Nedbank has revised its growth outlook for 2025 to 1%, down from its earlier, more optimistic outlook of a 1.5% increase in GDP. This came out of a discussion with the bank’s Chief Executive, Jason Quinn, who was answering questions on the company’s interim results released on Tuesday.
For the six months ended June 2025, the bank reported revenue up 4% to R36.4 billion, with diluted headline earnings per share increasing by 7% on the year prior.
The bank has characterised the first half of the year as challenging but appeared optimistic about consumer finances for the balance of the year.
Nedbank has reported that deposits at the bank increased by 10% in the period under review, while it saw lending up 6%, adding that it managed to gain some market share in the area of home and vehicle loans.
The lender notes that its credit losses came down substantially, seeing the consumer with a more positive view.
Quinn says, “Starting with the macros. Prime at 10.5% with the latest interest rate cut last week is a lot more conducive to consumer lending and the ability to repay, so that’s a positive. Low inflation is also a positive.”
The bank has also announced that it would be selling off its 21% stake in the West and Central African banking powerhouse, Ecobank. This, as it says, wants to focus on businesses it has overall control of.
Quinn cites a positive macroeconomic environment in South Africa, with lower inflation and interest rates, as bodes well for consumers and, in turn, the bank’s business. However, he says that factors like the higher US trade tariffs set to kick in later this week will likely continue to tamper with business and consumer confidence. The bank now estimates economic growth at 1% for 2025, far from its earlier optimistic estimate of 1.5%.
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