861 3 570 700 662 42 38 113 112 666 587 242 317 Personal Banking 251 228 428 371 415 420 3 141 2 885 688 650 32 29 49 50 192 241 Private, Wealth and Small Business (SA & international) 60 50 7 4 41 45 720 685 12 12 10 9 64 62 666 587 32 33 Operating expenses (Rm) 1 005 952 1 172 1 068 1 048 971 4 592 4 594 888 770 669 625 106 106 1 233 1 168 222 317 Personal Banking 648 665 1 117 1 024 943 880 3 644 3 729 884 766 524 493 65 69 186 187 Private, Wealth and Small Business (SA & international) 358 287 56 44 105 91 948 957 4 4 145 132 40 37 1 233 1 168 15 15 Headline earnings (Rm) 582 609 859 616 34 19 383 301 (107) 78 64 104 6 6 77 106 98 71 Personal Banking 497 506 854 621 (4) (32) (57) (226) (114) 73 (10) 21 (15) (17) 73 94 Private, Wealth and Small Business (SA & international) 86 103 5 (5) 38 51 440 459 8 5 74 83 20 23 77 106 8 ROE (%) 13.4 14.2 15.1 11.7 1.4 0.8 32.8 28.5 (9.5) 7.5 60.7 137.9 6.4 7.9 CLR – banking advances (%) 0.57 0.39 2.11 2.31 9.26 9.45 66.00 23.99 8.10 5.54 Cost-to-income ratio (%) 42.3 44.0 28.6 28.8 43.4 41.7 84.7 88.7 60.6 57.0 85.8 79.4 90.5 89.5 91.4 88.4 Interest margin (%) 2.66 2.62 4.34 3.90 15.92 15.78 4.77 5.09 7.00 7.60 0.67 0.74 0.58 1.00 2.77 2.96 Average total advances (Rm) 187 671 176 050 159 128 146 797 21205 20 595 382 338 14 713 13 429 2 2 5 4 29 231 28 488 280 465 The table reflecting the financial performance by segment presents the full financial results across all products (banking and insurance) for the respective client segments. 1 Wealth management local and international includes offshore banking, stockbroking, estates, fiduciary, financial planning and investment advice. 2 ‘Other’ includes income and costs relating to Channel, Avo, Central, unallocated consumer, insurance and Shared Services. Product views increase in BA900 market share to 15.2% in May 2026 (H1 2025: 14.8%). New-business market share also continued to improve, supported by competitive pricing, sound credit policy and the continued strengthening of our strategic alliances and partnerships. At 42.3% the Home Loans cost-to-income ratio continues to reflect a more efficient business, as evidenced by the improvement over the past 5 years (2022: 50.0%). While consumer affordability is expected to remain under pressure in the near term, Home Loans is focused on risk-adjusted growth through heightened partner alignment, enhanced decisioning, stronger credit quality discipline and platform modernisation to support more scalable, efficient and client-centred origination. Home Loans Nedbank Home Loans provides residential homeownership finance across all client segments, with a quality-led origination strategy and strong mortgage originator relationships. HE decreased by 4% to R582m, delivering an ROE of 13.4% (H1 2025: 14.2%). The reduction in earnings was driven by the CLR increasing to 57 bps off a low prior-year base (H1 2025: 39 bps) driven by updated forward-looking macroeconomic assumptions and a marginal increase in early-stage arrears. Revenue grew by 10% as advances increased by 7%, outperforming market growth of 4%. This resulted in a 40-bps Nedbank Group unaudited interim results 202672
Page 75
Home loans VAF Unsecured Lending Transactional and Debit Cheque Card (Individual Issuing) Savings and deposits Forex Wealth management local and international1 Other2 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 Jun 2025 NII (Rm) 2 066 1 884 3 665 3 328 1 956 1 863 1 562 1 612 766 689 738 749 4 7 683 734 97 141 Personal Banking 1 474 1 366 3 560 3 247 1 805 1 732 636 657 764 690 498 508 (2) (2) 87 109 Private, Wealth and Small Business (SA & international) 592 518 105 80 151 130 925 955 2 (1) 240 241 6 9 683 734 (17) (16) Impairments charge on financial instruments (Rm) 545 343 1 740 1 762 1 284 1 303 174 57 689 433 (6) 3 Personal Banking 377 211 1 691 1 716 1 251 1 290 104 30 689 433 Private, Wealth and Small Business (SA & international) 168 132 49 46 33 13 70 27 (6) 3 NIR (Rm) 311 278 435 375 456 465 3 861 3 570 700 662 42 38 113 112 666 587 242 317 Personal Banking 251 228 428 371 415 420 3 141 2 885 688 650 32 29 49 50 192 241 Private, Wealth and Small Business (SA & international) 60 50 7 4 41 45 720 685 12 12 10 9 64 62 666 587 32 33 Operating expenses (Rm) 1 005 952 1 172 1 068 1 048 971 4 592 4 594 888 770 669 625 106 106 1 233 1 168 222 317 Personal Banking 648 665 1 117 1 024 943 880 3 644 3 729 884 766 524 493 65 69 186 187 Private, Wealth and Small Business (SA & international) 358 287 56 44 105 91 948 957 4 4 145 132 40 37 1 233 1 168 15 15 Headline earnings (Rm) 582 609 859 616 34 19 383 301 (107) 78 64 104 6 6 77 106 98 71 Personal Banking 497 506 854 621 (4) (32) (57) (226) (114) 73 (10) 21 (15) (17) 73 94 Private, Wealth and Small Business (SA & international) 86 103 5 (5) 38 51 440 459 8 5 74 83 20 23 77 106 8 ROE (%) 13.4 14.2 15.1 11.7 1.4 0.8 32.8 28.5 (9.5) 7.5 60.7 137.9 6.4 7.9 CLR – banking advances (%) 0.57 0.39 2.11 2.31 9.26 9.45 66.00 23.99 8.10 5.54 Cost-to-income ratio (%) 42.3 44.0 28.6 28.8 43.4 41.7 84.7 88.7 60.6 57.0 85.8 79.4 90.5 89.5 91.4 88.4 Interest margin (%) 2.66 2.62 4.34 3.90 15.92 15.78 4.77 5.09 7.00 7.60 0.67 0.74 0.58 1.00 2.77 2.96 Average total advances (Rm) 187 671 176 050 159 128 146 797 21205 20 595 382 338 14 713 13 429 2 2 5 4 29 231 28 488 280 465 The new-to-used vehicle finance mix shifted to 42:58 (H1 2025: 39:61), reflecting growth in competitively priced emerging brands and rising consumer interest in electric and hybrid vehicles. MFC is improving competitiveness and client affordability through targeted new-vehicle finance solutions, faster application turnaround times, increased automation in client information verification and stronger joint venture partnerships. The business is expected to benefit from a more deliberate origination mix, improved process efficiency and selective participation in growth segments of the vehicle market, while maintaining a disciplined approach to credit risk, pricing and returns. MFC MFC provides vehicle and asset finance, including solar finance, for consumer and juristic clients, delivered primarily through dealer partners. HE increased by 39% to R859m, delivering an ROE of 15.1% (H1 2025: 11.7%). Revenue increased by 11%, supported by robust advances growth of 8%. The MFC CLR improved to 211 bps (H1 2025: 231 bps), reflecting stronger deal origination quality and disciplined portfolio management, partially offset by updated forward-looking macroeconomic assumptions. MFC continues to operate efficiently and retains a market-leading cost-to-income ratio of 29%. Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 73
Page 76
Unsecured Lending Unsecured Lending provides personal loans, revolving credit facilities, overdrafts, short-term loans and student loans across client segments. HE increased by 89% to R34m (H1 2025: R19m), delivering an ROE of 1.4% (H1 2025: 0.8%), benefiting from improved origination quality following credit policy actions implemented in Q4 2025, partially offset by updated forward-looking macroeconomic assumptions. New-sales volumes decreased by 5% as the business prioritised improved origination quality and a more sustainable risk profile. While impairments remained elevated at R1 284m, the impairment charge decreased by 1% (H1 2025: R1 302m). Two new unsecured lending products were introduced to the market in H1 2026. Firstly, Quick Loans offers clients fast and easy access to cash through smaller loan amounts and shorter payment terms. Secondly, the Revolving Credit Facility (RCF) provides clients with flexible and convenient access to funding, featuring pay-as-you-use fees and limits up to R1m. Early performance has been positive, contributing 8% to unsecured lending production in the first month, with both products gaining traction through fully digital client journeys. RCF has appealed well to the low-risk, high-income segment, and will help enhance Nedbank's market share within this segment. Unsecured Lending remains focused on profitable growth through disciplined pricing, differentiated client propositions, digital journeys, merchant partnerships and stronger risk-adjusted portfolio management. Transactional Banking Transactional Banking provides a secure store of value by facilitating deposits and payments at competitive rates. It delivers value-based banking solutions across PPB's target client segments, enabling effective day-to-day money management and supporting deeper client relationships. HE increased by 27% to R383m (H1 2025: R301m), while ROE increased to 32.8% (H1 2025: 28.5%). NIR increased by 8%, enabled by higher transaction volumes and a 28% increase in VAS revenue. The higher impairment charge was driven by increased coverage on overdrawn transactional accounts. The focus remains on strengthening primacy, improving deposit quality and growing capital-light revenue streams through MiGoals, PayShap, VAS and digitally enabled client journeys, supporting sustainable earnings growth and improved returns over time. Card Issuing (individuals) and Payments Card Issuing and Payments provides clients with secure, seamless payment solutions across physical and digital channels, including debit, credit and virtual cards, complemented by lifestyle rewards. The business offers an end-to-end payments ecosystem spanning merchant acquiring, PayShap, debit orders, electronic fund transfers (EFTs) and cross-border payments through integrated digital platforms. HE declined to a loss of R107m (H1 2025: profit of R78m) at an ROE of -9.5% (H1 2025: 7.5%), reflecting the impacts of higher impairments and increased operating expenses. Despite this, the franchise delivered strong underlying growth, supported by increased merchant acquiring activity, higher use of VAS, sustained growth in digital and e-commerce transactions and improved NII. Origination credit quality improved, supported by proactive portfolio management and enhanced risk monitoring capabilities. Impairments increased to R689m off a low prior-year base (H1 2025: R433m), reflecting higher new-business charges associated with loan growth, together with some pressure in late-stage arrears and recoveries performance. Focus remains on restoring sustainable profitability through disciplined risk management, enhanced collections performance and continued growth in digital payments, merchant acquiring and virtual card capabilities. Savings and Deposits HE declined by 38% to R64m (H1 2025: R104m), primarily impacted by a 7% increase in operating expenses as a result of higher digital and channel costs, while NII decreased marginally by 2% to R738m due to ongoing margin pressure in a competitive pricing environment. Despite the pricing pressure, deposit balances grew by 7% to R244bn, reflecting strong growth in notice and term deposits. NIR increased by 11% to R42m. Digital adoption remained strong, with approximately 95% of new investment accounts and 98% of withdrawal notices processed through digital channels, enhancing client convenience, reducing reliance on physical channels and supporting a more scalable operating model. The Hybrid Fixed Deposit/EasyAccess Deposit (EAD) gained momentum following re-enablement on digital channels and a reduction of the minimum investment amount from R25 000 to R2 000 in February 2026. This contributed to 9% growth in EAD-funded sales volumes and a 30% growth in balances to R60m (H1 2025: R46m) The focus is on expanding digitally enabled, accessible savings propositions to support deposit growth, improve client convenience and strengthen PPB's primary-banking franchise. Forex The Forex business offers digital cross-border payments and multicurrency solutions, enabling payments, transfers and foreign currency investment. HE remained flat at R6m (H1 2025: R6m), primarily driven by lower NII and adverse revaluation impacts on foreign currency cash holdings. Despite these headwinds, underlying business activity remained resilient, supported by continued client activity and disciplined cost management, with operating expenses remaining flat. The focus is on increasing adoption of digital cross-border payment journeys and multicurrency solutions, improving client convenience and supporting higher-value international payment use cases. Nedbank Group unaudited interim results 202674
Page 77
Jun 2026 Jun 2025 Dec 2025 Headline earnings Rm 601 576 1 305 Return on equity % 83.2 73.3 81.5 Gross earned premiums Rm 2 265 2 068 4 270 – Traditional bancassurance Rm 1 604 1 532 3 053 – MyCover suite Rm 614 498 1 069 – Other insurance Rm 47 38 148 Net life insurance contractual service margin (CSM) Rm 909 956 886 Life insurance value of new business Rm 282 286 640 Insurance Nedbank Insurance provides an extensive range of life, non-life and brokered solutions, primarily for Nedbank clients. HE increased by 4% to R601m (H1 2025: R576m), while ROE improved to 83.2% (H1 2025: 73.3%), supported by strong underwriting, a favourable non-life claims experience and continued profitable growth in the MyCover suite of solutions. Value of new business (VNB) remained flat at R282m, while the contractual service margin (CSM), representing unrecognised profit on long-term products, decreased by 5% to R909m (H1 2025: R956m), reflecting strong growth in MyCover Life and Funeral products, offset by lower credit life volumes. Premium allocation approach gross earned premium (PAA GEP) increased by 10%, driven by continued growth in MyCover Personal Lines and Vehicle Debt Protector. The business continued to deepen insurance participation across the Nedbank client base through enhanced client journeys, targeted offers and digital enablement. As part of the PPB cluster, Nedbank Insurance is benefiting from deeper integration into banking journeys, coordinated campaign management and expanded distribution opportunities. The MyCover suite maintained strong momentum, with gross earned premiums (GEP) increasing by 23% to R614m and claims ratios improving by 19%, reinforcing its contribution to profitable growth and client value creation. Traditional bancassurance GEP increased by 5% to R1.6bn, negatively impacted by a subdued performance in Personal Loans and a decline in Home Loans and MFC as the benefit of insurance being included in the client journeys has not yet been realised. Focus for the remainder of the year remains on disciplined execution of strategic priorities, further commercialising competitive advantages, enhancing client experience through digital and self-service capabilities, and progressing Insurance's growth and earnings ambitions. Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 75
Page 78
Jun 2026 Jun 2025 Dec 2025 Home Loans Number of applications received thousands 79 79 160 Average loan-to-value percentage of new business registered % 93 93 94 Average balance-to-original-value percentage of portfolio % 84 83 83 Proportion of new business written through own channels % 33 36 35 Owned-properties book Rm 51 60 59 MFC Number of applications received thousands 1 288 1 139 2 417 Percentage of used vehicles financed % 58 61 60 Personal Loans Number of applications received thousands 678 729 1 531 Average loan size R000s 59.9 61.2 62.4 Average term months 42.7 41.9 42.3 PPB deposits Total value of deposits taken in rand billions 68 61 129 Total value of deposit withdrawals rand billions 68 60 126 Number of clients at period-end PPB active clients thousands 7 598 7 311 7 540 PPB main-banked clients thousands 3 911 3 823 3 898 PPB cross-sell ratio1 ratio 2.04 2.00 2.02 Small Business Services segment thousands 327 313 321 Home Loans thousands 377 384 380 MFC thousands 651 639 644 Personal Loans thousands 334 356 352 Card Issuing thousands 1 155 1 138 1 145 Investment products thousands 1 566 1 564 1 533 Distribution Number of outlets 539 546 541 Number of ATMs 3 916 4 028 4 014 Number of ATMs with cash-accepting capabilities2 1 303 1 310 1 308 ATM withdrawal volumes3 thousands 72 608 73 848 153 587 Branch teller volumes4 thousands 1 957 2 330 4 649 Digitally active PPB clients thousands 3 503 3 243 3 378 Money app clients thousands 3 184 2 829 3 023 1 The number of needs met (products) per active client. 2 Cash-accepting devices (Intelligent Depositors) are included in the total number of ATMs. 3 ATM withdrawals include withdrawals at Intelligent Depositors. 4 Teller transactions include any transaction performed over the counter via the teller system (e.g. deposits, withdrawals and transfers). Personal and Private Banking: Key business statistics Nedbank Group unaudited interim results 202676
Page 79
PPB outlook The operating environment for the remainder of 2026 is expected to remain mixed. While early signs of improving consumer confidence are emerging, renewed geopolitical tension and associated inflation risks are likely to limit the scope for further interest rate easing in the near term. Therefore, consumer affordability is expected to remain constrained. PPB's strategic ambition remains to deliver South Africa's easiest and most rewarding app-first financial services experience for individuals and small businesses. This ambition continues to guide the cluster's strategic repositioning as client needs, technology and market dynamics evolve, with a focus on strengthening primacy, growing capital-light revenue streams and simplifying the operating model to support sustainable returns. Credit performance remains a key priority, with management actions focused on strengthening early-stage collections, implementing targeted recoveries interventions, enhancing portfolio monitoring and continuing to improve origination quality. The benefit of these actions is expected to emerge progressively as portfolio cure rates and recoveries performance improve, although the outlook remains sensitive to macroeconomic conditions. PPB will continue to monitor emerging behavioural trends that may influence consumer indebtedness and repayment patterns, including increased exposure to online gambling and sports betting activity in selected consumer segments. In 2026, PPB expects NII growth of around mid-single digits, supported by continued balance-sheet growth and client acquisition momentum, while NIR is expected to grow by mid-to-upper single digits on the back of higher transactional activity and ongoing diversification of revenue streams. Expense growth is expected to remain well controlled at low-single digits, reflecting continued cost discipline and efficiency gains, which should support positive jaws and a further improvement in the cluster cost-to-income ratio. Credit losses are expected to improve in H2 2026, with the CLR ending the year at below the upper end of the TTC target range. As a result, the cluster ROE is expected to improve from the level reported in H1 2026. PPB remains confident in achieving its medium-term ROE target of 18% and long-term target of more than 20%, supported by continued franchise growth, balance-sheet momentum, disciplined cost management, and effective execution of its strategic priorities, which are expected to reduce the cluster CIR closer to 56% over the medium term and CLR remaining within the cluster TTC target range. Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 77
Page 80
Personal and Private Banking : Advances and impairments T otal impairments Rm Stage 1 Rm Stage 2 Rm Performing stage 3 impairments Rm Non-performing stage 3 impairments Rm T otal stage 3 impairments Rm Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home Loans 5 325 5 125 4 945 319 320 309 954 795 839 325 408 305 3 727 3 602 3 492 4 052 4 010 3 797 VAF 8 190 8 344 7 933 1 506 1 843 1 613 2 151 1 990 1 964 943 831 887 3 590 3 680 3 469 4 533 4 511 4 356 Personal Loans 5 205 5 654 5 229 920 982 851 717 748 788 416 425 375 3 152 3 499 3 215 3 568 3 924 3 590 Card 2 550 2 391 2 296 486 529 431 596 507 485 14 17 12 1 454 1 338 1 368 1 468 1 355 1 380 Other loans 1 421 1 205 1 278 184 176 178 174 149 153 2 3 2 1 061 877 945 1 063 880 947 T otal Personal, Private and Small Business 22 691 22 719 21 681 3 415 3 850 3 382 4 592 4 189 4 229 1 700 1 684 1 581 12 984 12 996 12 489 14 684 14 680 14 070 Wealth 276 308 274 33 34 31 6 20 7 237 254 236 237 254 236 T otal PPB 22 967 23 027 21 955 3 448 3 884 3 413 4 598 4 209 4 236 1 700 1 684 1 581 13 221 13 250 12 725 14 921 14 934 14 306 % of total Stage 1 % Stage 2 % Performing stage 3 % Non-performing stage 3 % T otal stage 3 % Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home Loans 2.69 2.77 2.58 0.20 0.21 0.20 4.99 4.24 4.52 10.68 14.15 10.58 29.47 28.89 28.20 25.83 26.1 24.88 VAF 4.71 5.17 4.72 1.03 1.36 1.14 11.42 11.53 10.97 29.02 23.59 29.91 64.11 69.07 64.02 51.23 51.0 51.95 Personal Loans 22.64 24.34 22.45 5.85 6.50 5.48 25.99 24.21 24.94 63.22 62.13 63.03 81.76 80.20 80.21 79.06 77.7 77.99 Card 14.72 15.17 13.98 3.62 4.35 3.36 39.60 39.12 37.45 13.21 15.89 13.48 63.33 61.18 61.93 61.12 59.1 60.05 Other loans 28.82 26.20 27.24 5.69 5.69 5.88 34.05 34.02 26.47 25.00 37.50 22.22 90.14 82.81 87.74 89.70 82.5 87.20 T otal Personal, Private and Small Business 5.44 5.83 5.36 1.00 1.22 1.02 10.75 10.26 10.19 24.07 23.37 24.17 50.77 51.15 49.77 44.99 45.0 44.47 Wealth 0.94 1.04 1.01 0.12 0.13 0.11 0.82 0.90 0.63 31.35 21.17 27.19 31.35 21.2 27.19 T otal PPB 5.15 5.49 5.09 0.93 1.13 0.95 10.58 9.77 9.94 24.07 23.37 24.17 50.21 49.80 49.01 44.68 44.2 44.01 Balance sheet impairment as a percentage of book Balance sheet average advances and impairments T otal advances Rm Stage 1 Rm Stage 2 Rm Performing stage 3 Rm Non-performing stage 3 Rm T otal stage 3 Rm Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home Loans 197 703 184 939 191 783 162 907 150 829 157 964 19 108 18 756 18 555 3 042 2 884 2 882 12 646 12 470 12 382 15 688 15 354 15 264 VAF 173 957 161 313 168 014 146 275 135 200 141 725 18 833 17 262 17 904 3 249 3 523 2 966 5 600 5 328 5 419 8 849 8 851 8 385 Personal Loans 22 989 23 234 23 290 15 717 15 097 15 527 2 759 3 090 3 160 658 684 595 3 855 4 363 4 008 4 513 5 047 4 603 Card 17 329 15 760 16 428 13 422 12 170 12 835 1 505 1 296 1 295 106 107 89 2 296 2 187 2 209 2 402 2 294 2 298 Other loans 4 930 4 600 4 691 3 234 3 095 3 027 511 438 578 8 8 9 1 177 1 059 1 077 1 185 1 067 1 086 T otal Personal, Private and Small Business 416 908 389 846 404 206 341 555 316 391 331 078 42 716 40 842 41 492 7 063 7 206 6 541 25 574 25 407 25 095 32 637 32 613 31 636 Wealth 29 358 29 682 29 629 27 867 26 261 27 657 735 2 221 1 104 756 1 200 868 756 1 200 868 T otal PPB 446 266 419 528 433 835 369 422 342 652 358 735 43 451 43 063 42 596 7 063 7 206 6 541 26 330 26 607 25 963 33 393 33 813 32 504 Balance sheet actual advances Nedbank Group unaudited interim results 202678
Page 81
