Integrated Report
for the year ended 31 December 2024
Overview of our integrated reporting suite, key aspects of our 2024 Integrated Report
and the drafting thereof, as well as approval by the board.
1
Our reporting universe
2
About our 2024 Integrated Report
Integrated reporting
Supplementary information
Independent assurance, abbreviations, acronyms and reporting criteria.
99
Independent assurance practitioner’s Limited Assurance Report on selected sustainability
performance information reported Nedbank Group Limited’s Integrated Report
101
Abbreviations and acronyms
102
Reporting criteria
Clients
Employees
Shareholders
Society
Regulators
Assessment of value creation, protection, and erosion for stakeholders in 2024 and how
remuneration outcomes are aligned with our strategy, targets and performance.
72
Reflections from our Chief Financial
Officer
78
Value for stakeholders
89
Key performance indicators:
Stakeholders
91
Rewarding for value creation
Delivering, measuring, and rewarding value creation
Our stakeholders
Financial
Intellectual
Social and
relationship
Natural
Manufactured
Human
Overview of the group; our businesses, market position, differentiators and business
model; the needs and expectations of our stakeholders; and how our purpose, vision,
values, and strategy position us for long-term value creation.
5
Nedbank Group at a glance
6
Our purpose, vision, values, targets, and strategy
7
Our differentiation
8
Nedbank Group in context
10
Our business model, structure, products and
services
14
Our stakeholders – their needs and expectations
Our capitals
An overview of Nedbank Group
Overview of the board’s key activities, highlighting how good governance and strong
leadership contribute to the creation and protection of value, while minimising the risk
of value erosion.
17
Reflections from our Chairperson
19
Governance at Nedbank
20
Board focus areas in 2024
24
Our Board of Directors
26
Board committees and interdependency
30
Other key areas of board responsibility
and oversight
King IV™
Top 10 risks
ESG
Our guiding principles and considerations
Ensuring value creation through good governance
Overview of the context in which we operate, including our material matters, how
we manage risks, the opportunities we seek to unlock, our strategic response, the
trade-offs we make and key capital considerations to ensure ongoing value creation.
34
Reflections from our Chief Executive
37
Our Group Executive Committee
38
Our operating environment and
material matters
48
Managing risk strategically, while
unlocking opportunities
52
Our strategy
67
Strategic capital decisions and
trade-offs
69
Key performance indicators: Strategy
Sustainable value creation through strategy
Market-
leading client
experiences (CX)
Digital leadership
(DX)
Focusing on areas that
create value (SPT)
Growth vectors
Creating positive
impacts (purpose
delivery)
Our strategic value unlocks
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
B
Assurance provided: LA Limited assurance over selected KPIs A Audited IA Internal Audit Materiality consideration: D Double F Financial I Impact
Our reporting universe
Financial
reporting
Shareholder
information
• 2024 Results Booklet and presentation F
• 2024 Nedbank Group Annual Financial Statements A F
Our 2024 Society Report LA I
includes the following content sections:
• Sustainable development finance (SDF)
• Human capital, diversity and inclusion
• Social impact
• Supplier relationships and procurement
• Client responsibility
• Financial inclusion
• Transformation
Our 2024 Governance Report L D includes
the following content sections:
• Notice of 58th annual general meeting
• Form of proxy
• Memorandum of incorporation**
• Shareholding profile*
group.nedbank.co.za
The 2024 Nedbank Group Integrated Report was produced in accordance with the
Integrated Reporting Framework and King IV Report on Corporate Governance for South
Africa (King IV)*. It provides a comprehensive, yet concise overview of how the group creates
and protects value while minimising the risk of value erosion over the short, medium and long
term. It primarily caters for the information needs of long-term investors, including our equity
shareholders, bondholders, debt providers and prospective investors.
• International Financial Reporting Standards (IFRS)
Accounting Standards
• Companies Act, 71 of 2008 (Companies Act)
• JSE Listings Requirements
• Basel Committee on Banking Supervision (BCBS)
• Global Reporting Initiative (GRI) Standards
• JSE Sustainability and Environmental Disclosures
• Considered the IFRS Sustainability Disclosure
Standards
• GRI Standards
• King IV
• UN Global Compact
• Application of the Amended Financial Sector Code (FSC)
and the BBBEE Act, 53 of 2003
The JSE Sustainability Disclosures and the ISSB Sustainability-
related Financial Disclosures were also considered.
• King IV
• Companies Act
• Banks Act, 94 of 1990
• South African Reserve Bank (SARB) regulations, directives
and circulars
• BCBS guidance
• JSE Listings Requirements
• JSE Debt and Specialist Securities Listings Requirements
• Other applicable laws, regulations, and best-practice principles
• GRI Standards
The following information is
available online:
• Broad-based black economic
empowerment (BBBEE)
certificate**
• GRI Standards disclosures**
• SDF inclusion criteria**
Integrated
Report
This report is also relevant to other stakeholders as it addresses
material issues relating to value creation for them. It is supplemented
by more detailed reporting in our various online publications, which
include financial, risk management, sustainability, and environmental,
social and governance (ESG) disclosures. These reports can be
accessed on our website at group.nedbank.co.za.
2024 Pillar 3 Risk and Capital
Management Report IA F
The following information is
available online:
• Key policies*
• Board and Group Executive
Committee CVs and profiles*
Key regulatory and reporting frameworks
• 2024 Climate Report LA IA D
• Nedbank Energy Policy*
• Nedbank Climate Change Position Statement*
• Nedbank Nature Position Statement*
Societal
reporting
Governance
reporting
* Copyright and trademarks are owned by the Institute of Directors
in South Africa NPC and all its rights are reserved.
** Available separately at group.nedbank.co.za.
Information relating to the group’s financial position and
performance. It is primarily of interest to Nedbank’s equity and
debt investors, credit rating agencies, depositors, regulators, and
various other stakeholders. The disclosed information can be
used to assess the group’s financial performance, strength and
prospects, and includes important regulatory disclosures.
Information relating to the group’s climate-related activities,
governance, strategy, policies, risk management, carbon footprint
and emissions, as well as targets. It is primarily of interest to
investors, non-governmental organisations (NGOs), ESG ratings
agencies, as well as key stakeholders such as clients and invested
members of society who associate with value-aligned and
purpose-driven companies. The disclosed information can be
used to assess Nedbank’s progress in managing its positive and
negative impacts in addressing climate change.
Information relating to how the group uses its financial
expertise to do good by creating positive economic, societal and
environmental impacts, including those aligned with the United
Nations (UN) Sustainable Development Goals (SDGs). They
are primarily of interest to investors, existing and prospective
employees, regulators, NGOs, existing and prospective clients,
ESG ratings agencies, and engaged members of society. The
disclosed information demonstrates progress in how Nedbank is
fulfilling its purpose.
Information relating to board matters, ethics, financial crime, tax
and remuneration, as well as regulatory risk disclosures. They
are primarily of interest to debt and equity investors, credit and
ESG rating agencies, clients, employees, regulators, suppliers and
members of society. The information disclosed demonstrates
how Nedbank performs business through sound risk and
governance practices, upholding the highest standards of
ethics, integrity, transparency and accountability. It also includes
important regulatory disclosures.
Notice of the group’s annual general meeting (AGM) and form of
proxy provide valuable information to shareholders who want to
participate in the Nedbank Group 58th AGM.
What is disclosed in these reports or online
Climate
reporting
Climate Report
for the year ended 31 December 2024
Society Report
for the year ended 31 December 2024
Integrated Report
for the year ended 31 December 2024
Governance Report
for the year ended 31 December 2024
see money differently
Annual results
for the year ended 31 December 2024
see money differently
for the year ended 31 December 2024
Notice of AGM
and extracts from
the consolidated
fi nancial statements of
Nedbank Group Limited
D Double materiality
LA Limited assurance over selected KPIs
• Governance
• Ethics
• Financial crime
(including anti-
money-laundering
and cybercrime)
• Remuneration Policy
and Remuneration
Implementation Report
• Tax disclosures
• Stakeholder
engagement
1
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
About our 2024 Integrated Report
Our materiality determination process
Identifying our material matters is a collective responsibility that involves input from our
businesses; an assessment of the impacts, risks and opportunities in our operating environment
through a double materiality lens; and feedback from our key stakeholder groupings. Our
6 material matters, as detailed on pages 38 to 47, seek to identify opportunities, risks and impacts
and shape our strategic response. They also guide the evolution of our business model and our
short- (1 year), medium- (2 to 3 years) and long-term (5 years +) targets.
Our Group Exco and the board continuously discuss these material matters during their meetings
throughout the year and approve them as part of a formal strategy engagement in June.
Board, Group Exco,
employees
Board, Group Exco,
employees
Fulfilling our
purpose
Vision
Values
Board, Group Exco
Determining our
material matters
Risks and impacts
Opportunities
Board and board
committees
Group Exco, Exco
committees and employees
Overseeing and
executing our strategy
Board, Group Exco,
Integrated Reporting Team
Integrated Reporting
Framework
Compiling our
report
Various reporting
standards and guidance
Board, Group Exco, Group
Internal Audit, External Auditors
Validating the
integrity of the report
Coordinated
Assurance Model
Board and Group
Exco reviews
Board, Group Exco
Developing and
evolving our strategy
Short-, medium- and long-
term outlook
Financial and
non-financial targets
Board, Group Exco
Approving the
Integrated Report
Exco
sign-off
Board
approval
How we think
about value
Value creation, preservation
and erosion are the
consequences of how we
apply and leverage our
capitals during strategy
formulation and execution.
This is evident in how we
address these capitals over
time, the trade-offs we
make, our financial and non-
financial performance and
the outputs and outcomes,
for all our stakeholders.
Integrated thinking allows
us to create and preserve
value as we fulfil our purpose
(page 6).
In our report, we use the
icons below to denote value
creation, preservation,
and erosion:
Process we followed to
complete the 2024 report
The 2024 Integrated Report was
prepared based on Group Exco and
board discussions, minutes, decisions
and approvals, and business plans,
reflecting integrated thinking. It also
adhered to internal and external
reporting information requirements of
the Integrated Reporting Framework and
other reporting frameworks.
A cross-functional team, led by the
Group Chief Financial Officer (CFO) and
comprising businesses and subject matter
experts across the group, produced the
content of the Integrated Report and
reporting suite. We made use of artificial
intelligence (AI) tools to assist with the
collation of information. Group Exco
and boardmembers contributed and
were involved in the various approval
processes, which were supported by
the oversight provided by independent
assurance providers. The board approved
the final report, while the Group
Integrated Report Approval Committee,
with delegated authority from the board,
provided final sign-off for publication.
1 Our purpose
2 Integrated thinking
3 Integrated reporting process
Our 2024 Integrated Report reflects the outcome of integrated thinking and a reporting process governed by the board, led by the Group Executive
Committee (Group Exco), assured through our Coordinated Assurance Model, and delivered through collaboration across the group.
Value creation
Value preservation
Value erosion
Identify matters that could
create, preserve, or erode value
for us and our stakeholders.
Prioritise those matters with
the greatest relevance.
Apply and validate the material
matters to inform our strategy,
capitals and targets.
Assess these matters
continually to ensure our
strategy remains relevant.
Reporting frameworks to which we adhere
Our integrated reporting is guided by the principles and
requirements of the Integrated Reporting Framework,
the International Financial Reporting Standards (IFRS)
Accounting Standards and the King IV Report on
Corporate Governance for South Africa (King IV). It
aligns with the core option of the Global Reporting
Initiative (GRI) Standards. As a South African bank
and a company listed on the JSE, we align with the JSE
Listings Requirements; the South African Companies
Act, 71 of 2008; and the Banks Act, 94 of 1990. We
have also considered the disclosure requirements of the
International Sustainability Standards Board (ISSB) and
the JSE’s Sustainability and Climate Disclosure Guidance.
Ensuring the integrity of our report
The Nedbank Group Board ensures the integrity
of the Integrated Report through our integrated
reporting process, which includes various approvals by
Group Exco and the board. This process relies on our
Coordinated Assurance Model, overseen by the Group
Audit Committee, which assesses and assures various
aspects of our business operations and reporting. These
assurances are provided by management and the board
through rigorous internal reporting governed by the
group’s Enterprisewide Risk Management Framework
(ERMF), Group Internal Audit and independent external
sources and service providers.
Impact materiality
(inside out)
Financial materiality
(outside in)
A
s
s
e
s
s
A
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p
l
y
a
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d
v
a
l
i
d
a
t
e
I
d
e
n
t
i
f
y
P
r
i
o
r
i
t
i
s
e
• People
• Planet
• Economy
Nedbank
• People
• Planet
• Economy
Nedbank
2
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Digital and ESG reporting
Our 2024 integrated reporting suite has been designed for an
enhanced digital experience and ease of use as our stakeholders
primarily engage with information through digital channels. The
digital navigation capability in the report assists you to easily navigate
between different sections or topics using the navigation icons
at the top of the page or pop-ups wherever you hover with your
cursor. We have also created links to videos that provide additional
insights and bring our Integrated Report to life. The group’s website,
group.nedbank.co.za, which contains all the relevant reports and
additional disclosures, was relaunched in the first quarter of 2025.
Our reporting boundary and scope
This report focuses on key issues, risks, opportunities and outcomes that impact our ability to be a
sustainable business that consistently creates, protects, and minimises the erosion of value for Nedbank
and all key stakeholders.
4 Our 2024 Integrated Report
Forward-looking statements
This report contains certain forward-looking statements about Nedbank
Group’s financial position, results, strategy, operations, and businesses. These
statements and forecasts involve risk and uncertainty, as they relate to events
and depend on circumstances that occur in the future. There are several
factors that could cause actual results or developments to differ materially
from those expressed or implied by these forward-looking statements.
Consequently, all forward-looking statements have not been reviewed or
reported on by the group’s joint auditors.
Forward-looking statements made by Nedbank Group on 4 March 2025 at the
time of releasing its 2024 results were informed by the group’s business plans
and economic forecasts in February 2025.
Video
Read more
Web
Digital navigation icons
This icon refers to
environmental, social
and governance
(ESG) data contained
in a comprehensive
table, available at
group.nedbank.co.za.
ESG data
About our 2024 Integrated Report continued
Approval by the board
The board acknowledges its responsibility
of ensuring the integrity of this Integrated
Report. In the board’s opinion, this report
addresses all the issues that are material
to the group’s ability to create value and
fairly presents the integrated performance
of Nedbank Group. The board is confident
that the report was prepared in line with the
Integrated Reporting Framework. This report
was approved by the Board of Directors of
Nedbank Group on 15 April 2025.
Hubert Brody
(Lead Independent Director)
Brian Dames
Neo Dongwana
Errol Kruger
Phumzile Langeni
Rob Leith
Linda Makalima
Mike Davis
(Chief Financial Officer)
Mfundo Nkuhlu
(Chief Operating Officer)
Stanley Subramoney
Daniel Mminele
(Chairperson)
Terence Nombembe
Jason Quinn
(Chief Executive)
May Hermanus
Our financial reporting boundary covers reporting on the primary activities and financial results of Nedbank
Group, with its primary listing on the JSE. The group comprises Nedbank Limited (100% owned), the group’s
largest subsidiary, as well as various foreign and insurance entities. The group’s operations comprise 4
business clusters and various support areas, operating largely in SA, with subsidiaries and representative
offices on the rest of the African continent and in selected international markets.
Coordinated assurance
Our Coordinated Assurance Model integrates and aligns risk, audit and compliance functions and assurance
activities. This enables an effective internal control environment across the group, with assurance focused
on critical risk exposures, supporting the integrity of information used in internal decision-making and
reporting to external stakeholders.
Our 2024 Annual Financial Statements were assured by our joint external auditors, Ernst & Young Inc (EY)
and KPMG Inc (KPMG). Limited assurance on selected sustainability information was provided by EY, and
Mosela Rating Agency provided limited assurance on our application of the Amended Financial Sector Code
(FSC) and the group’s broad-based black economic empowerment (BBBEE) status. We have indicated the
level of assurance provided on pages 69, 70, 89 and 90, and included the independent assurance providers’
Limited Assurance Report on selected key performance indicators on page 99 and 100.
Nedbank Limited
CIB
RBB
Wealth
NAR
Insurance entities
Nedbank Group
Foreign subsidiaries
Legal
structure
Our reporting boundary covers risks, opportunities and outcomes arising from our
Our financial reporting boundary (control and significant influence)
aligns with our annual financial statements
Covers the period from 1 January to 31 December 2024. It also includes material
events up to the board approval date of 15 April 2025.
Clients
Employees
Shareholders
Society
Regulators
* From 1 July 2025, RBB and Wealth will be restructured into PPB and BCB as discussed on page 67.
Operational
structure*
• Business model (pages 10 to 13)
• Material matters (page 38)
• Material risks and opportunities (pages 48 to 51)
• Strategy (pages 52 to 66)
• Trade-offs and capitals (pages 67 and 68)
• Stakeholders (pages 78 to 88)
3
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
An overview of
Nedbank Group
Overview of the group; our businesses, market position, differentiators and
business model; the needs and expectations of our stakeholders; and how our
purpose, vision, values, and strategy position us for long-term value creation.
4
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Assets under management
R474bn
Market capitalisation
R137bn
Headline earnings
R16,9bn
Common-equity
tier 1 capital ratio
13,3%
Return on equity
15,8%
Deposits
R1 175bn
Gross banking advances
R944bn
Client savings entrusted to us
The return on the capital that our
shareholders have invested
The strength of our balance sheet
Nedbank Group at a glance
Nedbank Group, with its
ordinary shares listed on
the JSE since 1969, is one
of the largest financial
services groups in Africa,
offering wholesale and
retail banking, as well as
financial services such
as insurance and asset
management services and
solutions to more than
7,6 million clients.
In South Africa (SA), Nedbank has
a strong franchise that contributes
90% of the group’s R1,4tn in assets
and 79% of the group’s R16,9bn
headline earnings. The group also
operates in 5 countries in the
Southern African Development
Community (SADC) through
subsidiaries and banks in Lesotho,
Mozambique, Namibia, Eswatini
and Zimbabwe. In Central and
West Africa, we have a financial
investment in Ecobank Transnational
Incorporated (ETI) and we have
a representative office in Kenya.
Outside Africa we have a presence in
key global financial centres to provide
international financial services for
Africa-based multinational and high-
net-worth clients in the Isle of Man,
Jersey, and London, and we have a
representative office in Dubai.
