Nedbank has delivered flat headline earnings for the first half of the financial year, but is expecting an improvement in the second half as the underlying growth momentum across all its businesses continues.The group on Tuesday reported headline earnings for the six months to end-June rose a modest 0.1% to R8.4bn, though, it said, this had outperformed the group’s expectations at the start of the year. Headline earnings benefited from improving net interest income growth, strong non-interest revenue growth and disciplined expense management, the group said in a statement. This was offset by a higher impairment charge and no further recognition of associate income from Ecobank Transnational Incorporated (ETI) after the disposal of Nedbank’s investment in 2025. When excluding the ETI base effect, headline earnings growth was strong at 12%, reflecting a strong underlying operational performance.HEPS rose 2% to 1,841c and an interim dividend of 1,052c per share was declared. Return on equity (ROE) of 15% remained above the group’s cost of equity of 14%. Revenue was up 6% to R38.2bn and the credit-loss ratio was reported at 95 basis points (bps), compared with 81bps a year ago.“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,” said CEO Jason Quinn.He said the acquisition of a controlling interest in Kenya’s NCBA Group, is progressing. The offer closed on July 10 and was accepted by shareholders representing 79.9% of NCBA shares in issue, enabling Nedbank to achieve its targeted 66% shareholding. The remaining regulatory approvals are expected towards the end of the third quarter or early fourth quarter of 2026.Nedbank said that the acquisition of the financial services group supports its ambition to grow and diversify earnings in attractive markets.Total clients increased by 4% to 8-million, supported by growth across individuals and small and medium enterprises. The group said it recorded market share gains in home loans, credit cards, wholesale term loans, and retail deposits. Sustainable development finance increased to R213bn, representing 21% of total gross loans.Nedbank expects South African GDP growth to improve modestly to about 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. It expects inflation to average around 4% in 2026, remaining above the SA Reserve Bank’s 3% target but within its tolerance band. The prime lending rate is expected to increase by a further 25bps in September, before declining in 2027, it said. “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,” it said.The ROE is expected to remain above 15% in 2026. Nedbank remains focused on delivering an ROE of about 17% in 2028, underpinned by stronger revenue growth and continued operational efficiency gains, Quinn said.Business Day