T otal impairments Rm Stage 1 Rm Stage 2 Rm Performing stage 3 impairments Rm Non-performing stage 3 impairments Rm T otal stage 3 impairments Rm Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home Loans 5 325 5 125 4 945 319 320 309 954 795 839 325 408 305 3 727 3 602 3 492 4 052 4 010 3 797 VAF 8 190 8 344 7 933 1 506 1 843 1 613 2 151 1 990 1 964 943 831 887 3 590 3 680 3 469 4 533 4 511 4 356 Personal Loans 5 205 5 654 5 229 920 982 851 717 748 788 416 425 375 3 152 3 499 3 215 3 568 3 924 3 590 Card 2 550 2 391 2 296 486 529 431 596 507 485 14 17 12 1 454 1 338 1 368 1 468 1 355 1 380 Other loans 1 421 1 205 1 278 184 176 178 174 149 153 2 3 2 1 061 877 945 1 063 880 947 T otal Personal, Private and Small Business 22 691 22 719 21 681 3 415 3 850 3 382 4 592 4 189 4 229 1 700 1 684 1 581 12 984 12 996 12 489 14 684 14 680 14 070 Wealth 276 308 274 33 34 31 6 20 7 237 254 236 237 254 236 T otal PPB 22 967 23 027 21 955 3 448 3 884 3 413 4 598 4 209 4 236 1 700 1 684 1 581 13 221 13 250 12 725 14 921 14 934 14 306 % of total Stage 1 % Stage 2 % Performing stage 3 % Non-performing stage 3 % T otal stage 3 % Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home Loans 2.69 2.77 2.58 0.20 0.21 0.20 4.99 4.24 4.52 10.68 14.15 10.58 29.47 28.89 28.20 25.83 26.1 24.88 VAF 4.71 5.17 4.72 1.03 1.36 1.14 11.42 11.53 10.97 29.02 23.59 29.91 64.11 69.07 64.02 51.23 51.0 51.95 Personal Loans 22.64 24.34 22.45 5.85 6.50 5.48 25.99 24.21 24.94 63.22 62.13 63.03 81.76 80.20 80.21 79.06 77.7 77.99 Card 14.72 15.17 13.98 3.62 4.35 3.36 39.60 39.12 37.45 13.21 15.89 13.48 63.33 61.18 61.93 61.12 59.1 60.05 Other loans 28.82 26.20 27.24 5.69 5.69 5.88 34.05 34.02 26.47 25.00 37.50 22.22 90.14 82.81 87.74 89.70 82.5 87.20 T otal Personal, Private and Small Business 5.44 5.83 5.36 1.00 1.22 1.02 10.75 10.26 10.19 24.07 23.37 24.17 50.77 51.15 49.77 44.99 45.0 44.47 Wealth 0.94 1.04 1.01 0.12 0.13 0.11 0.82 0.90 0.63 31.35 21.17 27.19 31.35 21.2 27.19 T otal PPB 5.15 5.49 5.09 0.93 1.13 0.95 10.58 9.77 9.94 24.07 23.37 24.17 50.21 49.80 49.01 44.68 44.2 44.01 T otal advances Rm Stage 1 Rm Stage 2 Rm Performing stage 3 Rm Non-performing stage 3 Rm T otal stage 3 Rm Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home Loans 197 703 184 939 191 783 162 907 150 829 157 964 19 108 18 756 18 555 3 042 2 884 2 882 12 646 12 470 12 382 15 688 15 354 15 264 VAF 173 957 161 313 168 014 146 275 135 200 141 725 18 833 17 262 17 904 3 249 3 523 2 966 5 600 5 328 5 419 8 849 8 851 8 385 Personal Loans 22 989 23 234 23 290 15 717 15 097 15 527 2 759 3 090 3 160 658 684 595 3 855 4 363 4 008 4 513 5 047 4 603 Card 17 329 15 760 16 428 13 422 12 170 12 835 1 505 1 296 1 295 106 107 89 2 296 2 187 2 209 2 402 2 294 2 298 Other loans 4 930 4 600 4 691 3 234 3 095 3 027 511 438 578 8 8 9 1 177 1 059 1 077 1 185 1 067 1 086 T otal Personal, Private and Small Business 416 908 389 846 404 206 341 555 316 391 331 078 42 716 40 842 41 492 7 063 7 206 6 541 25 574 25 407 25 095 32 637 32 613 31 636 Wealth 29 358 29 682 29 629 27 867 26 261 27 657 735 2 221 1 104 756 1 200 868 756 1 200 868 T otal PPB 446 266 419 528 433 835 369 422 342 652 358 735 43 451 43 063 42 596 7 063 7 206 6 541 26 330 26 607 25 963 33 393 33 813 32 504 Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 79
Page 82
Income statement impairments charge1 Rm Stage 1 Rm Stage 2 Rm Stage 3 Rm Interest on impaired advances Rm Post-write-off recoveries Rm Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home Loans 544 343 395 28 18 70 121 27 94 638 550 727 (210) (218) (426) (33) (34) (70) VAF 1 740 1 762 3 116 (72) 131 122 257 145 454 2 057 1 981 3 516 (317) (329) (639) (185) (166) (337) Personal Loans 1 229 1 242 2 314 63 62 (5) (69) 63 180 1 775 1 701 3 306 (414) (446) (861) (126) (138) (306) Card 689 433 674 55 34 (67) 111 49 26 709 568 1 185 (17) (20) (36) (169) (198) (434) Other loans 229 117 320 5 13 30 21 (21) (13) 293 214 460 (76) (72) (145) (14) (17) (12) T otal Personal, Private and Small Business 4 431 3 897 6 819 79 258 150 441 263 741 5 472 5 014 9 194 (1 034) (1 085) (2 107) (527) (553) (1 159) Wealth (6) 3 (40) 2 (2) (2) (1) (10) (24) 5 15 (4) (11) (1) (10) T otal PPB 4 425 3 900 6 779 81 256 148 440 253 717 5 477 5 029 9 190 (1 045) (1 085) (2 107) (528) (553) (1 169) Daily gross average advances Rm Stage 1 % Stage 2 % Stage 3 % % of total advances Credit loss ratio1 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home Loans 193 866 181 978 184 953 82.4 81.6 82.4 9.7 10.1 9.7 7.9 8.3 8.0 44.3 44.08 44.2 0.57 0.39 0.22 VAF 166 173 154 072 157 134 84.1 83.8 84.4 10.8 10.7 10.7 5.1 5.5 5.0 39.0 38.45 38.7 2.11 2.31 1.98 Personal Loans 23 405 23 579 23 615 68.4 65.0 66.7 12.0 13.3 13.6 19.6 21.7 19.8 5.2 5.54 5.4 10.59 10.62 9.80 Card 17 154 15 767 15 993 77.5 77.2 78.1 8.7 8.2 7.9 13.9 14.6 14.0 3.9 3.76 3.8 8.10 5.54 4.21 Other loans 5 359 5 009 5 051 65.6 67.3 64.5 10.4 9.5 12.3 24.0 23.2 23.2 1.1 1.10 1.1 8.62 4.71 6.34 T otal Personal, Private and Small Business 405 957 380 405 386 746 81.9 81.2 81.9 10.2 10.5 10.3 7.8 8.4 7.8 93.4 92.92 93.2 2.21 2.07 1.77 Wealth 29 769 29 145 29 289 94.9 88.5 93.3 2.5 7.5 3.7 2.6 4.0 2.9 6.6 7.08 6.8 (0.04) 0.02 (0.11) T otal PPB 435 726 409 550 416 035 82.8 81.7 82.7 9.7 10.3 9.8 7.5 8.1 7.5 100.0 100.00 100.0 2.05 1.92 1.63 Income statement impairments Balance sheet actual impairments 1 The income statement charge includes the charge associated with unutilised balances. Nedbank Group unaudited interim results 202680
Page 83
Income statement impairments charge1 Rm Stage 1 Rm Stage 2 Rm Stage 3 Rm Interest on impaired advances Rm Post-write-off recoveries Rm Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home Loans 544 343 395 28 18 70 121 27 94 638 550 727 (210) (218) (426) (33) (34) (70) VAF 1 740 1 762 3 116 (72) 131 122 257 145 454 2 057 1 981 3 516 (317) (329) (639) (185) (166) (337) Personal Loans 1 229 1 242 2 314 63 62 (5) (69) 63 180 1 775 1 701 3 306 (414) (446) (861) (126) (138) (306) Card 689 433 674 55 34 (67) 111 49 26 709 568 1 185 (17) (20) (36) (169) (198) (434) Other loans 229 117 320 5 13 30 21 (21) (13) 293 214 460 (76) (72) (145) (14) (17) (12) T otal Personal, Private and Small Business 4 431 3 897 6 819 79 258 150 441 263 741 5 472 5 014 9 194 (1 034) (1 085) (2 107) (527) (553) (1 159) Wealth (6) 3 (40) 2 (2) (2) (1) (10) (24) 5 15 (4) (11) (1) (10) T otal PPB 4 425 3 900 6 779 81 256 148 440 253 717 5 477 5 029 9 190 (1 045) (1 085) (2 107) (528) (553) (1 169) Daily gross average advances Rm Stage 1 % Stage 2 % Stage 3 % % of total advances Credit loss ratio1 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home Loans 193 866 181 978 184 953 82.4 81.6 82.4 9.7 10.1 9.7 7.9 8.3 8.0 44.3 44.08 44.2 0.57 0.39 0.22 VAF 166 173 154 072 157 134 84.1 83.8 84.4 10.8 10.7 10.7 5.1 5.5 5.0 39.0 38.45 38.7 2.11 2.31 1.98 Personal Loans 23 405 23 579 23 615 68.4 65.0 66.7 12.0 13.3 13.6 19.6 21.7 19.8 5.2 5.54 5.4 10.59 10.62 9.80 Card 17 154 15 767 15 993 77.5 77.2 78.1 8.7 8.2 7.9 13.9 14.6 14.0 3.9 3.76 3.8 8.10 5.54 4.21 Other loans 5 359 5 009 5 051 65.6 67.3 64.5 10.4 9.5 12.3 24.0 23.2 23.2 1.1 1.10 1.1 8.62 4.71 6.34 T otal Personal, Private and Small Business 405 957 380 405 386 746 81.9 81.2 81.9 10.2 10.5 10.3 7.8 8.4 7.8 93.4 92.92 93.2 2.21 2.07 1.77 Wealth 29 769 29 145 29 289 94.9 88.5 93.3 2.5 7.5 3.7 2.6 4.0 2.9 6.6 7.08 6.8 (0.04) 0.02 (0.11) T otal PPB 435 726 409 550 416 035 82.8 81.7 82.7 9.7 10.3 9.8 7.5 8.1 7.5 100.0 100.00 100.0 2.05 1.92 1.63 Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 81
Page 84
257 356 Jun 2025 Jun 2026 6.7 9.9 Jun 2025 Jun 2026 Headline earnings (Rm) Return on equity (%) Financial performance Nedbank Africa Regions: Southern African Development Community (NAR: SADC) increased HE by 39% to R356m, delivering an improved ROE of 9.9% (H1 2025: 6.7%), on track towards our medium-term target of greater than COE (14.0%). The strong financial performance was driven mainly by growth in gross operating income and costs that were well managed. NII increased by 5% to R1 496m, driven by 20% growth in average gross loans and advances to R29bn. This was marginally offset by a compression in NIM to 6.78% (H1 2025: 7.14%) as a result of lower average interest rates. NIR increased by 12% to R957m, on the back of strong client activity and higher commission and fee income. Growth was partly offset by lower service fees in Namibia and reduced exchange and commission income in Zimbabwe. Impairments increased by 2% to R188m, due to higher charges on sovereign exposures in Mozambique, partly offset by lower impairments across the other regions. The cluster CLR (which excludes impairments on sovereign exposures) improved to 67 bps (H1 2025: 154 bps), below its TTC target range of 85 bps to 120 bps. Expenses increased by 3% to R1 670m, reflecting continued cost discipline and efficiency gains. Headcount decreased by 9% to 2 016 as the business continued to focus on transforming and streamlining the business by automating manual processes and modernising our technology infrastructure to remain future-fit. The cluster's CIR improved to 68.1% (H1 2025: 70.9%). Nedbank Africa Regions: SADC Strategic progress Our strategy is to own and manage banking operations across SADC, achieve scale and increase contribution to the group’s earnings. Our focus for the SADC markets is to transform the business by unlocking synergies and achieving scale through the use of technology, executing our digital growth strategy, and unlocking additional value in key markets such as Mozambique and Namibia, while actively exploring portfolio expansion opportunities as they arise. T echnology – Our technology modernisation journey is gaining traction, with a focus on improving agility and accelerating synergies across Nedbank’s operations outside South Africa. Engagements with several providers have taken place to support the needs of our businesses across the regions. While the core banking modernisation plan is being finalised, tactical technology solutions continue to be implemented to strengthen competitiveness and improve client experiences. Clients – The total number of clients increased by 6% to 444 628, with main-banked clients representing 52% of the base. The growth was most evident in Mozambique, Eswatini and Lesotho, particularly in the entry-level banking, youth and SME segments. This was offset by slower growth in Zimbabwe and a decline in Namibia following dormant-account closures. Nedbank continues to lead in client experience (NPS) in Mozambique and is the leader in brand sentiment scores in Eswatini, Lesotho, Zimbabwe and Mozambique. R356m Headline earnings (H1 2025: R257m) 9.9% ROE (H1 2025: 6.7%) 67 bps Credit loss ratio (H1 2025: 154 bps) 68.1% Cost-to-income ratio (H1 2025: 70.9%) R29bn Average gross loans and advances (H1 2025: R24bn) 72.3% Digitally active clients (H1 2025: 69.1%) Nedbank Group unaudited interim results 202682
Page 85
Financial highlights Distribution – Our focus remains on transforming the business for overall efficiency, while driving growth to achieve scale. In line with this objective, our distribution strategy continues to prioritise an efficient, optimally staffed, and a fit-for-purpose network. Physical points of presence decreased to 79 (H1 2025: 81), while the A TM footprint increased to 243 (H1 2025: 192). Cash-accepting ATMs increased to 55 (H1 2025: 27), supported by the conversion of existing devices to enable cash acceptance. We continue to partner with ATM Solutions to lease A TM infrastructure and receive maintenance services, thereby increasing points of presence. Our ATMs offer both card-based and cardless services, with 50 new sites activated in Namibia and further rollouts planned for Lesotho and Eswatini in the second half of 2026. We also extended the roll-out of Intelligent Depositor devices with cash-recycling capabilities. Digital – Digitally active clients increased to 72% (H1 2025: 69%) of the total client base, meeting our initial medium-term target. App users increased by 17% to 175 902, reinforcing the app as our clients' preferred channel of choice. Over the medium term, we will maintain digitally active clients to total clients at above 70%, while increasing functionality and deepening client engagement through our digital channels. Nedbank Africa Regions: SADC yoy % change Jun 2026 Jun 2025 Dec 2025 Headline earnings (Rm) 39 356 257 672 NII (Rm) 5 1 496 1 428 2 928 Impairments charge (Rm) 2 188 184 292 NIR (Rm) 12 957 857 1 841 Operating expenses (Rm) 3 1 670 1 620 3 241 ROE (%)1 9.9 6.7 9.0 ROA (%) 1.34 1.07 1.35 CLR (%)2 0.67 1.54 0.89 NIR to total operating expenses 57.3 52.9 56.8 Cost-to-income ratio (%) 68.1 70.9 68.0 Interest margin (%) 6.78 7.14 7.09 Total assets (Rm) 12 54 620 48 950 51 198 Average total assets (Rm) 10 49 875 45 249 46 249 Total net advances (Rm) 23 28 876 23 474 26 998 Actual gross banking loans and advances (Rm) 21 30 119 24 950 28 335 Average net total advances (Rm) 22 28 016 23 012 24 648 Total deposits (Rm) 15 45 672 39 674 42 270 Average total deposits (Rm) 13 44 552 39 282 40 588 Average allocated capital (Rm) (6) 7 225 7 709 7 484 1 June 2026 ROE measured on subsidiary in-country statutory capital is 14.6% (June 2025: 12.7%; December 2025: 14.4%). 2 Impairments of R92m related to sovereign bonds were recognised in profit or loss but excluded from CLR. During the year, the group reviewed its segmental reporting following changes in the manner in which information relating to the investment in ETI was reported to and reviewed by Group Exco. As a result, amounts related to the investment in ETI, including internal funding, were reallocated from the NAR: SADC Cluster to the Centre to align the segmental disclosure with the group's internal management reporting structure. This resulted in the restatement of previously disclosed NAR: SADC and Centre segmental information. The restatement represents a reallocation between segments only and has no impact on group profit for the year, headline earnings or total group equity. The investment in ETI was sold in Q4 2025. Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 83
Page 86
The macroeconomic environment in sub-Saharan Africa remains under pressure from elevated global uncertainty, high fuel and food prices, and tight fiscal conditions. The IMF's April 2026 Regional Economic Outlook projected regional growth of 4.3% in 2026 (2025: 4.5%), reflecting the impact of external shocks and widening divergence across economies. Despite these headwinds, reform momentum and selected investment-led growth opportunities continue to support the outlook. In Mozambique, the liquefied-natural-gas (LNG) project has fully restarted, with onshore and offshore construction activities resuming and the first LNG expected in 2029, reinforcing attractive medium-term growth prospects. Namibia also continues to attract investment, particularly in green hydrogen and industries linked to oil and gas exploration. Our key focus areas for the rest of 2026 include the following: • Concluding the preferred solution partner for our technology modernisation programme and rolling out a fit-for-purpose technology ecosystem that improves agility and fosters greater synergies. • Further optimising personal and private banking performances by leveraging data to manage costs and drive revenue generation. • Unlocking additional value in Mozambique and Namibia, which have been identified as growth vectors. • Exploring inorganic growth opportunities that leverage Nedbank's strengths and support our strategic intent. In 2026, stronger NII growth is expected in H2, NIR growth is expected to remain broadly in line with low-double-digit growth, and expense growth is expected to remain in the low single digits. This should support a yoy improvement in the cluster CIR. Our CLR is expected to rise in H2 2026 to back within the cluster TTC target range. Our ROE is expected to improve further from the level reported in H1 2026. We remain confident in achieving our medium-term ROE target, which is broadly aligned with the group's COE, and exceeding 18% over the long term. This will be supported by continued investment in technology modernisation, rightsizing and restructuring to ensure a fit-for-purpose business, selective inorganic growth opportunities should they arise, disciplined cost management, and effective execution of strategic priorities, which are expected to move the cluster CIR closer to 60% over the medium term. Furthermore, we aim to grow clients by more than 9% per annum and increase main-banked clients to more than 55% of all clients from the current level of 52%, over the medium term. Jun 2026 Jun 2025 Dec 2025 Client Number of clients 444 628 419 132 434 349 Main-banked clients1 % 52 53 53 Cross-sell ratio ratio 1.51 1.50 1.51 Digital Digitally active clients2 % 72 69 70 Mobile app users3 175 902 150 356 164 616 MobiMoney wallets 79 627 82 200 83 196 Distribution Number of branches4 79 81 81 Number of ATMs5 243 192 216 Number of cash-accepting ATMs 55 31 52 POS devices 10 785 9 232 10 201 1 Aligned the measure against the total active client base across the Personal and Private banking segments. 2 We aim to maintain a digitally active client base of more than 70%, despite reduced investment in digital solutions, while prioritising our broader technology enablement strategy. 3 The Money App (Africa) is used in 3 countries (Lesotho, Namibia and Eswatini). The other 2 countries (Zimbabwe and Mozambique) use different versions. 4 The total number includes agencies (4 agencies across the regions). 5 Includes ATMs leased from ATM Solutions to increase points of presence. Nedbank Africa Regions: SADC outlook Notes: Nedbank Africa Regions (SADC): Key business statistics Nedbank Group unaudited interim results 202684
Page 87
Notes Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 85
Page 88
Nedbank Group South Africa1 Nedbank Africa Regions: SADC plus ETI2 Rest of the world Rm Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Summary of consolidated statement of financial position Assets Cash and cash equivalents 56 726 60 398 64 829 44 348 50 537 54 090 11 187 8 998 10 087 1 191 863 652 Other short-term securities 62 691 75 807 71 467 41 340 51 577 50 362 5 045 6 248 4 962 16 306 17 982 16 143 Derivative financial instruments 21 790 21 149 21 654 21 767 21 120 21 612 12 14 32 11 15 10 Government and other securities 265 007 231 142 258 831 261 781 227 686 255 575 3 226 3 456 3 256 Loans and advances 1 081 932 992 719 1 030 577 980 815 900 152 937 741 28 876 23 474 26 998 72 241 69 093 65 838 Other assets 121 851 112 760 111 270 114 043 100 566 102 347 3 241 4 479 2 881 4 567 7 715 6 042 Intergroup assets – – – (3 033) (4 290) (3 295) 3 033 4 290 3 295 T otal assets 1 609 997 1 493 975 1 558 628 1 461 061 1 347 348 1 418 432 54 620 50 959 51 511 94 316 95 668 88 685 Equity and liabilities Total equity 131 050 127 034 126 967 111 901 101 809 105 546 7 225 8 343 7 799 11 924 16 882 13 622 Derivative financial instruments 10 313 13 517 10 872 10 280 13 448 10 844 18 15 7 15 54 21 Amounts owed to depositors 1 352 504 1 231 947 1 305 596 1 254 328 1 135 238 1 210 341 45 672 41 048 42 270 52 504 55 661 52 985 Provisions and other liabilities 63 673 69 055 63 205 60 472 66 081 60 451 1 428 1 278 1 159 1 773 1 696 1 595 Long-term debt instruments 52 457 52 422 51 988 52 180 52 147 51 712 277 275 276 Intergroup liabilities – – – (28 100) (21 375) (20 462) 28 100 21 375 20 462 T otal equity and liabilities 1 609 997 1 493 975 1 558 628 1 461 061 1 347 348 1 418 432 54 620 50 959 51 511 94 316 95 668 88 685 Summary of consolidated statement of comprehensive income NII 22 021 21 181 42 878 19 611 18 898 38 206 1 496 1 402 2 902 914 881 1 770 NIR 16 214 14 800 31 046 14 612 13 204 27 895 957 857 1 841 645 739 1 310 Share of income of associate companies 361 1 059 1 183 361 73 197 986 986 Total net income before impairment charge on financial instruments 38 596 37 040 75 107 34 584 32 175 66 298 2 453 3 245 5 729 1 559 1 620 3 080 Impairments charge on financial instruments 4 804 3 818 6 550 4 599 3 607 6 255 188 184 292 17 27 3 Total net income 33 792 33 222 68 557 29 985 28 568 60 043 2 265 3 061 5 437 1 542 1 593 3 077 Total operating expenses 21 696 21 067 43 395 19 225 18 660 38 699 1 670 1 620 3 241 801 787 1 455 Indirect taxation 586 691 1 275 526 628 1 149 45 49 96 15 14 30 Profit before direct taxation 11 510 11 464 23 887 10 234 9 280 20 195 550 1 392 2 100 726 792 1 592 Direct taxation 2 378 2 266 5 075 2 068 1 930 4 344 131 151 363 179 185 368 Profit after taxation 9 132 9 198 18 812 8 166 7 350 15 851 419 1 241 1 737 547 607 1 224 Profit attributable to non-controlling interest 727 799 1 612 664 741 1 474 63 58 138 Headline earnings 8 405 8 399 17 200 7 502 6 609 14 377 356 1 183 1 599 547 607 1 224 Geographical segmental reporting for the period ended 1 Includes all group eliminations. 2 The Nedbank Africa Regions: SADC plus ETI geographical segmental income statement and balance sheet consist of the SADC banking subsidiaries and the investment in ETI. These statements exclude transactions and associated transactional-banking revenues concluded with clients resident in the rest of Africa by SA entities within CIB. For example, CIB has credit exposure of R59.2bn (June 2025: R58.1bn; December 2025: R54.1bn) to clients resident in the Africa regions. An amount of R425m related to fleet management expenses, previously presented in total operating expenses for the period ended 30 June 2025, was reallocated to non-interest revenue and income. This restatement represents a reallocation between line items only and has no impact on the profit or headline earnings for the period ended 30 June 2025 at either cluster or group level. Nedbank Group unaudited interim results 202686
Page 89
Nedbank Group South Africa1 Nedbank Africa Regions: SADC plus ETI2 Rest of the world Rm Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Summary of consolidated statement of financial position Assets Cash and cash equivalents 56 726 60 398 64 829 44 348 50 537 54 090 11 187 8 998 10 087 1 191 863 652 Other short-term securities 62 691 75 807 71 467 41 340 51 577 50 362 5 045 6 248 4 962 16 306 17 982 16 143 Derivative financial instruments 21 790 21 149 21 654 21 767 21 120 21 612 12 14 32 11 15 10 Government and other securities 265 007 231 142 258 831 261 781 227 686 255 575 3 226 3 456 3 256 Loans and advances 1 081 932 992 719 1 030 577 980 815 900 152 937 741 28 876 23 474 26 998 72 241 69 093 65 838 Other assets 121 851 112 760 111 270 114 043 100 566 102 347 3 241 4 479 2 881 4 567 7 715 6 042 Intergroup assets – – – (3 033) (4 290) (3 295) 3 033 4 290 3 295 T otal assets 1 609 997 1 493 975 1 558 628 1 461 061 1 347 348 1 418 432 54 620 50 959 51 511 94 316 95 668 88 685 Equity and liabilities Total equity 131 050 127 034 126 967 111 901 101 809 105 546 7 225 8 343 7 799 11 924 16 882 13 622 Derivative financial instruments 10 313 13 517 10 872 10 280 13 448 10 844 18 15 7 15 54 21 Amounts owed to depositors 1 352 504 1 231 947 1 305 596 1 254 328 1 135 238 1 210 341 45 672 41 048 42 270 52 504 55 661 52 985 Provisions and other liabilities 63 673 69 055 63 205 60 472 66 081 60 451 1 428 1 278 1 159 1 773 1 696 1 595 Long-term debt instruments 52 457 52 422 51 988 52 180 52 147 51 712 277 275 276 Intergroup liabilities – – – (28 100) (21 375) (20 462) 28 100 21 375 20 462 T otal equity and liabilities 1 609 997 1 493 975 1 558 628 1 461 061 1 347 348 1 418 432 54 620 50 959 51 511 94 316 95 668 88 685 Summary of consolidated statement of comprehensive income NII 22 021 21 181 42 878 19 611 18 898 38 206 1 496 1 402 2 902 914 881 1 770 NIR 16 214 14 800 31 046 14 612 13 204 27 895 957 857 1 841 645 739 1 310 Share of income of associate companies 361 1 059 1 183 361 73 197 986 986 Total net income before impairment charge on financial instruments 38 596 37 040 75 107 34 584 32 175 66 298 2 453 3 245 5 729 1 559 1 620 3 080 Impairments charge on financial instruments 4 804 3 818 6 550 4 599 3 607 6 255 188 184 292 17 27 3 Total net income 33 792 33 222 68 557 29 985 28 568 60 043 2 265 3 061 5 437 1 542 1 593 3 077 Total operating expenses 21 696 21 067 43 395 19 225 18 660 38 699 1 670 1 620 3 241 801 787 1 455 Indirect taxation 586 691 1 275 526 628 1 149 45 49 96 15 14 30 Profit before direct taxation 11 510 11 464 23 887 10 234 9 280 20 195 550 1 392 2 100 726 792 1 592 Direct taxation 2 378 2 266 5 075 2 068 1 930 4 344 131 151 363 179 185 368 Profit after taxation 9 132 9 198 18 812 8 166 7 350 15 851 419 1 241 1 737 547 607 1 224 Profit attributable to non-controlling interest 727 799 1 612 664 741 1 474 63 58 138 Headline earnings 8 405 8 399 17 200 7 502 6 609 14 377 356 1 183 1 599 547 607 1 224 Segmental analysis Supplementary information Statement of financial position analysis Income statement analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 87