Assets by geographical area
(%)
Client savings entrusted to us
The profits we make for shareholders
The investments we manage for clients
The credit we provide to clients
The value of Nedbank Group as a
company on the JSE
90
4
6
South Africa
Nedbank Africa Regions
Rest of the world
2020
2021
2022
2023
2024
5,4
16,9
15,7
14,1
11,7
2020
2021
2022
2023
2024
954
1 175
1 088
1 040
968
2020
2021
2022
2023
2024
797
944
885
863
807
2020
2021
2022
2023
2024
375
474
448
393
424
2020
2021
2022
2023
2024
6,2
15,8
15,1
14,1
12,5
2020
2021
2022
2023
2024
65
137
106
109
89
2020
2021
2022
2023
2024
28 271
25 613
25 477
25 924
26 861
2020
2021
2022
2023
2024
10,9
13,3
13,5
14,0
12,8
Permanent employees
25 613
Our human capital
5
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Our purpose, vision, values, targets and strategy
Market-
leading client
experiences (CX)
Focusing on
areas that create
value (SPT)
Digital
leadership
(DX)
Growth
vectors
(new)
Creating positive
impacts
(purpose delivery)
Our strategy
Our purpose
To use our financial expertise to do good for individuals,
families, businesses and society.
Our vision
To be the most admired financial services provider in Africa by
our employees, clients, shareholders, regulators and society.
The Nedbank Sustainable
Development Framework
C
o
r
p
o
r
a
t
e
s
o
c
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a
l
i
n
v
e
s
t
m
e
n
t
O
p
e
r
a
t
i
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n
s
S
u
s
t
ai
n
a
bl
e
d
e
v
el
o
p
m
e
n
t
fi
n
a
n
c
e
Growth
Productivity
Risk and Capital
Management
What we want
our future to
look like
The reason
we exist
Our brand promise
see money differently
How we want
to affect our
clients
Our approach
to purpose
fulfilment
Our values
Integrity | Respect | Accountability | People-centred | Client-driven
The principles
that guide us
Strategic value drivers
Strategic value unlocks
Our targets1
1 These targets are not a profit forecast, have not been reviewed or reported on by the group’s joint auditors and are based on the group’s economic
forecasts at the time. Guidance and targets exclude any potential impact from merger-and-acquisition-related corporate action.
17%
(COE + 2%)
2025
(medium-term
targets set in 2023)
Long
term
(not dated, 5+ years)
Medium
term
52%
#1 bank
> 16%
> 17%
Increase
yoy
54%
#1 bank
#1 bank
> CPI + GDP + 5%
(CAGR to end-2025)
> Mid-single digits
(for FY 2025)
> CPI + GDP + 3%
(CAGR)
> 18%
(COE + 3%)
< 50%
> CPI + GDP
+ 5%
(CAGR through the cycle)
#1 bank
Return on
equity
Diluted headline
earnings per share
Cost-to-income
ratio
Net Promoter
Score
We prioritised
9 Sustainable
Development Goals
(SDGs) where we
believe we have the
greatest ability to
deliver a meaningful
impact through our core
business and sustainable
development finance
support to clients.
2025 guidance
Our employees and differentiated
corporate culture (EX)
A modern
technology platform
Underpinned by:
6
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Strong balance sheet
to support growth and
protect against downside risk
(CET1 ratio: 13,3%; LCR 135%;
NSFR 116%).
Page 73
Sound risk
management track
record – credit loss ratio
at 87 bps, within the group’s
target range of 60 bps to
100 bps.
Page 73
Attractive valuation
metrics1
• Price-to-book ratio:
1,2 times
• Dividend yield: > 7%
• Unlock value by progressing
our return on equity (ROE)
towards our long-term
target of > 18%
Page 76
A strong, experienced,
and diversified board and
leadership team
• 64% independent
non-executive directors
• 64% African, Indian and
Coloured board representation
• Highly engaged board
– completed our 11th annual
ESG roadshow in 2024
(market-leading practice in SA)
Pages 21, 22 and 25
One of SA’s most
experienced financial
services management
teams
• Highly regarded by the
investment community
• 183 years’ combined
experience
• Seamless leadership
succession over many
years
Page 37
A modern
technology platform
and market-leading digital
capabilities.
Page 53
Top-tier client
satisfaction ratings –
#1 rank in NPS.
Page 58
Unique corporate
culture and high levels
of employee engagement
and satisfaction.
Best-in-class
and transparent
reporting and
disclosures.
Our differentiation
As a large universal bank and financial services provider, we differentiate ourselves on various aspects that are important for investors.
1 At 31 December 2024.
Leadership positions in structured lending
across key sectors such as mining, renewable
energy, telecoms, infrastructure, commercial
property, construction and commodities, as
well as small business, vehicle finance and card
acquiring.
Page 11
Strong franchises – a leading corporate
and investment bank, strong commercial
and small-business franchises, and a more
competitive retail banking business.
Page 11
Well positioned to benefit from SA’s economic
recovery.
• Relatively more exposure to SA
• Relatively more exposure to wholesale
banking
Wholesale advances*
(% of group)
SA advances*
(% of group)
* Includes Corporate and Investment Banking (CIB) and
Commercial Banking | Universal banking peers include Absa,
FirstRand and Standard Bank.
2024
The Banker
Magazine
Bank of the Year:
South Africa
2024
Digital Banker
Africa Awards
Best Digital
Bank (SA)
2024
Global Finance
Magazine
Best Bank for
Sustainable
Finance (SA)
2024
Euromoney
Awards
The World’s
Best Bank for
Diversity and
Inclusion
2024
Global Banking &
Finance Review
Best Retail, Best
SME and Best
Investment
Bank (SA)
2024
Forbes Best
Employer ranking
#2 company
in SA
A purpose-led
business
Delivering positive societal
and environmental impact
that is supported by good
governance, ESG leadership
and proud credentials of
doing business in a manner
that contributes positively
to society.
• AAA MSCI ESG rating –
top 9% of global banks
• Track record of
leadership in
climate-related
matters
• R183bn in purpose-led
sustainable development
finance exposures that are
SDG-aligned
• Level 1 BBBEE
contributor since 2018
Pages 62 to 64
Peer average
Nedbank
57
52
Peer average
Nedbank
91
82
2024
EY Excellence
in Integrated
Reporting
#1 ranked
in SA
7
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
The largest 100 banks in Africa collectively hold assets amounting to approximately
US$1,3tn, backed by over US$110bn in capital, which represents about 1% of the
global bank capital. These banks achieve high returns on capital and offer promising
long-term growth opportunities, driven by rapid economic and population growth
in their regions, increasing banking penetration, and the evolving sophistication of
client needs.
In 2024, 5 South African banks were included in the top 10 in both Africa and sub-Saharan Africa, with Nedbank
ranking within the top 5 as measured by both capital and assets.
South African deposit
market share
(%)
South African advances
market share
(%)
AUM market share in SA
(%)
Largest banks in sub-Saharan
Africa (assets)
(US$bn)
Nedbank Group in context
South African banking sector
The South African banking sector has total advances amounting to R5,5tn,
which increased by 7% on 2023. Of this, Nedbank holds a 16,4% share
(2023: 16,5%), which represents the credit provided to clients. Additionally, we
have a 17,5% share (2023: 17,3%) of the R6,2tn South African deposit market –
a key indicator of our franchise strength. With assets under management (AUM)
of R474bn, Nedbank ranks as the 8th-largest unit trust manager in SA, holding a
7% domestic market share and a 9% international market share1.
South Africa:
Standard Bank
166
FirstRand
121
Absa Group
101
Nedbank Group
71
Investec
34
Nigeria:
Access Bank
29
Zenith Bank
23
United Bank for Africa
23
Togo:
Ecobank
27
Ethiopia:
CBE
24
The top 100 banks in Africa
‘Profitability generally continues to be buoyant, with an aggregate pre-tax profit of 18,2% for ranked
institutions, 71 of these finishing 2024 in the black. However, local currency weaknesses have once again
severely hit balance sheets in dollar terms; 52 institutions saw asset bases decrease during the year, with
41 seeing a fall in tier 1 capital. While the immediate impact of the war in Ukraine on Africa’s key markets has
faded, currency weakness and broader economic challenges have curtailed the performance of lenders in
markets such as SA and Nigeria.’
– The Banker
1 Market share of FSCA-approved foreign collective investment schemes (offshore assets).
Total
R6,2tn
Ne
Fir
Inv
Ot
17,5
21,7
22,5
22,3
6,9
2,7
6,0
TymeBank
0,1
Discovery Bank
0,3
Nedbank
Absa
FirstRand
Standard Bank
Investec
Capitec
Other
Ned
Firs
Inve
Oth
16,4
21,0
22,1
25,9
7,7
2,3 4,4
TymeBank
0,1
Discovery Bank
0,2
Total
R5,5tn
Total
R4,5tn
Boutique Collective Investments
Ninety One
Allan Gray
Sanlam
Stanlib
Nedgroup
Coronation
9,5
8,9
8,3
7,8
7,1
6,7
8,9
6,7
36,3
Other
Old Mutual
Source: South African Reserve Bank (SARB) BA900 returns at 31 December 2024.
Source: Association for Savings and Investment SA (ASISA), Q4 2024.
8
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
2024
2023
2022
2021
2020
35
91
105
103
118
Financial performance of South African banks
Return on equity1
(%)
Credit loss ratio
(Bps)
Cost-to-income ratio2
(%)
Common-equity tier 1 ratio
(%)
0
5
10
15
20
25
Standard Bank
FirstRand
Absa
Nedbank
14,0
15,1
15,8
16,4
15,3
14,8
20,6
21,1
20,1
16,3
18,8
18,5
0
20
40
60
80
100
120
Standard Bank
FirstRand
Absa
Nedbank
89
109
87
96
118
103
56
78
81
83
98
83
2022
2023
2024
0
10
20
30
40
50
60
Standard Bank
FirstRand
Absa
Nedbank
56,5
53,9
55,9
51,0
52,1
53,2
52,5
51,4
52,6
53,9
51,4
50,4
0
3
6
9
12
15
Standard Bank
FirstRand
Absa
Nedbank
14,0
13,5
13,3
12,8
12,5
12,6
13,9
13,2
13,5
13,4
13,7
13,5
1 Nedbank reports ROE on an HE basis. Absa and FirstRand report ROE on a normalised basis.
2 Nedbank and FirstRand include associate income in the calculation of the cost-to-income ratio, while Absa and Standard Bank exclude associate
income. Nedbank’s cost-to-income ratio, excluding associate income, is 56,9%.
Sources: Nedbank, Absa, Standard Bank December 2024 annual results. FirstRand June 2024 annual results.
Profit before income tax – South African banks
(Rbn)
Source: SARB BA120 at 31 December 2024.
Nedbank Group in context continued
In 2024 headline earnings (HE) growth of the large
universal South African banks was modest as strong
performances in SA were offset by slower growth
in their operations outside of SA. Credit growth, and
as a result net interest income growth, slowed but
impairment charges improved, declining from elevated
2023 levels. Non-interest revenue (NIR) growth
was mixed and reflected bank-specific dynamics,
while expenses were well managed. Balance sheets
remained very strong. At a consolidated industry
level, the aggregate pre-tax income of all the banks
operating in SA increased by 14% to R118bn.
9
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
• R1 175bn deposits, of which > 30% are long term in nature
• R944bn gross banking loans and advances, with a credit loss ratio at 87 bps
within our target range
• R112bn shareholders’ equity, including R12bn above the top end of our
common-equity tier 1 (CET1) target range
Financial capital
Our capital base, together with diversified sources
of deposits and funding from investors and clients, is
used to support our clients. This includes extending
credit, facilitating payments and transactions, and
rewarding shareholders for the capital invested
through dividends.
• Leading digital capabilities
• A trusted brand, with Nedbank ranked top 15 among South African companies
• Market leadership and differentiation across various products and segments
Intellectual capital
Our intangible assets – including our brand,
reputational and franchise value, research and
development capabilities, innovation capacity,
knowledge and expertise, as well as strategic
partnerships – that help us grow our business.
• 25 613 permanent employees
• High levels of employee satisfaction (NPS at 18)
• R22,6bn salary and benefits paid
• R1,0bn training and skills development spend
• A differentiated culture that is client- and people-centred, innovative,
competitive, service-focused and strong in compliance and governance
Human capital
Our employees, culture, collective knowledge,
skills, and experience that enable innovative and
competitive solutions for our clients and create value
for us and our stakeholders.
• Modern IT systems (benchmarked independently)
• R12bn technology platform investment since 2013
• Market-leading digital products, services and CVPs
• Physical presence of 623 outlets, 4 297 ATMs and 110 000
point-of-sale devices
Manufactured capital
Our business structure and operational processes –
including our property and equipment, digital assets,
products, channels and information technology (IT)
systems – provide the framework and mechanics of
how we do business and create value.
• 7,6 million active clients
• R183bn purpose-led sustainable development financing exposures
aligned with the UN SDGs
• Responsible ESG practices
• Good relationships with our stakeholders
Social and relationship capital
Stakeholder relationships, including the
communities in which we operate, are central to the
environment in which we operate, and we recognise
the role that we need to play in building a thriving
society as well as a strong financial ecosystem.
• Market-leading energy policy and Nature Position Statement
• A mature social and environmental management system that evaluates
the impact of our lending to clients
• A strong track record and market-leading capabilities in renewable energy
financing and funding and in our own operations
• 89% Green Star-rated buildings
Natural capital
The direct use and impact we have on natural
resources through our own operations, including
energy, water and climate, as well as our influence
through our business activities.
Top 10 risks affecting the
availability of our capitals
Pages 48 to 51
2 Business
10 Capital
3 Credit
5 Operational
7 Climate
6 People
8 Organisational resilience
7 Climate
2 Business
9 Reputational and conduct
7 Climate
7 Climate
5 Operational
3 Credit
6 People
8 Organisational resilience
9 Reputational and conduct
10 Capital
4 Cyberrisk
Availability and quality of our 6 capital inputs
enable us to deliver on our strategy
Pages 38 to 47
Our business model, structure, products and services
Our material matters
1
The economy
2 Environmental
limits and social
floors
3 Disruptive
technologies
4 Increased
competition
5 World of work
6 Regulatory
demands
1 Strategic execution
1 Strategic execution
2 Business
5 Operational
1 Strategic execution
5 Operational
8 Organisational resilience
4 Cyberrisk
5 Operational
8 Organisational resilience
10
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
2024
2023
2022
2021
2020
7,4%
Cluster (up to 30 June 2025)
Reorganised clusters (from 1 July 2025)
Areas of strength and differentiation
Return on equity
Return on equity
Return on equity
Return on equity
Nedbank Corporate and
Investment Banking
Nedbank Corporate and
Investment Banking
Nedbank Retail and
Business Banking
Nedbank Business and
Commercial Banking
Nedbank
Wealth
Nedbank Personal and
Private Banking
Nedbank
Africa Regions
Nedbank
Africa Regions
The group’s frontline business clusters are supported by various shared-services functions related to compliance, finance, human resources,
marketing and corporate affairs, risk, technology and strategy, including sustainability.
R7 428m
2023: R6 799m
R6 413m
2023: R5 566
R1 257m
2023: R1 210m
R1 619m
2023: R1 891m
27,6%
43,9%
37,9%
9,6%
17,1%
20,5%
Contribution to group
Headline earnings
Headline earnings
Headline earnings
Headline earnings
20,5%
through our organisational structure as well as differentiated products and services (outputs)
Our business model, structure, products and services continued
Full suite of wholesale banking
solutions across advisory, lending,
trading, equity investments,
transactional services and asset
management solutions.
• Market leader in structured lending across key sectors
including commercial property, renewable energy, mining,
telecommunications, infrastructure, construction, public
sector and commodities.
• Strong South African Markets franchise with reach
across rates, credit, foreign exchange, equities and
commodities.
• Top fund managers contracted through the Nedgroup
Investments Best of BreedTM investment approach.
• Cluster focus on juristic clients across SMEs, commercial
businesses and mid-sized corporates.
• SA’s leading bank for small business, winning multiple
awards.
• Well-positioned and distinctive CVPs in Commercial
Banking.
• Market-leading positions in card acquiring and fleet
management.
• Cluster focus on individual clients from youth, entry level,
mass and middle market, affluent and high-net-worth
individuals.
• Market-leading positions in vehicle finance.
• Mobile-first retail strategy, with product sales on digital
channels above SA average.
• #1 rank among major banks on client satisfaction metrics.
• Sole issuer of American Express® in SA, enabling market-
leading cashback to clients.
• A culture that is purpose-led and focuses on client service.
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.
Individual clients and
businesses.
Corporates, institutions,
governments and parastatals.
Individual, business and
corporate clients.
Individual clients, small and
medium enterprises, and
business and corporate
clients.
Full range of banking solutions,
including transactional banking,
card and payment solutions, lending
solutions, deposit-taking services,
insurance, risk management and
investment products for individuals.
Full range of banking services, including
transactional, lending, deposit-taking
services and card products, as well
as selected wealth management
offerings. Bancassurance offering in
selected markets.
Read more about our organisational restructure on page 67.
Presence and positioned for growth in 5 SADC countries
with ongoing technology investments to enhance CVPs
and achieve scale.
11
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Our purpose: To use our financial expertise to do good for individuals, families, businesses and society.
INSURANCE
AND OTHER
SERVICES
Offer insurance
solutions (eg
life, home and
personal-lines
insurance).
FUNDING AND
DEPOSITS
Raise funding and
provide savings and
investments products.
TRADING
Provide trading and
global-market-related
solutions.
CREDIT
EXTENSION
Extend credit through
responsible lending practices
(eg mortgages, credit cards,
vehicle finance, and personal
and business loans).
ASSET
AND WEALTH
MANAGEMENT
Provide solutions
to manage,
protect and grow
wealth.
TRANSACTIONAL
Facilitate payments
and transactions.
Assets under
management
▲ 6%
to R474bn
New loan
payouts
11%
to R367bn
Trading non-
interest revenue
▲ 7%
to R4,6bn
Deposits
▲ 8%
to R1 175bn
50,2 billion
transactions
processed
▲ 18%
OU
T
PU
TS
OU
T
PU
TS
Impairments
17%
Fossil-fuel-
related financed
emissions:
5,2
(mtCO2e)*
0,2%
system
downtime
Focusing on areas
that create value
(SPT)
Growth
vectors
Creating positive
impacts
(purpose
delivery)
OU
TL
OO
K p
age
s 3
9 t
o 4
7
PE
RF
OR
MA
NC
E p
age
s 7
1 to
9
0
RIS
KS
AN
D O
PP
OR
TU
NIT
IE
S p
age
s 4
8 to
5
1
GO
RV
EN
AN
CE
pa
ges
19
to
32
ST
RA
TEG
Y A
ND
RE
SO
UR
CE
AL
LO
CA
TIO
N p
age
s 5
2 t
o 6
8
Delivering market-
leading client
experiences
(CX)
Digital leadership
(DX)
* Fossil-fuel-related
financing takes
into account
thermal coal and
oil and gas.
