Nedbank flags 20% earnings drop after Ecobank exit

Nedbank Group has warned that its basic earnings per share (EPS) for the year to end-December 2025 will decline by at least 20% following the conclusion of its disposal of Ecobank Transnational Incorporated (ETI).

The group announced in a voluntary trading statement on Thursday that it has successfully concluded the sale of its 21.2% shareholding in ETI for $100 million (about R1.7 billion), after receiving all the required regulatory approvals.

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The transaction was first announced on 15 August 2025, when Nedbank said it had entered into a sale and purchase agreement with Bosquet Investments Limited to exit the investment.

Nedbank shares traded at R263.94 at around 10:40 – 0.66% firmer than the previous day.

Nedbank said the disposal was concluded on 17 December 2025 and “represents a reset of Nedbank’s strategy on the broader African continent, with a clear focus on the Southern African Development Community (Sadc) and East Africa regions in businesses Nedbank Group owns and controls”.

As a result of the disposal’s completion, the group said that, in terms of International Financial Reporting Standards (IFRS), cumulative foreign exchange losses and fair value adjustments of approximately a net R7 billion, related to the equity accounting treatment of its interest in ETI over time and previously recognised via other comprehensive income, are required to be recycled to profit or loss in the current reporting period.

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Consequently, Nedbank said a reasonable degree of certainty exists that EPS for the 12 months ending 31 December 2025 will decrease by at least 20% to at least 2 888 cents, compared with 3 610 cents reported for the previous financial year.

The group said the recycling of the foreign exchange losses and fair value adjustments, recognised via other comprehensive income, is specifically excluded from headline earnings and therefore has no impact on headline earnings per share, diluted headline earnings per share, or net asset value per share.

Guidance remains unchanged 

Nedbank added that the announcement has no impact on statements made in its voluntary trading and pre-close investor update released on Sens on 3 December 2025.

In the statement, Nedbank said it remains on track to deliver underlying diluted headline earnings growth of flat to low single digits and a return on equity of 15% or higher for the year, excluding the impact of the once-off R600m commercial settlement with Transnet.

Nedbank announced on 18 December that it has agreed to pay Transnet R600 million in a confidential commercial settlement, ending a year-long legal dispute over interest-rate swaps.

The settlement, made without any admission of liability, follows efforts by both parties to avoid prolonged litigation and preserve their business relationship, the companies said.

The lender pointed out that it had excluded the expected impact of the settlement on its full-year guidance as the agreement was “post its 10-month ‘reporting period”.

Nedbank said a further trading statement will be released once it has a greater degree of certainty regarding the expected EPS range for the year.

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