Page 90
Income statement analysis Net margin analysis 89 Impairments 92 Non-interest revenue and income 100 Expenses 102 Headline earnings reconciliation 104 Taxation charge 105
Page 91
1 Net margin analysis Jun 2026 Jun 2025 Dec 2025 Nedbank Group Bps Rm Bps Rm Bps Rm Closing average interest-earning banking assets (year-to-date average) 1 185 035 1 103 410 1 125 031 Opening net interest margin (NIM)/Net interest income (NII) 387 21 181 413 20 784 405 41 806 Growth in banking assets 1 567 1 867 3 736 Endowment (19) (1 103) (20) (1 119) (23) (2 570) Endowment rate impact1 (7) (397) (10) (580) (11) (1 203) Endowment mix impact (12) (706) (10) (539) (12) (1 367) Asset margin pricing and mix 27 (6) (324) (5) (622) Impact due to pricing (1) (40) (2) (136) (2) (278) Stage 3 interest reversals 2 105 1 81 1 150 Impact due to mix change (1) (38) (5) (269) (4) (494) Liability margin pricing and mix (4) (4) (223) (2) (293) Deposits pricing and mix (1) (69) (5) (258) (4) (454) Impact due to pricing (1) (86) (4) (243) (4) (425) Deposit insurance levies and premiums 5 (1) (45) (48) Impact due to mix change 12 30 19 Impact of changes in the funding profile 1 65 1 35 2 161 Impact due to pricing 3 175 1 62 2 215 Impact due to mix change (2) (110) (27) (54) Balance sheet management and other 7 353 4 196 6 821 Closing NIM/NII for the period 375 22 021 387 21 181 381 42 878 3.85 4.18 4.13 3.87 3.75 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 7.71 11.07 11.75 11.00 10.30 17 204 20 294 20 784 21 181 22 021 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Net interest income (Rm) Interest margin trend versus average prime rate (%) Interest margin Average prime rate 1 Includes the positive impact of the NII optimisation strategy and endowment hedge at 2bps. Income statement analysis Statement of financial position analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Supplementary information Nedbank Group Unaudited interim results 2026 89
Page 92
Asset mix Liability pricing Liability mix Balance sheet management and other Asset pricing Stage 3 interest reversals Endowment mix impact Endowment rate impact Jun 2025 Jun 2026 387 (7) (1)(1) 7 375 (12) (2) 2 2 Key drivers • Negative endowment mix impact was due to slower growth of net capital and CASA balances relative to the growth in interest- earning assets. The negative endowment rate impact due to the run rate effect of the 2025 interest rate cuts is partly offset by endowment hedging benefits. • Asset pricing benefited from the favourable pricing impact of new retail unsecured loans, supported by lower stage 3 interest reversals. This was offset by asset pricing pressure in the commercial and secured retail portfolios, reflecting continued competition for high-quality lending opportunities. • Negative asset mix was largely as a result of slower growth in higher-yielding retail unsecured loans and faster growth in lower- yielding retail secured loans. • Positive liability pricing outcomes were driven by lower marginal funding costs were partially offset by sustained pricing pressure in competitive household and commercial deposit markets. • Liability mix reflects comparatively slower growth in higher-margin deposits relative to wholesale funding. • Balance sheet management and other' includes a positive basis risk impact, a positive impact of NII optimisation strategies and a lower funding cost on banking book HQLA portfolios, partly offset by a higher mix of lower-yielding HQLA assets relative to other higher-yielding advances. Net interest margin (Bps) • At 30 June 2026, the NII sensitivity of the group’s banking book to a 1% parallel decline in interest rates, measured over 12 months, was 1.15% of total group ordinary shareholders’ equity, which is below the board’s approved risk limit of 2.25%. • This exposes the group to a decrease in NII of approximately R1 333m before tax, should interest rates decrease by 1% across the yield curve, measured over a 12-month period. Nedbank London Branch and Wealth International NII sensitivities are measured at a 0.5% parallel decrease in interest rates and Nedbank Zimbabwe is measured at a 3% parallel decrease in interest rates. The group's NII sensitivity exhibits very minimal convexity and would therefore result in a similar increase in pre-tax NII should interest rates increase by 1%. • The group’s NII sensitivity is actively managed through on- and off-balance-sheet interest rate risk management strategies based on the group’s assessment of the correlation between interest rate sensitivity and impairment sensitivity over the cycle. In business clusters where a strong correlation exists between endowment income and credit impairments, the relationship between interest rate sensitivity and impairment sensitivity is regarded as a natural economic hedge. Conversely, where endowment income does not provide a natural offset to credit impairments, endowment exposures are structurally hedged over time as opportunities arise through interest rate cycles. At 30 June 2026, the bank had executed 40% of its approved endowment hedging programme. Since the programme’s implementation in the fourth quarter of 2024, NII sensitivity has decreased by approximately R160m per 100 bps decline in interest rates. This reflects the strategic and opportunistic hedging of endowment exposures as market dislocations create opportunities to extend the duration of equity. • At 30 June 2026, the group's EVE sensitivity measured for a 1% parallel decrease in interest rates was R2 197m, representing 1.89% of ordinary shareholders’ equity. EVE sensitivity increased year on year, primarily reflecting the impact of endowment hedge positions established as part of the group's balance sheet optimisation strategy. • While these hedges have reduced earnings volatility and improved NII resilience, they have increased interest rate risk in the banking book on an economic value basis, resulting in a controlled increase in overall EVE sensitivity. NII and EVE sensitivity analysis 1 1 Negative endowment rate impact of -9bps, driven by lower interest rates, was partially offset by 2bps of endowment hedging benefits. Nedbank Group Unaudited interim results 202690
Page 93
Jun 2026 Jun 2025 Dec 2025 Average balance Margin statement interest Average balance Margin statement interest Average balance Margin statement interest Rm Assets Received % Assets Received % Assets Received % Average prime rate 10.30 11.00 10.74 Assets Listed corporate bonds 29 125 1 162 8.05 31 624 1 413 9.01 31 048 2 709 8.73 Home loans (including properties in possession) 224 137 10 534 9.48 211 793 10 652 10.14 214 762 21 311 9.92 Commercial mortgages 209 939 9 635 9.25 204 700 10 284 10.13 204 913 20 207 9.86 Instalment debtors 192 622 11 034 11.55 176 806 10 716 12.22 180 616 21 697 12.01 Credit card balances 19 263 1 393 14.58 17 748 1 333 15.15 18 049 2 691 14.91 Overdrafts 29 598 1 462 9.96 27 004 1 417 10.58 27 250 2 824 10.36 Term loans and other1 267 160 15 065 11.37 253 429 15 702 12.49 254 903 30 750 12.06 Personal loans 27 895 2 838 20.52 27 251 2 635 19.50 27 540 5 590 20.30 Gross banking loans and advances 999 739 53 123 10.72 950 355 54 152 11.49 959 081 107 779 11.24 Impairment of loans and advances (29 090) (30 105) (29 747) Government and other securities 161 132 7 459 9.33 124 735 5 893 9.53 137 464 12 960 9.43 Short-term funds and securities 53 254 1 586 6.01 58 425 2 001 6.91 58 233 3 883 6.67 Interest-earning banking assets 1 185 035 62 168 10.58 1 103 410 62 046 11.34 1 125 031 124 622 11.08 Other2 274 320 254 726 262 675 T otal assets 1 459 355 62 168 8.59 1 358 136 62 046 9.21 1 387 706 124 622 8.98 Average banking statement of financial position and related interest Rm Liabil- ities Paid % Liabil- ities Paid % Liabil- ities Paid % Equity and liabilities Deposit and loan accounts 745 671 24 498 6.63 689 467 25 212 7.37 702 988 50 094 7.13 Current and savings accounts 142 617 842 1.19 138 891 989 1.44 141 253 1 913 1.35 Negotiable certificates of deposit 132 380 5 001 7.62 118 946 4 998 8.47 121 355 9 951 8.20 Other interest-bearing liabilities 210 035 7 603 7.30 196 749 7 413 7.60 203 127 15 321 7.54 Long-term debt instruments 53 089 2 203 8.37 48 180 2 253 9.43 49 032 4 465 9.11 Interest-bearing banking liabilities 1 283 792 40 147 6.31 1 192 233 40 865 6.91 1 217 755 81 744 6.71 Revaluation of FVTPL-designated liabilities 5 962 3 332 5 287 Ordinary and minority shareholders' equity 125 776 121 572 121 781 Other3 43 825 40 999 42 883 T otal shareholders' equity and liabilities 1 459 355 40 147 5.55 1 358 136 40 865 6.07 1 387 706 81 744 5.89 Interest margin on average interest-earning banking assets 1 185 035 22 021 3.75 1 103 410 21 181 3.87 1 125 031 42 878 3.81 1 Includes term loans, preference shares, factoring debtors, foreign lending, loans to banks, other lending-related instruments and net interest on banking book derivatives. 2 Includes cash and banknotes, derivative financial instruments, insurance assets, associates and investments, property and equipment, mandatory reserve deposits with central banks, intangible assets and other assets. 3 Includes derivative financial instruments, investment contract liabilities, other liabilities, equity and elimination entries. Income statement analysis Statement of financial position analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Supplementary information Nedbank Group Unaudited interim results 2026 91
Page 94
Nedbank Group income statement impairment charge and credit loss ratio Stage 1 Stage 2 Stage 3 Non-LAA and FVOCI Off- balance-sheet Impairment charge, net of recoveries Mix of average banking advances CLR Target CLR TTC range June 2026 Rm Rm Rm Rm Rm Rm % % % Corporate and Investment Banking (CIB) 47 (51) 10 6 (17) (5) 43.8 0.00 0.15 – 0.45 CIB, excluding Property Finance 44 (54) (44) 6 (17) (65) 24.5 (0.05) 0.20 – 0.50 Property Finance 3 3 54 60 19.3 0.06 0.15 – 0.35 Business and Commercial Banking (BCB) (19) 3 200 (3) 10 191 9.8 0.40 0.40 – 0.70 Personal and Private Banking (PPB) 82 440 3 913 (9) (1) 4 425 43.5 2.05 1.30 – 1.90 Nedbank Africa Regions: SADC (NAR: SADC) 13 20 62 92 1 188 2.9 0.67 0.85 – 1.20 Centre 1 4 5 Nedbank Group 123 412 4 186 90 (7) 4 804 100.0 0.95 0.60 – 1.00 2 Impairments Nedbank Group impairments charge (Rm) Nedbank Group credit loss ratio trends (%) 3 390 5 313 4 662 3 818 4 804 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 0.85 1.21 1.04 0.81 0.95 0.60 Jun 2026 1.00 Jun 2022 Jun 2023 Jun 2024 Jun 2025 CLR TTC lower range TTC upper range BCB's TTC target range has been revised from 50 bps – 70 bps to 40 bps – 70 bps. Nedbank Group Unaudited interim results 202692
Page 95
Stage 1 Stage 2 Stage 3 Non-LAA and FVOCI Off- balance-sheet Impairment charge, net of recoveries Mix of average banking advances CLR Target CLR TTC range June 2026 Rm Rm Rm Rm Rm Rm % % % Corporate and Investment Banking (CIB) 47 (51) 10 6 (17) (5) 43.8 0.00 0.15 – 0.45 CIB, excluding Property Finance 44 (54) (44) 6 (17) (65) 24.5 (0.05) 0.20 – 0.50 Property Finance 3 3 54 60 19.3 0.06 0.15 – 0.35 Business and Commercial Banking (BCB) (19) 3 200 (3) 10 191 9.8 0.40 0.40 – 0.70 Personal and Private Banking (PPB) 82 440 3 913 (9) (1) 4 425 43.5 2.05 1.30 – 1.90 Nedbank Africa Regions: SADC (NAR: SADC) 13 20 62 92 1 188 2.9 0.67 0.85 – 1.20 Centre 1 4 5 Nedbank Group 123 412 4 186 90 (7) 4 804 100.0 0.95 0.60 – 1.00 Nedbank Group impairment drivers (Rm) 3 818 (145) 855 79 82 115 4 804 Jun 2025 Stage 1 Stage 2 Stage 3 Non-LAA and FVOCI Off- balance-sheet Jun 2026 Income statement analysis Statement of financial position analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Supplementary information Nedbank Group Unaudited interim results 2026 93
Page 96
(0.15) 0.00 0.11 0.40 1.92 2.05 1.54 0.67 Jun 2026 Jun 2025 Jun 2026 Jun 2025 Jun 2026 CIB BCB PPB NAR: SADC Nedbank Group credit loss ratio per cluster (%) Stage 1 Stage 2 Stage 3 Non-LAA and FVOCI Off- balance-sheet Impairment charge, net of recoveries Mix of average banking advances CLR Target CLR TTC range June 2025 Rm Rm Rm Rm Rm Rm % % % Corporate and Investment Banking (CIB) (50) 36 (219) 18 (109) (324) 44.5 (0.15) 0.15 – 0.45 CIB, excluding Property Finance (41) 8 (181) 18 (109) (305) 24.6 (0.26) 0.20 – 0.50 Property Finance (9) 28 (38) (19) 19.9 (0.02) 0.15 – 0.35 Business and Commercial Banking (BCB) 22 3 30 1 (2) 54 9.9 0.11 0.50 – 0.70 Personal and Private Banking (PPB) 248 249 3 389 (5) 19 3 900 43.0 1.92 1.30 – 1.90 Nedbank Africa Regions: SADC (NAR: SADC) 48 9 127 (3) 3 184 2.6 1.54 0.85 – 1.20 Centre 4 4 Nedbank Group 268 297 3 331 11 (89) 3 818 100.0 0.81 0.60 – 1.00 Stage 1 Stage 2 Stage 3 Non-LAA and FVOCI Off- balance-sheet Impairment charge, net of recoveries Mix of average banking advances CLR Target CLR TTC range December 2025 Rm Rm Rm Rm Rm Rm % % % Corporate and Investment Banking (CIB) (57) (67) (332) (129) (133) (718) 44.1 (0.17) 0.15 – 0.45 CIB, excluding Property Finance (52) (57) (402) (129) (133) (773) 24.4 (0.33) 0.20 – 0.50 Property Finance (5) (10) 70 55 19.7 0.03 0.15 – 0.35 Business and Commercial Banking (BCB) 130 (31) 89 1 15 204 9.9 0.21 0.50 – 0.70 Personal and Private Banking (PPB) 148 718 5 922 (18) 9 6 779 43.3 1.63 1.30 – 1.90 Nedbank Africa Regions: SADC (NAR: SADC) 28 (15) 218 62 (1) 292 2.7 0.89 0.85 – 1.20 Centre 5 (12) (7) Nedbank Group 249 605 5 902 (96) (110) 6 550 100.0 0.68 0.60 – 1.00 Nedbank Group Unaudited interim results 202694
Page 97
Key drivers • The group's impairment charge, which is cyclically higher in the first half of the year, increased by 26%, primarily driven by higher impairment charges in PPB and BCB, with BCB increasing from a low base, as well as a smaller impairment release in CIB compared to the prior year. • Group CLR increased to 95 bps (H1 2025: 81 bps), moving into the upper half of the group's TTC target range of 60 bps to 100 bps. • CIB reported an impairment release and a CLR of 0 bps (H1 2025: -15 bps), below its TTC range of 15 bps to 45 bps, reflecting disciplined risk management and a high-quality portfolio. • BCB's CLR increased to 40 bps (H1 2025: 11 bps), at the bottom end of its revised TTC target range of 40 bps to 70 bps, primarily due to a once-off impairment on a large single-client exposure. Excluding the single-client credit loss, the core performance of the book remained healthy. • PPB's impairments increased by 13% and its CLR increased to 205 bps (H1 2025: 192 bps), above its TTC target range of 130 bps to 190 bps. The increase in impairments was driven by loan growth, updated macroeconomic assumptions, a challenging macroeconomic environment and softer collections outcomes. • NAR: SADC's CLR improved to 67 bps (H1 2025: 154 bps), below its TTC target range of 85 bps to 120 bps due to a change in book mix, which is now skewed towards wholesale exposures that are mostly collateralised and attract lower impairments. Stage 1 Stage 2 Stage 3 Non-LAA and FVOCI Off- balance-sheet Impairment charge, net of recoveries Mix of average banking advances CLR Target CLR TTC range June 2025 Rm Rm Rm Rm Rm Rm % % % Corporate and Investment Banking (CIB) (50) 36 (219) 18 (109) (324) 44.5 (0.15) 0.15 – 0.45 CIB, excluding Property Finance (41) 8 (181) 18 (109) (305) 24.6 (0.26) 0.20 – 0.50 Property Finance (9) 28 (38) (19) 19.9 (0.02) 0.15 – 0.35 Business and Commercial Banking (BCB) 22 3 30 1 (2) 54 9.9 0.11 0.50 – 0.70 Personal and Private Banking (PPB) 248 249 3 389 (5) 19 3 900 43.0 1.92 1.30 – 1.90 Nedbank Africa Regions: SADC (NAR: SADC) 48 9 127 (3) 3 184 2.6 1.54 0.85 – 1.20 Centre 4 4 Nedbank Group 268 297 3 331 11 (89) 3 818 100.0 0.81 0.60 – 1.00 Stage 1 Stage 2 Stage 3 Non-LAA and FVOCI Off- balance-sheet Impairment charge, net of recoveries Mix of average banking advances CLR Target CLR TTC range December 2025 Rm Rm Rm Rm Rm Rm % % % Corporate and Investment Banking (CIB) (57) (67) (332) (129) (133) (718) 44.1 (0.17) 0.15 – 0.45 CIB, excluding Property Finance (52) (57) (402) (129) (133) (773) 24.4 (0.33) 0.20 – 0.50 Property Finance (5) (10) 70 55 19.7 0.03 0.15 – 0.35 Business and Commercial Banking (BCB) 130 (31) 89 1 15 204 9.9 0.21 0.50 – 0.70 Personal and Private Banking (PPB) 148 718 5 922 (18) 9 6 779 43.3 1.63 1.30 – 1.90 Nedbank Africa Regions: SADC (NAR: SADC) 28 (15) 218 62 (1) 292 2.7 0.89 0.85 – 1.20 Centre 5 (12) (7) Nedbank Group 249 605 5 902 (96) (110) 6 550 100.0 0.68 0.60 – 1.00 Income statement analysis Statement of financial position analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Supplementary information Nedbank Group Unaudited interim results 2026 95
Page 98
Impairments charge on financial instruments June 2026 (Rm) Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Balance at the beginning of the year 28 059 2 110 2 483 22 093 1 350 23 Stage 1 ECL allowance 4 593 402 407 3 530 254 Stage 2 ECL allowance 4 746 183 249 4 248 66 Stage 3 ECL allowance 18 720 1 525 1 827 14 315 1 030 23 Statement of comprehensive income charge net of recoveries 4 804 (5) 191 4 425 188 5 Stage 1 ECL allowance 123 47 (19) 82 13 Stage 2 ECL allowance 412 (51) 3 440 20 Stage 3 ECL allowance 4 186 10 200 3 913 62 1 Off-balance-sheet allowance (7) (17) 10 (1) 1 Non-loans and advances 84 (3) (9) 92 4 FVOCI loan impairment charge 6 6 Adjusted for: (3 674) 132 (104) (3 414) (281) (7) Recoveries 688 61 55 528 44 Interest in suspense 1 232 82 105 1 034 11 Amounts written off (5 297) (8) (267) (4 909) (113) Foreign exchange and other transfers (215) (5) (76) (131) (3) Non-LAA (84) 3 9 (92) (4) FVOCI loan impairment charge 2 2 ECL allowance – closing balance 29 189 2 237 2 570 23 104 1 257 21 Stage 1 4 650 429 392 3 565 264 Stage 2 5 066 121 252 4 610 83 Stage 3 19 473 1 687 1 926 14 929 910 21 . Split by measurement category 29 189 2 237 2 570 23 104 1 257 21 LAA 28 777 2 029 2 517 22 967 1 243 21 LAA in FVOCI 143 143 Off-balance-sheet allowance 269 65 53 137 14 Nedbank Group Unaudited interim results 202696
Page 99
June 2025 (Rm) Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Balance at the beginning of the year 29 523 3 199 2 242 22 651 1 404 27 Stage 1 ECL allowance 4 821 509 292 3 778 242 Stage 2 ECL allowance 4 589 259 242 4 005 82 1 Stage 3 ECL allowance 20 113 2 431 1 708 14 868 1 080 26 Statement of comprehensive income charge net of recoveries 3 818 (324) 54 3 900 184 4 Stage 1 ECL allowance 268 (50) 22 248 48 Stage 2 ECL allowance 297 36 3 249 9 Stage 3 ECL allowance 3 331 (219) 30 3 389 127 4 Off-balance-sheet allowance (89) (109) (2) 19 3 Non-loans and advances (7) 1 (5) (3) FVOCI loan impairment charge 18 18 Adjusted for: (3 697) (173) (41) (3 376) (99) (8) Recoveries 724 81 68 553 22 Interest in suspense 1 300 101 84 1 073 42 Amounts written off (5 603) (329) (176) (5 003) (95) Foreign exchange and other transfers (109) (10) (16) (4) (71) (8) Non-LAA 7 (1) 5 3 FVOCI loan impairment charge (16) (16) ECL allowance – closing balance 29 644 2 702 2 255 23 175 1 489 23 Stage 1 5 029 431 317 4 007 274 Stage 2 4 855 300 242 4 225 88 Stage 3 19 760 1 971 1 696 14 943 1 127 23 . Split by measurement category 29 644 2 702 2 255 23 175 1 489 23 LAA 28 933 2 177 2 230 23 027 1 476 23 LAA in FVOCI 416 416 Off-balance-sheet allowance 295 109 25 148 13 Income statement analysis Statement of financial position analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Supplementary information Nedbank Group Unaudited interim results 2026 97
Page 100
December 2025 (Rm) Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Balance at the beginning of the year 29 523 3 199 2 242 22 651 1 404 27 Stage 1 ECL allowance 4 821 509 292 3 778 242 – Stage 2 ECL allowance 4 589 259 242 4 005 82 1 Stage 3 ECL allowance 20 113 2 431 1 708 14 868 1 080 26 Statement of comprehensive income charge net of recoveries 6 550 (718) 204 6 779 292 (7) Stage 1 ECL allowance 249 (57) 130 148 28 Stage 2 ECL allowance 605 (67) (31) 718 (15) Stage 3 ECL allowance 5 902 (332) 89 5 922 218 5 Off-balance-sheet allowance (110) (133) 15 9 (1) Non-loans and advances 33 1 (18) 62 (12) FVOCI loan impairment charge (129) (129) Adjusted for: (8 014) (371) 37 (7 337) (346) 3 Recoveries 1 517 122 175 1 169 51 Interest in suspense 2 409 181 237 2 107 (116) Amounts written off (10 840) (482) (463) (9 696) (199) Foreign exchange and other transfers (917) (42) 89 (935) (20) (9) Non-LAA (33) (1) 18 (62) 12 FVOCI loan impairment charge (150) (150) ECL allowance – closing balance 28 059 2 110 2 483 22 093 1 350 23 Stage 1 4 593 402 407 3 530 254 Stage 2 4 746 183 249 4 248 66 Stage 3 18 720 1 525 1 827 14 315 1 030 23 . Split by measurement category 28 059 2 110 2 483 22 093 1 350 23 LAA 27 647 1 892 2 440 21 955 1 337 23 LAA in FVOCI 135 135 Off-balance-sheet allowance 277 83 43 138 13 Nedbank Group Unaudited interim results 202698
Page 101
Notes Income statement analysis Statement of financial position analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Supplementary information Nedbank Group Unaudited interim results 2026 99
Page 102
12 528 13 397 14 375 14 800 16 214 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 73.9 73.5 72.7 70.3 74.7 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 3 Non-interest revenue and income Non-interest revenue (Rm) Non-interest revenue to total operating expenses (%) Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Commission and fees income 11 11 768 10 633 22 156 2 378 2 042 4 275 2 857 2 513 5 334 5 847 5 473 11 262 718 635 1 338 (32) (30) (53) Administration fees (10) 784 874 1 750 482 518 1 046 15 60 118 235 232 460 46 57 112 6 7 14 Card income 4 1 949 1 872 3 885 16 15 33 1 197 1 110 2 379 648 664 1 288 87 83 184 1 1 Cash-handling fees (5) 581 613 1 236 77 98 191 304 303 614 167 180 365 33 32 66 Exchange commission 23 516 420 882 103 116 221 145 97 221 163 109 233 105 98 207 Guarantees income 4 113 109 228 82 77 161 19 18 36 2 2 4 10 12 27 Insurance commission 8 150 139 294 3 2 5 139 131 276 8 6 13 Other commission 23 2 851 2 311 4 726 702 543 963 503 271 673 1 539 1 357 2 804 127 155 317 (20) (15) (31) Other fees 19 2 006 1 688 3 840 887 646 1 604 372 382 731 747 676 1 525 19 6 17 (19) (22) (37) Service charges 8 2 818 2 607 5 315 29 29 56 299 270 557 2 207 2 122 4 307 283 186 395 Insurance income 20 866 720 1 652 1 1 3 849 705 1 618 16 13 28 1 3 Fair-value adjustments <(100) (140) (55) (263) 3 49 49 – – – – – – (27) 7 25 (116) (111) (337) Fair-value adjustments >(100) (25) 54 54 3 49 49 (27) 7 25 (1) (2) (20) Hedge-accounted portfolios (6) (115) (109) (317) (115) (109) (317) Trading income 5 2 646 2 513 5 099 2 474 2 352 4 756 31 27 54 58 55 116 83 79 173 – – – Commodities 36 34 25 45 34 25 45 Debt securities (18) 999 1 219 2 556 999 1 219 2 556 Equities >100 711 321 684 711 321 684 Foreign exchange (5) 902 948 1 814 730 787 1 471 31 27 54 58 55 116 83 79 173 Equity investment income (15) 343 402 892 348 363 831 – – – – 27 32 (5) 1 8 – 11 21 Realised gains, dividends, interest and other income >100 429 (433) 108 441 (404) 157 (5) 1 8 (7) (30) (57) Unrealised (losses)/gains1 >(100) (86) 835 784 (93) 767 674 27 32 7 41 78 Investment income 6 151 142 319 131 119 276 4 5 15 1 5 12 15 13 16 Sundry income/(expenses)2 30 580 445 1 191 29 77 199 10 (26) (51) 71 139 341 172 122 269 298 133 433 T otal non-interest revenue 10 16 214 14 800 31 046 5 363 5 002 10 386 2 903 2 520 5 355 6 826 6 404 13 381 957 857 1 841 165 17 83 1 Unrealised (losses)/gains relate to equity investments in associates and joint ventures carried at fair value through profit or loss, which are estimated and converted to realised (losses)/gains or dividends once earned. 2 Sundry income/(expenses) comprises mainly security dealings, rental income, fair-value movements on non-trading investments, and forex gains and losses. Nedbank Group Unaudited interim results 2026100