Our strategic
value unlocks
Pages
54 to 64
O
U
R
B
U
S
I
N
E
S
S
A
C
T
I
V
I
T
I
E
S
Our business model, structure, products and services continued
by enabling business activities
that produce purpose-led products and services
R2,4bn
insurance
benefits paid
35%
12
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
IT modernisation programme completed (2023: 95%)
Scarce skills attracted and retained in areas such as data
analytics, IT, risk management and advisory solutions
Nedbank brand value decreased by 5% to R16,4bn
Market-leading expertise adding value in areas such
digital, ESG and various product and industry segments
Highly regarded board and leadership team
Cumulatively raised R17bn in sustainable funding
since 2019
Carbon-neutral operations
Own operational Scope 1 and Scope 2 carbon
emissions down 20% to 70 ktCO2e
Sustainability and climate training to > 20 000
employees
Financed 4,8 GW renewable energy to date
(2023: 4,0 GW)
Fossil-fuel-related financed carbon emissions:
thermal coal 2,3 mtCO2e (2023: 5,5 mtCO2e) and
oil and gas 2,9 mtCO2e (2023: 2,9 mtCO2e)
Reduced carbon footprint towards net zero
Climate stress testing scenarios completed
and outcomes for us and our stakeholders.
Value creation
Value preservation
Value erosion
Our business model, structure, products and services continued
Intellectual
capital
Financial
capital
Employee attrition down to 8,0% from 9,2%
Employee Net Promoter Score (NPS) positive at
18 (2023: 20)
Average salary increase for bargaining-unit employees
at 7% – greater than management at 5%
24 130 employees enrolled in learning (29 hours
per employee)
Diversity metrics improved
33 employees regrettably retrenched
Seamless succession well executed
Diversity metrics improved – 83% of employees are black
(2023: 82%)
Digitally active retail clients up by 7% to 3,1 million
Branch and head office floor space decreased by a
combined 49 000 m2
Hybrid work practices in place (used by 75% of
employees)
More than 200 retail and 400 digital services
available
Digital product sales at 64% of total sales
(2023: 55%)
IT systems uptime at market-leading levels of
99,8% (2023: 99,6%)
Manufactured
capital
Stakeholders:
Employees
Clients
Shareholders
Regulators
Society
Value to Nedbank
HE of R16,9bn, up by 8%
ROE up to 15,8% (2023: 15,1%)
Impairments down by 17% yoy
Net asset value per share (NAV) up by 4%
CET1 at 13,3%, above our 11% to 12% CET1 target range
Full-year dividend up by 10%
Share price up by 30% yoy
CET1 at 13,3%, well above the SARB minimum
requirement
Main-banked retail clients increased by 5% to
over 3,7 million
20 primary client wins in CIB
Received R15m in notable fines or administrative
actions (2023: R17m)
More than 3 500 new first-time job opportunities
(YES Programme)
#1 ranked large South African bank on NPS
R183bn sustainable development finance (SDF)
provided (2023: R145bn)
71 255 RBB client complaints, up by 0,5% yoy
MSCI ESG rating of AAA (top 9% of global banks)
Direct and indirect tax contributions of R15,3bn
(2023: R13,2bn)
Level 1 BBBEE contributor status maintained
Human
capital
Social and relationship
capital
Natural
capital
13
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Our stakeholders – their needs and expectations
As a bank and financial services provider, we
are intrinsically linked to the environment
in which we operate and the societies we
serve. Our ability to create and protect value
relies on our relationships, activities, and the
contributions we make to our stakeholders.
By meeting their needs, managing relevant
risks and unlocking opportunities, we create
and protect value for them and for Nedbank,
while striving to minimise value erosion.
The quality of the relationship with our employees was assessed in
2024 by taking into account, among others, an employee NPS score
of 18 (slightly down from 20 in 2023); ongoing investment in human
capital development and training; a 5% average salary increase; a 12%
increase in short-term incentives; mental-health and financial support
to employees in the difficult environment; excellent progress on
diversity, equity and inclusion (DEI) metrics; and a decrease in attrition
to 8,0%; while 33 employees were regrettably retrenched.
The quality of the relationship with our clients was assessed in 2024 by
taking into account high levels of client satisfaction (#1 rank among large
South African banks on all clients surveyed), market-leading innovations
that made a difference in our clients’ lives, more competitively priced
products, a continued strong increase in digital metrics, main-banked
client gains, and client complaints that remained static.
Capitals impacted
Intellectual
Human
Social and relationship
Capitals impacted
Intellectual
Manufactured
Social and relationship
Natural
Associated risks
Associated risks
Relevant material matters
• World of work
• Disruptive technologies
• Environmental limits
• The economy
• Regulatory demands
Relevant material matters
• The economy
• Disruptive technologies
• Increased competition
• Environmental limits
• Regulatory demands
Employees
Clients
Quality of relationship:
Quality of relationship:
6 People
2 Business
3 Credit
5 Operational
4 Cyberrisk
7 Climate
Falling short
Falling short
Performing
Performing
Excelling
Excelling
Read more about our
Human Capital Strategy
on page 17 and in our
2024 Society Report
available on our website.
Read more about our
strategy on pages 52 to 64.
Employee matters, needs and
expectations
• A safe and healthy work environment,
supported by flexible work practices.
• Fair remuneration, effective
performance management, and
recognition.
• Challenging work, with opportunities
to make a difference.
• Career development and
advancement opportunities.
• An empowering and enabling
environment that embraces DEI.
Read how value was created for
employees on page 80.
How do we engage with
employees?
Engagement includes employee surveys,
face-to-face management discussions
during roadshows and virtual stand-ups,
culture shift and well-being events, as
well as employee forums and groups.
Relevant metrics
The key employee metrics we track
include, but are not limited to, employee
satisfaction levels, attrition rates,
remuneration outcomes, training
statistics and DEI profiles.
Page 89
Client matters, needs and
expectations
• Innovative banking and financial
solutions and services.
• Safe and convenient access (channel of
choice), now primarily through digital
channels.
• Excellence in client service.
• Value-for-money banking that is
competitive and transparent in pricing.
• Responsible banking services and
solutions, and a trusted financial
partner.
• Access to finance and financial
education and support.
• Support a Just Transition to a net-zero
economy.
Read how value was created for clients
on page 81.
How do we engage with clients?
Engagement includes digital feedback
channels, face-to-face engagements
with regular client testing, outbound
calling, complaint channels, and external
independent surveys on topics such as
client satisfaction and bank fees.
Relevant metrics
Key client metrics we track include, but
are not limited to, NPS scores, digital
volume and value metrics, new loan
payouts, deposit trends, client gains,
cross-sell ratios, fee increases, complaints
and SDF-related loans.
Page 89
Key strategy
Digital leadership (DX)
Market-leading client
experiences (CX)
Strategic portfolio tilt
Creating positive
impacts
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
Key strategy
Human Capital Strategy
1 Strategic execution
14
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Our stakeholders – their needs and expectations continued
The quality of the relationship with the investment community was
assessed in 2024 by taking into account, among others, the benefits
to shareholders as a result of an improved financial performance
(including a higher ROE), a strong balance sheet, attractive dividend
payments, a share price that significantly outperformed the SA Banks
Index, independent reporting and financial communication awards,
top-tier investor relations, and market-leading ESG ratings.
Associated risks
Relevant material
matters
• The economy
• Regulatory demands
• Increased
competition
• Environmental limits
• Disruptive
technologies
• World of work
Shareholders
Quality of relationship:
All risks
Falling short
Performing
Excelling
Shareholder matters, needs and
expectations
• Share price appreciation and an attractive
dividend stream.
• Sustainable growth in earnings and NAV,
and financial returns with ROE exceeding
COE.
• An attractive and sustainable growth
strategy.
• A strong balance sheet to enable sustainable
growth and protect against downside risk.
• A strong and experienced management
and board, and seamless succession.
• Transparent reporting and disclosure.
• Sound ESG practices, measured through
shareholder feedback, annual general
meeting (AGM) outcomes and ESG ratings.
Read how value was created for
shareholders on page 82.
How do we engage with shareholders?
Engagement includes regular virtual and
face-to-face engagements, feedback via our
investor relations channels, the group’s AGM,
and independent investor relations surveys
and roadshows.
Relevant metrics
Key metrics we track include relative share
price performance, financial and non-financial
performance against market expectations and
peers, AGM voting outcomes, changes in the
shareholder register, and ESG ratings.
Page 90
The quality of the relationship with our regulators was assessed in
2024 considering, among others, our contribution to new regulatory
developments; alignment with regulatory requirements (with metrics
and ratios well above the minimums); taxes paid; and remedial action
where required, including fines and penalties paid, which continued
to decline.
Associated risks
Relevant material matters
• The economy
• Regulatory demands
• Disruptive technologies
• Environmental limits (new)
Regulators
Quality of relationship:
3 Credit
4 Cyberrisk
5 Operational
7 Climate
10 Capital
Falling short
Performing
Excelling
Regulator matters, needs and
expectations
• Compliance with all legal
and regulatory requirements
(meeting minimum regulatory
requirements).
• Being a responsible taxpayer
in the countries where we do
business.
• Active participation and
contribution to industry and
regulatory working groups.
Read how value was created
for regulators on page 84.
How do we engage with
regulators?
Engagement includes regular
interactions, participation in
conferences, collaboration with
industry experts, and contributions
to policymaking and regulatory
developments.
Relevant metrics
Key metrics we track include key
balance sheet metrics such as the
CET1 ratio, taxes paid and fines or
administrative sanctions incurred.
Page 90
Capitals impacted
Financial
Intellectual
Social and relationship
During 2024 we maintained strong relationships with the communities
that we serve, including key civil society organisations. The quality of
our relationships is informed by, among others, our contributions to a
thriving society and healthy environment.
Associated risks
Relevant material
matters
• The economy
• Environmental limits
• World of work
• Disruptive
technologies
• Regulatory demands
Society
Quality of relationship:
2 Business
7 Climate
Falling short
Performing
Excelling
Read more about our
‘Creating positive
‘impact’ strategy on
pages 62 to 64, and
our 2024 Climate
Report and 2024
Society Report,
available at
group.nedbank.co.za.
Society matters, needs and
expectations
• Providing access to expert financial
advice, products and solutions that help
create positive impacts for individuals,
their families, their businesses, and their
communities.
• Financing of sustainable development
aligned with the SDGs, thereby promoting
socioeconomic transformation through
enabling economic inclusion, job creation
and poverty alleviation.
• Partnering on common social and
environmental issues.
• Using our resources to promote social and
environmental issues and other common
agendas to build a thriving society.
• Limiting our own impact on the
environment.
• Advancing purpose-led transformation
that transcends the requirements
of broad-based black economic
empowerment legislation.
Read how value was created for society
on page 85.
How do we engage with society?
Engagement includes numerous digital
channels and face-to-face engagements,
either as part of industry body engagements
or in response to direct requests.
Relevant metrics
Key metrics we track include, but are not
limited to, ESG ratings; our own operational
and financed carbon footprint; impacts
linked to our SDF; sustainability and climate
initiatives.
Page 90
Key strategy
Creating positive
impacts
Capitals impacted
Financial
Intellectual
Social and
relationship
Natural
Capitals impacted
Financial
Intellectual
Social and relationship
Capitals impacted
Intellectual
Human
Social and
relationship
Natural
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
15
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Ensuring value creation
through good governance
Overview of the board’s key activities, highlighting how good governance and strong leadership contribute
to the creation and protection of value, while minimising the risk of value erosion.
16
Integrated
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An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Reflections from our Chairperson
The 2024 national elections were a defining moment for SA, resulting in the formation
of a government of national unity (GNU). This shift presents opportunities for the
country’s economic and political landscape. The GNU has created the opportunity for
an environment that fosters greater policy certainty and better collaboration in policy
implementation, which is essential for stronger and more inclusive economic growth
and thus long-term sustainability.
Daniel Mminele, Chairperson
The overarching theme
of the 2024 World
Economic Forum
Annual Meeting in
Davos, ‘Rebuilding
Trust’, has proven ever
more prescient as
the year progressed.
In our fractured
global landscape,
characterised by
escalating geo-
economic and
geopolitical tensions,
environmental crises,
societal upheavals, and
rapid technological
advancements, the
need for renewed trust
and cooperation within
and across countries
and regions has never
been more critical.
The ongoing conflicts in Russia/Ukraine and
Israel/Gaza, coupled with escalating trade
tensions, have significantly complicated
the global operating environment. These
disruptions have cascaded through global
markets, affecting trade flows, supply chains,
and investor confidence.
Consequently, financial institutions, including Nedbank, have needed
to re-evaluate risk management strategies, refine investment
approaches, and uphold financial stability in a landscape marked by
unpredictability and volatility. Under these circumstances we have
demonstrated resilience, adaptability and a steadfast commitment
to sustainable growth and purpose-driven banking.
SA also faced its own economic headwinds, notwithstanding an overall
more positive outlook. Weak GDP growth, high but declining interest
rates and muted credit demand have shaped the financial sector’s
performance. Despite these macroeconomic pressures, Nedbank
delivered improved financial results for 2024.
The formation of the GNU
The 2024 national elections were a defining moment for SA, resulting
in the formation of a GNU. This shift presents opportunities for the
country’s economic and political landscape. The GNU has created the
opportunity for an environment that fosters greater policy certainty
and better collaboration in policy implementation, which is essential
for stronger and more inclusive economic growth and thus long-term
sustainability. In this context, the financial sector has a critical role to
play in supporting infrastructure investment, economic inclusion and
employment creation.
In the wake of the political challenges
experienced in passing the 2025 national budget,
any doubts around the durability of the GNU and
its ability to act in the best interest of all South
Africans will see confidence among domestic
and international investors fade, represent a
major setback, and put at significant risk policy
certainty, structural reform progress, and
implementation momentum, all vital to underpin sustainable economic
growth and development.
We remain committed to strengthening our collaboration with the
government and private sector stakeholders to promote a financial
ecosystem that encourages investment, fosters innovation and
accelerates inclusive economic growth in support of national
development priorities. Our focus on financing key infrastructure
projects, including in energy, transport and water, is aligned with SA’s
economic growth and development objectives.
Nedbank will continue to provide support to SA’s priorities for its 2025
G20 Presidency by way of seconding staff and providing other material
support, facilitating dialogue through hosting roundtables, and through
my chairmanship of the B20 Energy Mix and Just Transition Task Force.
Chief Executive transition
and leadership integration
Leadership succession planning was a central
focus for the Nedbank Board in 2024. Jason
Quinn’s appointment as Chief Executive followed
an extensive and rigorous selection process,
ensuring leadership continuity and strategic
A complicated
global
operating
environment
The financial
sector has a
critical role
to play
Leadership
succession
a central focus
17
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2024
Reflections from our Chairperson continued
alignment. His seamless integration into the role has enhanced
stability and confidence to our employees, clients and stakeholders.
Under his leadership, we continue to execute our long-term strategic
priorities, balancing growth ambitions with disciplined financial
stewardship.
Over the past year, our board has also been strengthened with
the appointments of Terence Nombembe and May Hermanus.
Their expertise in governance; environmental, social, and
governance (ESG); and financial oversight enhances our ability
to navigate an increasingly complex operating and regulatory
environment.
A refreshed strategy to position
for growth
In 2024 we embarked on a comprehensive
strategy refresh to align with evolving
market trends, client expectations and
competitive dynamics. As part of this
process, we identified new Transform
outcomes that aim to unlock additional
growth opportunities, including new
initiatives that will make Nedbank compete more effectively
in the medium-to-long term and as a result, assist the group
to make sustainable progress towards our long-term ROE
target of > 18%.
Key Transform initiatives include, among others, leveraging
our investments in technology to drive revenue growth and
productivity improvement, unlocking a large insurance cross-sell
opportunity, portfolio diversification in areas such as East Africa
by leveraging our strengths in CIB and the launch of a dedicated
new offering to transform how mid-sized corporates access
financial expertise and solutions through our commercial
banking business. We also announced the realignment of our
organisational structure, particularly within the Retail and
Business Banking (RBB) and Nedbank Wealth Clusters. This
transformation will lead to the creation of 2 dedicated business
units in the form of Personal and Private Banking (PPB) and
Business and Commercial Banking (BCB). These changes will
enable us to sharpen our focus on client segments, enhance
operational efficiency and client service, cross-sell better and
unlock new growth avenues.
Technology, AI and risk management
Digital transformation continues to reshape the local and
global banking landscape, and we remain at the forefront of
this evolution. In 2024 we materially completed our Managed
Evolution information technology (IT) transformation,
ensuring that we have a modern, agile and resilient technology
infrastructure. This achievement supports our strategic ambition
of enhancing digital banking capabilities, improving client
experience and driving operational efficiencies.
We continue to invest in artificial intelligence (AI) and data
analytics to unlock new growth opportunities, enhance client
insights, and improve risk management. However, as we expand
our AI capabilities, we remain vigilant in addressing associated
risks, including data privacy concerns and the increasing threat
of cyberattacks. Our Group IT Committee and Group Risk and
Capital Management Committee oversee these efforts, ensuring
that we adopt AI responsibly while maintaining the highest
security standards.
Sustainability agenda
Sustainability remains a core pillar of our strategy. In 2024
we cemented our position as a leader in sustainable finance,
inclusion, transformation and ESG leadership, ensuring that
we drive meaningful impact beyond financial returns. Gender
diversity remains a key priority in the board’s succession plan
and this year we introduced a target of 30% female board
representation, which target will increase to 35% by 2030.
Looking forward
The effectiveness of our strategy and
impact of our sustainable finance focus were
recognised by our industry in 2024 when we
were named Bank of the Year South Africa
by The Banker magazine. Congratulations to
every individual, team and leader across our
group for this prestigious achievement.
As we enter 2025, Nedbank remains well positioned to navigate
the continually evolving financial landscape. Our improved
financial performance, disciplined risk management, and strategic
agility provide a solid foundation for sustainable growth.
The road ahead will require not only adaptability and resilience
but also a good dose of optimism. While macroeconomic and
geopolitical uncertainties will undoubtedly persist, we are
confident in our ability to manage risks effectively, capitalise on
emerging opportunities and continue delivering value to all
stakeholders. We reaffirm our commitment to responsible
banking, sustainable finance and inclusive economic development.
A special note of gratitude to Mike Brown, who retired after the
group’s AGM in 2024. The foundations that were built under his
leadership will continue to benefit Nedbank well into the future.
I extend my heartfelt appreciation to our boardmembers for
their unwavering guidance, our executive leadership team for
their commitment to execution excellence, and our employees
for their dedication to delivering on Nedbank’s purpose. To our
clients and shareholders, thank you for your trust and support.
Together, we will continue to build a future where banking serves
as a catalyst for economic growth and sustainable progress.
Daniel Mminele
Chairperson
> 18%
long-term
ROE target
increasing our exposure to renewable energy projects by 32%
to nearly R40bn. Our total sustainable development finance
portfolio now exceeds R183bn, supporting projects aligned with
the United Nations Sustainable Development Goals.
Our long-standing commitment to responsible banking is
reflected in our level 1 BBBEE status, which we have maintained
for the past 7 years. We continue to prioritise financial
18
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Sustainable value creation
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Delivering, measuring and
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Nedbank Group
Integrated Report
2024
Governance at Nedbank
The board strives to optimise value
for Nedbank and all our stakeholders
by fulfilling our purpose of using
our financial expertise to do
good. We do this by continuously
executing and evolving our strategy
to enhance our competitiveness
and differentiation, ensuring the
sustainability of our business model,
monitoring the external environment
to identify opportunities and assess
key risks, and understanding the
needs of all relevant stakeholders
while evaluating the availability and
quality of the group’s capitals.
