On 4 March 2025, Nedbank released its FY24 results which were characterised by:
1. Headline earnings increased 8% driven by non-interest revenue growth and lower impairments.
2. Net interest income increased 1% driven by average interest-earning banking assets increasing 5%. The net interest margin decreased from 421 basis points to 405 basis points driven by competition for quality assets, squeeze in deposit spreads and a negative endowment mix impact.
3. Non-interest revenue increased by 10% driven by net commission and fee income increasing by 10% and the prior year containing a non-repeatable R1 billion net monetary loss relating to Zimbabwe operations.
4. Expenses increased by 8%, primarily due to staff costs increasing 7%, driven by an average annual increases of 6% and more expensive mix of employees.
5. Impairments decreased by 17%, driven by an improving macroeconomic environment, the resolution of large counters in the wholesale portfolio, credit policy intervention and collections and origination efforts.

Our research supports a buy recommendation.