Page 103
Key drivers • Commission and fees income growth was supported by strong CIB client flows and larger transactions, BCB growth from iKhokha and higher client activity, and PPB client gains, higher maintenance fees, VAS momentum and higher digital adoption. • Insurance income growth was underpinned by strong underwriting, favourable non-life claims experience, and growth in premiums and policies within the MyCover suite. • Trading income growth was driven by strong equities trading outcomes, partially offset by weaker foreign exchange and fixed-income trading. • Equity investment income declined after a particularly strong prior period, although the portfolio benefited from significant revaluations within the CIB associate portfolio. Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Commission and fees income 11 11 768 10 633 22 156 2 378 2 042 4 275 2 857 2 513 5 334 5 847 5 473 11 262 718 635 1 338 (32) (30) (53) Administration fees (10) 784 874 1 750 482 518 1 046 15 60 118 235 232 460 46 57 112 6 7 14 Card income 4 1 949 1 872 3 885 16 15 33 1 197 1 110 2 379 648 664 1 288 87 83 184 1 1 Cash-handling fees (5) 581 613 1 236 77 98 191 304 303 614 167 180 365 33 32 66 Exchange commission 23 516 420 882 103 116 221 145 97 221 163 109 233 105 98 207 Guarantees income 4 113 109 228 82 77 161 19 18 36 2 2 4 10 12 27 Insurance commission 8 150 139 294 3 2 5 139 131 276 8 6 13 Other commission 23 2 851 2 311 4 726 702 543 963 503 271 673 1 539 1 357 2 804 127 155 317 (20) (15) (31) Other fees 19 2 006 1 688 3 840 887 646 1 604 372 382 731 747 676 1 525 19 6 17 (19) (22) (37) Service charges 8 2 818 2 607 5 315 29 29 56 299 270 557 2 207 2 122 4 307 283 186 395 Insurance income 20 866 720 1 652 1 1 3 849 705 1 618 16 13 28 1 3 Fair-value adjustments <(100) (140) (55) (263) 3 49 49 – – – – – – (27) 7 25 (116) (111) (337) Fair-value adjustments >(100) (25) 54 54 3 49 49 (27) 7 25 (1) (2) (20) Hedge-accounted portfolios (6) (115) (109) (317) (115) (109) (317) Trading income 5 2 646 2 513 5 099 2 474 2 352 4 756 31 27 54 58 55 116 83 79 173 – – – Commodities 36 34 25 45 34 25 45 Debt securities (18) 999 1 219 2 556 999 1 219 2 556 Equities >100 711 321 684 711 321 684 Foreign exchange (5) 902 948 1 814 730 787 1 471 31 27 54 58 55 116 83 79 173 Equity investment income (15) 343 402 892 348 363 831 – – – – 27 32 (5) 1 8 – 11 21 Realised gains, dividends, interest and other income >100 429 (433) 108 441 (404) 157 (5) 1 8 (7) (30) (57) Unrealised (losses)/gains1 >(100) (86) 835 784 (93) 767 674 27 32 7 41 78 Investment income 6 151 142 319 131 119 276 4 5 15 1 5 12 15 13 16 Sundry income/(expenses)2 30 580 445 1 191 29 77 199 10 (26) (51) 71 139 341 172 122 269 298 133 433 T otal non-interest revenue 10 16 214 14 800 31 046 5 363 5 002 10 386 2 903 2 520 5 355 6 826 6 404 13 381 957 857 1 841 165 17 83 Within BCB, an amount of R425m related to fleet management expenses, previously presented in total operating expenses for the period ended 30 June 2025, was reallocated to commission and fees income. This restatement represents a reallocation between line items only and has no impact on the profit or headline earnings for the period ended 30 June 2025 at either cluster or group level. Income statement analysis Statement of financial position analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Supplementary information Nedbank Group Unaudited interim results 2026 101
Page 104
56.1 52.9 55.3 56.9 56.2 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 16 958 18 229 19 775 21 067 21 696 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 4 Expenses Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Staff costs 6 12 541 11 789 24 013 2 527 2 350 4 615 1 316 1 044 2 372 4 345 4 197 8 581 787 723 1 465 3 566 3 475 6 980 Salaries and wages 5 10 466 9 985 20 284 Total incentives 1 953 1 945 4 114 Short-term incentives (6) 1 360 1 450 3 313 Long-term incentives 20 593 495 801 Other staff costs >100 122 (141) (385) Computer processing 2 3 859 3 788 7 662 251 246 523 348 313 606 628 732 1 418 184 184 369 2 448 2 313 4 746 Depreciation of computer equipment (8) 289 315 600 Depreciation of right-of-use assets: computer equipment (25) 46 61 116 Amortisation of intangible assets (9) 825 907 1 824 Operating lease charges for computer processing 7 165 154 328 Other computer-processing expenses 8 2 534 2 351 4 794 Fees and insurances (1) 2 417 2 435 4 785 299 300 599 431 316 653 1 210 1 270 2 460 134 137 252 343 412 821 Occupation and accommodation1,2 1 070 1 067 2 147 95 96 194 53 32 71 749 772 1 538 104 115 218 69 52 126 Marketing and public relations 20 924 769 1 781 67 62 126 91 64 151 288 235 598 34 41 76 444 367 830 Communication and travel (3) 463 479 961 162 181 349 19 6 18 199 223 451 39 43 88 44 26 55 Other operating expenses3 (43) 422 740 2 046 25 28 662 25 62 216 184 320 648 54 62 123 134 268 397 Activity-justified transfer pricing – – – 1 490 1 524 2 965 1 950 1 985 3 798 3 333 2 822 5 797 334 315 650 (7 107) (6 646) (13 210) T otal operating expenses 3 21 696 21 067 43 395 4 916 4 787 10 033 4 233 3 822 7 885 10 936 10 571 21 491 1 670 1 620 3 241 (59) 267 745 T otal operating expenses (Rm) Cost-to-income ratio (%) Analysis of total IT- related function spend included in total expenses (Rm) yoy % change Jun 2026 Jun 2025 Dec 2025 IT staff-related costs within Group Technology 7 2 358 2 204 4 501 Depreciation and amortisation of computer equipment, software and intangibles (10) 1 160 1 283 2 540 Other IT costs (including licensing, development, maintenance and processing charges)4 7 2 736 2 566 5 235 T otal IT- related functional spend 3 6 254 6 053 12 276 1 Includes the depreciation of right-of-use assets of R361m (June 2025: R383m; December 2025: R798m). 2 Includes a building depreciation charge of R211m (June 2025: R196m; December 2025: R404m). 3 Includes a furniture depreciation charge of R146m (June 2025: R162m; December 2025: R315m), consumables and sundry expenses. 4 Includes consulting and professional fees (that are included in fees and insurance), communication and travel, and other IT -related spend (included in computer processing). Nedbank Group Unaudited interim results 2026102
Page 105
26 343 25 900 25 883 25 700 25 731 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 4.7 6.5 (4.8) (2.9) 1.2 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Staff costs 6 12 541 11 789 24 013 2 527 2 350 4 615 1 316 1 044 2 372 4 345 4 197 8 581 787 723 1 465 3 566 3 475 6 980 Salaries and wages 5 10 466 9 985 20 284 Total incentives 1 953 1 945 4 114 Short-term incentives (6) 1 360 1 450 3 313 Long-term incentives 20 593 495 801 Other staff costs >100 122 (141) (385) Computer processing 2 3 859 3 788 7 662 251 246 523 348 313 606 628 732 1 418 184 184 369 2 448 2 313 4 746 Depreciation of computer equipment (8) 289 315 600 Depreciation of right-of-use assets: computer equipment (25) 46 61 116 Amortisation of intangible assets (9) 825 907 1 824 Operating lease charges for computer processing 7 165 154 328 Other computer-processing expenses 8 2 534 2 351 4 794 Fees and insurances (1) 2 417 2 435 4 785 299 300 599 431 316 653 1 210 1 270 2 460 134 137 252 343 412 821 Occupation and accommodation1,2 1 070 1 067 2 147 95 96 194 53 32 71 749 772 1 538 104 115 218 69 52 126 Marketing and public relations 20 924 769 1 781 67 62 126 91 64 151 288 235 598 34 41 76 444 367 830 Communication and travel (3) 463 479 961 162 181 349 19 6 18 199 223 451 39 43 88 44 26 55 Other operating expenses3 (43) 422 740 2 046 25 28 662 25 62 216 184 320 648 54 62 123 134 268 397 Activity-justified transfer pricing – – – 1 490 1 524 2 965 1 950 1 985 3 798 3 333 2 822 5 797 334 315 650 (7 107) (6 646) (13 210) T otal operating expenses 3 21 696 21 067 43 395 4 916 4 787 10 033 4 233 3 822 7 885 10 936 10 571 21 491 1 670 1 620 3 241 (59) 267 745 Key drivers • Employee-related costs were driven by average annual salary increases of 4%, and other staff costs due to lower IT project capitalisation recoveries. • Short-term incentives were lower as headline earnings remained flat yoy, while long-term incentives were higher due to changes in vesting conditions. • Computer-processing costs reflect our commitment to enhancing efficiency, despite higher IT volumes and ongoing investments in digital, data and cloud solutions. • Occupation and accommodation costs remained flat, supported by ongoing real estate optimisation initiatives. • Marketing costs increased due to sales growth focus and YES programme cost reclassification. T otal income growth rate less expenses growth rate (JAWS ratio) (%) T otal employees (Permanent) Within BCB, an amount of R425m related to fleet management expenses, previously presented in communication, travel and other operating expenses for the period ended 30 June 2025, was reallocated to non-interest revenue and income. This restatement represents a reallocation between line items only and has no impact on the profit or headline earnings for the period ended 30 June 2025 at either cluster or group level. The group underwent a strategic reorganisation that resulted in 2 new client-centred clusters, namely PPB and BCB. Further refinement within PPB took place during the year and resulted in the reallocation of certain expenses within the PPB segments. The restatement relates solely to a reallocation expense within segment reporting and has no impact on the profit, headline earnings, net asset value or total segment results. Income statement analysis Statement of financial position analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Supplementary information Nedbank Group Unaudited interim results 2026 103
Page 106
5 Headline earnings reconciliation Jun 2026 Jun 2025 Dec 2025 Rm yoy % change Gross Net of taxation Gross Net of taxation Gross Net of taxation Profit attributable to ordinary shareholders 14 8 354 7 331 7 799 Impairments charge on non-financial instruments and other (gains)/losses (95) 68 51 1 097 1 077 9 616 9 410 IAS 16 – loss on disposal of property and equipment 20 16 7 7 25 21 IAS 28 – impairment of investment in associate 4 4 IAS 28 reclassification of OCI reserves to profit or loss on disposal of associate 7 436 7 436 Impairment and loss on sale of associates 1 164 1 164 IAS 36 – impairment of goodwill 29 29 IAS 36 – impairment of property and equipment 121 91 IAS 36 – impairment of intangible assets 48 35 76 56 827 662 IAS 40 – loss on revaluation of investment properties 14 7 IFRS 5 – loss on transfer to non-current assets held for sale 1 010 1 010 Share of associate (ETI) impairments charge on non-financial instruments and other (gains)/losses (9) (9) (9) (9) Headline earnings 8 405 8 399 17 200 Nedbank Group Unaudited interim results 2026104
Page 107
Jun 2026 Jun 2025 Dec 2025 Direct taxation 2 378 2 266 5 075 Taxation rate reconciliation (excluding non-trading and capital items) (%) Standard rate of South African normal taxation 27.0 27.0 27.0 Reduction of taxation rate: – Dividend income (2.9) (2.2) (2.3) – Share of profits of associate companies (0.8) (2.4) (1.4) – Capital items (0.3) (0.3) (0.4) – Effects of profits taxed in different jurisdictions1 (0.5) (0.5) (0.3) – Additional tier 1 capital instruments (1.5) (1.6) (1.5) – Assessed losses not subject to deferred tax (0.1) 0.2 0.2 – Non-deductible expenses2 0.3 0.7 0.4 – Prior-period adjustments and other (0.6) (1.2) (0.6) – Pillar 2 taxation 0.1 0.1 0.1 T otal taxation on income as a percentage of profit before taxation 20.7 19.8 21.2 Effective tax rate, excluding associate headline earnings 21.3 21.8 22.4 6 Taxation charge 1 This is mainly due to the effects of the lower tax charge in Nedbank Zimbabwe, Nedbank Namibia, Nedbank Private Wealth Isle of Man (IOM), and Nedgroup Investments IOM. 2 Non-deductible expenses include share-based payments and other non-deductible expenses. Income statement analysis Statement of financial position analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Supplementary information Nedbank Group Unaudited interim results 2026 105
Page 108
Notes Nedbank Group unaudited interim results 2026106
Page 109
Statement of financial position analysis Loans and advances 108 Investment securities 118 Investments in associate companies 118 Intangible assets 119 Amounts owed to depositors 120 Liquidity risk and funding 122 Equity analysis 125 Capital management 126 Assets under management 132
Page 110
Market share according to BA900 Commercial mortgage loans (Jun 2022 – May 2026) (%) Home loans (Jun 2022 – May 2026) (%) 14.9 20.1 33.0 23.6 8.5 15.2 20.3 32.2 23.2 9.2 Nedbank FirstRand Standard Bank Absa Other 35.6 8.7 15.4 17.4 22.9 34.7 8.8 16.0 18.3 22.2 Nedbank FirstRand Standard Bank Absa Other Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre1 Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home loans 6 228 000 214 970 221 594 14 3 7 480 7 420 7 444 213 770 200 500 207 349 6 750 7 036 6 798 Commercial mortgages 6 221 692 209 074 209 812 183 116 171 619 172 265 27 648 26 721 26 315 8 499 8 679 8 682 2 421 2 019 2 520 8 36 30 Credit cards 10 19 422 17 663 18 240 1 948 1 758 1 669 17 330 15 760 16 428 144 145 143 Overdrafts 9 33 689 30 973 30 450 4 499 4 336 4 390 20 657 18 617 18 065 4 818 4 479 4 693 3 715 3 541 3 302 Personal loans 2 27 611 27 022 27 609 23 734 23 896 24 122 3 877 3 126 3 487 Term and other loans 10 226 111 206 356 209 745 197 277 180 698 182 100 16 776 15 652 15 154 3 702 4 455 4 198 8 218 5 369 8 086 138 182 207 Overnight loans 18 15 433 13 031 13 065 13 943 11 666 11 529 1 258 1 128 1 301 (3) 235 237 235 Foreign client lending 1 8 291 8 203 14 322 7 220 7 111 13 405 337 509 582 6 4 5 728 579 330 Instalment debtors 9 203 081 186 610 194 944 3 614 3 303 3 393 21 293 19 027 20 030 174 145 161 383 168 087 4 029 2 897 3 434 Preference shares and debentures 40 20 188 14 429 18 116 19 842 14 057 17 845 81 265 372 271 Factoring accounts (10) 5 944 6 633 6 619 5 942 6 632 6 619 2 1 Listed corporate bonds (13) 28 509 32 599 30 935 28 509 32 599 30 935 Fair-value hedge-accounted portfolios (66) 340 993 1 609 340 993 1 609 Gross banking loans and advances 7 1 038 311 968 556 997 060 458 020 425 403 435 865 103 420 97 464 97 179 446 266 419 528 433 835 30 119 24 950 28 335 486 1 211 1 846 Impairment of advances 1 (28 777) (28 933) (27 647) (2 029) (2 177) (1 892) (2 517) (2 230) (2 440) (22 967) (23 027) (21 955) (1 243) (1 476) (1 337) (21) (23) (23) Net banking loans and advances 7 1 009 534 939 623 969 413 455 991 423 226 433 973 100 903 95 234 94 739 423 299 396 501 411 880 28 876 23 474 26 998 465 1 188 1 823 Trading loans and advances 36 72 398 53 096 61 164 72 398 53 096 61 164 Loans and advances 9 1 081 932 992 719 1 030 577 528 389 476 322 495 137 100 903 95 234 94 739 423 299 396 501 411 880 28 876 23 474 26 998 465 1 188 1 823 Banking loans and advances to banks 15 12 103 10 521 16 863 9 201 7 779 13 375 1 498 2 275 2 089 1 404 467 1 399 Loans and advances segmental breakdown 1 Centre includes the group's centrally managed macro fair-value hedge-accounting adjustment, a central impairment provision and an impairment on other assets. 7 Loans and advances Nedbank Group unaudited interim results 2026108
Page 111
Core corporate loans (Jun 2022 – May 2026) (%) Retail vehicle finance (Jun 2022 – May 2026) (%) 19.6 21.8 22.8 20.2 15.6 19.4 20.9 23.0 20.6 16.1 Nedbank FirstRand Standard Bank Absa Other 9.5 26.2 20.4 24.9 18.9 9.8 25.7 20.4 24.2 20.0 Nedbank FirstRand Standard Bank Absa Other 10.0 22.9 19.3 10.0 37.9 9.8 24.1 19.1 9.4 37.6 Nedbank FirstRand Standard Bank Absa Other 36.2 23.8 14.8 23.0 2.3 35.4 24.5 15.4 22.3 2.3 Nedbank FirstRand Standard Bank Absa Other Personal loans (Jun 2022 – May 2026) (%) Credit cards (Jun 2022 – May 2026) (%) Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre1 Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Home loans 6 228 000 214 970 221 594 14 3 7 480 7 420 7 444 213 770 200 500 207 349 6 750 7 036 6 798 Commercial mortgages 6 221 692 209 074 209 812 183 116 171 619 172 265 27 648 26 721 26 315 8 499 8 679 8 682 2 421 2 019 2 520 8 36 30 Credit cards 10 19 422 17 663 18 240 1 948 1 758 1 669 17 330 15 760 16 428 144 145 143 Overdrafts 9 33 689 30 973 30 450 4 499 4 336 4 390 20 657 18 617 18 065 4 818 4 479 4 693 3 715 3 541 3 302 Personal loans 2 27 611 27 022 27 609 23 734 23 896 24 122 3 877 3 126 3 487 Term and other loans 10 226 111 206 356 209 745 197 277 180 698 182 100 16 776 15 652 15 154 3 702 4 455 4 198 8 218 5 369 8 086 138 182 207 Overnight loans 18 15 433 13 031 13 065 13 943 11 666 11 529 1 258 1 128 1 301 (3) 235 237 235 Foreign client lending 1 8 291 8 203 14 322 7 220 7 111 13 405 337 509 582 6 4 5 728 579 330 Instalment debtors 9 203 081 186 610 194 944 3 614 3 303 3 393 21 293 19 027 20 030 174 145 161 383 168 087 4 029 2 897 3 434 Preference shares and debentures 40 20 188 14 429 18 116 19 842 14 057 17 845 81 265 372 271 Factoring accounts (10) 5 944 6 633 6 619 5 942 6 632 6 619 2 1 Listed corporate bonds (13) 28 509 32 599 30 935 28 509 32 599 30 935 Fair-value hedge-accounted portfolios (66) 340 993 1 609 340 993 1 609 Gross banking loans and advances 7 1 038 311 968 556 997 060 458 020 425 403 435 865 103 420 97 464 97 179 446 266 419 528 433 835 30 119 24 950 28 335 486 1 211 1 846 Impairment of advances 1 (28 777) (28 933) (27 647) (2 029) (2 177) (1 892) (2 517) (2 230) (2 440) (22 967) (23 027) (21 955) (1 243) (1 476) (1 337) (21) (23) (23) Net banking loans and advances 7 1 009 534 939 623 969 413 455 991 423 226 433 973 100 903 95 234 94 739 423 299 396 501 411 880 28 876 23 474 26 998 465 1 188 1 823 Trading loans and advances 36 72 398 53 096 61 164 72 398 53 096 61 164 Loans and advances 9 1 081 932 992 719 1 030 577 528 389 476 322 495 137 100 903 95 234 94 739 423 299 396 501 411 880 28 876 23 474 26 998 465 1 188 1 823 Banking loans and advances to banks 15 12 103 10 521 16 863 9 201 7 779 13 375 1 498 2 275 2 089 1 404 467 1 399 Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 109
Page 112
Stage 1 coverage Stage 2 coverage Stage 3 LAA (amortised cost) 0.64 0.63 0.67 0.61 0.507.26 7.42 6.76 6.78 7.91 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Jun 2026 Stage 1 coverage Stage 2 coverage 41 719 57 254 51 416 49 003 46 262 38.41 34.49 38.17 39.51 41.79 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Jun 2026 Stage 3 LAA (amortised cost) Stage 3 coverage Stage 3 coverage Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA excluding trading book Stage 3 GLAA as a % of GLAA excluding trading book June 2026 Rm Rm % Rm Rm % Rm Rm % Rm Rm % Rm % Corporate and Investment Banking (CIB) 388 189 346 0.09 11 096 115 1.04 6 091 1 568 25.74 405 376 2 029 0.50 458 020 1.49 CIB, excluding Property Finance 198 125 238 0.12 4 707 85 1.81 1 440 281 19.51 204 272 604 0.30 254 625 0.85 Property Finance 190 064 108 0.06 6 389 30 0.47 4 651 1 287 27.67 201 104 1 425 0.71 203 395 2.29 Business and Commercial Banking (BCB) 90 354 354 0.39 7 952 249 3.13 5 114 1 914 37.43 103 420 2 517 2.43 103 420 4.94 Personal and Private Banking (PPB) 367 074 3 448 0.94 43 451 4 598 10.58 33 393 14 921 44.68 443 918 22 967 5.17 446 266 7.48 Nedbank Africa Regions: SADC (NAR: SADC) 27 284 259 0.95 1 171 77 6.58 1 664 907 54.51 30 119 1 243 4.13 30 119 5.52 Centre 146 21 146 21 486 GLAA/ECL held at amortised cost 873 047 4 407 0.50 63 670 5 039 7.91 46 262 19 331 41.79 982 979 28 777 2.93 1 038 311 4.52 GLAA/ECL for assets held at FVOCI 38 781 29 175 2 712 112 39 668 143 Trading GLAA held at FVTPL 72 398 72 398 72 398 Banking book GLAA held at FVTPL 15 324 15 324 GLAA for fair-value hedge-accounted portfolios 340 340 Off-balance-sheet ECL 214 25 30 269 T otal GLAA/ECL 999 890 4 650 63 845 5 066 46 974 19 473 1 110 709 29 189 1 110 709 Stage 1 and stage 2 coverage (%) Stage 3 advances and coverage ratio (Rm) (%) Summary of loans and advances and coverage ratios GLAA, ECL and coverage ratios by cluster and stage Nedbank Group unaudited interim results 2026110
Page 113
T otal stage 3 LAA 3.31 3.67 3.51 3.21 2.93 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA excluding trading book Stage 3 GLAA as a % of GLAA excluding trading book June 2026 Rm Rm % Rm Rm % Rm Rm % Rm Rm % Rm % Corporate and Investment Banking (CIB) 388 189 346 0.09 11 096 115 1.04 6 091 1 568 25.74 405 376 2 029 0.50 458 020 1.49 CIB, excluding Property Finance 198 125 238 0.12 4 707 85 1.81 1 440 281 19.51 204 272 604 0.30 254 625 0.85 Property Finance 190 064 108 0.06 6 389 30 0.47 4 651 1 287 27.67 201 104 1 425 0.71 203 395 2.29 Business and Commercial Banking (BCB) 90 354 354 0.39 7 952 249 3.13 5 114 1 914 37.43 103 420 2 517 2.43 103 420 4.94 Personal and Private Banking (PPB) 367 074 3 448 0.94 43 451 4 598 10.58 33 393 14 921 44.68 443 918 22 967 5.17 446 266 7.48 Nedbank Africa Regions: SADC (NAR: SADC) 27 284 259 0.95 1 171 77 6.58 1 664 907 54.51 30 119 1 243 4.13 30 119 5.52 Centre 146 21 146 21 486 GLAA/ECL held at amortised cost 873 047 4 407 0.50 63 670 5 039 7.91 46 262 19 331 41.79 982 979 28 777 2.93 1 038 311 4.52 GLAA/ECL for assets held at FVOCI 38 781 29 175 2 712 112 39 668 143 Trading GLAA held at FVTPL 72 398 72 398 72 398 Banking book GLAA held at FVTPL 15 324 15 324 GLAA for fair-value hedge-accounted portfolios 340 340 Off-balance-sheet ECL 214 25 30 269 T otal GLAA/ECL 999 890 4 650 63 845 5 066 46 974 19 473 1 110 709 29 189 1 110 709 43 857 58 392 52 419 49 965 46 974 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 1.81 1.49 5.16 4.52 1.73 4.94 3.56 7.48 Nedbank Group coverage (%) Stage 3 advances as a percentage of gross banking loans and advances (Rm) PPBBCBT otal Nedbank GroupCIB Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 111
Page 114
Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA, excluding trading book Stage 3 GLAA as a % of total GLAA December 2025 Rm Rm % Rm Rm % Rm Rm % Rm Rm % Rm % Corporate and Investment Banking (CIB) 356 680 300 0.08 13 785 166 1.20 7 336 1 426 19.44 377 801 1 892 0.50 435 865 1.76 CIB, excluding Property Finance 176 225 194 0.11 7 237 140 1.93 2 584 318 12.31 186 046 652 0.35 241 781 1.21 Property Finance 180 455 106 0.06 6 548 26 0.40 4 752 1 108 23.32 191 755 1 240 0.65 194 084 2.45 Business and Commercial Banking (BCB) 83 001 373 0.45 8 611 246 2.86 5 567 1 821 32.71 97 179 2 440 2.51 97 179 5.73 Personal and Private Banking (PPB) 356 291 3 413 0.96 42 596 4 236 9.94 32 504 14 306 44.01 431 391 21 955 5.09 433 835 7.49 Nedbank Africa Regions: SADC (NAR: SADC) 25 368 247 0.97 1 136 60 5.28 1 831 1 030 56.25 28 335 1 337 4.72 28 335 6.46 Centre 219 6 12 23 237 23 1 846 GLAA/ECL held at amortised cost 821 559 4 333 0.53 66 134 4 708 7.12 47 250 18 606 39.38 934 943 27 647 2.96 997 060 4.77 GLAA/ECL for assets held at FVOCI 42 542 37 3 370 7 331 91 46 243 135 Trading GLAA held at FVTPL 61 164 61 164 61 164 Banking book GLAA held at FVTPL 14 265 14 265 GLAA for fair-value hedge-accounted portfolios 1 609 1 609 Off-balance-sheet ECL 223 31 23 277 T otal GLAA/ECL 941 139 4 593 69 504 4 746 47 581 18 720 1 058 224 28 059 1 058 224 Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA, excluding trading book Stage 3 GLAA as a % of total GLAA June 2025 Rm Rm % Rm Rm % Rm Rm % Rm Rm % Rm % Corporate and Investment Banking (CIB) 337 385 316 0.09 17 816 272 1.53 6 748 1 589 23.55 361 949 2 177 0.60 425 403 1.81 CIB, excluding Property Finance 156 602 211 0.13 9 877 205 2.08 3 401 649 19.08 169 880 1 065 0.63 231 036 1.89 Property Finance 180 783 105 0.06 7 939 67 0.84 3 347 940 28.08 192 069 1 112 0.58 194 367 1.72 Business and Commercial Banking (BCB) 82 202 303 0.38 8 729 239 2.74 6 533 1 688 25.84 97 464 2 230 2.29 97 464 1.73 Personal and Private Banking (PPB) 340 014 3 884 1.13 43 063 4 209 9.77 33 813 14 934 44.17 416 890 23 027 5.52 419 528 3.56 Nedbank Africa Regions: SADC (NAR: SADC) 21 804 263 1.21 1 237 87 7.03 1 909 1 126 58.98 24 950 1 476 5.92 24 950 7.65 Centre 209 9 23 218 23 1 211 GLAA/ECL held at amortised cost 781 614 4 766 0.61 70 854 4 807 6.78 49 003 19 360 39.51 901 471 28 933 3.21 968 556 5.16 GLAA/ECL for assets held at FVOCI 50 111 49 1 260 16 962 351 52 333 416 Trading GLAA held at FVTPL 53 096 53 096 53 096 Banking book GLAA held at FVTPL 13 759 13 759 GLAA for fair-value hedge-accounted portfolios 993 993 Off-balance-sheet ECL 214 32 49 295 T otal GLAA/ECL 899 573 5 029 72 114 4 855 49 965 19 760 1 021 652 29 644 1 021 652 Nedbank Group unaudited interim results 2026112
Page 115
Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA, excluding trading book Stage 3 GLAA as a % of total GLAA December 2025 Rm Rm % Rm Rm % Rm Rm % Rm Rm % Rm % Corporate and Investment Banking (CIB) 356 680 300 0.08 13 785 166 1.20 7 336 1 426 19.44 377 801 1 892 0.50 435 865 1.76 CIB, excluding Property Finance 176 225 194 0.11 7 237 140 1.93 2 584 318 12.31 186 046 652 0.35 241 781 1.21 Property Finance 180 455 106 0.06 6 548 26 0.40 4 752 1 108 23.32 191 755 1 240 0.65 194 084 2.45 Business and Commercial Banking (BCB) 83 001 373 0.45 8 611 246 2.86 5 567 1 821 32.71 97 179 2 440 2.51 97 179 5.73 Personal and Private Banking (PPB) 356 291 3 413 0.96 42 596 4 236 9.94 32 504 14 306 44.01 431 391 21 955 5.09 433 835 7.49 Nedbank Africa Regions: SADC (NAR: SADC) 25 368 247 0.97 1 136 60 5.28 1 831 1 030 56.25 28 335 1 337 4.72 28 335 6.46 Centre 219 6 12 23 237 23 1 846 GLAA/ECL held at amortised cost 821 559 4 333 0.53 66 134 4 708 7.12 47 250 18 606 39.38 934 943 27 647 2.96 997 060 4.77 GLAA/ECL for assets held at FVOCI 42 542 37 3 370 7 331 91 46 243 135 Trading GLAA held at FVTPL 61 164 61 164 61 164 Banking book GLAA held at FVTPL 14 265 14 265 GLAA for fair-value hedge-accounted portfolios 1 609 1 609 Off-balance-sheet ECL 223 31 23 277 T otal GLAA/ECL 941 139 4 593 69 504 4 746 47 581 18 720 1 058 224 28 059 1 058 224 Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA, excluding trading book Stage 3 GLAA as a % of total GLAA June 2025 Rm Rm % Rm Rm % Rm Rm % Rm Rm % Rm % Corporate and Investment Banking (CIB) 337 385 316 0.09 17 816 272 1.53 6 748 1 589 23.55 361 949 2 177 0.60 425 403 1.81 CIB, excluding Property Finance 156 602 211 0.13 9 877 205 2.08 3 401 649 19.08 169 880 1 065 0.63 231 036 1.89 Property Finance 180 783 105 0.06 7 939 67 0.84 3 347 940 28.08 192 069 1 112 0.58 194 367 1.72 Business and Commercial Banking (BCB) 82 202 303 0.38 8 729 239 2.74 6 533 1 688 25.84 97 464 2 230 2.29 97 464 1.73 Personal and Private Banking (PPB) 340 014 3 884 1.13 43 063 4 209 9.77 33 813 14 934 44.17 416 890 23 027 5.52 419 528 3.56 Nedbank Africa Regions: SADC (NAR: SADC) 21 804 263 1.21 1 237 87 7.03 1 909 1 126 58.98 24 950 1 476 5.92 24 950 7.65 Centre 209 9 23 218 23 1 211 GLAA/ECL held at amortised cost 781 614 4 766 0.61 70 854 4 807 6.78 49 003 19 360 39.51 901 471 28 933 3.21 968 556 5.16 GLAA/ECL for assets held at FVOCI 50 111 49 1 260 16 962 351 52 333 416 Trading GLAA held at FVTPL 53 096 53 096 53 096 Banking book GLAA held at FVTPL 13 759 13 759 GLAA for fair-value hedge-accounted portfolios 993 993 Off-balance-sheet ECL 214 32 49 295 T otal GLAA/ECL 899 573 5 029 72 114 4 855 49 965 19 760 1 021 652 29 644 1 021 652 Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 113
Page 116
GLAA, ECL and coverage by product June 2026 Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage Rm Rm % Rm Rm % Rm Rm % Rm Rm % Residential mortgages 188 213 406 0.22 20 449 996 4.87 17 191 4 668 27.15 225 853 6 070 2.69 Commercial mortgages 203 045 191 0.09 9 666 101 1.04 6 640 1 853 27.91 219 351 2 145 0.98 Instalment debtors 173 945 1 589 0.91 19 459 2 162 11.11 9 677 4 927 50.91 203 081 8 678 4.27 Credit cards and overdrafts 33 586 934 2.78 5 771 910 15.77 5 445 3 440 63.18 44 802 5 284 11.79 Term loans 178 204 1 193 0.67 6 761 813 12.02 6 267 3 910 62.39 191 232 5 916 3.09 Other client loans 87 641 205 0.23 1 522 68 4.47 1 017 542 53.29 90 180 815 0.90 Other, including credit and zero balances 8 403 (111) 40 (11) 25 (9) 8 468 (131) GLAA/ECL held at amortised cost 873 037 4 407 0.50 63 668 5 039 7.91 46 262 19 331 41.79 982 967 28 777 2.93 December 2025 Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage Rm Rm % Rm Rm % Rm Rm % Rm Rm % Residential mortgages 182 771 390 0.21 19 786 881 4.45 16 841 4 405 26.16 219 398 5 676 2.59 Commercial mortgages 189 795 180 0.09 10 484 104 0.99 7 123 1 770 24.85 207 402 2 054 0.99 Instalment debtors 167 002 1 688 1.01 18 672 1 973 10.57 9 270 4 650 50.16 194 944 8 311 4.26 Credit cards and overdrafts 29 370 867 2.95 5 107 754 14.76 5 400 3 294 61.0 39 877 4 915 12.33 Term loans 166 979 1 074 0.64 10 412 942 9.05 7 549 3 989 52.84 184 940 6 005 3.25 Other client loans 76 722 252 0.33 1 633 66 4.04 1 038 506 48.75 79 393 824 1.04 Other, including credit and zero balances 8 920 (118) 40 (12) 29 (8) 8 989 (138) GLAA/ECL held at amortised cost 821 559 4 333 0.53 66 134 4 708 7.12 47 250 18 606 39.38 934 943 27 647 2.96 June 2025 Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage Rm Rm % Rm Rm % Rm Rm % Rm Rm % Residential mortgages 174 735 406 0.23 20 604 835 4.05 17 313 4 723 27.28 212 652 5 964 2.80 Commercial mortgages 188 847 182 0.10 11 276 123 1.09 6 597 1 625 24.63 206 720 1 930 0.93 Instalment debtors 159 076 1 918 1.21 17 984 1 999 11.12 9 550 4 752 49.76 186 610 8 669 4.65 Credit cards and overdrafts 28 366 946 3.33 6 452 805 12.48 5 660 3 071 54.26 40 478 4 822 11.91 Term loans 143 737 1 196 0.83 12 532 956 7.63 8 898 4 709 52.92 165 167 6 861 4.15 Other client loans 78 578 234 0.30 1 964 104 5.30 959 489 50.99 81 501 827 1.01 Other, including credit and zero balances 8 275 (116) 42 (15) 26 (9) 8 343 (140) GLAA/ECL held at amortised cost 781 614 4 766 0.61 70 854 4 807 6.78 49 003 19 360 39.51 901 471 28 933 3.21 Nedbank Group unaudited interim results 2026114
Page 117
June 2026 Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage Rm Rm % Rm Rm % Rm Rm % Rm Rm % Residential mortgages 188 213 406 0.22 20 449 996 4.87 17 191 4 668 27.15 225 853 6 070 2.69 Commercial mortgages 203 045 191 0.09 9 666 101 1.04 6 640 1 853 27.91 219 351 2 145 0.98 Instalment debtors 173 945 1 589 0.91 19 459 2 162 11.11 9 677 4 927 50.91 203 081 8 678 4.27 Credit cards and overdrafts 33 586 934 2.78 5 771 910 15.77 5 445 3 440 63.18 44 802 5 284 11.79 Term loans 178 204 1 193 0.67 6 761 813 12.02 6 267 3 910 62.39 191 232 5 916 3.09 Other client loans 87 641 205 0.23 1 522 68 4.47 1 017 542 53.29 90 180 815 0.90 Other, including credit and zero balances 8 403 (111) 40 (11) 25 (9) 8 468 (131) GLAA/ECL held at amortised cost 873 037 4 407 0.50 63 668 5 039 7.91 46 262 19 331 41.79 982 967 28 777 2.93 December 2025 Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage Rm Rm % Rm Rm % Rm Rm % Rm Rm % Residential mortgages 182 771 390 0.21 19 786 881 4.45 16 841 4 405 26.16 219 398 5 676 2.59 Commercial mortgages 189 795 180 0.09 10 484 104 0.99 7 123 1 770 24.85 207 402 2 054 0.99 Instalment debtors 167 002 1 688 1.01 18 672 1 973 10.57 9 270 4 650 50.16 194 944 8 311 4.26 Credit cards and overdrafts 29 370 867 2.95 5 107 754 14.76 5 400 3 294 61.0 39 877 4 915 12.33 Term loans 166 979 1 074 0.64 10 412 942 9.05 7 549 3 989 52.84 184 940 6 005 3.25 Other client loans 76 722 252 0.33 1 633 66 4.04 1 038 506 48.75 79 393 824 1.04 Other, including credit and zero balances 8 920 (118) 40 (12) 29 (8) 8 989 (138) GLAA/ECL held at amortised cost 821 559 4 333 0.53 66 134 4 708 7.12 47 250 18 606 39.38 934 943 27 647 2.96 June 2025 Stage 1 Stage 2 Stage 3 TOTAL GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage GLAA ECL Coverage Rm Rm % Rm Rm % Rm Rm % Rm Rm % Residential mortgages 174 735 406 0.23 20 604 835 4.05 17 313 4 723 27.28 212 652 5 964 2.80 Commercial mortgages 188 847 182 0.10 11 276 123 1.09 6 597 1 625 24.63 206 720 1 930 0.93 Instalment debtors 159 076 1 918 1.21 17 984 1 999 11.12 9 550 4 752 49.76 186 610 8 669 4.65 Credit cards and overdrafts 28 366 946 3.33 6 452 805 12.48 5 660 3 071 54.26 40 478 4 822 11.91 Term loans 143 737 1 196 0.83 12 532 956 7.63 8 898 4 709 52.92 165 167 6 861 4.15 Other client loans 78 578 234 0.30 1 964 104 5.30 959 489 50.99 81 501 827 1.01 Other, including credit and zero balances 8 275 (116) 42 (15) 26 (9) 8 343 (140) GLAA/ECL held at amortised cost 781 614 4 766 0.61 70 854 4 807 6.78 49 003 19 360 39.51 901 471 28 933 3.21 Key drivers • The group's gross banking loans and advances (GLAA) increased by 7% to R1 038bn on the back of solid growth in CIB, PPB, BCB and NAR: SADC businesses. • CIB GLAA increased by 8%, driven by growth in Investment Banking, supported by power and renewables, structured commodity finance and telecommunications, as well as growth in commercial property loans and advances. • BCB GLAA increased by 6%, driven by strong double-digit growth in new-loan payouts, particularly in the Commercial and Mid-corporate segments. • PPB GLAA increased by 6%, driven by growth in home loans, vehicle finance and card balances, partly offset by a slight decrease in the Personal Loans book. • NAR: SADC GLAA increased by 20%, supported by increased activity in strategic sectors, including mining and agriculture across the regions. • The group's balance sheet ECL declined slightly to R29.2bn, with the coverage ratio decreasing to 2.93% (2025: 2.96%; H1 2025: 3.21%), mainly due to an improvement in the book mix with decreases in stage 3 and stage 2 loans, while stage 1 loans increased due to stronger front book growth. Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 115
Page 118
Economic scenarios December 2025 Economic forecast1 (%) Scenario Probability weighting (%) T otal ECL allowance Difference to weighted scenarios Percentage difference to weighted scenarios (%) Economic measures 2026 2027 2028 GDP 1.5 1.6 1.8 Base case 50 28 003 (56) (0.2%) Prime 9.8 9.3 9.3 HPI 4.5 4.7 4.7 GDP 0.4 1.0 1.4 Mild stress 21 28 233 174 0.6% Prime 10.8 10.3 10.0 HPI 3.6 3.5 3.9 GDP 2.0 2.1 2.3 Positive outcome 21 27 879 (180) (0.6%) Prime 9.0 8.5 8.5 HPI 5.6 6.0 6.0 GDP (0.2) 0.6 1.2 High stress 8 28 424 365 1.3% Prime 11.5 11.5 11.0 HPI 2.8 2.2 3.1 Weighted scenarios 100 28 059 June 2026 Economic forecast1 (%) Scenario Probability weighting (%) T otal ECL allowance Difference to weighted scenarios Percentage difference to weighted scenarios (%) Economic measures 2027 2028 2029 GDP 1.4 1.8 2.4 Base case 50 29 162 (27) (0.1%) Prime 10.5 9.8 10.5 HPI 4.5 4.8 6.0 GDP 1.0 1.5 2.4 Mild stress 21 29 323 134 0.5% Prime 11.0 10.5 10.5 HPI 3.3 3.8 5.7 GDP 1.8 2.3 2.4 Positive outcome 21 28 981 (208) (0.7%) Prime 9.5 9.0 10.5 HPI 5.8 6.0 6.6 GDP 0.4 0.9 2.4 High stress 8 29 555 366 1.3% Prime 11.5 11.5 10.5 HPI 2.1 2.7 5.3 Weighted scenarios 100 29 189 1 Forecast at 30 June 2026. 1 Forecast at 31 December 2025. Nedbank Group unaudited interim results 2026116
Page 119
Climate-related disclosures Rm % of GLAA June June Dec Ytd June June Dec 2026 2025 2025 change 2026 2025 2025 Thermal coal1 Limit2 3 826 2 306 3 337 489 0.4 0.2 0.3 Drawn exposure 1 927 1 489 1 932 (5) 0.2 0.2 0.2 Upstream oil3 Limit2 24 457 19 477 17 772 6 685 2.4 2.0 1.8 Drawn exposure 13 599 12 759 11 602 1 997 1.3 1.3 1.2 Upstream gas3 Limit2 4 860 6 024 4 302 558 0.5 0.6 0.4 Drawn exposure 941 2 137 732 209 0.1 0.2 0.1 Non-renewable power generation Limit2 1 442 6 900 8 384 (6 942) 0.1 0.7 0.8 Drawn exposure 960 3 047 4 204 (3 244) 0.1 0.3 0.4 Renewable Energy Independent Power Producer Procurement Programme Limit2 42 765 40 439 38 828 3 937 4.1 4.2 3.9 Drawn exposure 31 883 31 009 30 338 1 545 3.1 3.2 3.0 Private power generation – CIB Limit2 35 621 25 362 27 042 8 579 3.4 2.6 2.7 Drawn exposure 22 470 14 629 18 002 4 468 2.2 1.5 1.8 Private power generation – BCB4 Limit2 2 714 1 212 2 298 416 0.3 0.1 0.2 Drawn exposure 1 780 1 212 1 472 308 0.2 0.1 0.1 Private power generation – PPB4 Limit2 211 177 34 0.0 0.0 0.0 Drawn exposure 141 123 18 0.0 0.0 0.0 Private power generation – NAR: SADC Limit2 202 169 144 58 0.0 0.0 0.0 Drawn exposure 96 151 103 (7) 0.0 0.0 0.0 African renewable energy projects Limit2 226 289 254 (28) 0.0 0.0 0.0 Drawn exposure 122 179 148 (26) 0.0 0.0 0.0 T otal renewable energy Limit2 81 739 67 471 68 743 12 996 7.9 7.0 6.9 Drawn exposure 56 492 47 180 50 186 6 306 5.4 4.9 5.0 1 Excludes derivative products and environmental guarantees. 2 Current limits include all committed facilities approved to clients in respective portfolios, aligned with the Nedbank Energy Policy. 3 Includes all limits and exposures, including all products and derivatives, aligned with the Nedbank Energy Policy. 4 BCB and PPB were reported under RBB in June 2025 and were therefore not disclosed separately. PPB had no exposures at 30 June 2025. The combined RBB total limit and drawn exposure was R1 212m at 30 June 2025. Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 117
Page 120
Rm Jun 2026 Jun 2025 Dec 2025 Equity investments 9 287 7 777 8 580 Associates – Property Partners 2 812 2 544 2 735 Associates – Investment Banking 908 1 335 911 Unlisted investments – Property Partners 1 142 1 044 1 036 Unlisted investments – Investment Banking 4 425 2 854 3 898 Listed investments 43 994 55 Unlisted investments 3 312 3 738 3 491 Taquanta Asset Managers portfolio 685 616 672 Strate Limited 260 210 250 Other 2 367 2 912 2 569 T otal listed and unlisted investments 12 642 12 509 12 126 Listed policyholder investments at market value 15 014 16 145 15 184 Unlisted policyholder investments at directors' valuation 2 515 2 556 2 767 T otal policyholder investments 17 529 18 701 17 951 T otal investment securities 30 171 31 210 30 077 9 Investments in associate companies Equity-accounted earnings Rm Carrying amount Rm Net exposure to associates1 Rm Name of company and nature of business Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Associates Listed ETI 995 995 Unlisted Equity investments: Tracker Technology Holdings Proprietary Limited 22 34 65 589 631 566 684 730 707 Other equity investments 342 45 93 693 411 373 664 583 611 Other strategic investments (3) (6) 39 604 563 607 129 T otal 361 1 068 1 192 1 886 1 605 1 546 1 348 1 442 1 318 1 Includes on-balance-sheet and off-balance-sheet exposure. 8 Investment securities Nedbank Group unaudited interim results 2026118
Page 121
Rm Jun 2026 Jun 2025 Dec 2025 Computer software and capitalised development costs 7 842 8 157 7 916 Goodwill 5 337 4 013 5 340 Client relationships, contractual rights and other 207 346 193 13 386 12 516 13 449 Rm Amortisation periods Jun 2026 Jun 2025 Dec 2025 Computer software 2–10 years 5 551 6 352 5 921 Core product and client systems 1 843 2 500 2 202 Support systems 1 689 1 826 1 698 Digital systems 1 459 1 432 1 478 Payment systems 560 594 543 Development costs not yet commissioned none 2 291 1 805 1 995 Core product and client systems 922 1 032 946 Support systems 361 192 285 Digital systems 678 573 729 Payment systems 330 8 35 7 842 8 157 7 916 Computer software Opening balance 5 921 6 340 6 340 Additions 46 145 175 Commissioned during period 455 868 1 313 Foreign exchange and other moves (20) (19) 27 Amortisation charge for the period (825) (907) (1 824) Impairments (26) (75) (110) Closing balance 5 551 6 352 5 921 Development costs not yet commissioned Opening balance 1 995 2 072 2 072 Additions 699 583 1 651 Commissioned during period (455) (868) (1 313) Foreign exchange and other moves 74 19 302 Impairments (22) (1) (717) Closing balance 2 291 1 805 1 995 Computer software and capitalised development costs – carrying amount 10 Intangible assets Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 119
Page 122
11 Amounts owed to depositors Segmental breakdown Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2024 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Current accounts 5 118 024 112 770 117 383 9 036 8 021 7 761 37 442 36 188 38 298 55 099 54 103 55 812 16 372 14 108 15 429 75 350 83 Savings accounts (5) 32 983 34 765 33 066 123 155 119 31 850 33 650 31 990 1 010 960 957 Other deposits and loan accounts 8 973 782 898 951 940 695 533 521 484 916 509 327 177 640 166 612 175 492 237 131 224 872 233 283 23 921 20 745 20 947 1 569 1 806 1 646 Call and term deposits 11 561 368 503 623 522 703 221 802 186 589 191 434 156 568 146 841 154 972 170 110 158 260 164 304 12 880 11 926 11 985 8 7 8 Fixed deposits 3 82 836 80 515 81 670 10 040 10 766 9 441 2 312 1 433 1 611 64 758 63 712 65 918 5 726 4 604 4 700 Cash management deposits 2 117 637 115 165 115 712 106 329 103 235 103 642 8 542 9 309 9 495 428 370 366 2 267 2 185 2 147 71 66 62 Other deposits 6 211 941 199 648 220 610 195 350 184 326 204 810 10 218 9 029 9 414 1 835 2 530 2 695 3 048 2 030 2 115 1 490 1 733 1 576 Foreign currency liabilities (9) 36 693 40 281 40 350 24 721 29 713 30 307 9 901 8 148 7 985 2 052 2 076 1 964 19 344 94 Negotiable certificates of deposit 13 135 880 119 966 132 437 4 127 3 517 4 179 131 753 116 449 128 258 Macro fair-value hedge-accounting adjustment (78) 235 1 053 1 528 235 1 053 1 528 Deposits received under repurchase agreements >100 54 907 24 161 40 137 54 684 24 161 39 473 223 664 T otal amounts owed to depositors 10 1 352 504 1 231 947 1 305 596 621 962 546 811 586 868 225 106 211 103 221 894 326 132 314 701 323 049 45 672 39 674 42 270 133 632 119 658 131 515 Comprises: – Banking book amounts owed to depositors 7 1 250 006 1 171 695 1 221 554 519 464 486 559 502 826 225 106 211 103 221 894 326 132 314 701 323 049 45 672 39 674 42 270 133 632 119 658 131 515 – Trading book amounts owed to depositors 70 102 498 60 252 84 042 102 498 60 252 84 042 T otal amounts owed to depositors 10 1 352 504 1 231 947 1 305 596 621 962 546 811 586 868 225 106 211 103 221 894 326 132 314 701 323 049 45 672 39 674 42 270 133 632 119 658 131 515 During the year, the group reviewed its segmental reporting following changes in the manner in which information relating to the investment in ETI was reported to and reviewed by Group Exco. As a result, amounts related to the investment in ETI, including internal funding, were reallocated from the NAR: SADC Cluster to the Centre to align the segmental disclosure with the group's internal management reporting structure. This resulted in the restatement of previously disclosed NAR: SADC and Centre segmental information. The restatement represents a reallocation between segments only and has no impact on group profit for the year, headline earnings or total group equity. The investment in ETI was sold in Q4 2025. Market share according to BA900 Commercial deposits2 (Jun 2022 – May 2026) (%) Retail deposits1 (Jun 2022 – May 2026) (%) 1 Includes households, unincorporated businesses and non-profit organisations servicing households according to the BA900 return. 2 Commercial deposits (excluding wholesale foreign sector deposits and foreign currency deposits) according to the BA900 return. 16.9 22.6 19.3 20.9 20.2 17.0 23.2 19.3 20.5 20.1 Nedbank FirstRand Standard Bank Absa Other 15.4 27.1 24.2 20.3 13.1 14.9 27.3 23.9 19.7 14.1 Nedbank FirstRand Standard Bank Absa Other Nedbank Group unaudited interim results 2026120
Page 123
Nedbank Group Corporate and Investment Banking Business and Commercial Banking Personal and Private Banking Nedbank Africa Regions: SADC Centre Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2024 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Current accounts 5 118 024 112 770 117 383 9 036 8 021 7 761 37 442 36 188 38 298 55 099 54 103 55 812 16 372 14 108 15 429 75 350 83 Savings accounts (5) 32 983 34 765 33 066 123 155 119 31 850 33 650 31 990 1 010 960 957 Other deposits and loan accounts 8 973 782 898 951 940 695 533 521 484 916 509 327 177 640 166 612 175 492 237 131 224 872 233 283 23 921 20 745 20 947 1 569 1 806 1 646 Call and term deposits 11 561 368 503 623 522 703 221 802 186 589 191 434 156 568 146 841 154 972 170 110 158 260 164 304 12 880 11 926 11 985 8 7 8 Fixed deposits 3 82 836 80 515 81 670 10 040 10 766 9 441 2 312 1 433 1 611 64 758 63 712 65 918 5 726 4 604 4 700 Cash management deposits 2 117 637 115 165 115 712 106 329 103 235 103 642 8 542 9 309 9 495 428 370 366 2 267 2 185 2 147 71 66 62 Other deposits 6 211 941 199 648 220 610 195 350 184 326 204 810 10 218 9 029 9 414 1 835 2 530 2 695 3 048 2 030 2 115 1 490 1 733 1 576 Foreign currency liabilities (9) 36 693 40 281 40 350 24 721 29 713 30 307 9 901 8 148 7 985 2 052 2 076 1 964 19 344 94 Negotiable certificates of deposit 13 135 880 119 966 132 437 4 127 3 517 4 179 131 753 116 449 128 258 Macro fair-value hedge-accounting adjustment (78) 235 1 053 1 528 235 1 053 1 528 Deposits received under repurchase agreements >100 54 907 24 161 40 137 54 684 24 161 39 473 223 664 T otal amounts owed to depositors 10 1 352 504 1 231 947 1 305 596 621 962 546 811 586 868 225 106 211 103 221 894 326 132 314 701 323 049 45 672 39 674 42 270 133 632 119 658 131 515 Comprises: – Banking book amounts owed to depositors 7 1 250 006 1 171 695 1 221 554 519 464 486 559 502 826 225 106 211 103 221 894 326 132 314 701 323 049 45 672 39 674 42 270 133 632 119 658 131 515 – Trading book amounts owed to depositors 70 102 498 60 252 84 042 102 498 60 252 84 042 T otal amounts owed to depositors 10 1 352 504 1 231 947 1 305 596 621 962 546 811 586 868 225 106 211 103 221 894 326 132 314 701 323 049 45 672 39 674 42 270 133 632 119 658 131 515 Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Wholesale deposits3 (Jun 2022 – May 2026) (%) Foreign currency liabilities4 (Jun 2022 – May 2026) (%) 3 Includes insurers, pension funds, private financial corporate sector deposits, collateralised borrowings and repurchase deposits according to the BA900 return. 4 Includes foreign currency deposits and foreign currency funding according to the BA900 return. 21.4 14.4 24.9 24.4 15.0 21.5 13.3 27.0 24.0 14.1 Nedbank FirstRand Standard Bank Absa Other 10.8 18.1 26.1 19.7 25.3 9.7 19.3 30.1 15.5 25.4 Nedbank FirstRand Standard Bank Absa Other Nedbank Group unaudited interim results 2026 121
Page 124