Our governance philosophy
Nedbank is committed to the
highest standards of governance,
ethics and integrity, which are
essential for sustained value and
protecting the interests of all our
stakeholders. We believe that
good governance is essential to
promoting our values through
accountability, effective risk
and performance management,
transparency, and ethical
leadership.
We embrace world-class banking practices and robust institutional governance and risk
frameworks to ensure our banking services are secure and stable. We regularly review
these practices and frameworks to ensure that we act in the best interest of all our
stakeholders, considering the ever-changing landscape in which we operate, including
factors such as economic changes, geopolitics, cultural shifts in the workplace, digital
trends such as artificial intelligence (AI) and data security, as well as climate change risks.
We are also mindful that banks are expected to adapt to regulatory changes quickly,
which means we must entrench good governance practices while remaining flexible in
responding proactively to the fast-changing regulatory environment. However, governance
at Nedbank goes beyond mere compliance with legislation and best practices.
The board’s governance oversight is driven by a commitment to fulfilling their
responsibilities and governance objectives through the application of the principles
and practices outlined in King IV.
We provide detailed disclosure on our
governance objectives and the application
of the King IV principles in our Governance
Review, available at group.nedbank.co.za
as part of our 2024 Governance Report.
Our
stakeholders
Our material
matters
Our
capitals
Mindful
governance
and integrated
thinking
• Processes
• Actions
• Strategy
Shareholders
Clients
Employees
Society
Regulators
Human
Manufactured
Financial
Intellectual
Natural
Social and
relationship
• The economy
• Environmental
limits
• Disruptive
technologies
• Increased
competition
• World of work
• Regulatory
demands
19
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Sustainable value creation
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Delivering, measuring and
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Nedbank Group
Integrated Report
2024
to ongoing skills shortages, increased
competition for scarce skills, employee
well-being and the unprecedented levels
of change, and hybrid work practices.
Further opportunities to grow the group’s
African talent was top of mind.
5 Strategic execution risk – The
board, GITCO, DAC and GTSEC provided
oversight of the group’s technology
strategy, as well as delivery on strategic
portfolio tilt (SPT) and operating
model changes.
1 Business risk – The board and
various board committees provided
oversight of the impacts of volatile,
challenging and changing global and
local environments. This included
the implications of sociopolitical
developments, such as the conflicts in
Ukraine and Middle East, and election
outcomes across the globe and, in
particular, the national elections in SA.
The board also continued to monitor
the impact of key economic drivers
such as weak gross domestic product
(GDP) growth, relatively high but
declining interest rates and muted credit
growth. Despite these challenges, the
group delivered an improved financial
performance in 2024 as discussed on
pages 72 to 77. Opportunities were also
identified, in particular potential benefits
associated with the formation of the
government of national unity (GNU),
such as the financing of infrastructure
programmes (energy, roads, ports
and water) and higher levels of GDP
growth. Opportunities in adjacent
markets outside of SA where Nedbank
can compete effectively and create
value by leveraging its strengths were
also explored.
2 Credit risk – The Group Credit
Committee (GCC) maintained oversight
of credit risk, particularly in respect of
Succession planning is one of the board’s most important responsibilities. Through the Group
Directors’ Affairs Committee (DAC), the board ensures that, as directors approach their tenure and
retirement ages, board continuity is maintained through active succession planning that considers
any changes to the skills needed on the board in line with the group’s strategy. Additionally, DAC
monitors the balance between executive, non-executive and independent directors as well as the
diversity, skills, experience and tenure of boardmembers, as shown on pages 24 and 25.
Risk management remained a key focus in 2024 as we navigated through a highly volatile and uncertain external environment.
At the same time, new opportunities that would be beneficial for Nedbank, our economy, our clients and other stakeholders
were identified.
In line with the board priorities that we identified and
communicated in our 2023 Integrated Report, as well
as external developments in the operating environment,
the key focus areas of the board in 2024 included:
Managing board and executive succession
1
Overseeing risks in a volatile operating environment,
while unlocking new opportunities
2
1 Managing board and executive succession
2 Overseeing risks in a volatile operating environment while unlocking new opportunities
3 Refreshing and evolving the group’s strategy
4 Ensuring purpose delivery (ESG, climate change, and a Just Transition)
5 Overseeing ongoing reputational matters
In 2024 the group appointed a new Chief
Executive (CE) (Jason Quinn) and 2 new
boardmembers, while deliberating on Group Exco
succession.
CE succession – Following a rigorous process,
considering both internal and external candidates
that were both racially and gender-diverse,
Jason Quinn was announced as CE-designate
in November 2023 after emerging as the most
suitable candidate. Jason was subsequently
elected as an executive director and assumed
the role of CE on Mike Brown’s retirement
from the boards at the close of the group’s
AGM on 31 May 2024. The board oversaw the
enablement of an effective CE transition process
and handover plan while maintaining leadership
stability. The handover to Jason was seamless
and the Group Exco continued their duties
without any impact.
Board changes – The board extended the
tenure of Brian Dames (non-executive director),
given the need for continuity on the Group
Sustainability and Climate Resilience Committee
while the search for additional directors with
climate risk experience is underway. Terence
Nombembe and May Hermanus (independent
directors) were appointed to the board, adding
valuable experience and expertise in the areas of
the environment and climate change; accounting
and auditing; risk management; macroeconomic
and public policy; mining, energy, resources and
infrastructure; governance and stakeholder
management; and human resources. The focus
on board succession continues in 2025 in light of
retirements of a number of the boardmembers
over the next 3 years as they reach their 9-year
tenures. Stanley Subramoney was reclassified as
a non-executive director on 24 September 2024,
having served as an independent director
for 9 years. The Prudential Authority (PA)
granted approval for Stanley to serve as a
non-independent non-executive chair of the
Group Audit Committee (GAC) until 31 May 2025.
Executive leadership changes – DAC reviews the
succession plans for Group Exco members and
new appointments. Daleen du Toit, Group Chief
Compliance Officer, reaches normal retirement
age in H1 2025, and Nomonde Hlongwa has
been appointed as Group Chief Compliance
Officer-designate and will assume the role of
Group Chief Compliance Officer and become
a member of the Group Executive Committee
on 16 April 2025. Concurrent with the strategic
reorganisation of the group’s Retail and Business
Banking and Nedbank Wealth Clusters, Iolanda
Ruggiero, Managing Executive: Nedbank Wealth,
took early retirement on 31 March 2025.
clients in the retail consumer segment
who were stressed as a result of high
interest rates, as well as the resolution
of a few loans of CIB clients that went
into business rescue in 2023. Although
more pressure was evident in 2023,
the group’s credit loss ratio (CLR)
continued to trend down on the back of
focused management interventions in
collections and origination. By the end of
2024 the CLR, at 87 bps, had returned
to within its target range of 60 bps to
100 bps.
3 Cyberrisk – The Group IT Committee
(GITCO) and Group Risk and Capital
Management Committee (GRCMC)
maintained oversight of the completion
of the group’s Managed Evolution
technology programme, data privacy
and data loss protection, and the group’s
growing focus on leveraging data and
AI to unlock new growth opportunities,
the increasing threat of cyberattacks,
and the higher levels of digitisation
across the business, as discussed on
pages 53 to 57.
4 People risk – The Group
Transformation, Social and Ethics
Committee (GTSEC) and the Group
Remuneration Committee (Group
Remco) provided oversight of
succession planning, risks relating
Board focus areas in 2024
Read more about our top 10 risks and
opportunities on pages 48 to 51.
Our top 5 risks
2024
2025 and beyond
1 Business
Strategic execution
2 Credit
Business
3 Cyberrisk
Credit
4 People
Cyberrisk
5 Strategic
Operational
execution
20
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Sustainable value creation
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Delivering, measuring and
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2024
Board focus areas in 2024 continued
Evolving the group’s strategy was a key agenda item for the board following the appointment of
Jason Quinn as CE. The board deliberated on external developments and the group’s material matters
throughout the year, and debated and provided input into the strategy before approving the group’s
3-year business plan in November 2024.
Refreshing and evolving the group’s strategy
Ensuring purpose delivery
3
4
Strategic deliberations at board and Group Exco
level centred around ‘Perform’ and ‘Transform’
outcomes for the group over the next few years.
Perform outcomes focus on the group’s existing
strategy, managing the business within the
changing operating context and accelerating
execution in the short-to-medium term to ensure
delivery on stakeholder expectations. The 2024
planning cycle provided an opportunity to refresh
and evolve the group’s strategy and, as a result,
identified new Transform outcomes that aim to
unlock transformational growth opportunities.
Transform outcomes include new initiatives
that will make Nedbank compete more
effectively in the medium-to-long term
and, as a result, assist the group to make
sustainable progress towards its long-term
ROE target of > 18%. Key Transform
initiatives include, among others, intelligent
hyperautomation, data commercialisation,
unlocking a large insurance opportunity,
portfolio diversification in areas such as East
Africa by leveraging our strengths in CIB and
the launch of a dedicated new offering to
transform how mid-sized corporates access
financial expertise and solutions through our
commercial banking business.
To sharpen execution of the Nedbank strategy,
compete more effectively in the market, enhance
cross-sell and unlock new growth opportunities,
the board deliberated on the organisational
restructure of the group’s Retail and Business
Banking (RBB) and Nedbank Wealth Clusters
towards an organisational design more focused
on client-centredness. This led to the creation of
Personal and Private Banking (PPB), an individual
(non-juristic)-focused cluster that will provide a
full suite of solutions to individual clients across
the youth, entry-level, mass, middle, affluent and
high-net-worth segments. The reorganisation
will also see the creation of Business and
Commercial Banking (BCB), a juristic-focused
cluster that will cover the spectrum of small-
and-medium-enterprises (SME), commercial and
mid-corporate clients.
Integrated thinking is evident in the trade-
offs and capital allocation decisions that were
made to manage risks, unlock new growth
opportunities, and enable sustainable growth
and value creation into the future. The board and
Group Exco made various decisions to secure
strategic resources for the future, involving
the group’s various capitals. This included
capital, liquidity and funding plans, as well as
technology (GITCO-approved), marketing,
compliance, risk appetite (GRCMC-approved),
and human capital plans. Key considerations
included resource allocation to technology
initiatives and ongoing digital innovations (R1,6bn
to R1,9bn annual IT cash flow spend), building our
capabilities in data and AI (intellectual capital) and
investing in various new growth vectors, within
the Transform outcomes.
Read more about our strategy on
pages 52 to 66.
Read more about our capitals and
trade-offs on pages 67 and 68.
We operate in an integrated, interdependent system alongside our stakeholders and therefore
play a key role in promoting and driving sustainable economic development. For our business
to thrive, we require a robust economy, a well-functioning society, and a healthy environment.
Additionally, we acknowledge that ESG matters, including climate change, a Just Energy
Transition, nature, good governance practices, and diversity, equity and inclusion are top priorities
for investors. Our heightened focus on fulfilling our purpose guides our strategic direction and
operational alignment in this regard.
The following governance- and risk-related
initiatives were implemented:
• The Group Climate Resilience Committee was
renamed the Group Sustainability and Climate
Resilience Committee (GSCRC) in 2024,
and its mandate expanded to reflect broader
sustainability and ESG considerations, including
oversight of environmental and social risks and
opportunities beyond and in addition to climate
risks and opportunities. Read more about how
GSCRC ensured and protected value in 2024
on page 64.
• The Group Transformation, Social and Ethics
Committee (GTSEC) provided oversight of and
advice on the role of the bank in identifying
sustainable development opportunities and
on the use of its core business of lending
and investing to address pressing social
issues, thereby fulfilling its purpose. This
includes monitoring progress in terms of the
transformation agenda for the group, developing
the group’s human capital, and enhancing the
culture of ethics and ethical leadership in the
group (including ethical remuneration), human
rights in business, and stakeholder engagement
according to King IV. Read more about how the
GTSEC ensured and protected value in 2024
on page 88.
• The group’s ESG Risk Management Framework
was approved in 2023 and embedded in 2024.
The framework focuses on a broad range of
ESG risks and factors faced by the group and
its counterparties, as well as set the principles
and key risk indicators for the implementation of
sound ESG risk management practices across
the group’s activities.
• Engaging on ESG matters – in 2024 our
Chairperson, Daniel Mminele, and Lead
Independent Director and Chair of Group Remco
and DAC, Hubert Brody, hosted the group’s
11th annual ESG investor roadshow, which is
acknowledged by many shareholders as best in
class. The main focus of the 2024 discussions
was succession planning, board changes and the
appointment of the new CE, Jason Quinn. Other
areas of discussion included potential changes
in the group’s strategy, remuneration (with no
material issues raised), the role that Nedbank
could play in supporting clients towards net-zero
and becoming the first South African bank to
publish 2030 carbon emission targets, support
for further capital optimisation, oversight of IT
and technology developments, a heightened
focus and progress on DEI, and updates on
reputational issues.
Read more about the progress we have made on ESG and sustainability matters and the targets we have set through
our strategic value unlock of creating positive outcomes on pages 62 to 64.
21
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Sustainable value creation
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Delivering, measuring and
rewarding value creation
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Integrated Report
2024
Board focus areas in 2024 continued
AGM voting outcomes and important resolutions
All the resolutions at the 57th AGM (2024) were passed. Noteworthy resolutions
include the following:
Key resolutions at the 57th
AGM (2024)
2024 votes
in favour
Advisory endorsement, on
a non-binding basis, of the
following:
• Nedbank Group
Remuneration Policy
90,6%
• Nedbank Group
Remuneration
Implementation Report
92,8%
Election of Jason Quinn to the
Nedbank Group Board. Jason
accordingly assumed the role
of Group CE at the close of
the AGM.
100%
Appointment of KPMG as
external auditor alongside Ernst
& Young as joint auditors.
99,9%
Key resolutions at the 58th AGM (2025)
Advisory endorsement, on a non-binding
basis, of the group’s Remuneration Policy and
Implementation Report.
Remuneration remains a focus and we continue
to engage proactively with our shareholders to
get their feedback.
Election of May Hermanus as a director of the
Nedbank Group Board.
Re-elections of Hubert Brody, Phumzile Langeni,
Rob Leith and Stanley Subramoney as directors of
the Nedbank Group Board.
Annual re-election of KPMG and Ernst & Young
as joint auditors.
Overseeing ongoing reputational matters
5
We remain committed to maintaining honest and trustworthy relationships with all our stakeholders,
both internal and external. We uphold a strict zero-tolerance policy towards corruption and expect all our
stakeholders, including our clients, service providers, and employees, to adhere to the highest standards
of ethical conduct and integrity.
In this context, the long-standing reputational matters that
were well covered in prior-year disclosures remained top of
mind for the board in 2024:
Zondo Commission-related developments – Nedbank
continues to cooperate with various enquiries and
investigations. Nedbank confirms that it continues to
defend review proceedings served on it by Transnet and
the Special Investigating Unit (SIU) in respect of disputed
swaps, as confirmed in Nedbank’s SENS announcement
on 26 July 2024. Considering internal and independent
external reviews commissioned by Nedbank, the board and
management remain satisfied that internal governance
procedures were followed in respect of these swap
transactions and that there is no evidence of any Nedbank
staff dishonesty, corruption or collusion. The joint media
statement by Transnet and the SIU of 26 July 2024, which
states that Nedbank profited in excess of R2,7bn in respect
of these swap transactions, is not a reasonable claim.
In December 2024 the Transnet Second Defined Benefit
Fund (fund) served a summons on Nedbank. The fund claims
that Nedbank is liable for R106,8m plus interest, an amount
the fund was unable to recover from Regiments Group
companies in previous litigation, in which Nedbank was
not involved.
Nedbank will strongly defend the litigation against it,
including pursuing any counterclaims against the parties
and others.
exchange manipulation. Nedbank and all implicated banks
raised different technical arguments against the referral,
which the Competition Tribunal dismissed. Nedbank
subsequently lodged an appeal and review application
with the Competition Appeal Court (CAC) against the
dismissal (along with 15 other banks), which was successful
and resulted in the CAC dismissing the Competition
Commission’s case against Nedbank. The Competition
Commission has since applied to the Constitutional Court
for leave to appeal the CAC’s decision. The Competition
Commission is not appealing the CAC’s decision in respect
of Nedbank Group. Nedbank maintains that there is no
evidence against it or any of its traders participating in any
of the chatrooms or being involved in any so-called ‘single
overarching conspiracy’ to fix the rand-dollar currency pair
in contravention of the Competition Act. Nedbank therefore
intends to oppose the Competition Commission’s leave
to appeal to the Constitutional Court of South Africa and
continues to defend itself against all these claims brought
by the Competition Commission.
High-profile account closures – Nedbank has been involved
in various legal processes that resulted in interim interdicts
against the bank, requiring that we reopen and keep open
clients’ accounts that had been terminated because of
reputational risk. These orders have since been overturned
and Nedbank has proceeded to close the clients’ accounts.
Decisions to terminate banking relationships with clients
are neither arbitrary nor discriminatory and are taken
extremely seriously, as clients are the essence of our
business. Such decisions are taken only after a rigorous
assessment and an internal independent governance process
considering all the relevant information and facts have
been followed, including a comprehensive due-diligence
process overseen by the board. Nedbank is bound by client
confidentiality and therefore does not disclose client matters
in our external disclosures.
Independent ESG ratings of Nedbank
1
Delivery on the group’s Transform strategy and progress towards
long-term targets
2 Unlocking of growth opportunities and management of risk in a
volatile environment
3 Board and leadership succession planning
4 Climate change and a Just Transition
Our proactive ESG
engagements allow
the board to exercise
constructive influence
when appropriate,
receive valuable
feedback, and align with
shareholders’ interests.
At the same time, we
aim to maintain world-
class transparency in
our reporting through
our comprehensive
suite of reports, which
has helped us retain our
top-tier ESG ratings.
Focus areas
of the board
in 2025
2024/5 rating
AAA
Top 9% of global banks
14,4
Top 8% of 262 diversified banks
63
Top 10% of global banks
C
Top 10% of global banks
4,0
Top 26% of global banks
B
Top 3 bank domiciled in SA
For further information on this matter, please refer to
page 233 of the Nedbank Group Limited Consolidated
and Separate Financial Statements.
Competition Commission investigation rand-dollar
exchange manipulation – In 2020, the Competition
Commission cited 28 banks in a referral of a complaint
to the Competition Tribunal on allegations of rand-dollar
22
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Board focus areas in 2024 continued
Key board discussions and approvals in 2024
The board had various discussions aimed at creating and protecting value and minimising the risk of value erosion in 2024.
Held the annual board
kick-off, which covered topics
such as generative AI (GenAI),
the adoption and use of the
International Sustainability
Standards Board (ISSB)
standards, digital in banking,
payments, and the clean
technology evolution.
Discussed the results of the
2023 independent board and
board committee evaluations.