1 Total high-quality liquid assets (HQLA) are managed and reported at fair value. This includes unencumbered government securities held in the trading portfolio as well as those designated for interest rate risk management in the macro fair-value hedge-accounting solution. 2 Only banking and/or deposit-taking entities are included in the group LCR and the group ratio represents a consolidation of the relevant individual net cash outflows (NCOF) and the individual HQLA portfolios across all banking and/or deposit-taking entities, where surplus HQLA holdings in excess of the minimum requirement have been excluded from the consolidated HQLA number in the case of all non-South African banking entities. The values above reflect the simple average of daily observations over the quarter ending 30 June 2026 for Nedbank and the simple average of the month-end values at 30 April 2026, 31 May 2026 and 30 June 2026 for all non-South African banking entities. 3 Only banking and/or deposit-taking entities are included in the group NSFR and the group data represents a consolidation of the relevant individual assets, liabilities and off-balance-sheet items. Key drivers • Nedbank Group remains well funded, with a strong liquidity position underpinned by a significant level of long-term funding, an appropriately sized surplus liquid-asset buffer, a conservative loan-to-deposit ratio that is well below 100%, and a low reliance on interbank and foreign currency funding. • The group's LCR exceeded the minimum regulatory requirement of 100%, with the group maintaining appropriate operational liquidity buffers designed to absorb seasonal, cyclical and systemic volatility observed in the LCR. • The consolidated LCR, calculated using the simple average of daily observations over the quarter ending 30 June 2026 for Nedbank Limited, and the simple average of the month-end values at 30 April 2026, 31 May 2026 and 30 June 2026 for all non-South African banking entities, was 126.5%. • Nedbank's portfolio of LCR-compliant HQLA (comprising mainly government securities) decreased to a quarterly average of R305.7bn, compared to December 2025 when the portfolio amounted to R311.2bn. • The group's LCR remained resilient at 126.5% at June 2026 (December 2025: 131.5%). The movement primarily reflects growth in non-operational deposits, which resulted in higher net cash outflows, together with marginally lower HQLA levels. Nedbank continues to maintain a strong liquidity buffer, with the LCR remaining comfortably within its risk tolerance range and supportive of the group's overall funding and liquidity strategy. • Nedbank will continue to actively manage the HQLA portfolio in line with balance sheet growth, while maintaining appropriately sized surplus liquid-asset buffers based on seasonal, cyclical, and systemic market conditions. • In addition to the HQLA portfolio maintained for LCR purposes, Nedbank also identifies other sources of quick liquidity, which can be accessed in times of stress. Nedbank Group has significant sources of quick liquidity, as is evident in the combined portfolio of HQLA and other sources of quick liquidity, collectively amounting to R358.9bn at June 2026 and representing 22.3% of total assets. Liquidity risk and funding Summary of Nedbank Group liquidity risk and funding profile Jun Jun Dec 2026 2025 2025 T otal sources of quick liquidity Rm 358 940 345 532 361 646 Total HQLA1 Rm 305 739 297 800 311 182 Other sources of quick liquidity Rm 53 201 47 732 50 464 Total sources of quick liquidity (as a percentage of total assets) % 22.3 23.1 23.2 Long-term funding ratio (3-month average) % 35.3 33.6 33.3 Senior unsecured debt including green bonds Rm 30 433 34 570 35 732 Green bonds Rm 1 180 1 516 1 516 Total capital market issuance (excluding additional tier 1 capital) Rm 52 457 52 422 51 988 Reliance on NCD (as a percentage of total deposits) % 10.0 9.7 10.1 Reliance on foreign currency deposits (as a percentage of total deposits) % 2.7 3.3 3.1 Loan-to-deposit ratio % 80.0 80.6 78.9 Basel III liquidity ratios LCR2 % 126.5 126.8 131.5 Minimum regulatory LCR requirement % 100.0 100.0 100.0 NSFR3 % 119.0 118.0 116.3 Minimum regulatory NSFR requirement % 100.0 100.0 100.0 Nedbank Group unaudited interim results 2026122
Page 125
784 823 842 923 963 1 019652 693 741 782 828 857 0 20 40 60 80 100 120 330 480 630 780 930 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Dec 2025 Jun 2026 120 119 114 118 116 119 Available stable funding (Rbn) Required stable funding (Rbn) NSFR (%) 77 14 9 R53.2bn Unencumbered trading securities Price-sensitive overnight loans Other assets 208 237 246 298 311 306 63 63 54 48 51 53272 300 300 346 362 359 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Dec 2025 Jun 2026 HQLA Other sources of quick liquidity -0.8% 3.9% -1.6% 208 237 246 298 311 306145 165 193 235 237 242 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Dec 2025 Jun 2026 HQLA (Rbn) Net cash outflows (Rbn) LCR (%) 144 143 127 127 132 127 HQLA (Rbn) Net cash outflows (Rbn) LCR (%) HQLA T otalOther sources of quick liquidity T otal sources of quick liquidity (Rbn) Nedbank Group LCR exceeds minimum regulatory requirements Other sources of quick liquidity contribution (%) • Nedbank exceeded the minimum NSFR regulatory requirement of 100%, with a June 2026 ratio of 119.0% (December 2025: 116.3%). The increase in the NSFR was primarily driven by a favourable shift in the group's funding mix towards more stable funding sources. The structural liquidity position of the group remains strong, supported by effective balance sheet management and disciplined funding execution. Nedbank Group NSFR exceeds minimum regulatory requirements Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 123
Page 126
72 81 33 112 131 121 (6) (3) (6) 8 2 0 85 84 83 81 79 80 29 29 31 34 33 35 – 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 (10.0) 10.0 30.0 50.0 70.0 90.0 110.0 130.0 150.0 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Dec 2025 Jun 2026 Annual growth in deposits (Rbn) Annual growth in capital market issuance, excluding additional tier 1 capital (Rbn) Loan-to-deposit ratio (%) Three-month average long-term funding ratio (%) Average Closing yoy % change Jun 2026 Jun 2025 Dec 2025 yoy % change Jun 2026 Jun 2025 Dec 2025 UK pound to rand (9) 22.08 24.22 23.56 (11) 21.75 24.35 22.32 US dollar to rand (8) 16.42 17.86 17.88 (8) 16.39 17.77 16.61 Loan-to-deposit ratio (%) 3-month average long-term funding ratio (%) Annual growth in deposits (Rbn) Annual growth in capital market issuance, excluding additional tier 1 capital (Rbn) Nedbank Group funding and liquidity profile, underpinned by strong liquidity risk metrics Exchange rates • A strong funding profile has been maintained in the first half of 2026 with Nedbank recording a 3-month average long-term funding ratio of 35.3% in the second quarter of the year. The focus on proactively managing Nedbank’s long-term funding profile contributed to a strong balance sheet position and sound liquidity risk metrics. Nedbank has continued to run a more prudent long-term funding profile when compared with the industry average of 24.8%. • Foreign currency funding, while comprising a modest 2.7% of Nedbank’s total deposits at June 2026, remains a strategically significant element of the group’s funding base. While small, this funding source plays a key role in supporting the group's foreign advances growth and in diversifying the funding profile. Foreign currency funding is sourced across key offshore jurisdictions and international counterparties, with appropriate tenors to support term lending. The portfolio is managed in line with internal risk limits and strategic asset-liability alignment principles to ensure resilience and sustainability. • The group's 2026 Internal Liquidity Adequacy Assessment Process (ILAAP) and Internal Capital Adequacy Assessment Process (ICAAP) reports were approved by the board and subsequently submitted to the Prudential Authority, in line with the established annual business-as-usual process. Additionally, the group's Recovery Plan (RP), which outlines Nedbank's comprehensive strategy for responding to capital, liquidity, and/or business continuity crises, is planned to be tabled for board approval at the meeting scheduled for 6 November 2026. The plan integrates the recovery plans of Nedbank Africa Regions: SADC, the Nedbank London Branch, and Nedbank Private Wealth International. • Year-to-date, Nedbank has actively managed its capital structure through the issuance of R2.5bn in Tier 2 capital, offset by the redemption of R2.5bn of maturing Tier 2 instruments. In addition, the group issued R5.7bn of FLAC instruments, while R4.9bn of subordinated unsecured debt matured during the period. Nedbank Group unaudited interim results 2026124
Page 127
Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Balance at the beginning of the period 1 126 967 126 086 126 086 Additional shareholder value 2 8 251 8 103 14 579 Profit attributable to equity holders of the parent 8 354 7 331 7 799 Currency translation movements (195) 768 7 253 Exchange differences on translating foreign operations – foreign branches and subsidiaries1 (195) (78) (1 070) Exchange differences on translating foreign operations – ETI1 (89) (85) Share of other comprehensive income of investments accounted for using the equity method – ETI 935 935 Amounts reclassified to profit or loss on disposal of associate companies 7 473 Fair-value adjustments (20) (97) (492) Fair-value adjustments on debt and equity instruments (20) (367) (724) Share of other comprehensive income of investments accounted for using the equity method 270 269 Amounts reclassified to profit or loss on disposal of associate companies (37) Cash flow hedge gains 30 23 62 Defined-benefit fund adjustment 97 75 (58) Share of other comprehensive income of investments accounted for using the equity method (included in other distributable reserves) 3 Other non-distributable reserves movements (64) Property revaluations (15) 79 Transactions with ordinary shareholders (5 880) (6 229) (12 821) Dividends paid (5 256) (5 384) (10 374) Share movements in terms of LTI and BEE schemes (1 175) (823) (835) Share buyback (509) (2 429) Value of employee services (net of deferred tax) 551 487 817 Transaction with non-controlling shareholders1 61 (46) (117) (49) Additional tier 1 capital instruments >100 1 764 (807) (829) Other movements <(100) (6) (2) 1 Balance at the end of the period 3 131 050 127 034 126 967 Equity analysis Analysis of changes in net asset value Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Balance at the beginning of the period >100 2 550 (4 703) (4 703) Foreign currency translation reserve (FCTR) >(100) (195) 768 7 253 ETI 846 8 323 Nedbank Mozambique (23) (83) (192) Nedbank Private Wealth Limited (56) 91 (140) Nedbank London Branch (94) 97 (426) Other subsidiaries (22) (183) (312) Balance at the end of the period >100 2 355 (3 935) 2 550 Movements in group foreign currency translation reserve 1 Exchange differences on translating foreign operations, as shown in the statement of comprehensive income, of R202m (June 2025: R192m; December 2025: R1 211m ) includes exchange differences on translating foreign operations – foreign subsidiaries of R195m (June 2025: R78m; December 2025: R1 070m ); exchange differences on translating foreign operations – ETI of Rnil (June 2025: R89m; December 2025: R85m); and exchange differences of R7m (June 2025: R25m; December 2025: R56m), included in transactions with non-controlling shareholders. Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 125
Page 128
Capital ratios (including unappropriated profit) (%) Nedbank Group Nedbank Limited Jun 2026 Dec 2025 Jun 2025 Jun 2024 Jun 2023 Jun 2022 13.5 13.3 13.3 13.1 12.9 12.6 1.6 1.6 1.4 1.6 1.6 1.8 2.6 2.2 1.9 2.2 2.1 2.1 17.7 17.1 16.6 16.9 16.6 16.5 Jun 2026 Dec 2025 Jun 2025 Jun 2024 Jun 2023 Jun 2022 12.7 12.0 11.6 11.5 11.5 11.4 2.0 2.1 1.7 2.21.92.0 3.1 2.7 2.3 2.32.42.8 17.8 16.8 15.6 15.915.816.3 CET1 AT1 Tier 2 Total P A minimum Internal targets Jun 2026 Jun 2025 Dec 2025 Nedbank Group Including unappropriated profits CET1 % 11.0–12.5 12.6 13.1 12.9 Total tier 1 % > 12.5 14.4 14.7 14.5 Total CAR % > 15.0 16.5 16.9 16.6 Surplus tier 1 capital1 Rm 24 287 33 280 32 009 Dividend cover times 1.75–2.25 1.75 1.75 1.74 Cost of equity % 14.0 14.8 14.6 Excluding unappropriated profits CET1 % 9.5 11.5 11.5 12.2 Total tier 1 % 11.25 13.3 13.1 13.8 Total CAR % 13.5 15.3 15.4 15.8 Leverage % 4.5 >5 6.1 6.2 6.2 Nedbank Limited Including unappropriated profits CET1 % 11.0–12.5 11.4 11.5 11.5 Total tier 1 % > 12.5 13.6 13.5 13.4 Total CAR % > 15.0 15.9 16.3 15.8 Surplus tier 1 capital1 Rm 14 792 19 825 19 789 Excluding unappropriated profits CET1 % 9.5 10.3 10.7 10.7 Total tier 1 % 11.25 12.4 12.6 12.6 Total CAR % 13.5 14.8 15.4 15.1 Capital management Regulatory capital adequacy and leverage 1 The surplus tier 1 capital is the difference between qualifying total tier 1 capital and the total tier 1 capital requirement at the Prudential Authority minimum requirement of 11.25%. Nedbank Group unaudited interim results 2026126
Page 129
Jun 2026 Dec 2025 Jun 2025 Jun 2024 Jun 2023 Jun 2022 388 402 427 459 460 470 20 2223 24 67 72 20 22 63 26 22 24 14 10 22 98 24 24 26 77 23519 534 569 609 16 20 103 23 628 641 9 4545 45 44 44 43 Jun 2026 Dec 2025 Jun 2025 Jun 2024 Jun 2023 Jun 2022 465 490 509 542 539 550 36 40 39 29 10 33 23 25 25 23 22 9 119112 9185 76 44 40 40 40 32 47 28 96 42 644 680 704 755 765753 52 51 52 51 4848 Nedbank Group (Rbn) Nedbank Limited Credit CVA Jun 2026 Jun 2025 Dec 2025 RWA MRC1 RWA RWA Credit risk2 528 473 71 344 520 584 512 551 Counterparty credit risk 21 614 2 918 15 332 26 343 Credit valuation adjustment 8 694 1 174 6 306 10 169 Equity risk 32 646 4 407 46 590 28 793 Market risk 22 446 3 030 28 314 22 991 Operational risk 119 052 16 072 95 725 112 332 Amounts below the thresholds for deduction 3 390 458 11 728 12 612 Other assets 28 431 3 838 30 683 26 933 T otal 764 746 103 241 755 262 752 724 1 Total minimum required capital (MRC) is measured at 13.5% and excludes the bank-specific Pillar 2b add-on. 2 Including the securitisation exposures in the banking book. Overview of risk-weighted assets Nedbank Group Equity Market Operational Other Total RWA density (%) Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 127 Key drivers • Nedbank Group maintained a strong capital adequacy position, with ratios above the minimum regulatory requirements and the group's internal targets. • Nedbank Group manages its capital levels in line with the board-approved risk appetite framework, taking cognisance of regulatory requirements as well as rating agency and shareholder expectations. The group seeks to optimise the efficiency of its capital structure through the prudent use of available capital instruments and capital management activities, while maintaining appropriate loss-absorbing capacity. • The group implemented SARB PA Directive 2 of 2025 on 1 April 2026, which introduced revised capital treatment requirements for significant investments in insurance entities. The implementation resulted in an estimated 30bps reduction in the group’s CET1 ratio. • Nedbank performs comprehensive stress testing and scenario analysis to ensure that it remains appropriately capitalised relative to its business activities, risk profile, risk appetite, external operating environment, and the board's strategic objectives. * With effect from 1 July 2025, CVA is reported as a stand-alone risk category following the implementation of the Basel III reforms. In the prior period, CVA was included within credit risk and therefore is not presented separately for comparative purposes. *
Page 130
Nedbank Group (Rbn) Nedbank Limited Jun 2026 Dec 2025 Jun 2025 Jun 2024 Jun 2023 Jun 2022 90.487.2 93.6 98.7 97.2 96.6 13.712.012.0 15.615.517.2 16.4 10.3 113.9 11.2 14.8 116.4 9.8 13.4 116.8 125.9124.7127.9 Jun 2026 Dec 2025 Jun 2025 Jun 2024 Jun 2023 Jun 2022 64.266.1 65.9 70.2 72.2 73.2 13.712.0 15.215.2 14.4 11.2 9.8 12.0 13.1 16.8 89.8 16.0 10.3 92.4 88.8 99.1 102.199.4 CET1 AT1 Tier 2 Total Summary of regulatory qualifying capital and reserves Key drivers The group's total RWA/total assets density was 47.5% at June 2026 from 48.3% at December 2025, driven by an increase of 1.6% in total RWA versus growth in total assets of 3.3%. The increase in total RWA is attributable mainly to the following: • Credit risk RWA increased due to continued growth in the banking book across all clusters, offset by lower risk weights in CIB and NAR. • Equity risk RWA increased as a result of movements in equity exposures. • Market risk RWA movement reflects the management of the volatility in exposures due to changing market conditions. • Operational risk RWA increased, and was mainly attributable to business indicator growth, rather than any deterioration in the underlying risk profile, with the internal loss multiplier still constrained by the regulatory floor of 0.95. • Threshold RWA reflects a decrease relating to the implementation of D2 of 2025 where the initial investment value of insurance entities is risk weighted at 250% where previously the net asset value was risk weighted at 250%. This reduces the volatility of the impact on CET1 because the deduction is no longer driven by movement in the insurance entities accumulated reserves or solvency capital. • Other assets RWA increased during the period due to balance sheet movements, primarily reflecting higher card settlement account balances. Jun 2026 Jun 2025 Dec 2025 RWA MRC1 RWA RWA Credit risk2 452 677 61 111 439 970 438 804 Counterparty credit risk 17 003 2 295 12 604 21 649 Credit valuation adjustment 8 681 1 172 6 083 10 119 Equity risk 15 706 2 120 23 648 14 138 Market risk 20 260 2 735 26 417 21 572 Operational risk 103 463 13 969 76 794 97 894 Amounts below the thresholds for deduction 5 740 775 6 287 7 681 Other assets 17 448 2 355 16 843 16 218 T otal 640 978 86 532 608 646 628 075 Nedbank Limited 1 MRC is measured at 13.5% and excludes the bank-specific Pillar 2b add-on. 2 Including the securitisation exposures in the banking book. Nedbank Group unaudited interim results 2026128
Page 131
Key drivers • The change in the CET 1 capital level reflects movements in earnings, non-distributable and share based payment reserves and the declaration and payment of the 2025 final dividend amounting to R5.3bn. • The group’s total tier 1 capital position benefited from the issuance of additional tier 1 capital instruments amounting to R2.7bn, offset by redemptions of R0.9bn during H1 2026. • The group’s overall capital position reflected Tier 2 capital actions undertaken during H1 2026, with the issuance of R2.5bn in new Tier 2 instruments fully offset by redemptions. Nedbank Group Nedbank Limited Rm Jun 2026 Jun 2025 Dec 2025 Jun 2026 Jun 2025 Dec 2025 Including unappropriated profits1 T otal tier 1 capital 110 321 110 694 109 163 86 902 82 211 84 167 CET1 96 588 98 703 97 194 73 169 70 220 72 198 Share capital and premium 11 961 14 308 12 392 21 911 21 911 21 911 Reserves 104 427 99 829 101 631 65 391 60 797 62 931 Minority interest: Ordinary shareholders 823 811 839 Deductions (20 623) (16 245) (17 668) (14 133) (12 488) (12 644) Additional tier 1 capital 13 733 11 991 11 969 13 733 11 991 11 969 Perpetual subordinated debt instruments 13 733 11 991 11 969 13 733 11 991 11 969 Tier 2 capital 15 560 17 205 15 582 15 211 16 846 15 203 Subordinated debt instruments 15 194 16 744 15 194 15 194 16 744 15 194 Excess of eligible provisions over downturn expected losses 79 96 General allowance for credit impairment 366 382 388 17 6 9 T otal capital 125 881 127 899 124 745 102 113 99 057 99 370 Excluding unappropriated profits CET1 capital 87 740 86 926 91 690 65 984 64 843 67 455 Tier 1 capital 101 473 98 917 103 659 79 717 76 834 79 424 Total capital 117 033 116 122 119 241 94 927 93 680 94 627 1 For comprehensive ‘composition of capital’ and ‘capital instruments main features’ disclosure please refer to nedbank.co.za/content/nedbank/desktop/gt/en/investor-relations/information-hub/capital-and-risk-management-reports.html. Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 129
Page 132
Regulated banking subsidiaries Nedbank Group’s banking subsidiaries are well capitalised for the environments in which they operate, with CARs well in excess of respective host regulators’ minimum requirements. Jun 2026 Jun 2025 Dec 2025 T otal capital requirement (host country) RWA T otal capital ratio RWA T otal capital ratio RWA T otal capital ratio % Rm % Rm % Rm % Nedbank Africa Regions: SADC Nedbank Mozambique 12.0 4 667 30.8 4 329 32.1 4 461 34.0 Nedbank Namibia 12.5 16 186 15.9 16 038 15.5 16 267 15.4 Nedbank Eswatini 8.0 7 465 13.1 6 603 15.1 7 055 15.2 Nedbank Lesotho 10.0 3 520 18.6 2 624 27.9 2 944 23.5 Nedbank Zimbabwe 12.0 4 641 21.2 4 117 22.4 4 396 20.9 Isle of Man Nedbank Private Wealth 13.0 8 629 22.0 9 832 21.7 8 860 21.4 Nedbank Group unaudited interim results 2026130
Page 133
Key drivers Nedbank Group’s minimum economic capital requirement increased by R2.2bn in H1 2026, driven primarily by the following: • An increase of R1.6bn in credit risk economic capital, driven primarily by portfolio growth in CIB, BCB and NAR: SADC. • An increase of R168m in market risk economic capital, largely attributable to an increase in Interest Rate Risk in the Banking Book (IRRBB), driven by higher stochastic simulation outcomes and movements in the yield curve, reflecting the increase in interest rates over the period. • An increase of R116m in business risk economic capital, driven by higher lapse risk and refinements to the insurance portfolio methodology. • An increase of R220m in other assets economic capital, largely attributable to balance sheet movements. • An increase of R103m in model risk economic capital, reflecting the outcomes of the annual internal model review process, including model scoring and materiality assessments. Nedbank Group's AFR increased by R2.3bn in H1 2026, primarily as a result of the following: • A R546m increase in Tier A capital, mainly driven by organic earnings generation during the period. This increase was partially offset by the implementation of SARB PA directive 2 of 2025, which required the exclusion of post-acquisition reserves of insurance entities from banks' qualifying capital and reserves. • A R1.8bn increase in Tier B capital, reflecting the issuance of R5.2bn of AT1 and Tier 2 instruments during the period. This increase was partially offset by the redemption of R3.4bn of AT1 and Tier 2 instruments. Economic capital adequacy Nedbank Group economic capital requirement Jun 2026 Jun 2025 Dec 2025 Rm Mix % Rm Mix % Rm Mix % Credit risk 50 612 67 49 505 67 48 972 66 Market risk 10 635 14 9 527 13 10 467 14 Business risk 5 043 7 5 016 7 4 927 7 Operational risk 5 679 7 5 951 8 5 727 8 Insurance risk 323 1 367 1 365 1 Other assets risk 2 057 2 2 039 2 1 837 2 Model risk 1 668 2 1 578 2 1 565 2 Minimum economic capital requirement 76 017 100 73 983 100 73 860 100 Add: Stress-tested capital buffer1 5 767 5 663 5 665 T otal economic capital requirement 81 784 79 646 79 525 AFR 133 771 100 134 943 100 131 461 100 Tier A capital 104 844 78 106 208 79 104 298 79 Tier B capital 28 927 22 28 735 21 27 163 21 T otal surplus AFR 51 987 55 297 51 936 AFR: T otal economic capital requirement (%) 164 169 165 1 The stress-tested capital buffer is set at 10% of credit risk, market risk, business risk, operational risk, insurance risk and other assets risk less the portion recognised separately as model risk. Statement of financial position analysis Supplementary information Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive Nedbank Group unaudited interim results 2026 131