Approved the revised market
risk and credit valuation
adjustment regulatory
capital models, as well as
the application submitted
to the PA.
Undertook a deep dive into the
commercialisation of data.
Approved the 2023 annual
financial results and final
ordinary dividend declaration.
Approved the 2023 Integrated
Report and suite of ESG-
related reports.
Approved the 2023 Pillar 3
Report.
Approved the group’s 2024–
2026 forecasts, updated after
the 2023 year-end.
Considered and agreed on the
directors to be put forward for
re-election at the AGM.
Approved the annual
remuneration review of the CE
and Group Exco, as well as the
Remuneration Policy.
Approved the Fundamental
Review of the Trading
Book: market risk and
credit valuation models
and application.
Held the group’s 11th
annual ESG roadshow with
shareholders and provided
feedback to the board.
Held the group’s AGM (virtual
and in-person options) in 2024.
Considered the feedback
provided through the 2023
results and ESG roadshows.
Attended the annual strategy
planning session.
Approved the group’s
2025–2027 Strategic Planning
Framework and deliberated on
the group’s material matters.
Approved the group’s 2024
interim results.
Approved the 2024 Internal
Capital Adequacy Assessment
Process (ICAAP) Report and
Internal Liquidity Adequacy
Assessment Process
(ILAAP) Report.
Approved the commercial
terms of the Nedbank Group B
preference shares.
Held annual meeting with the
PA and FSCA to discuss the
group’s medium- and long-
term strategies.
Considered the feedback
provided through the 2024
interim results roadshows.
Approved the 2024 annual
update of the Nedbank Group
Recovery Plan.
Received annual anti-money-
laundering (AML), counter-
financing-of-terrorism (CFT),
counter-proliferation-financing
(CPF) and sanctions training.
Interrogated and approved
the Nedbank Group business
plan for 2025–2027.
Signed the annual Board
Ethics Statement.
Jan/Feb
Mar/Apr
May/Jun
Jul/Aug
Sep/Oct
Nov/Dec
Director training during 2024
During 2024 the directors received comprehensive updates and training on
various themes, including the following:
Cyber and technology, including GenAI, IT megatrends, technological
disruption and the clean technology evolution.
ESG, including the ISSB standards, ESG data analysis, climate glidepaths and
climate materiality assessments, directors’ fiduciary duties in ESG oversight,
people strategy governance, global remuneration trends and market
compensation.
Banking and finance, including the future of banking, digital banking and
payments; internal auditing; FRTB; and market risk and credit valuation
adjustment models.
Risk management, including risk management and opportunities, and
regulatory matters such as AML, CFT, CPF and sanctions; the Amended
Financial Sector Code; International Internal Auditing Standards; and JSE
Listings Requirements.
Feedback was provided to the board on the handover process between the outgoing
Group CE, Mike Brown, and the incoming Group CE, Jason Quinn. Other regular agenda
items included detailed feedback from the chairs of board committees on key deliberations
of those committees and comprehensive presentations by the CE on top-of-mind items,
which included: a post-election update; financial performance updates and forecasts;
discussions on the macroeconomic, sociopolitical and competitor environmental landscapes;
value creation; strategy implementation; the status of key strategic actions, key risks and
reputational matters; key people matters; progress on significant programmes underway in
the organisation such as Managed Evolution, Target Operating Model (TOM) 2.0 and SPT 2.0;
and presentations by the CFO on our financial results and forecasts at regular intervals.
Apr
May
Jun
Jul
Aug
Sep
Nov
Define
Oct
Dec
Jan
Feb
Mar
Plan
Approve
Au
gu
st
t
o
No
ve
m
be
r
N
ed
ba
nk
G
ro
up
Ex
co
b
us
in
es
s p
la
n r
ev
ie
w
se
ss
io
ns
Implement
Review
and
assess
Strategic and business planning
23
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Our Board of Directors
Independent non-executive directors
Non-executive directors
Executive directors
Independent
non-executive
director and
Chairperson
Skills and
experience
per individual
boardmember
Daniel
Mminele 60
Chairperson:
Nedbank Group
and Nedbank
Limited
Years on board: 1
Hubert
Brody 60
Lead Independent
Director
Chair: DAC,
Group Remco
Years on board: 7
Neo
Dongwana 52
Years on board: 7
May
Hermanus 64
Years on board: < 1
(Appointed as
director with effect
from 15 July 2024)
Errol
Kruger 67
Chair:
GRCMC, GCC,
LEAC
Years on board: 8
Phumzile
Langeni 50
Years on board: 3
Rob
Leith 62
Chair: GITCO
Years on board: 8
Linda
Makalima 56
Chair: GTSEC
Years on board: 7
Terence
Nombembe 63
Years on board: 1
Brian
Dames 59
Chair: GSCRC
Years on board: 10
Stanley
Subramoney 66
Chair: GAC
Years on board: 9
Jason
Quinn 50
Chief Executive
Years on board: < 1
(Appointed as
director effective
from 22 May
2024)
Mike
Davis 53
Chief Financial
Officer
Years on board: 4
Mfundo
Nkuhlu 58
Chief Operating
Officer
Years on board: 10
Total
Banking and
finance ^ | **
10
Large
corporates
13
Accounting
and auditing * | **
7
Innovation and
digital expertise #
6
IT and
cyberresilience ** | #
6
Human resources,
marketing and
strategy * | **
13
Mining, resources
and infrastructure
4
Emerging
economies
8
Macroeconomic
and public policy
9
Governance and
stakeholder
management*
14
Environment
and climate * | **
6
^ Banking and finance * Key ESG experience ** Key risk management experience # Cyberrisk and technology
E
E
RE
RE
RE
RE
RE
Re-election at 58th AGM
Election at 58th AGM
Access detailed profiles of our boardmembers here.
24
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Our Board of Directors continued
Skills, expertise and
experience – a diversified
board that adds value
Diversity – being relevant in
a transforming society
Independence – protecting
stakeholder interests
Banks and financial services companies need a diverse
set of skills on their boards to govern effectively and act
in the best interests of all stakeholders. By combining
the appropriate mix of skills, expertise, and experience,
the board collectively guides and drives strategy,
thereby creating and protecting value.
The board, through DAC, determines the necessary
composition of skills in response to shifts in the group’s
long-term strategy and a rapidly changing environment,
while also considering upcoming retirements. The
appointments of Daniel Mminele, Jason Quinn, Terence
Nombembe and May Hermanus over the past 3 years
have strengthened the board’s skillset in the following
areas: risk management; retail and investment banking;
other financial services; accounting and auditing; large
corporates; corporate governance and stakeholder
management; environment and climate change; mining,
energy, resources and infrastructure; and macroeconomic
and public policy.
Appointments in the coming years are aimed at enhancing
the board’s skills, expertise and experience in various
areas – such as accounting and auditing, risk management,
retail banking, doing business in Africa, sustainability and
climate, human resources and remuneration, innovation
and digital, and IT and cyberresilience – and replacing
those skills that will be lost according to the planned
retirement dates of boardmembers.
Board diversity is crucial for staying relevant and sustainable in a rapidly
transforming society as it promotes diversity of thought in board decisions.
As a result, companies that embrace gender, race and ethnic diversity tend
to achieve more sustainable outcomes.
Nedbank is deeply committed to DEI, as well as the ongoing transformation
of corporate SA. As such, we strive to ensure that the composition of the
Nedbank Board is appropriately representative.
• Our board includes members from the 4 main racial groups in SA (African,
White, Coloured and Indian), as well as from diverse ethnic and cultural
backgrounds, including those speaking Sepedi, isiZulu, Afrikaans, isiXhosa,
German and English.
• Black* boardmember representation at 64% is above our target of 50% and
ranks among the highest in the South African banking peer group.
• Gender diversity remains a key priority in the board’s succession plan. We
are continuously reviewing our targets and board succession planning
to ensure we trend closer to internationally recommended practices and
gender benchmarks set by ESG ratings agencies. In 2025, we introduced a
target of 30% female board representation. This target increases to 35%
by 2030. The introduction of a gender diversity target has no impact on the
existing board race diversity targets (including a black female target of 25%)
which align with the Amended Financial Sector Code. Our board currently
comprises 29% black female.
The majority of Nedbank’s boardmembers, 64%, are independent
directors, in compliance with both King IV and global best-
practice governance.
The size of the Nedbank Board, with its 14 members, is influenced
by the demands of a large and complex banking and financial
services industry. This size ensures adequate membership for its
9 board committees, 7 of which are statutory, while appropriate
levels of independence are maintained. To facilitate succession, it is
anticipated that the size of the board could increase temporarily to
ensure seamless succession.
Board representation at 31 March 2025.
* African, Coloured and Indian population.
Nedbank policy:
• Non-executive directors
must retire at the first AGM
that follows their reaching
the age of 70 or after 9 years
of being on the board as
a non-executive, unless
agreed otherwise by the
board. They are given no
fixed term of appointment,
and all directors are
subject to retirement by
rotation in terms of the
company’s memorandum of
incorporation (MOI).
• An executive director is
required to retire from the
board at the age of 60 (and
63 from 1 August 2025),
unless otherwise agreed
by the board. Executive
directors are subject to
6-month notice periods.
This excludes the CE, who
is subject to a 12-month
notice period. In terms of
our MOI, one-third of all
boardmembers retire at
each AGM but may make
themselves available for
re-election. This is an
established practice in SA to
ensure accountability while
maintaining board continuity.
Executive directors
Non-executive directors
Independent non-executive
directors
22
14
64
Executive and
non-executive directors
(%)
Non-executive directors:
Tenure
(Years)
White male
Black female*
Black male*
35,7
35,7
28,6
Board demographics
(%)
Nedbank policy:
Board membership that represents the demographics of SA.
Promotion of diversity at board level
(%)
0–3 years
4–6 years
7–9 years
> 9 years
1
4
0
64%
33%
0%
29%
67%
Black
boardmembers
Black female
boardmembers
Black executive
boardmembers
Black female executive
boardmembers
Black independent
non-executive
boardmembers
Target 50%
Target 25%
Target 50%
Target 25%
Target 40%
Independent non-executive directors
Non-executive directors
Executive directors
Executive and non-executive directors: Age
(Years)
50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67
6
25
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Details of the committees’ considerations and focus areas for 2024 are covered in the following reports by the chair of each committee.
We also provide the meeting attendance register showing the attendance at board and committee meetings.
Board committees and interdependency
– effective support structures for the board
The board committees assist the board in the discharge of its duties and responsibilities.
There are 9 board committees (7 of which are statutory board committees).
Each board committee has formal
written terms of reference that are
reviewed annually and effectively
delegated in respect of certain of
the board’s responsibilities. These
terms of reference are available at
group.nedbank.co.za. The board
monitors these responsibilities to
ensure effective coverage of and
control over the group’s operations.
Board committees report in detail
on key discussions and activities
at each Nedbank Group Board
meeting, and the minutes of board
committee meetings are also
subsequently made available to
all boardmembers. GAC receives
regular feedback from GITCO
regarding the monitoring of the
adequacy and effectiveness of the
group’s IT controls as well as new or
emerging IT risks associated with
the bank’s digital transformation
journey, and receives feedback
from GCC regarding its oversight
of the adequacy and effectiveness
of the credit-monitoring processes
and systems. The chairpersons
of GRCMC and Group Remco
also meet separately to consider
remuneration risks, and there is
a formal process between Group
Remco and GTSEC in respect of
the consideration of the ethics of
remuneration.
Daniel Mminele
Chairperson
Nedbank Group and
Nedbank Limited Board
Interdependencies of committees
Statutory board committees
Linda Makalima
Chair
Group Transformation,
Social and Ethics
Committee (GTSEC)
3 meetings
Rob Leith
Chair
Group Information
Technology Committee
(GITCO)
4 meetings
Stanley
Subramoney
Chair
Group Audit Committee
(GAC)
6 meetings
Hubert Brody
Chair
Group Directors’ Affairs
Committee (DAC)
4 meetings
Hubert Brody
Chair
Group Remuneration
Committee (Group Remco)
5 meetings
Errol Kruger
Chair
Group Credit Committee
(GCC)
6 meetings
Brian Dames
Chair
Group Sustainability
and Climate Resilience
Committee (GSCRC)
6 meetings
Errol Kruger
Chair
Group Risk and Capital
Management Committee
(GRCMC)
6 meetings
Errol Kruger
Chair
Large-exposures Approval
Committee (LEAC)
4 meetings
Board meeting
attendance
Total number of
board and board
committee
meetings
64 (2023: 67)
98%
10 meetings
Nedbank Group
6 meetings
Nedbank Limited
(of which 2 were ad hoc
and/or short notice)
26
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Board committees and interdependency continued
Group Audit Committee
(GAC)
Group Credit Committee
(GCC)
Large-exposures Approval
Committee (LEAC)
Stanley Subramoney, Chair
(steps down from 30 May 2025)
Hubert Brody
Neo Dongwana (Chair from 30 May 2025)
Errol Kruger
Phumzile Langeni
Terence Nombembe
Errol Kruger, Chair
Jason Quinn
Mike Davis
Neo Dongwana
Rob Leith
Errol Kruger, Chair
Neo Dongwana
Rob Leith
Linda Makalima
Stanley Subramoney
Jason Quinn
Mike Davis
Mandate
•
Assists the board in its evaluation of the integrity of our financial
statements through evaluation of the adequacy and efficiency of our
internal control systems, internal financial controls and accounting policies
that are relied on for financial and corporate reporting processes.
•
Is responsible for the appointment, compensation and oversight of the
external auditors for the group, including managing interactions with GAC
and assessing their independence and effectiveness.
•
Facilitates and promotes communication between the board, executive
management, the external auditors and the Chief Internal Auditor.
•
Recommends the annual financial statements to the board for approval.
Mandate
•
Assists the board in fulfilling its credit risk oversight responsibilities,
particularly with regard to the evaluation of credit mandates and
governance, policies and credit risk.
•
Confirms the adequacy of credit impairments.
•
Acts as the designated committee appointed by the board to monitor,
challenge and ultimately approve all material aspects of the group’s
credit rating and risk estimation systems and processes.
Training
During 2024, GAC members received training on the International Internal
Auditing Standards as well as the JSE Listings Requirements with respect to
price-sensitive information and were invited to training on the International
Sustainability Standards Board (ISSB) and other board and board committee
training sessions.
Training
During 2024, GCC members were invited to training sessions on payments
(external perspective), digital banking (internal and external perspectives)
and other board and board committee training sessions.
Capitals
Capitals
Capitals
50
50
Black
White
33
67
Black
White
33
67
Male
Female
25
75
Male
Female
Male
Female
22
78
83
63
44
33
67
Black
White
Race
(%)
Race
(%)
Race
(%)
Gender
(%)
Gender
(%)
Gender
(%)
% of committee
members who
are independent
% of committee
members who
are independent
% of committee
members who
are independent
Independent members (%)
Independent members (%)
Independent members (%)
Combined skills and experience of the committee members*
Combined skills and experience of the committee members*
Linda Makalima
Mfundo Nkuhlu
Stanley Subramoney
Mandate
•
Appointed and authorised by the board in line with the requirements of
Directive 5 of 2008, issued by the SARB PA and constituted in terms of
section 73(1)(a) of the Banks Act, 94 of 1990, and its regulations.
•
Responsible for approving large exposures as well as related-party
transactions.
Combined skills and experience of the committee members*
Dave Crewe-Brown
(Chief Risk Officer)#
Johan Theron
(Chief Credit Officer)#
# The Chief Risk Officer and Chief Credit Officer are not boardmembers but are required
to be members of LEAC in terms of Directive 5 of 2008, issued by the South African
Reserve Bank Prudential Authority (SARB PA) in terms of section 73(1)(a) of the Banks
Act, 94 of 1990.
Board committee representation at 31 March 2025.
* Skills and experience key: Banking
Banking and finance
Large corporates
Accounting and auditing
Innovation and digital expertise
IT and cyberresilience
Human resources, marketing and strategy
Mining, resources and infrastructure
Emerging economies
Macroeconomic and public policy
Governance and stakeholder management
Environment and climate
Please refer to the 2024 Governance Report for a
list of all board training sessions provided in 2024.
Social and relationship
Financial
Intellectual
Natural
Financial
Intellectual
Social and relationship
Natural
Financial
Intellectual
Social and relationship
Natural
27
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Group Information Technology
Committee (GITCO)
Group Remuneration Committee
(Group Remco)
Group Risk and Capital
Management Committee (GRCMC)
Rob Leith, Chair
Hubert Brody
Brian Dames
Hubert Brody, Chair
(steps down from 30 May 2025)
Neo Dongwana
Phumzile Langeni (Chair from 30 May 2025)
Stanley Subramoney
Rob Leith
Errol Kruger, Chair
Jason Quinn
Brian Dames
Rob Leith
Linda Makalima
Terence Nombembe
Mandate
•
Oversees the execution of the board’s approved IT and digital strategy.
•
Performs, reviews and monitors enterprise IT matters to ensure that
appropriate frameworks, procedures, structures and governance are in place
for the consolidation, monitoring, management and reporting of IT risks and
exposures on a group basis (eg cyberthreats and other regulatory risks).
•
Ensures alignment and implementation of a well-coordinated, efficient,
effective and properly resourced IT strategy, which enables the organisation
to remain highly competitive.
•
Assumes ultimate accountability for the effectiveness of all governance
functions pertaining to the group’s technology capability, as required by the
Banks Act and in support of GAC requirements.
Mandate
Enables the board to achieve its responsibilities in relation to the group’s
Remuneration Policy, processes and procedures, and specifically enables the
group to do the following:
•
Meet the requirements of section 64C of the Banks Act.
•
Operate remuneration structures that are aligned with best market practice.
•
Conform with the latest thinking regarding good corporate governance on
executive remuneration.
•
Align the behaviour of executives with the strategic objectives of the group.
•
Recommend CE and Group Exco remuneration to the board for approval.
Mandate
•
Ensures the identification, assessment, control, management, reporting
and remediation of risks across a wide range of the organisation’s ERMF.
•
Sets and owns Nedbank’s risk strategy and monitors conformance with
risk management policies, procedures, regulatory and internal limits
and exposures, as well as processes and practices. The monitoring of
the group’s Key Issues Control Log (KICL) is paramount to GRCMC’s
oversight role.
Training
During 2024, GITCO members received training on IT megatrends
regarding technological disruption and were also invited to training
sessions on clean technology evolution, generative AI by Microsoft, digital
banking (internal and external perspective) and other board and board
committee training sessions.
Training
During 2024, Group Remco members received training on global
remuneration trends regarding market compensation, governance and
regulatory matters, and people strategy impacting pay. There were also
invited to other board and board committee training sessions.
Training
During 2024, GRCMC members received training on the fundamental review
of the trading book (FRTB) regarding market risk and credit valuation (CVA)
model validations and were invited to other board and board committee
training sessions.
Board committee representation at 31 March 2025.