Page 134
293 328 344 370 383 92 113 119 126 119 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 385 441 463 496 502 Local International Rm Jun 2026 Jun 2025 Dec 2025 Fair value of funds under management – by type Unit trusts 438 168 433 993 438 007 Third parties 1 158 1 173 1 140 Private clients 63 117 60 841 62 049 502 443 496 007 501 196 Fair value of funds under management – by geography SA 382 881 370 067 379 955 Rest of the world 119 562 125 940 121 241 502 443 496 007 501 196 Rm Unit trusts Third parties Private clients T otal Reconciliation of movement in funds under management – by type Opening balance at 31 December 2025 438 007 1 140 62 049 501 196 Inflows 64 702 4 053 68 755 Outflows (67 165) (33) (3 778) (70 976) Mark-to-market value adjustment 3 980 80 1 075 5 135 Foreign currency translation differences (1 356) (29) (282) (1 667) Closing balance – 30 June 2026 438 168 1 158 63 117 502 443 Assets under management (Rbn) Assets under management Rm SA Rest of the world T otal Reconciliation of movement in funds under management – by geography Opening balance at 31 December 2025 379 955 121 241 501 196 Inflows 61 737 7 018 68 755 Outflows (59 146) (11 830) (70 976) Mark-to-market value adjustment 335 4 800 5 135 Foreign currency translation differences (1 667) (1 667) Closing balance – 30 June 2026 382 881 119 562 502 443 Nedbank Group unaudited interim results 2026132
Page 135
Supplementary information Earnings per share and weighted-average shares xxx Nedbank Group employee incentive schemes xxx Long-term debt instruments xxx External credit ratings xxx Additional tier 1 capital instruments xxx Shareholders’ analysis xxx Basel III balance sheet credit exposure by business cluster and asset class xxx Nedbank Limited consolidated statement of comprehensive income xxx Nedbank Limited consolidated financial highlights xxx Nedbank Limited consolidated statement of financial position xxx Definitions xxx Abbreviations and acronyms xxx Company details IBC Supplementary information Earnings per share and weighted-average shares 134 Nedbank Group employee incentive schemes 135 Long-term debt instruments 137 External credit ratings 138 Additional tier 1 capital instruments 139 Shareholders' analysis 140 Basel III balance sheet credit exposure by business cluster and asset class 142 Nedbank Limited consolidated statement of comprehensive income 144 Nedbank Limited consolidated financial highlights 145 Nedbank Limited consolidated statement of financial position 146 Definitions 147 Abbreviations and acronyms 150 Company details IBC
Page 136
Earnings per share Basic Diluted basic Headline Diluted headline June 2026 Earnings for the period 8 354 8 354 8 405 8 405 Weighted-average number of ordinary shares 456 450 664 466 209 356 456 450 664 466 209 356 Earnings per share (cents) 1 830 1 792 1 841 1 803 June 2025 Earnings for the period 7 331 7 331 8 399 8 399 Weighted-average number of ordinary shares 466 719 759 476 768 295 466 719 759 476 768 295 Earnings per share (cents) 1 571 1 538 1 800 1 762 December 2025 Earnings for the year 7 799 7 799 17 200 17 200 Weighted-average number of ordinary shares 464 052 055 474 065 319 464 052 055 474 065 319 Earnings per share (cents) 1 681 1 645 3 706 3 628 Earnings per share and weighted-average shares Basic earnings and headline earnings per share are calculated by dividing the relevant earnings amount by the weighted-average number of shares in issue. Fully diluted basic earnings and fully diluted headline earnings per share are calculated by dividing the relevant earnings amount by the weighted-average number of shares in issue after having taken the dilutive impact of potential ordinary shares to be issued into account. Jun 2026 Jun 2025 Dec 2025 Number of weighted-average dilutive potential ordinary shares (000) Potential shares1 Weighted- average dilutive shares Weighted- average dilutive shares Weighted- average dilutive shares Traditional schemes 18 683 8 199 8 489 8 454 Nedbank Group Restricted-share Scheme (2005) 14 195 5 815 6 103 5 856 Nedbank Group Matched-share Scheme 4 488 2 384 2 386 2 598 T otal BEE schemes 1 592 1 559 1 559 1 559 BEE schemes – SA 1 559 1 559 1 559 1 559 Community 1 559 1 559 1 559 1 559 BEE schemes – Namibia 33 T otal 20 275 9 758 10 048 10 013 1 Potential shares are the total number of shares arising from historical grants, schemes or awards available for distribution. Nedbank Group unaudited interim results 2026134
Page 137
Instrument expiry date Number of shares 1 April 2027 1 038 606 1 April 2028 1 140 451 1 April 2029 1 079 611 Matched shares outstanding not exercised at 30 June 2024 3 258 668 Shares exercised and forfeited during the period 1 228 985 Total potential shares 4 487 653 Weighted-average dilutive shares applicable for the period 2 384 106 Nedbank Group (2005) Restricted- and Matched-share Schemes Matched shares – The obligation to deliver the matched shares issued under the Voluntary and Compulsory Bonus Share Schemes is subject to time and other performance criteria. – This obligation existed at 30 June 2026 and therefore had a dilutive effect. – Matched shares are not issued and are therefore not recognised as treasury shares. However, until they are issued, a potential dilutive effect remains. for the period ended Nedbank Group employee incentive schemes Nedbank Group employee incentive schemes Jun 2026 Jun 2025 Dec 2025 Summary by scheme Nedbank Group Restricted-share Scheme (2005) 14 016 171 13 712 555 13 592 828 Nedbank Group Matched-share Scheme (2005) 3 258 668 3 536 530 3 407 060 Instruments outstanding at the end of the period 17 274 839 17 249 085 16 999 888 Analysis Corporate performance-based – restricted shares 9 390 424 9 301 679 9 237 035 Individual performance-based/time-based – restricted shares 4 625 747 4 410 876 4 355 793 Deferral (compulsory) subject to time-based and match subject to performance-based (CBSS1) 2 024 072 2 361 333 2 252 017 Deferral (voluntary) and match subject to performance-based (VBSS2) 1 234 596 1 175 197 1 155 043 Instruments outstanding at the end of the period 17 274 839 17 249 085 16 999 888 Movements Instruments outstanding at the beginning of the period 16 999 888 16 978 597 16 978 597 Granted 5 876 353 5 269 238 5 472 385 Accelerated (2 003) (15 355) Exercised (5 431 426) (4 854 615) (4 953 522) Surrendered (169 976) (142 132) (482 217) Instruments outstanding at the end of the period 17 274 839 17 249 085 16 999 888 1 Compulsory Bonus Share Scheme for deferral of short-term incentives. 2 Voluntary Bonus Share Scheme for deferral of short-term incentives. Nedbank Group unaudited interim results 2026 135 Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive
Page 138
Instrument expiry date Number of shares 18 August 2026 100 556 P 19 August 2026 31 259 28 March 2027 3 098 927 P 29 March 2027 1 487 131 16 August 2027 345 239 P 17 August 2027 41 235 25 March 2028 2 619 151 P 26 March 2028 1 328 929 22 August 2028 140 631 P 23 August 2028 52 110 26 March 2029 3 085 920 P 27 March 2029 1 685 083 Restricted shares not exercised at 30 June 2026 14 016 171 Unallocated shares 93 694 Treasury shares 14 109 865 Shares exercised and forfeited during the period 2 763 733 Shares not expected to vest (2 678 621) Total potential shares 14 194 977 Weighted-average dilutive shares applicable for the period 5 815 138 Restricted shares3 Details of instruments granted and not exercised at 30 June 2026 and the resulting dilutive effect: 3 Restricted shares are issued at a market price for no consideration to participants and are held by the schemes until the expiry date (subject to achievement of performance conditions). Participants have full rights and receive dividends. P Awarded subject to corporate performance targets and/or minimum individual performance conditions. Nedbank Group unaudited interim results 2026136
Page 139
Long-term debt instruments Instrument code Jun 2026 Jun 2025 Dec 2025 Subordinated debt 21 393 17 238 15 633 Callable notes (rand-denominated)1 8 704 10 790 8 681 Callable notes and long-term debentures (Namibian-dollar-denominated) 277 275 276 Green bonds (rand-denominated)1 4 146 6 173 4 148 Social bonds (rand-denominated)1 2 529 2 529 Flac callable notes (rand-denominated)2 5 737 Senior unsecured debt – senior unsecured notes (rand-denominated) 29 253 33 054 34 216 Unsecured debentures (rand-denominated) 111 94 102 Senior unsecured green bonds (rand-denominated) 1 180 1 516 1 516 Securitised liabilities – callable notes (rand-denominated) 520 520 520 T otal long-term debt instruments in issue 52 457 52 422 51 988 More information is available on our group website Capital and risk management reports https://group.nedbank.co.za/explore-investor-relations/results-and-reports.html Debt investors programme https://group.nedbank.co.za/explore-investor-relations/debt-investors.html 1 Loss-absorbing instruments. 2 Flac instruments that are available to absorb losses in resolution. Nedbank Group unaudited interim results 2026 137 Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive
Page 140
External credit ratings Published 18 November 2025 Short term Long term Outlook Issuer credit rating B BB Positive National scale rating ZaA-1+ ZaAAA Moody’s Nedbank Limited Published 12 June 2026 Short term Long term Outlook Baseline Credit Assessment ba2 ba2 Positive Local currency counterparty risk P-3 Baa3 Positive Foreign currency counterparty risk P-3 Baa3 Positive Local currency deposit rating P-3 Baa3 Positive Foreign currency deposit rating P-3 Baa3 Positive National scale counterparty P-1.za Aaa.za Positive National scale deposit P-1.za Aaa.za Positive Nedbank Group Published 12 June 2026 Short term Long term Outlook Local issuer rating NP Ba2 Positive Foreign issuer rating NP Ba2 Positive National scale issuer P-1.za Aa2.za S&P Global Ratings Nedbank Limited Nedbank Group unaudited interim results 2026138
Page 141
Additional tier 1 capital instruments Instrument code Instrument terms Jun 2026 Jun 2025 Dec 2025 Subordinated callable notes (rand-denominated) NGT106 3-month JIBAR + 4.95% per annum 500 NGT107 3-month JIBAR + 4.55% per annum 472 NGT108 3-month JIBAR + 4.67% per annum 1 537 1 537 1 537 NGT1G – Green AT1 3-month JIBAR + 4.10% per annum 910 910 NGT109 3-month JIBAR + 3.91% per annum 700 700 700 NGT110 3-month JIBAR + 3.91% per annum 350 350 350 NGT111 3-month JIBAR + 3.79% per annum 1 000 1 000 1 000 NGT112 3-month JIBAR + 3.40% per annum 500 500 500 NGT113 3-month JIBAR + 3.28% per annum 1 000 1 000 1 000 NGT114 3-month JIBAR + 2.90% per annum 3 000 3 000 3 000 NGT115 3-month JIBAR + 2.60% per annum 2 022 2 022 2 022 NGT116 3-month JIBAR + 2.37% per annum 950 950 NGT117 ZARONIA + 2.26% per annum 2 674 T otal non-controlling interest attributable to additional tier 1 capital instruments 13 733 11 991 11 969 The group issued additional tier 1 (AT1) capital instruments as follows: The additional tier 1 notes are perpetual, subordinated instruments, with no set redemption date. Subject to regulatory approval, these notes can be redeemed at the discretion of the issuer, either Nedbank Group Limited or Nedbank Limited, starting from the applicable call date or following a regulatory or tax event. Interest payments on these notes are non-cumulative and made at the issuer’s discretion. Under certain conditions, regulators may prevent Nedbank from making interest payments. As a result, these instruments are classified as equity and are presented as a separate category within equity. Nedbank Group unaudited interim results 2026 139 Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive
Page 142
Shareholders analysis Number of shares Jun 2026 % holding Jun 2025 % holding Dec 2025 % holding Major shareholders/managers Nedbank Group treasury shares 20 600 624 4.32 4.43 4.26 BEE trusts 2 516 131 0.53 0.53 0.54 Eyethu scheme – Nedbank SA 2 482 790 0.52 0.51 0.52 Omufima scheme – Nedbank Namibia 33 341 0.01 0.02 0.02 Nedbank Group (2005) Restricted- and Matched-share Schemes 14 109 865 2.96 2.83 2.88 Nedbank Namibia Limited 0.01 0.01 General repurchase of shares 0.24 Nedbank Foundation Trust 2 741 Nedbank Social Development Fund Trust 3 971 887 0.83 0.82 0.83 Public Investment Corporation (SA) 68 322 056 14.32 14.69 14.89 Allan Gray (SA) 45 366 423 9.51 9.18 9.87 BlackRock Incorporated (international) 27 426 717 5.75 4.64 5.22 The Vanguard Group Incorporated (international) 20 673 130 4.33 4.03 4.16 Lazard Asset Management (international) 19 382 163 4.06 3.18 3.55 Coronation Fund Managers (SA) 11 405 800 2.39 3.28 3.11 Ninety One 11 176 932 2.34 0.10 2.16 State Street Global Advisors (international) 9 174 461 1.92 1.72 2.11 Fairtree Asset Management Pty Ltd (SA) 8 423 066 1.76 3.54 3.53 GIC Asset Management (international) 8 325 745 1.74 0.69 0.23 Major beneficial shareholders Government Employees Pension Fund (SA) 74 306 639 15.57 15.99 16.03 Allan Gray (SA) 32 500 903 6.81 6.55 7.08 26.4 29.2 29.3 30.7 33.0 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 33.4 36.1 34.3 37.3 37.4 Jun 2026 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Index classified shareholding (%) Foreign shareholding (%) Source: Vaco Ownership. Register date: 30 June 2026 Authorised share capital: 600 000 000 Issued share capital: 477 272 628 shares Nedbank Group unaudited interim results 2026140
Page 143
Number of shares Jun 2026 % holding Jun 2025 % holding Dec 2025 % holding Geographical distribution of shareholders Domestic 298 965 790 62.64 62.66 62.37 SA 288 678 713 60.48 60.37 60.64 Namibia 10 287 077 2.16 2.29 1.73 Foreign 178 306 838 37.36 37.34 37.63 USA 88 147 525 18.47 18.85 20.47 Europe 30 838 615 6.46 7.05 6.80 UK and Ireland 22 489 690 4.71 4.84 4.70 Asia 21 992 286 4.61 3.41 2.83 Other countries 14 838 722 3.11 3.19 2.83 T otal shares listed 477 272 628 100.00 100.00 100.00 Less: Treasury shares held 20 600 624 Net shares reported 456 672 004 Nedbank Group unaudited interim results 2026 141 Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive
Page 144
Rm Nedbank CIB Property Finance Nedbank Business and Commercial Banking Nedbank Personal and Private Banking Nedbank Africa Regions: SADC Centre Nedbank Group June 2026 Mix (%) Change (%) Risk weighting1 Downturn expected loss (dEL)2 BEEL3 Nedbank Group June 2025 Downturn expected loss (dEL)2 BEEL3 AIRB approach 505 440 203 575 99 061 445 708 999 143 944 1 195 152 92.41 10.12 36.52 9 749 18 450 1 085 353 9 356 18 263 Commercial real estate 50 805 50 804 6 082 867 57 754 4.47 24.72 136 114 Corporate 160 430 9 263 20 582 9 924 181 945 14.07 (22.34) 41.64 638 532 234 284 862 739 Specialised lending – HVCRE4 6 084 6 084 17 6 101 0.47 27.96 92.16 31 486 4 768 61 438 Specialised lending – IPRE5 136 363 136 143 960 5 284 142 607 11.03 5.68 25.69 194 784 134 942 211 545 Specialised lending – project finance 58 144 58 144 4.50 5.14 51.39 168 17 55 302 178 121 SME – corporate 8 797 1 279 46 296 670 44 55 807 4.31 7.72 56.10 441 951 51 807 378 917 Public sector entities 9 798 3 3 455 13 256 1.02 28.21 68.86 121 10 339 52 Local governments and municipalities 8 009 3 284 11 293 0.87 (5.05) 86.94 65 11 894 63 Sovereign 28 543 660 140 489 169 692 13.12 26.34 10.35 33 12 134 316 44 58 Banks 38 409 6 093 44 502 3.44 80.24 36.60 42 2 24 691 87 Retail mortgage 34 34 21.84 1 647 Retail revolving credit 1 151 207 645 208 796 16.14 9.04 27.44 1 311 4 188 191 488 1 254 4 109 Retail – other 327 20 796 21 123 1.63 10.52 65.22 1 174 2 245 19 113 993 2 019 SME – retail 460 186 605 187 065 14.46 6.45 48.21 4 638 7 968 175 734 4 456 8 317 Securities firms 24 2 19 916 16 890 31 36 861 2.85 2.80 47.89 756 1 151 35 856 717 1 000 Securitisation exposure 172 172 0.01 58.67 172 TSA6 2 942 – – 28 953 45 064 37 76 996 5.95 5.35 69.54 – – 73 086 – – Commercial real estate 2 921 2 921 0.23 86.19 Corporate 2 942 2 437 2 459 37 7 875 0.61 (30.11) 105.14 11 268 Specialised lending - IPRE 3 260 3 260 0.25 39.74 SME – corporate 1 399 4 310 5 709 0.44 220.19 88.05 1 783 Public sector entities 373 373 0.03 (58.04) 100.02 889 Local government and municipalities 2 2 (96.43) 95.97 56 Sovereign 8 235 15 947 24 182 1.87 6.07 82.79 22 798 Banks 10 168 2 987 13 155 1.02 (4.09) 33.30 13 716 Retail mortgage 3 219 6 770 9 989 0.77 (27.07) 37.79 13 696 Retail revolving credit 305 305 0.02 3.04 63.28 296 Retail – other 216 5 405 5 621 0.43 12.62 85.44 4 991 SME – retail 19 3 585 3 604 0.28 0.31 78.05 3 593 PiPs 16 62 116 194 0.01 (17.45) 235 Non-regulated entities 21 017 25 21 042 1.63 14.64 18 355 T otal Basel III balance sheet exposure7 529 399 203 575 99 077 474 748 46 179 143 981 1 293 384 100.00 9.89 9 749 18 450 1 177 029 9 356 18 263 dEL (AIRB approach) 28 199 27 619 Expected loss performing book 9 749 9 356 BEEL on defaulted advances 18 450 18 263 IFRS impairment on AIRB loans and advances (27 769) (27 698) Excess of downturn expected loss over eligible provisions8 430 (79) Basel III balance sheet credit exposure by business cluster and asset class 1 Risk weighting is shown as a percentage of exposure at default (EAD) for the AIRB approach and as a percentage of total credit extended for the standardised approach (TSA). 2 Downturn expected loss (dEL) is in relation to performing loans and advances. 3 Best estimate of expected loss (BEEL) is in relation to defaulted loans and advances. 4 High-volatility commercial real estate. Nedbank Group unaudited interim results 2026142
Page 145
Rm Nedbank CIB Property Finance Nedbank Business and Commercial Banking Nedbank Personal and Private Banking Nedbank Africa Regions: SADC Centre Nedbank Group June 2026 Mix (%) Change (%) Risk weighting1 Downturn expected loss (dEL)2 BEEL3 Nedbank Group June 2025 Downturn expected loss (dEL)2 BEEL3 AIRB approach 505 440 203 575 99 061 445 708 999 143 944 1 195 152 92.41 10.12 36.52 9 749 18 450 1 085 353 9 356 18 263 Commercial real estate 50 805 50 804 6 082 867 57 754 4.47 24.72 136 114 Corporate 160 430 9 263 20 582 9 924 181 945 14.07 (22.34) 41.64 638 532 234 284 862 739 Specialised lending – HVCRE4 6 084 6 084 17 6 101 0.47 27.96 92.16 31 486 4 768 61 438 Specialised lending – IPRE5 136 363 136 143 960 5 284 142 607 11.03 5.68 25.69 194 784 134 942 211 545 Specialised lending – project finance 58 144 58 144 4.50 5.14 51.39 168 17 55 302 178 121 SME – corporate 8 797 1 279 46 296 670 44 55 807 4.31 7.72 56.10 441 951 51 807 378 917 Public sector entities 9 798 3 3 455 13 256 1.02 28.21 68.86 121 10 339 52 Local governments and municipalities 8 009 3 284 11 293 0.87 (5.05) 86.94 65 11 894 63 Sovereign 28 543 660 140 489 169 692 13.12 26.34 10.35 33 12 134 316 44 58 Banks 38 409 6 093 44 502 3.44 80.24 36.60 42 2 24 691 87 Retail mortgage 34 34 21.84 1 647 Retail revolving credit 1 151 207 645 208 796 16.14 9.04 27.44 1 311 4 188 191 488 1 254 4 109 Retail – other 327 20 796 21 123 1.63 10.52 65.22 1 174 2 245 19 113 993 2 019 SME – retail 460 186 605 187 065 14.46 6.45 48.21 4 638 7 968 175 734 4 456 8 317 Securities firms 24 2 19 916 16 890 31 36 861 2.85 2.80 47.89 756 1 151 35 856 717 1 000 Securitisation exposure 172 172 0.01 58.67 172 TSA6 2 942 – – 28 953 45 064 37 76 996 5.95 5.35 69.54 – – 73 086 – – Commercial real estate 2 921 2 921 0.23 86.19 Corporate 2 942 2 437 2 459 37 7 875 0.61 (30.11) 105.14 11 268 Specialised lending - IPRE 3 260 3 260 0.25 39.74 SME – corporate 1 399 4 310 5 709 0.44 220.19 88.05 1 783 Public sector entities 373 373 0.03 (58.04) 100.02 889 Local government and municipalities 2 2 (96.43) 95.97 56 Sovereign 8 235 15 947 24 182 1.87 6.07 82.79 22 798 Banks 10 168 2 987 13 155 1.02 (4.09) 33.30 13 716 Retail mortgage 3 219 6 770 9 989 0.77 (27.07) 37.79 13 696 Retail revolving credit 305 305 0.02 3.04 63.28 296 Retail – other 216 5 405 5 621 0.43 12.62 85.44 4 991 SME – retail 19 3 585 3 604 0.28 0.31 78.05 3 593 PiPs 16 62 116 194 0.01 (17.45) 235 Non-regulated entities 21 017 25 21 042 1.63 14.64 18 355 T otal Basel III balance sheet exposure7 529 399 203 575 99 077 474 748 46 179 143 981 1 293 384 100.00 9.89 9 749 18 450 1 177 029 9 356 18 263 dEL (AIRB approach) 28 199 27 619 Expected loss performing book 9 749 9 356 BEEL on defaulted advances 18 450 18 263 IFRS impairment on AIRB loans and advances (27 769) (27 698) Excess of downturn expected loss over eligible provisions8 430 (79) 5 Income-producing real estate. 6 A portion of the legacy Imperial Bank book in Nedbank RBB, Nedbank Private Wealth (UK) and the non-South African banking entities in Africa are covered by TSA. 7 Balance sheet credit exposure includes on-balance-sheet, repurchase and resale agreements, as well as derivative exposures. 8 Shortfall impairments, compared with dEL for IRB exposures, totalled R430m at 30 June 2026 (June 2025: R79m excess; December 2025: R673m shortfall). In line with the regulations under the Banks Act, 94 of 1990, the total amount that may be included in tier 2 unimpaired reserve funds is limited to 0.6% of total IRB risk-weighted assets, which amounted to R3 264m at 30 June 2026 (June 2025: R2 952m; December 2025: R2 912m). Nedbank Group unaudited interim results 2026 143 Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive
Page 146
Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Interest and similar income 59 914 60 004 120 571 Interest expense and similar charges (3) 39 908 40 956 81 898 Net interest income 5 20 006 19 048 38 673 Non-interest revenue and income 9 12 189 11 202 23 652 Net commission and fee income 9 476 8 633 17 938 Commission and fee revenue 12 756 11 478 24 144 Commission and fee expense (3 280) (2 845) (6 206) Net insurance expense (33) (30) (64) Fair-value adjustments (113) (60) (268) Net trading income 1 843 2 149 4 323 Equity investment income 394 362 852 Investment income 145 137 308 Net sundry income 477 11 563 Share of gains of associate companies (74) 9 35 123 Total net income before impairment charge on financial instruments 6 32 204 30 285 62 448 Impairments charge on financial instruments 27 4 635 3 648 6 258 Total net income 3 27 569 26 637 56 190 Total operating expenses 2 18 679 18 244 37 642 Indirect taxation (16) 523 624 1 146 Impairments charge on non-financial instruments and other (gains)/losses (11) 65 73 645 Profit before direct taxation 8 8 302 7 696 16 757 Total direct taxation 10 1 724 1 565 3 473 Direct taxation 1 741 1 584 3 647 Taxation on impairments charge on non-financial instruments and other (gains)/losses (17) (19) (174) Profit for the period 7 6 578 6 131 13 284 Other comprehensive income/(losses) (OCI) net of taxation (23) 20 26 (958) Items that may subsequently be reclassified to profit or loss Exchange differences on translating foreign operations (94) 97 (425) Debt investments at FVOCI – net change in fair value 55 (145) (514) Cash flow hedge gains 30 23 62 Items that may not subsequently be reclassified to profit or loss Property revaluations (16) (8) Remeasurements on long-term employee benefit assets 90 76 (53) Equity instruments at FVOCI – net change in fair value (45) (25) (20) T otal comprehensive income for the period 7 6 598 6 157 12 326 Nedbank Limited consolidated statement of comprehensive income for the period ended Nedbank Group unaudited interim results 2026144
Page 147