Capitals
Capitals
Capitals
67
33
Black
White
40
60
Black
White
50
50
Black
White
Male
Female
100
Male
Female
40
60
Male
Female
17
83
67
80
67
Race
(%)
Race
(%)
Race
(%)
Gender
(%)
Gender
(%)
Gender
(%)
Combined skills and experience of the committee members*
Combined skills and experience of the committee members*
Combined skills and experience of the committee members*
* Skills and experience key: Banking
Banking and finance
Large corporates
Accounting and auditing
Innovation and digital expertise
IT and cyberresilience
Human resources, marketing and strategy
Mining, resources and infrastructure
Emerging economies
Macroeconomic and public policy
Governance and stakeholder management
Environment and climate
Please refer to the 2024 Governance Report for a
list of all board training sessions provided in 2024.
Intellectual
Financial
Human
Social and relationship
Intellectual
Social and relationship
Manufactured
Financial
Intellectual
Human
Social and relationship
Natural
Board committees and interdependency continued
% of committee
members who
are independent
% of committee
members who
are independent
% of committee
members who
are independent
Independent members (%)
Independent members (%)
Independent members (%)
28
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Group Transformation, Social and
Ethics Committee (GTSEC)
Group Directors’ Affairs Committee
(DAC)
Group Sustainability and Climate
Resilience Committee (GSCRC)
Linda Makalima, Chair
Jason Quinn
Phumzile Langeni
(steps down from 30 May 2025)
Stanley Subramoney
May Hermanus
(appointed from 30 May 2025)
Hubert Brody, Chair
Brian Dames
Errol Kruger
Rob Leith
Phumzile Langeni (appointed from 30 May 2025)
Neo Dongwana (appointed from 30 May 2025)
Linda Makalima
Daniel Mminele
Brian Dames, Chair
Phumzile Langeni
Linda Makalima
Daniel Mminele
May Hermanus
Mandate
•
Advises on, oversees and monitors Nedbank Group’s activities with
regard to social and economic development, ethics, transformation,
sustainability, corporate citizenship, the environment, health, public
safety, stakeholder relationship, and labour and employment matters.
•
Applies the recommended practices and regulations as outlined in
King IV and the Companies Act, 71 of 2008, in executing its mandate.
Mandate
•
Monitors progress regarding the implementation and achievement
of the board’s corporate governance objectives and determines
and evaluates the adequacy, efficiency and appropriateness of the
corporate governance structures and practices of the group.
•
Assists, evaluates and advises the board on issues of fundamental
strategic importance to the group that are beyond the scope of the
specific authorities mandated to the other board committees.
•
Considers, monitors and reports to the board on reputational risk and
compliance risk.
•
Acts as the Nominations Committee for the board.
Mandate
Enables the board to achieve its responsibility in relation to the group’s identification,
assessment, control, management, reporting and remediation of all categories of climate-
related risks and opportunities; and adherence to internal risk management policies,
procedures, processes and practices.
With effect from 1 April 2024, the Group Climate Resilience Committee was renamed as the
Group Sustainability and Climate Resilience Committee. Its mandate also expanded to reflect
broader sustainability and ESG considerations, including oversight of environmental and social
risks and opportunities beyond and in addition to climate risks and opportunities, referencing
international standards including the IFRS S1 and S2 and the TNFD. In addition, GSCRC’s
mandate now includes the identification and regular monitoring of controversial matters as well
as the accuracy of reporting and expanded roles and responsibilities to include the ESG Risk
Management Framework, ensuring alignment with the group’s work around purpose fulfilment.
Training
During 2024, GTSEC members received training on Amended Financial
Sector Code Statement FS100 Ownership and were invited to other
board and board committee training sessions.
Training
During 2024, DAC members were invited to various board and board
committee training sessions.
Capitals
Capitals
Capitals
25
75
Black
White
43
57
Black
White
100
Black
White
Male
Female
50
50
Male
Female
14
86
Male
Female
60
40
50
71
80
Race
(%)
Race
(%)
Race
(%)
Gender
(%)
Gender
(%)
Gender
(%)
Combined skills and experience of the committee members*
Combined skills and experience of the committee members*
Combined skills and experience of the committee members*
Intellectual
Financial
Social and relationship
Intellectual
Social and relationship
Natural
Intellectual
Human
Social and relationship
Natural
Stanley Subramoney
(steps down from 30 May 2025)
Natural
Training
During 2024, GSCRC members received training on climate glidepaths; climate materiality
assessment and high-level assessment results feedback; the fiduciary duties of directors
in driving and overseeing ESG; the benefits and power of ESG data to unlock finance
opportunities; and the risks and opportunities related to nature and finance. They were also
invited to training on clean technology evolution and other board and board committee
training sessions.
Please refer to the 2024 Governance Report for a
list of all board training sessions provided in 2024.
Board committee representation at 31 March 2025.
* Skills and experience key: Banking
Banking and finance
Large corporates
Accounting and auditing
Innovation and digital expertise
IT and cyberresilience
Human resources, marketing and strategy
Mining, resources and infrastructure
Emerging economies
Macroeconomic and public policy
Governance and stakeholder management
Environment and climate
Board committees and interdependency continued
% of committee
members who
are independent
% of committee
members who
are independent
% of
committee
members
who are
independent
Independent members (%)
Independent members (%)
Independent members (%)
29
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Other key areas of board responsibility and oversight
Relationship with
our stakeholders
Ensuring fair and
responsible remuneration
Our values
and culture
The board adopts a stakeholder-inclusive approach that
balances the needs, interests and expectations of material
stakeholders in the best interests of Nedbank over time.
The process of managing stakeholder relationships is
decentralised and forms part of the operations of our various
businesses. This means that interactions with stakeholders,
both formal and informal, are conducted by the functions
directly aligned with the stakeholder group on an ongoing basis.
The group’s relationship with its stakeholders is monitored
continuously by the board, with specific oversight of employee
and societal matters performed by GTSEC, reputational matters
across all stakeholders by DAC, regulatory matters by GRCMC
and GAC, and environmental matters by GSCRC.
In addition, directors engage directly with employees, clients,
regulators, shareholders and other stakeholders as evident
in the group’s ESG roadshow with investors and prudential
engagements with SARB.
The quality of Nedbank’s stakeholder relationships remains high,
evident in high levels of employee and client satisfaction, solid
financial performance, share price outperformance and payment
of higher dividends, effective working relationship with regulators,
and our making a difference in the societies in which we operate.
The board, through Group Remco, is committed to ensuring that
remuneration practices and outcomes are both fair and transparent,
aiming to achieve positive results that meet the reasonable
expectations of all stakeholders. Remuneration for executives and
employees is tied to sustainable value creation ambitions and aligned
with the group’s strategy. These ambitions are based on well-defined
financial and non-financial (including ESG) performance targets that are
both challenging and in line with market benchmarks.
• In recognition of the income inequality in SA, there is continued
focus on higher salary increases for lower-earning employees.
In 2024 management received average salary increases of 5%, and
bargaining-unit employees 7%.
• The short-term incentive (STI) pool increased by 12% in 2024, aligned
with the group’s financial performance as discussed on page 72. We
have added a non-financial modifier to the STI build-up methodology to
measure and incentivise progress against employments equity targets.
• In addition to including ESG considerations in individual executive
performance goal commitment contracts (GCCs), 2024 was the
fourth year in which the group included key environmental and social
deliverables in the performance conditions of the group’s long-term
incentives.
• Following a market review, the malus and clawback triggers were
updated to include a new trigger for conduct leading to reputational
Good governance is supported by the example
set by the board and management, as well as
the values and behaviours embraced by all
employees in the organisation.
Read more about value creation for stakeholders on pages
78 to 88.
Client
obsession
Different
is good
Learn to
grow
Do the
right thing
and do
things
right
Put
purpose
into
practice
Stronger
together
Play to
win
The board regularly discusses
the group’s culture and
values, including in 2024 the
importance of fostering a
culture of agility, inclusivity,
human-centred leadership
and high performance
(encapsulated by the motto
‘Play to win as one Nedbank’)
in order to attract, grow and
retain top talent; increase
Nedbank competitiveness in
the market; and contribute to
the group’s strategic goals.
The group’s culture principles,
The Nedbank Way, support
achieving our strategic
ambitions and describes our
required culture and what
shifts we need to make. It
integrates with the Nedbank
purpose, values, people
promise, and leadership
framework; serves as an
employee value proposition
(EVP); describes the workforce
experience we strive to create;
and is practical and actionable
for all our employees. These 7
culture principles, highlighted
below, are fully endorsed by
the board and described in
more detail as part of our
Human Capital Strategy
on page 65.
Shareholder alignment
(Policy vs implementation)
2024
2023
2022
2021
2020
92,8
97,7
65,9
71,7
90,4
75%
75% threshold
98,4
80,0
72,9
74,8
90,6
Policy
Implementation
harm and refinements were
made to existing triggers.
• We have continued the
practice of voluntary pay
gap disclosures which
commenced in 2023.
• Our 11th annual board-led
ESG roadshow highlighted
that there was broad support
for the Remuneration Policy
changes that Group Remco
implemented, and votes at
our 57th AGM in support of
our Remuneration Policy and
Implementation Report were
both above 90%.
Falling short
Performing
Excelling
Shareholders
Clients
Employees
Society
Regulators
2023
2024
30
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An overview of
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Ensuring value creation
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Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Other key areas of board responsibility and oversight continued
Compliance
Nedbank is statutorily obligated under the Companies Act, 71
of 2008; Banks Act, 94 of 1990; King IV; and the JSE Listings
Requirements to comply with regulation and proactively
monitor and assess regulatory developments to determine their
relevance and impact on the group.
Regulatory developments and the state of compliance are
reported on and monitored by DAC, which is one of the board
committees established in terms of the Banks Act. We regularly
engage with more than 15 different regulators and, in 2024, a total
of 200 regulatory developments were applicable to the group.
Through a formalised regulatory affairs process, developments
are analysed to determine their relevance and impact on the
business, with a total of 6 251 Acts (new or amended), notices,
directives, regulations, and consultation papers considered
during the year. Though proactive engagements to assess and
mitigate regulatory risk, the group ensures that it addresses any
impact and effectively participates in regulatory consultation
processes, either through industry associations or directly with
government, regulators and policymakers. More information on
key developments is shown on page 47.
Ethics and human rights
At Nedbank, we are committed to conducting business responsibly and ethically, which includes upholding human rights through
our operations and the activities of those we do business with.
Our policies are regularly updated
To support regulatory and legislative compliance and
ethical behaviour, various group policies are reviewed by
management and approved by the board regularly in line
with the group’s policy governance processes, including the
following: the Code of Ethics and Conduct; Conflict of Interest
Policy; Confidential Information and Information Barrier
Policy; Ethics in Digital Technology and Artificial Intelligence
Policy; FAIS Conflict of Interests Management Policy; Gifts,
Entertainment and Hospitality Policy; Occupational Health
and Safety Policy; Policy on Outside Interests and Conflict of
Interests; and Privacy Policy.
The group’s publicly available policies can be found here.
As a purpose-led and values-driven organisation, our board and
leadership are committed to building and maintaining an ethical
culture, starting with setting the correct ‘tone at the top’. As such, the
Nedbank Board leads the group ethically, effectively, and responsibly
within acceptable risk parameters.
To support the instillation of an ethical culture, the group has
implemented several mechanisms, including:
• directors’ disclosure of interests and ‘fit and proper’ questionnaires
that are completed annually; and
• the Board Ethics Statement, which sets out the expectations and
commitments undertaken by every boardmember and which all
boardmembers must sign annually.
Nedbank Group Board Ethics Statement
‘As the Nedbank Group Board of Directors, we are
committed to the highest ethical standards and we conduct
our business honestly, scrupulously and with integrity. We
will provide ethical, effective and responsible leadership, and
will act with independence and diligence in making decisions.
At the core of our Code of Ethics and Conduct is our
purpose ‘to use our financial expertise to do good for
individuals, families, businesses and society and our values
of integrity, accountability, respect, people-centredness,
and being client-obsessed. We use these to guide and
direct the way we do business. We know that business
depends on trust, which is why we do all we can to earn it
and strive to do nothing to impair it. We will set an example
knowing that what we do, and refrain from doing, is as
important as what we say. We are committed to nation-
building and contributing to a more transformed SA, and
we will go beyond mere compliance to promote authentic
organisational transformation. We will respect the rights of
our employees and support their well-being.’
Governance structures in place
Comprehensive governance structures affect the
board’s responsibilities in relation to ethics and human
rights. Delegated to executive management, various
tools and processes embed a culture that promotes
ethics and human rights across the organisation.
These include the annual Board Ethics Statement and
ad hoc declarations; various ethics and human rights
codes, policies, statements and frameworks; pledges;
‘personal integrity management’ checks (eg recruitment
pre-screening, ongoing assessment in line with Financial
Intelligence Centre Directive 8 requiring accountable
institutions to assess the competence and integrity of
employees, and screening employee information against
targeted financial sanctions lists); biannual declarations
by group, cluster and subsidiary executives on corporate
governance and internal processes; ongoing client and
supplier due diligence; employee and supplier training and
awareness-raising activities; various internal and external
(anonymous) channels for reporting unethical behaviour;
and mechanisms to review and manage client and supplier
relationships when necessary.
More details on our approach to human rights and ethics are
disclosed in our 2024 Governance Report and 2024 Society Report,
available at group.nedbank.co.za.
31
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An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Board and committee evaluations
Evaluations of the Nedbank Group Board and board committees alternate annually between
independent evaluations and internal evaluations. The 2023 independent evaluation was undertaken
by The Board Practice, with the overall feedback being that Nedbank Group has a professional board
that functions well.
The 2023 independent evaluation found that the Nedbank Group Board and board committees
effectively discharged their duties, and the overall feedback was very positive with respect to the
board’s work. Board committees and the Company Secretary are critical support structures for the board.
No remedial measures were identified from the 2023 independent evaluation. The 2024
internal evaluation took the form of a self-assessment focused on unpacking themes from
the 2023 independent evaluation. Overall boardmembers are very satisfied with the board’s
overall performance, with the board receiving an overall rating being 4,3/5. In particular,
boardmembers were satisfied with the Chairperson’s performance, the CE’s performance, the
performance of each board committee, the board’s relationship with management, and the
performance of the Company Secretary. Boardmembers were satisfied with the succession
planning (for both the board and management) and the board’s focus on strategic matters.
Although no areas of concern were identified, in the spirit of continuous improvement, actions
(that were largely housekeeping in nature) were identified to enhance board awareness of
material matters, improve efficiencies of board and board committee packs and meetings, and
explore opportunities for less formal engagements with management.
For more information on the results of the board and board committee evaluations, please refer to our Governance
Review in the 2024 Governance Report, which is available at group.nedbank.co.za.
Other key areas of board responsibility and oversight continued
4,4
4,2
4,1
3,9
4,4
4,2
4,1
Strategic focus,
priorities and
overall
effectiveness
Core
governance
Board
dynamics
Board
agility
Company
Secretary:
Statutory
duties
Company
Secretary:
Corporate
governance
Board
committees
(3) Meets
expectations
expectations
(4) Exceeds
(5) Exemplary
Best in class
Low margin for improvement
Board performance
(Score out of 5)
Stakeholders
Ensuring and protecting value in 2024
•
Managed the succession process for non-executive directors’
positions and concluded the CE succession process.
•
Ensured that the group was led ethically and compliantly,
protecting its reputation and building stakeholder confidence.
•
Assessed board governance in Nedbank subsidiaries.
•
Oversaw compliance activities, including regulatory
and advocacy endeavours, regulatory developments,
engagements with regulators, and enhancements to the
Reputational Risk Management Framework and Reputational
Risk Policy.
•
Oversaw the enhancement of compliance skills and the
leveraging of technology to augment efficiencies and
effectiveness.
•
Approved the Compliance Risk Management Policy and
Framework and Compliance Coverage Plan.
•
Monitored AML, CFT and sanctions; exchange control; data
privacy; and OHS compliance levels and remediation of the
findings.
•
Tracked market conduct compliance levels and ensured the
fair treatment of clients.
•
Advised on the management of material reputational risk
matters, and the potential risks associated with strategy
implementation.
Focus for 2025 and beyond
•
Manage board succession.
•
Monitor strategy execution.
•
Oversee corporate governance structures and
practices.
•
Ensure an independent and adequately resourced
compliance function.
•
Track the completion of the Compliance Coverage
Plan and compliance risk levels.
•
Support the compliance function to be innovative
and agile within the scope of legal and regulatory
requirements.
•
Maintain oversight of AML, CFT and sanctions
compliance levels; the outcomes of inspections;
and regulator interactions.
•
Oversee exchange control and data privacy
matters.
•
Retain a focus on the fair treatment of clients.
•
Monitor regulatory developments, including in
AML, market conduct, ESG, crypto, open finance
and AI.
•
Oversee the management of reputational risk
matters.
A comprehensive DAC Report is available online in our 2024 Governance Report on our group website at group.nedbank.co.za.
Board oversight – ensuring and protecting value
Group Directors’ Affairs Committee (DAC)
Hubert Brody, Chair
‘Our goal is to maintain the highest standards in corporate governance,
board succession, compliance, reputational risk management, and strategic
execution by leveraging the expertise of our highly skilled employees, and
continuously enhancing our processes to stay ahead in a rapidly evolving
operating environment. We are committed to excellence and innovation,
ensuring that we not only meet expectations but exceed them.’
Top 10 risks
Clients
Employees
Regulators
Shareholders
2 Business
9 Reputational and market conduct
1 Strategic execution
32
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Group
Integrated Report
2024
Sustainable value
creation through strategy
Overview of the context in which we operate, including our material matters, how we manage
risks, the opportunities we seek to unlock, our strategic response, the trade-offs we make and
key capital considerations to ensure ongoing value creation.
Nedbank Group
Integrated Report
2024
33
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Reflections from our Chief Executive
After 10 months in the role as CE I can confidently say that I am very comfortable
with the strong foundations that Nedbank has built, including a fortress balance
sheet, an improving financial performance, a strong and vibrant culture that is
service oriented, a focus on diversity, equity and inclusion, leading ESG credentials,
a modernised technology platform, as well as various strong and leading businesses
that provide an underpin for our growth prospects going forward.
Jason Quinn, Chief Executive
2024 was a difficult
operating environment
for us and our clients.
SA GDP growth of 0,6%
was below the 10-year
average of only 0,8%. The
first half of the year was
particularly challenging
given uncertainty ahead
of SA’s national elections.
However, witnessing a
peaceful and fair outcome
of the elections and
the swift formation of a
government of national
unity (GNU) brought
cautious optimism
to financial markets,
resulting in lower bond
yields, stronger equity
markets and a stronger
rand, while credit default
swap spreads also
improved.
As the year progressed, we saw some positive shifts with
inflation declining further towards the low end of the SARB
target range, the MPC cut interest rates by a cumulative
50 bps and business confidence improved. Despite these
improvements, household credit growth slowed to only
3,0% by the end of the year and corporate industry credit
growth, although up by 5,4%, remained volatile. The gradual
improvement in the fourth quarter brought a cautious sense of
optimism, especially with the rise in business confidence, but
it became clear that the corporate credit growth does not yet
reflect a significant boost in fixed-investment activity.