Rm yoy % change Jun 2026 Jun 2025 Dec 2025 Profit attributable to: – Ordinary shareholders 7 6 524 6 075 13 139 – Non-controlling interest – ordinary shareholders 67 5 3 3 – Holders of participating preference shares (8) 49 53 142 Profit for the period 7 6 578 6 131 13 284 Total comprehensive income attributable to: – Ordinary shareholders 7 6 544 6 101 12 181 – Non-controlling interest – ordinary shareholders 67 5 3 3 – Holders of participating preference shares (8) 49 53 142 T otal comprehensive income for the period 7 6 598 6 157 12 326 Headline earnings reconciliation Profit attributable to ordinary shareholders 7 6 524 6 075 13 139 Less: Non-headline earnings items 11 (48) (54) (471) Impairments charge on non-financial instruments and other gains and losses (65) (73) (645) Taxation on impairments charge on non-financial instruments and other gains and losses 17 19 174 Headline earnings attributable to ordinary and preference shareholders 7 6 572 6 129 13 610 Rm Jun 2026 Jun 2025 Dec 2025 ROE (%) 14.6 14.0 15.4 ROA (%) 0.91 0.94 1.00 NII to average interest-earning banking assets (%) 3.61 3.71 3.66 CLR – banking advances (%) 0.97 0.79 0.67 Cost-to-income ratio 58.0 60.2 60.3 Stage 3 advances as a percentage of gross banking loans and advances (%) 4.55 4.91 4.53 Stage 3 advances held at amortised cost (Rm) 46 237 46 623 44 964 Stage 3 coverage (%) 39.60 39.03 38.79 Total coverage (%) 2.83 3.13 2.88 Nedbank Limited consolidated financial highlights for the period ended Nedbank Group unaudited interim results 2026 145 Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive
Page 148
yoy % Jun Jun Dec Rm change 2026 2025 2025 Assets Cash and cash equivalents (12) 43 850 49 966 53 903 Other short-term securities (20) 41 315 51 425 49 981 Derivative financial instruments 5 21 773 20 642 21 582 Government securities 13 250 226 221 104 247 412 Other dated securities 78 11 320 6 353 7 942 Banking loans and advances 8 1 015 303 940 405 973 666 Trading loans and advances 36 72 398 53 096 61 164 Other assets (16) 15 573 18 556 10 286 Current taxation assets (3) 973 1 000 223 Investment securities 2 9 619 9 428 8 799 Non-current assets held for sale 579 Investments in associate companies 1 250 1 245 1 241 Deferred taxation assets 5 22 21 64 Property and equipment (7) 8 430 9 055 9 103 Long-term employee benefit assets 9 6 152 5 668 5 810 Intangible assets (6) 8 857 9 453 8 967 T otal assets 8 1 507 640 1 397 417 1 460 143 T otal equity and liabilities Ordinary share capital 29 29 29 Ordinary share premium 21 872 21 872 21 872 Reserves 4 74 189 71 013 71 188 T otal equity attributable to equity holders of the parent 3 96 090 92 914 93 089 Holders of participating preference shares (8) 49 53 88 Holders of additional tier 1 capital instruments 15 13 733 11 991 11 969 Non-controlling interest attributable to ordinary shareholders 28 23 18 19 T otal equity 5 109 895 104 976 105 165 Derivative financial instruments (21) 10 229 12 952 10 848 Amounts owed to depositors 9 1 312 749 1 208 637 1 272 478 Provisions and other liabilities 9 21 568 19 870 19 520 Current taxation liabilities >100 109 41 88 Deferred taxation liabilities 13 759 670 185 Long-term employee benefit liabilities 17 48 41 44 Long-term debt instruments 4 52 283 50 230 51 815 T otal liabilities 8 1 397 745 1 292 441 1 354 978 T otal equity and liabilities 8 1 507 640 1 397 417 1 460 143 Nedbank Limited consolidated statement of financial position at Nedbank Group unaudited interim results 2026146
Page 149
Definitions 12-month expected credit loss (ECL) The expected credit loss that results from default events on financial instruments occurring within the 12 months after the reporting date (or a shorter period if the expected life of the financial instrument is less than 12 months), weighted by the probability of the defaults occurring. Assets under administration (AUA) (Rm) The market value of assets held in custody on behalf of clients. Assets under management (AUM) (Rm) The market value of assets managed on behalf of clients. Basic earnings per share (cents) Attributable income divided by the weighted-average number of ordinary shares. Black persons A generic term that refers to South African citizens who are African, Coloured or Indian. Central counterparty (CCP) A clearing house that interposes itself between counterparties for contracts traded in 1 or more financial markets, becoming the buyer to every seller and the seller to every buyer, thereby ensuring the future performance of open contracts. Common-equity tier 1 (CET1) capital adequacy ratio (%) CET1 regulatory capital, including unappropriated profit, as a percentage of total risk-weighted assets. Cost-to-income ratio (%) Total operating expenses as a percentage of total net operating income before impairment charges on financial instruments, being net interest income, non-interest revenue and income, and share of profits or losses from associates and joint arrangements. Coverage (%) On-balance-sheet expected credit losses (ECLs) divided by on-balance-sheet gross banking loans and advances. Coverage excludes ECLs on off-balance-sheet amounts, ECL, and gross banking loans and advances on the fair-value-through-other-co mprehensive-income (FVOCI) portfolio, and loans and advances measured at fair value through profit or loss (FVTPL). Credit loss ratio (CLR) (% or bps) The income statement impairment charge on banking loans and advances as a percentage of daily average gross banking loans and advances. It includes the ECL recognised in respect of the off-balance-sheet portion of loans and advances. Contractual service margin (Rm) For general measurement model (GMM) products, it represents unrecognised shareholders’ future profit on long-term products. Countercyclical buffer (CCyB) A capital buffer requirement that aims to protect the banking sector through increased capital requirements in periods when credit growth consistently exceeds economic growth. Default In line with the Basel III definition, default in respect of a client in the following instances: • When the bank considers that the client is unlikely to pay their credit obligations to the bank in full without the bank having recourse to actions such as realising security (if held). • When the client is past due for more than 90 days on any material credit obligation to the bank. Overdrafts will be considered as being past due if the client has breached an advised limit or has been advised of a limit smaller than the current outstanding amount. • In terms of the Nedbank Group Credit Policy, when the client is placed under business rescue in accordance with the Companies Act, 71 of 2008, and when the client requests a restructure of their facilities as a result of financial distress, except where debtor substitution is allowable in terms of the regulations. At a minimum, a default is deemed to have occurred when a material obligation is past due for more than 90 days or when a client has exceeded an advised limit for more than 90 days. A stage 3 impairment is raised against such a credit exposure due to a significant perceived decline in the client’s credit quality. • For retail portfolios this is product-centred and a default would therefore be for a specific advance. For all other portfolios, except specialised lending, it is client- or borrower-centred, meaning that should any transaction with a legal-entity borrower default, all transactions with that legal-entity borrower would be treated as having defaulted. To avoid short-term volatility, Nedbank employs a 6-month curing definition where subsequent defaults will be an extension of the initial default. Diluted headline earnings per share (DHEPS) (cents) Headline earnings divided by the weighted-average number of ordinary shares, adjusted for potential dilutive ordinary shares. Directive 7/2015 A directive from the Prudential Authority (PA) that provides clarity on how banks should identify restructured credit exposures and how these exposures should be treated for purposes of the definition of default. Dividend cover (times) Headline earnings per share divided by dividend per share. Nedbank Group unaudited interim results 2026 147 Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive
Page 150
Economic profit (EP) (Rm) Headline earnings less the cost of equity (total equity attributable to equity holders of the parent, less goodwill, multiplied by the group’s cost-of-equity percentage). Effective taxation rate (%) Direct taxation as a percentage of profit before direct taxation, excluding impairments charged on non-financial instruments and sundry gains or losses. Earnings per share (EPS) (cents) Earnings attributable to ordinary shareholders, divided by the weighted-average number of ordinary shares in issue. Expected credit losses The difference between all contractual cash flows that are due to the bank in terms of the contract and all the cash flows that the bank expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate related to default events on financial instruments that are possible within 12 months after the reporting date (stage 1) or that result from all possible default events over the life of the financial instrument (stage 2 and 3). Flac instruments Unsecured subordinated debt instruments issued to provide loss-absorbing and recapitalisation capacity in resolution, subject to statutory bail-in, and not recognised as regulatory capital. Forward-looking economic expectations The impact of forecast macroeconomic conditions in determining a significant increase in credit risk (SICR) and expected credit loss (ECL). Gross operating income (GOI) The sum of net interest income (NII), non-interest revenue (NIR) and the group’s share of gains of associate companies. Headline earnings (Rm) The profit attributable to equity holders of the parent, excluding specific separately identifiable remeasurements, net of related tax and non-controlling interests. Headline earnings per share (HEPS) (cents) Headline earnings divided by the weighted-average number of ordinary shares in issue. High-quality liquid assets (HQLA) Assets that can be converted easily and immediately into cash at little or no loss of value. Lifetime ECL The ECL of default events between the reporting date and the end of the lifetime of the financial asset, weighted by the probability of the defaults occurring. Life insurance value of new business (Rm) A measure of the value added to a company as a result of writing new business. Value of new business (VNB) is calculated as the discounted value, at the valuation date, of projected after-tax shareholder profit from a covered new business that commenced during the reporting period, net of frictional costs and the cost of non-hedgeable risk associated with writing new business, using economic assumptions at the start of the reporting period. Loss given default The estimated amount of credit losses when a borrower defaults on a loan. Net asset value (NAV) (Rm) Total equity attributable to equity holders of the parent. Net asset value (NAV) per share (cents) NAV divided by the number of shares in issue, excluding shares held by group entities at the end of the period. Net interest income (NII) to average interest-earning banking assets (AIEBA) (%) NII as a percentage of daily average total assets, excluding trading assets. It is also called net interest margin (NIM). Non-interest revenue and income (NIR) to total income (%) Non-interest revenue and income as a percentage of total net operating income before impairment charges on financial instruments. Number of shares listed (number) The number of ordinary shares in issue, as listed on the Johannesburg Stock Exchange Limited (JSE). Off-balance-sheet exposure Undrawn loan commitments, guarantees and similar arrangements that expose the group to credit risk. Ordinary dividends declared per share (cents) Total dividends to ordinary shareholders declared in respect of the current period. Performing stage 3 loans and advances (Rm) Loans that are up to date (i.e. not in default) but classified as having defaulted due to regulatory requirements, i.e. Directive 7/2015 or the curing definition. Positive cycle-neutral CCyB (PCN CCyB) A macroprudential tool that can be used to build and maintain capital buffers when risks are assessed to be neither low nor high. These buffers can then be released in the event of sudden shocks, including those unrelated to the credit cycle. Nedbank Group unaudited interim results 2026148
Page 151
Preprovisioning operating profit (PPOP) (Rm) Headline earnings plus direct taxation plus impairment charge on loans and advances. Price-to-earnings ratio (historical) Closing share price divided by the headline earnings, multiplied by the total days in the year, divided by the total days in the period. Price-to-book ratio (historical) Closing share price divided by the net asset value per share. Profit attributable to equity holders of the parent (Rm) Profit for the period less non-controlling interests pertaining to ordinary shareholders, preference shareholders and additional tier 1 capital instrument noteholders. Profit for the period (Rm) Income statement profit attributable to ordinary shareholders of the parent before non-controlling interests. Return on assets (ROA) (%) Net contribution (headline earnings) divided by the average daily assets, multiplied by the total days in the year, divided by the total days in the period. Return on equity (ROE) (%) Headline earnings as a percentage of daily average ordinary shareholders’ equity. Return on tangible equity (%) Headline earnings as a percentage of daily average ordinary shareholders’ equity, less intangible assets. Return on risk-weighted assets (RW A) (%) Headline earnings as a percentage of monthly average risk-weighted assets. Risk-weighted assets (RW A) (Rm) On-balance-sheet and off-balance-sheet exposures after having applied prescribed risk weightings according to the relative risk of the counterparty. Stage 1 Financial assets for which the credit risk (risk of default) at the reporting date has not significantly increased since initial recognition. Stage 2 Financial assets for which the credit risk (risk of default) at the reporting date has significantly increased since initial recognition. Stage 3 Any advance or group of loans and advances that triggered the Basel III definition of default criteria in line with South African banking regulations. At a minimum, a default is deemed to have occurred where a material obligation is past due for more than 90 days or a client has exceeded an advised limit for more than 90 days. A stage 3 impairment is raised against such a credit exposure due to a significant perceived decline in the credit quality. Stage 3 ECL (Rm) Expected credit loss for banking loans and advances that have been classified as stage 3 advances. Tangible net asset value (Rm) Equity attributable to equity holders of the parent, excluding intangible assets. Tangible net asset value (NAV) per share (cents) Tangible NAV divided by the number of shares in issue, excluding shares held by group entities at the end of the period. Tier 1 capital adequacy ratio (CAR) (%) Tier 1 regulatory capital, including unappropriated profit, as a percentage of total risk-weighted assets. T otal capital adequacy ratio (CAR) (%) Total regulatory capital, including unappropriated profit, as a percentage of total risk-weighted assets. T otal income growth rate less expenses growth rate (JA WS ratio) (%) Measure of the extent to which the growth rate of the total net operating income before impairment charges on financial instruments exceeds the growth rate of total operating expenses. T otal net operating income The sum of NII, NIR and the group’s share of gains of associate companies less the impairments charge on financial instruments. Value in use (VIU) (Rm) The present value of future cash flows expected to be derived from an asset or cash-generating unit. Weighted-average number of shares (number) The weighted-average number of ordinary shares in issue during the period listed on the JSE. Nedbank Group unaudited interim results 2026 149 Supplementary information Statement of financial position analysis Income statement analysis Segmental analysis Financial results 2026 interim results commentary Results presentation Message from our Chief Executive
Page 152
Abbreviations and acronyms AFR available financial resources AGM annual general meeting AI artificial intelligence AIEBA average interest-earning banking assets AIRB advanced internal ratings-based AMA advanced measurement approach AML anti-money-laundering API application programming interface AUA assets under administration AUM assets under management BBBEE broad-based black economic empowerment BEE black economic empowerment bn billion bps basis point(s) CAGR compound annual growth rate CAR capital adequacy ratio CASA current account savings account CCP central counterparty CET1 common equity tier 1 CIB Corporate and Investment Banking CIPC Companies and Intellectual Property Commission CLR credit loss ratio COE cost of equity CPI consumer price index CPF commercial property finance CSI corporate social investment CSM contractual service margin CVP client value proposition CX client experience DHEPS diluted headline earnings per share D-SIB domestic systemically important bank ECL expected credit loss EE employment equity ELB entry-level banking EP economic profit EPS earnings per share ESG environmental, social and governance ETI Ecobank Transnational Incorporated EVE economic value of equity FCTR foreign currency translation reserve FSC Financial Sector Code FSCA Financial Sector Conduct Authority FVOCI fair value through other comprehensive income FVTPL fair value through profit or loss FX foreign exchange GDP gross domestic product GFC great financial crisis GLAA gross loans and advances GLC great lockdown crisis GOI gross operating income HE headline earnings HEPS headline earnings per share HPI house price index HQLA high-quality liquid asset(s) IAS International Accounting Standard(s) ICAAP internal capital adequacy assessment process IFRS International Financial Reporting Standard(s) ILAAP Internal Liquidity Adequacy Assessment Process IMF International Monetary Fund JIBAR Johannesburg Interbank Agreed Rate JSE Johannesburg Stock Exchange Limited LAA loans and advances LAP liquid-asset portfolio LCR liquidity coverage ratio LIBOR London Interbank Offered Rate LTI long-term incentive m million M&A mergers and acquisitions MFC Motor Finance Corporation (vehicle finance division of Nedbank) MRC minimum required capital MZN Mozambican metical N/A not applicable Nafex Nigerian Autonomous Foreign Exchange Rate Fixing Methodology NAR Nedbank Africa Regions NBH Nedbank Business Hub NCA National Credit Act, 34 of 2005 NCD negotiable certificate of deposit NCOF net cash outflows NGN Nigerian naira NII net interest income NIR non-interest revenue and income NIM net interest margin NPL non-performing loan(s) NPS Net Promoter Score NSFR net stable funding ratio nWoW new Ways of Work OCI other comprehensive income OM Old Mutual PA Prudential Authority PAT profit after tax PAY U pay as you use (account) plc public limited company PPOP preprovisioning operating profit PRMA postretirement medical aid R rand RBB Retail and Business Banking Rbn South African rand expressed in billions REIPPPP Renewable Energy Independent Power Producer Procurement Programme REIT real estate investment trust Rm South African rand expressed in millions ROA return on assets ROE return on equity RO RWA return on average risk-weighted assets R PA robotic process automation RRB Retail Relationship Banking RTGS real-time gross settlement RWA risk-weighted assets SA South Africa SAcsi South African Customer Satisfaction Index SADC Southern African Development Community SAICA South African Institute of Chartered Accountants S&P Standard & Poor’s SARB South African Reserve Bank SDG Sustainable Development Goal SICR significant increase in credit risk SME small and medium enterprises STI short-term incentive TSA the standardised approach TTC through the cycle UK United Kingdom UN United Nations USA United States of America USD United States dollar (currency code) USSD unstructured supplementary service data VAF vehicle and asset finance VaR value at risk VIU value in use VNB value of new business YES Youth Employment Service yoy year on year ytd year to date ZAR South African rand (currency code) Nedbank Group unaudited interim results 2026150
Page 153
Disclaimer Nedbank Group has acted in good faith and has made every reasonable effort to ensure the accuracy and completeness of the information in this document, including all information that may be defined as ‘forward-looking statements’ within the meaning of US securities legislation. Forward-looking statements may be identified by words such as ‘believe’, ‘anticipate’, ‘expect’, ‘plan’, ‘estimate’, ‘intend’, ‘project’, ‘target’, ‘predict’ and ‘hope’. Forward-looking statements are not statements of fact, but statements by the management of Nedbank Group based on its current estimates, projections, expectations, beliefs, and assumptions regarding the group’s future performance. No assurance can be given that forward-looking statements will be correct and undue reliance should not be placed on them. The risks and uncertainties inherent in the forward-looking statements include changes to IFRS and the interpretations, applications and practices related to these standards as they apply to past, present and future periods; domestic and international business and market conditions such as exchange rate and interest rate movements; changes in the domestic and international regulatory and legislative environments; changes to domestic and international operational, social, economic and political risks; and the effects of both current and future litigation. Nedbank Group does not undertake to update any forward-looking statements in this document and does not assume responsibility for any loss or damage arising as a result of any party’s reliance on them, including loss of earnings or profits, or consequential loss or damage. Company details Nedbank Group Limited Incorporated in the Republic of SA Registration number 1966/010630/06 Registered office Nedbank Group Limited | Nedbank 135 Rivonia Campus 135 Rivonia Road | Sandown | Sandton | 2196 PO Box 1144 | Johannesburg | 2000 Transfer secretaries in SA JSE Investor Services Proprietary Limited 1 Exchange Square | Gwen Lane | Sandown | Sandton | 2196 PO Box 4844 | Johannesburg | 2000 | SA Transfer secretaries in Namibia NSX Financial Market Services 4 Robert Mugabe Avenue | Windhoek | Namibia PO Box 2401 | Windhoek | Namibia Instrument codes Nedbank Group ordinary shares JSE share code NED NSX share code NBK A2X share code NED ISIN ZAE000004875 JSE alpha code NEDI ADR code NDBKY ADR CUSIP 63975K104 More information Investor Relations Email: nedgroupir@nedbank.co.za Mike Davis Chief Financial Officer Email: michaeldav@nedbank.co.za Alfred Visagie Executive Head | Investor Relations Email: alfredv@nedbank.co.za Corporate website group.nedbank.co.za Company Secretary Jackie Katzin Sponsor to Nedbank Group in SA Nedbank Corporate and Investment Banking, a division of Nedbank Limited. Independent sponsor to Nedbank Group in SA Tamela Holdings Proprietary Limited Sponsor to Nedbank Group in Namibia Old Mutual Investment Services (Namibia) Proprietary Limited Nedbank Group unaudited interim results 2026 151
Page 154
group.nedbank.co.za