I’m therefore filled with pride at the resilience and progress
we’ve demonstrated during the year. We achieved financial
outcomes in 2024 that continued to improve, with headline
earnings increasing by 8% to R16,9bn, and our ROE
strengthening to 15,8%. These figures highlight our steady
progress towards our ROE targets. This achievement was
driven by a combination of strong NIR growth, a lower
impairment charge and sound expense management. I’m
particularly pleased with the 11% growth in DHEPS that was
assisted by our share buy-back in 2023.
Shareholders have been rewarded by the stronger Nedbank
share price, which increased by 30% in 2024, well ahead of the
SA Banks Index increased by 17%, along with the total dividend
declared, which increased by 10%.
A smooth CE handover
The Chief Executive (CE) transition from Mike Brown to myself
was seamless, well planned and well executed. I have an
excellent working relationship with the board and leadership
teams, which allowed us to get on with business smoothly
and I have experienced a very warm welcome from Nedbank
colleagues and clients.
After 10 months in the role as CE I can confidently say that I am
very comfortable with the strong foundations that Nedbank
has built. These include a fortress balance sheet, an improving
financial performance, a strong and vibrant culture that is
service-oriented, a focus on diversity, equity and inclusion,
leading ESG credentials, a modernised technology platform,
as well as various strong and leading businesses that provide
an underpin for our growth prospects going forward.
Jason discusses the
group’s operating
environment, strategy
and outlook at our 2024
results presentation.
30%
Nedbank
share price
15,8%
ROE
(LT target > 18%)
R16,9bn
Headline
earnings
Nedbank Group
Integrated Report
2024
34
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Reflections from our Chief Executive continued
Operating environment
Our operating context, as reflected in our
material matters (page 38 to 47), highlights
our expectations of stronger SA economic
growth given more centrist policies on the
back the GNU and expectations of significant
infrastructure investment as SA addresses
its structural constraints. As Nedbank, we are
well positioned to benefit since 90% of our
business is generated
in SA and we have a
leadership position
in infrastructure, and
renewable energy
finance in particular.
The impact of
climate on our clients continues to accelerate,
highlighting the importance of supporting
our clients in their climate journeys. Our
credentials, track record and actions speak for
us as SA’s green bank.
Disruptive new technologies bring with
them both opportunities and challenges, and
I believe we are well positioned to unlock
the benefits on the back of our modernised
technology stack.
We also continue to experience increased
levels of competition, not only from new
entrants but also from incumbents. I am
confident that the strategies we have put in
place not only ensure we defend our market
share, but we plan to gain our fair share and
become even more competitive.
The world of work is also evolving as we seek
to create more meaningful connections with
our colleagues as more employees come into
the office more often, and we heighten our
focus to retain, develop and attract scarce
skills. This builds on our positive employee
NPS score and surveys that reflect highly
engaged colleagues.
Delivering and refreshing
our strategy
The completion of key strategic programmes
such as Managed Evolution (ME) and TOM 2.0,
positioned the group well for a strategy
refresh that the board, Group Exco and I were
all 100% aligned behind. Under a Perform
agenda we will continue to deliver on the
strategies we have in place and manage
the business within the changing operating
context. Under a Transform agenda we aim
to unlock new transformational growth
opportunities that will make us compete more
effectively in the medium-to-long term and as
a result deliver sustainable growth to achieve
an ROE of > 18% in the long term.
Perform
A key highlight of 2024 was the fundamental
completion of our Managed Evolution IT
transformation, which has delivered a
refreshed modern technology platform. The
benefits of ME are evident in ongoing strong
growth in digital metrics, market-leading client
satisfaction outcomes, solid main-banked
client gains, higher levels of cross-sell and the
realisation of benefits through our TOM and
expense optimisation programmes.
Nedbank well
positioned for an
SA economic
upturn
The execution of our strategy progressed well
with the following highlights:
• Digital metrics improved further, evident in
strong digital volume, transaction and client
growth, digital products sales now at 64% of
new sales, and apps that rank highly and are
differentiated on the services features offered.
• We again ranked
top tier in client
satisfaction metrics,
supported by a strong
service culture.
• Our TOM 2.0
programme
concluded with R3,0bn of cumulative cost
savings through headcount reduction, real
estate floor space savings and back-office
optimisation.
• I was pleased with the market share gains we
achieved across home loans, vehicle finance,
wholesale term loans and retail deposits. We
deliberately lost market share in personal loans
given quality of applications that still reflect a
consumer that is under pressure.
• We gained retail main-bank clients, and our
cross-sell ratio improved to 1,99, although
the opportunity to improve remains material,
supported by a focus on creating a culture that
becomes more sales-oriented, and we continue
to leverage investments in technology.
• In 2024 our sustainable development finance
exposures increased by 26% to R183bn or 19%
of total loans, supported by a 32% increase
in renewable energy finance, with strong
pipelines in place, cementing our leadership in
sustainability matters.
These achievements led to our being
named SA Bank of the Year by the
prestigious magazine The Banker.
Transform
Our new Transform initiatives
can be summarised into 5 broad
categories: (i) unlock value from
the technology investments we
have made over the past 10 years;
(ii) scale our retail business in order
to reduce its CIR and increase its
ROE; (iii) diversify our portfolio into
new segments and markets; (iv)
leverage our market-leading sector
skills and expertise in CIB to support
revenue growth; and (v) expand more
deliberately into key SADC and East
African countries.
A few initiatives to highlight include:
• We are unlocking value from our
technology investments, including
commercialising the rich data that
#1 NPS
among large
South African
banks
How Nedbank
came to be
named SA Bank
of the Year
Nedbank Group
Integrated Report
2024
35
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
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Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Reflections from our Chief Executive continued
we gather; harnessing the power of AI, GenAI, machine
learning and robotics process automation; harmonising our
IT systems in NAR; and payment modernisation to extract
benefits, including cost optimisation (which we have not yet
sized but could be a couple of billion rand), enhanced client
experiences and faster revenue growth. We are currently
investigating more than 50 advanced analytics and AI use
cases spanning credit scoring, cross-sell and up-sell, fraud
analytics, and digital marketing, to name a few.
• Under portfolio diversification we are planning to grow our
presence in East Africa through a CIB-lead approach by
leveraging our strengths to increase gross operating income
in CIB from 15% to > 20% and grow our presence in the mid-
corp market following the launch of a new dedicated offering.
• We aim to grow and sell our insurance products into the
Nedbank client base by improving client penetration from
19% to > 30% in the medium term and thereby grow gross
earned premiums by > 50% in the medium term.
• We have also embarked on an
organisational restructure of our
RBB and Nedbank Wealth Clusters,
evolving into an organisational design
more focused on client-centredness.
The new group structure will see
the creation of Personal and Private
Banking (PPB), an individual- or non-juristic-focused cluster
that will provide a full suite of solutions to individual clients
across the youth, entry-level, mass- and middle-market, and
affluent and high-net-worth segments. The reorganisation
will also see the creation of Business and Commercial
Banking (BCB), a juristic-focused cluster that will cover the
spectrum of SME, commercial and mid-corp clients, while
elevating the cluster to Group Exco level. This restructure will
sharpen execution of our strategy, enable us to compete more
effectively in the market, improve levels of cross-sell and
unlock new growth opportunities. Pleasingly, initial feedback
from our stakeholders has been very positive and supportive
and we will look to implement this swiftly to minimise impact
on our colleagues.
• At the same time, we have announced that we are busy
finalising a strategic review of our financial investment in ETI.
Recent engagements with the investment community
highlighted strong support should we decide and be able to
sell our share.
Leadership changes
I welcome Nomonde Hlongwa as the Group Chief Compliance
Officer, effective 15 April 2025, succeeding Daleen du Toit
who is retiring. In line with our strategic reorganisation of
the RBB and Nedbank Wealth Clusters, Iolanda Ruggiero,
Managing Executive (ME): Nedbank Wealth, retired early
on 31 March 2025. We thank Iolanda and Daleen for their
contributions and look forward to working with Nomonde.
As part of the reorganisation and the creation of the PPB and
BCB Clusters, Ciko Thomas, currently ME: RBB, will lead the
PPB Cluster and an announcement relating to the head of the
BCB Cluster will be made in due course.
Looking ahead
From a macro perspective, we remain cautiously optimistic and
expect the economic environment in SA to improve off a low
2024 base, although risks associated with global geopolitics
and trade wars remain. SA’s GDP is forecast to increase by
1,4% in 2025, inflation to remain well within the SARB target
range of 3% to 6%, and the South African prime lending rate to
decline by 50 bps in 2025, reaching 10,75%. Corporate lending
should pick up while growth in household lending is expected to
remain muted.
The recent tariffs imposed by the US create upside risk to SA
inflation and downside risk to GDP growth should they stay
in place.
Our improved financial performance in
2024 – together with the progress made
in executing on our strategy, our new
Transform agenda and better economic
prospects – gives us confidence that
we will continue to make progress to
increase our ROE to > 16% in 2025,
> 17% in the medium term and > 18% in the longer term.
Appreciation
I would like to thank the Board, Group Exco and entire leadership
team, including Mike Brown for helping me transition smoothly
into this role. I also appreciate the commitment and support
of all Nedbank colleagues this past year. Thank you to our
7,6 million clients for trusting us with your financial needs, and to
the investment community, regulators, and other stakeholders
for your support. As Nedbank, we will continue to play our role in
society as we fulfil our purpose of using our financial expertise
to do good.
Jason Quinn
Chief Executive
A more
client-centred
structure
> 18%
Long-term ROE
Final close-out meeting between Daniel, Mike and myself to
conclude the Nedbank CE transition process in May 2024.
Nedbank Group
Integrated Report
2024
36
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our Group Executive Committee
Graphs show Group Exco representation,
demographics and age at 31 March 2024 and
excludes Jason Quinn.
Group Exco tenure at Nedbank
(Number of Group Exco members)
0–10 years
11–20 years
21–30 years
3
4
6
15
31
31
23
Black female
Black male
White female
White male
Group Exco demographics
(%)
233 years
of combined service
Shared-services Group Executives
Daleen Du Toit is not included in all calculations. Includes Nomonde Hlongwa, who will become a Group Exco member on 16 April 2025.
1 At 31 March 2025, excluding Iolanda Ruggiero who took early retirement on 31 March 2025, and Daleen du Toit who will retire in H1 2025.
Group Exco tenure at Nedbank
(Number of Group Exco members)1
0–10 years
11–20 years
21–30 years
3
4
Black female
Black male
White female
White male
25
33
17
25
Group Exco demographics
(%)1
Gender demographics
184
years1
Group Exco age
(Years)1
42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58
Executive directors
Frontline MEs
Shared-services Group Executives
Nedbank policy:
Group Exco members retire on reaching
the age of 60. From 1 August 2025, the
group’s retirement age will be extended
to 63.
Average age:
48 years
Female
42%
Male
58%
Frontline MEs
Executive directors
The Nedbank Group Exco is a diverse and experienced management team that comprises the Chief Executive (CE), Chief Operating Officer (COO),
Chief Financial Officer (CFO), 4 frontline managing executives and 6 shared-services executives.
Group
Managing
Executive: NAR
Exco member
since: 1 April 2020
13 years’ service
at Nedbank
Group
Managing
Executive: PPB
Exco member since:
18 January 2010
14 years’ service
at Nedbank
Group
Managing
Executive: CIB
Exco member
since: 1 April 2020
23 years’ service
at Nedbank
Group Managing Executive: BCB – To be announced in due course
Chief
Compliance
Officer-
designate
Exco member
since:
16 April 2025
< 1 year’s service
at Nedbank
Chief
Compliance
Officer
Exco member
since: 1 May 2022
10 years’ service
at Nedbank
Group
Executive:
Group HR
Exco member
since: 25 June 2018
6 years’ service
at Nedbank
Chief Risk
Officer
Exco member
since: 1 April 2024
29 years’ service
at Nedbank
Group Executive:
Group Marketing
and Corporate
Affairs
Exco member
since: 15 May 2018
7 years’ service
at Nedbank
Chief
Information
Officer
Exco member
since: 1 July 2023
20 years’ service
at Nedbank
Group
Executive:
Strategy
Exco member
since:
1 January 2015
23 years’ service
at Nedbank
Jason
Quinn 49
Mfundo
Nkuhlu 57
Mike
Davis 52
Dave
Crewe-Brown 56
Deb
Fuller 51
Daleen
du Toit 59
Priya
Naidoo 50
Khensani
Nobanda 45
Ray
Naicker 46
Anél
Bosman 57
Ciko
Thomas 55
Iolanda
Ruggiero 53
Dave
Crewe-Brown 57
Deb
Fuller 52
Nomonde
Hlongwa 42
Daleen
du Toit 60
Priya
Naidoo 51
Khensani
Nobanda 46
Ray
Naicker 48
Anél
Bosman 58
Ciko
Thomas 56
Dr Terence
Sibiya 55
COO
Exco member since:
1 December 2008
21 years’ service
at Nedbank
CFO
Exco member
since:
1 January 2015
28 years’ service
at Nedbank
CE
Exco member
since:
31 May 2024
1 years’ service
at Nedbank
Jason
Quinn 50
Mfundo
Nkuhlu 58
Mike
Davis 53
Group Exco changes
Jason Quinn succeeded Mike Brown (CE)
post his retirement at the conclusion of the
group’s AGM in May 2024. Daleen du Toit, the
Group Chief Compliance Officer, reaches the
group’s normal retirement age in H1 2025 and
Nomonde Hlongwa has been appointed as
Group Chief Compliance Officer-designate,
and assumes the role of Group Chief
Compliance Officer and member of the Group
Exco on 16 April 2025. Iolanda Ruggiero took
early retirement on 31 March 2025.
Years of combined service
Average age
Access detailed profiles of our Group Exco here.
5
Nedbank Group
Integrated Report
2024
37
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our operating environment and material matters
Our material matters highlight the issues most likely to impact our ability to create sustained value for Nedbank and our stakeholders over the short, medium
and long term. As the operating environment and the needs of our stakeholders change, we continuously refine these matters, which in turn helps us to evolve
and refresh our strategy.
Our approach to these material matters is guided by the principle of materiality, which is crucial for evaluating information that could impact the group’s strategy, decisions, and trade-offs concerning the
6 capitals (as discussed on page 2); the evolution of our business model; and the development of short-, medium- and long-term targets (as discussed on page 6). We have expanded our process to encompass
ESG-related material matters, with further details provided in our 2024 Society Report.
Environmental limits
and social floors
The economy
Regulatory demands
Disruptive
technologies
Increased
competition
World
of work
Our top 10 risks
Our material matters
Environmental limits and social floors: Increasing impact of
climate change, evident in droughts, extreme weather events
and biodiversity impacts; the need for a Just Transition given
the unique social and environmental conditions of SA and
the African continent; related opportunities; and the risk of
investing in stranded assets.
The economy: Global and local economic dynamics;
heightened volatility; geopolitical risks; and consumer
and business confidence; and opportunities (such as
GNU-driven infrastructure investment) and threats (such as
economic shocks).
Regulatory demands: Growing regulatory scrutiny and
demands placed on financial services companies, including
those relating to technology and cyberrisk; payments; ESG;
consumer protection; financial crime; data and data privacy;
as well as financial and banking regulation.
Disruptive technologies: The impact and adoption of new
technologies such as GenAI, leveraging data, as well as
increased levels of digital adoption; behavioural changes
of clients and employees; and rising threats and levels of
cybercrime.
Increasing competition: Competition from incumbents and
new entrants, with a focus on retail transactional fees; the SME
market; and heightened competition in corporate lending for
good-quality assets.
World of work: The influences of macroeconomic, social and
political developments; digital transformation and fast-paced
technological change; evolving hybrid work practices;
heightened demand for scarce skills and the war for talent; as
well as the requirements of employment equity legislation in SA.
3 Credit
2 Business
2 Business
5 Operational
7 Climate
9 Reputational and conduct
6 People
3 Credit
2 Business
9 Reputational and conduct
10 Capital
1 Strategic execution
5 Operational
8 Organisational resilience
9 Reputational and conduct
10 Capital
7 Climate
5 Operational
6 People
4 Cyberrisk
6 People
6 People
1 Strategic execution
Nedbank Group
Integrated Report
2024
38
Integrated
reporting
An overview of
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Ensuring value creation
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Sustainable value creation
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Supplementary
information
Infrastructure finance
opportunities
Nedbank’s Capital Expenditure Project Listing
shows a sharp rise in investment plans. The
value of new projects announced in 2024 rose
to R446bn, more than double the R210bn
published in 2023.
Fixed investment is expected to recover as
business confidence improves amid easing
structural constraints, firmer domestic demand,
and steady global growth. The public sector
is likely to lead the turnaround, while private
sector capital outlays, apart from renewable
energy, may take longer to emerge.
Towards the end of 2024, the government
announced a R943bn infrastructure investment
plan for the next 3 years, prioritising projects
that are candidates for public-private
partnerships. While we see this as optimistic
in both size and time horizon, our teams have
identified various financing opportunities
across energy, water, transport and supporting
infrastructure that could support stronger loan
growth over the next few years.
24
23
22
21
20
19
18
17
16
15
14
0,7
0,6
Average: 0,8
Nedbank capital investment schedule
(Rbn, constant 2024 prices)
Global environment
The world economy faces significant
uncertainties in the years ahead. Along
with global geopolitical risk, the risk of
a global trade war and its implications
remain high amid more protectionist US
trade policies, which pose downside risks
to world growth and upside risks to global
inflation. Despite these uncertainties,
near-term growth prospects remain
reasonable. The International Monetary
Fund (IMF) expects the world economy
to expand by a steady albeit subdued
pace of around 3,3% in 2025.
SA macroeconomic environment
The South African economy has grown by only 0,8% on average over the past 10 years, but
is set for an improvement over the next few years as described in our base case scenario on
page 40. GDP growth of between 1% and 2% will be driven largely by increased consumer
spend given higher levels of confidence, higher real disposable income and interest rate
cuts. Business confidence improved to the highest levels in 5 years, and further structural
reforms supported by the establishment of a GNU post the SA national elections in
May 2024 are expected to foster better economic conditions.
SA GDP growth
(%)
Material matter 1
The
economy
Banks and financial services companies play a crucial role in the economies where they operate by providing credit, safeguarding
deposits, managing and optimising investments, and facilitating transactions. Clients, along with other stakeholders such
as employees, suppliers, investors, and regulators, are also active participants. Consequently, challenging or supportive
macroeconomic environments can significantly impact value creation and the prospects for both us and our stakeholders.
24
23
22
21
20
19
18
17
16
15
14
Private sector
Public corporations
General government
Progress on structural reforms
To enable much faster economic growth, we need to see more
progress on structural reforms.
We take some comfort from the emergence of green shoots,
which has been set out in the matrix. Political uncertainty and
electricity shortages have stabilised as shown below in the top
green blocks. Recent load-shedding events in Q1 2025 are a
stark reminder that there is still a lot of work ahead, including
system reforms and accelerating public-private partnerships.
Transport and logistic bottlenecks have eased slightly, but there
is still a long way to go.
Although the government is expected to press ahead with
fiscal consolidation, the recent South African Budget, which
was deferred following a proposed VAT increase, showed a
concerning acceleration in government spending.
Other challenges such as water supply, crime and corruption
and struggling municipalities, highlighted in grey and black
blocks, will take longer to resolve.
Progress on South African structural reforms
Political uncertainty
Electricity shortage
Transport bottlenecks
Water supply
Crime and corruption
Municipal
Fiscal consolidation
H1
23
H2
23
Q1
24
Q2
24
Q3
24
Q4
24
Q1
25
Highly negative
Highly positive
Our operating environment and material matters continued
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2024
39
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An overview of
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Supplementary
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The economy continued
Our operating environment and material matters continued
Macroeconomic scenarios
Macroeconomic scenarios give us insight and help us adapt to a volatile and uncertain environment, evolve our strategy, manage potential risks, and identify opportunities for
value creation. The following 4 scenarios illustrate our base case economic forecasts (the underlying assumptions we use in our 2025–2027 business plans and our guidance
to investors), a better-than-expected potential outcome (favourable scenario) and 2 downside scenarios (‘high stress’ and ‘severe stagflation’).
Severe stagflation
External global shocks, primarily from more protectionist US
trade policies, give rise to structurally elevated input costs and
underlying price pressures create conditions conducive to the
development of stagflation, countered by tighter monetary
policy (interest rate hikes). Global investors turn risk-off, resulting
in significant financial market volatility, encouraging a flight
to safe-haven assets, and the rand weakens to close to above
R24 to the US$ by 2026. In SA, acute structural constraints are
exacerbated by inappropriate and fragile policies of the GNU,
such as granting above-inflation wage increases in the public
sector. This, along with the global trade war, leads to a significant
rise in inflation to above 6,5% in 2025. In response, monetary
policy is tightened, with interest rates increasing to above 12%
and the South African economy entering a recession. Credit
growth, as a result, slows to low single digits. A severe stagflation
scenario points to significant strain for banks, although internal
stress testing under this scenario indicates that our capital
levels will remain adequate.
Base case
Global growth continues at a steady, albeit moderate, pace, only
slightly better than 2024 as disinflation intensifies and monetary
policy easing accelerates. Geopolitical risks cap any potential
upside. In SA the GNU holds, buying confidence and facilitating
further modest gains in structural reforms, with infrastructure
a key focus area. GDP growth gathers pace from 2025 given
less severe load-shedding and smoother logistics, but growth
remains below 2% for the next 3 years. Consumer spending
recovers gradually given lower levels of inflation (now well within
the SARB target range), falling interest rates (the prime interest
rate declining to 10,75% in 2025 and remaining flat for the next
3 years), as well as a boost from the 2-pot system that sees
some withdrawals from contractual retirement savings. Fixed
investment picks up slowly in 2025 as demand recovers and
structural constraints ease. As a result, credit growth improves to
5,6%. Our base case highlights a better environment for us and
our clients when compared with the past 10 years.
Favourable
Geopolitical tensions continue to simmer, but pragmatism
prevails. Global growth gathers pace into 2025 and beyond
and commodity prices enter a mild upswing, inflation recedes
faster than expected on the back of lower oil prices and
productivity gains from new technology and improved supply
chains, and monetary policy eases rapidly. In SA, the GNU
continues to adopt centrist policies, and service delivery
improves. As inflation remains low, interest rates decline further
in 2025 and 2026 to below 10%. As a result, GDP growth
exceeds 2%, supported by stronger global growth and gradual
improvements in rail and port efficiencies. Credit growth
accelerates further on the back of structural reforms and
infrastructure investment, as well as a healthier consumer. This
favourable scenario suggests a better environment to operate
in, and while still not ideal, it will be beneficial for banks.
High stress
Geopolitical tensions intensify, with the United States (US),
European Union (EU) and its allies set against China, Russia and
their backers. On the back of a Trump US presidency and other
developments, tariffs and trade barriers increase, along with
a clampdown on migration in advanced countries. The world
economy loses momentum and enters a mild downturn in 2025,
followed by a weak recovery thereafter. Risk-off sentiment
intensifies and emerging markets experience persistent capital
outflows. In SA, political instability resurfaces as the GNU splinters
on ideological and policy differences. A new coalition represents
a shift from the centre to the left. SA GDP grows by a weak 0,2%
and remains below 1% thereafter as domestic confidence withers
given the return of load-shedding, an increase in unemployment,
faltering wage growth, inflation that increases back to above
5% and interest rates that start rising again above 11,75%.
Credit growth slows, hurt by stretched consumer finances, weak
economic growth, higher interest rates and low levels of fixed
investment. This high-stress scenario takes us back to the
difficult operating environment South African banks experienced
over the past 10 years.
SA GDP growth
(%)
-4
-3
-2
-1
0
1
2
2027
2026
2025
2024
2023
SA average inflation
(%)
0
2
4
6
8
2027
2026
2025
2024
2023
Private sector credit growth
(%)
0
2
4
6
8
10
2027
2026
2025
2024
2023
SA year-end prime interest rate
(%)
8
10
12
14
2027
2026
2025
2024
2023
Base case
(February 2025)
Favourable
High stress
Severe
stagflation
These forecasts reflect the independent and public views of the Nedbank Group
Economic Unit (NGEU).
Nedbank Group
Integrated Report
2024
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Integrated
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An overview of
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Supplementary
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Key risks
‘High-stress’ and ‘severe stagflation’ scenarios will have a
negative impact on banks’ earnings. Risks include slower
advances growth and lower transactional volumes, both
negatively impacting revenues; higher levels of impairments;
and inflation-driven pressure on expenses. Managing
liquidity, credit and capital risk becomes a key focus area,
although all our balance sheet metrics (financial capital) are
in a very strong position to weather these risks.
3 Credit
2 Business
10 Capital
Opportunities
• SA economic upside – An improved macroeconomic
environment in SA (under both ‘base case’ and ‘favourable’
scenarios) plays to Nedbank’s strengths (financial and
intellectual capital), particularly those noted on page 11,
and will have a positive impact on our prospects since we
generate 90% of our earnings in SA (financial capital).
• Infrastructure finance – By leveraging our industry
expertise (intellectual capital) in CIB and leadership
positions in areas such as renewable energy (natural
capital) and infrastructure, we seek to unlock a significant
multi-year advances growth opportunity.
• Healthier consumer – An improvement in consumer
finances will be beneficial to our personal and private
banking businesses, which have become more
competitive (intellectual and manufactured capital) over
the past few years as we continue to leverage our digital
capabilities, deliver market-leading client experiences
(social capital) and target market share gains (SPT).
• Growth on the African continent – By leveraging our
assets, skills and expertise in SA (human, intellectual and
manufactured capital) we will expand, strengthen and
transform our presence in SADC and East Africa, where
economic growth is expected to be higher than SA.
Growth vectors
Prospects in sub-Saharan Africa (SSA)
Sub-Saharan economies fared better in 2024, although macroeconomic conditions remained tight. Stagnant commodity prices
dampened growth in some economies. However, the strong US economy and recovering demand in Europe supported the economies
that export to these regions. Dry weather in southern Africa hurt agriculture in Namibia, Zambia and Zimbabwe. The return of good rains
points to firm rebounds in these economies. Elections were largely peaceful, with opposition parties winning power in Botswana and
Ghana, while widespread violence in Mozambique added to the concerns about the security situation in the country's north.
The long-term prospects for sub-Saharan Africa show significant growth opportunities for banks, driven by several key factors:
Risks in the near term include the impacts of subdued commodity prices, which would contain export earnings, and trade policy
uncertainty that may negatively impact the growth of African economies. [If not extended, preferential trade benefits under the Africa
Growth and Opportunity Act (AGOA) will expire in September 2025.] In the medium term, even at GDP growth rates above 3%, growth
remains too low to improve socioeconomic conditions, which could lead to social tension and security risks. In addition, rising external
indebtedness may lead to more foreign debt defaults as we have seen over the past few years.
Sources: IMF, Fitch Solutions, United Nations World Population Prospects, African Development Bank, World Bank.
Focusing on areas that create value (SPT)
Our operating environment and material matters continued
Rapid population
growth – SSA population
is expected to reach
2 billion by 2043 and
account for more than
75% of the world’s
population growth in the
next 80 years.
Infrastructure gap –
Africa’s infrastructure
gap is estimated to be
US$130bn–US$170bn,
with a shortfall each year of
US$68bn–US$107bn, which
presents opportunities
for financial services.
Capture trade flows – Intra-
African trade flows are rising,
driven by initiatives such as
the African Continental Free
Trade Area (AfCFTA). Global
trade flows into Africa are
won by banks with significant
regional presence across
the continent.
SDG investments –
The financing need
in education, energy,
productivity-enhancing
technology and innovation
is estimated to be
US$402bn in 2030.
Economic growth
potential – SSA is forecast
to become one of the
fastest-growing regions,
with an expected average
GDP growth of 4,4%
between 2024 and 2030.
Untapped markets – Many
markets outside of SA
have higher unbanked
populations, which
presents significant
potential for growth in
retail banking, mobile
banking and other
financial services.
GDP growth
(%)
Sub-Saharan
Africa
South
Africa
2024
2025
0,6
1,4
3,6
4,0
Sources: IMF, NGEU forecasts for SA.
Nedbank Group
Integrated Report
2024
41
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An overview of
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Our operating environment and material matters continued
Material matter 2
Environmental
limits and
social floors
Failing to meet human development needs while overshooting ecological limits is a critical risk that materially threatens our way of life.
Human behaviour and natural systems are complex and interdependent, which exacerbates the challenge. Addressing this problem means
a fundamental shift in the way we seek to meet minimum social standards (social floors) for all within the limits of what is ecologically
possible and aligning that with new ways for governments and businesses to manage these emerging risks while responsibly investing in
their economies.
Impact on our strategy
Our business is generated on the African
continent, which makes us and our
clients particularly vulnerable to the
negative impacts of climate change. In
the long term, we are committed to all
our lending and investments contributing
to a net-zero economy by 2050 as well
as exiting exposure to all fossil fuels
(natural capital) by 2045. In the medium
term, we are developing glidepaths for
our material climate-sensitive sectors to
guide our financial investments towards
an orderly transition to a low-carbon
economy, being cognisant of the social
impacts of these financial decisions.
As part of our 2024 reporting, we have
published the financed emissions of a
growing number of high-impact sectors,
with commercial property finance being
the subject of latest disclosures as well
as annual progress aligned with our
fossil fuel glidepaths. These glidepaths
include a commitment to reduce financed
thermal coal emissions by 47% and
financed oil and gas emissions by 26%
by 2030, acknowledging that getting to
the reductions will not be a straight-line
progression and may fluctuate yoy as
shown on page 63. Our Climate Change
and Nature Position Statements as well
as our Energy Policy (intellectual capital)
are available on our website and set the
foundational principles of how we are
moving our business to net zero by 2050,
collaborating closely with our clients to
enable this decarbonisation journey.
Navigating a polycrisis
The human condition and the health of our planet are inextricably linked. Our
collective resilience, well-being and ability to navigate crises are fully connected
to the food we eat, the water we drink, the air we breathe and, crucially, our
relationship with the earth.
Human activity has impacted almost every part of our planet, with less than
25% of land unaffected, and is projected to drop below 10% by 2050 without
significant action. Up to 75% of freshwater and more than 50% of marine areas
are used for food production. Wild mammal biomass has decreased by 82% since
the Stone Age, with an estimated 38%–46% biodiversity loss by 2050. A million
species face extinction without urgent action, and climate change is accelerating,
with record-breaking events increasing in frequency and severity, the 1,5-degree
temperature limit having been breached in 2024 and devastating fires and floods
seen across the globe (United Nations Environment Programme, 2024).
Territorial conflicts, migration, and resource pressures frequently result in
significant spillover effects. This phenomenon is notably observed in the triple
planetary crisis involving pollution, biodiversity loss, and climate change.
Source: WEF Global Risk Report.
The 2025 World Economic Forum (WEF) Global Risk Report underscores
the urgent need for comprehensive collaborative action to minimise and
mitigate the negative impacts of environmental risks. It recommends
accelerating efforts to mitigate climate change by reducing greenhouse
gas emissions and investing in renewable energy. It also highlights the
importance of enhancing biodiversity conservation through robust
strategies to protect and restore ecosystems. Promoting sustainable
practices across industries and communities is essential for long-term
environmental health, and building resilience in communities
and ecosystems is crucial for withstanding environmental shocks and
stresses.
Delivering on this starts with actively managing these emerging business
risks in a manner that considers the Just Transition as well as future
generations in decision-making.
All stakeholders can make strategic interventions to protect the
environment and societal well-being and we therefore focus on
environmental limits as a material matter.
WEF top 10 risks for the next 10 years
1
Extreme weather events
2
Biodiversity loss and ecosystem collapse
3
Critical change to earth systems
4
Natural resource shortages
5
Misinformation and disinformation
6
Adverse outcomes of AI technologies
7
Inequality
8
Societal polarisation
9
Cyber-espionage and warfare
10 Pollution
Environmental
Societal
Technological
Nedbank Group
Integrated Report
2024
42
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An overview of
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Ensuring value creation
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Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our operating environment and material matters continued
Sources: Bank sustainability reports,
McKinsey Transition Finance Model, IEA,
CPI, World Bank, expert input.
Sustainable development finance (SDF)
SDF is crucial to building a more resilient future. The United Nations Sustainable Development Goals
(UN SDGs) are forward-looking and represent what is needed for a more just, equal, and prosperous
society. They serve as a strategic guide and provide a lens through which we can identify innovative
and commercial opportunities.
Despite asymmetrical access to finance and high borrowing costs, according to a Cambridge
University report, African states will need to spend about US$2,5tn by 2030 to meet their
climate commitments. The UN estimates the funding gap is closer to US$4tn when considering
all SDGs. This investment need, along with the potential to create over 85 million jobs as
estimated by the World Business Council for Sustainable Development, makes financing
opportunities aligned with the SDGs a compelling business case.
Sustainable finance opportunity sizing exercises help steer our strategy, guide our resourcing
requirements, and inform our level of ambition regarding SDF. These opportunities to create positive
social and environmental impacts are vast.
Key risks
As an African bank we face several key environmental risks that can significantly impact our
operations and financial stability. Also, the current political realities across the globe could slow
support for the transition to net zero and this exacerbates the environmental risks faced by the region:
• Climate change – Extreme weather events such as floods, droughts, and cyclones are becoming
more frequent and severe. These events can lead to physical damage to assets, disrupt business
operations, and increase credit risk as borrowers may struggle to repay loans.
• Water scarcity – Many African countries face significant water scarcity issues. This can affect
industries reliant on water, such as agriculture and manufacturing, leading to financial losses and
increased credit risk for banks.
• Deforestation and biodiversity loss – The loss of forests and biodiversity can impact sectors like
agriculture, tourism, and fisheries, which are crucial for many African economies. This can lead to
reduced economic activity and increased financial risk for banks.
• Pollution – Air, water, and soil pollution can have severe health and economic impacts. Banks may
face increased credit risk from businesses affected by pollution-related regulations or health crises.
• Transition risks – As the world moves towards a low-carbon economy, banks may face risks related
to the transition. This includes changes in regulations, market preferences, and technologies that
could affect the value of assets.
Opportunities
• Provide SDF access – Providing access to SDF at scale will addresses the transition to a
low-carbon economy and tackle inequality, poverty, and unemployment.
• Grow SDF faster – Providing SDF supports the achievement of the SDGs and our own strategic
growth aspirations, with SDG-aligned financing expected to grow significantly faster than
traditional advances, particularly in renewable energy, agriculture, and financing for small,
micro and medium enterprises.
• Engage clients – Actively engaging clients to understand their decarbonisation journeys and
developing innovative solutions to prepare them for the future.
• Attract stakeholders – Attracting like-minded talent (human capital), clients (social capital),
investors (financial capital), and stakeholders who want to partner with a purpose-led company
that leads in sustainability matters.
7 Climate risk
The finance opportunity for Africa
The finance
opportunity for Africa
(%)
21
27
20
17
15
Creating positive impacts (purpose delivery)
Human Capital Strategy
(US$)
2024
2025
2026
2027
2028
2029
2030
Total
Agriculture, nature and water
43
43
45
45
46
47
48
317
Industry and energy systems
46
50
53
57
62
67
74
409
Social and healthcare
37
37
39
41
44
47
49
294
Sustainable buildings and
affordable housing
29
31
34
37
40
43
46
258
Transport infrastructure
and mobility
27
27
29
32
36
39
42
232
Nedbank Group
Integrated Report
2024
43
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our operating environment and material matters continued
Material matter 3
Disruptive
technologies
New and disruptive technologies, along with digital adoption, have collectively become a material issue for financial services
companies. This includes modernising legacy systems, offering enhanced mobile and digital solutions to address changing client
expectations and behaviours (social capital), leveraging new technologies (manufactured capital) such as cloud-computing and
AI, focusing on extracting value from rich sources of data, and protecting against cybersecurity risks.
Key risks
• Cyberrisk – Cybersecurity and data privacy remain major concerns,
with cyberrisk consistently ranked as one of our top 3 risks. The rise
of GenAI deepens this risk, as fraudsters can create increasingly
sophisticated cyberattacks more easily, requiring banks to be proactive
and stay at the forefront of cyberrisk developments.
• Skills – The skills needed to drive technological changes are in high
demand, particularly in SA given the impact of emigration, heightened
competition, and general skills shortages for these kinds of jobs.
1 Strategic execution
8 Organisational resilience
5 Operational
4 Cyberrisk
Opportunities
• Leverage our technology investments – We have modernised our
legacy systems through our Managed Evolution programme, and our
new modern technology platform (intellectual and manufactured
capital), discussed on page 53, puts us in a strong position to be
more agile, more competitive and more efficient while enabling us
to leverage new emerging technologies such as GenAI and shift our
focus to commercialising data for the benefit of us and our clients.
• Enhance client experiences – Client experiences (social capital) will
continue to be enhanced through personalised and seamless digital
interactions across various channels, enabled by digital processes
and greater levels of digital adoption.
• Grow – Faster revenue growth (financial capital) can be supported by
client gains, enhanced cross-sell capabilities, the sale of value-added
services, enhanced digital marketing and the offering of beyond-
banking client propositions to name a few, all enabled by technology.
• Enhance productivity – Enhanced productivity and improved
operational efficiencies can be driven by automation, AI and
digital processes.
Growth
vectors
Digital
leadership (DX)
Client
experiences (CX)
Legacy systems – Many financial services companies across the
globe still rely on outdated legacy systems that hinder innovation
and client service. Modernising IT infrastructure is crucial for banks
to remain competitive, improve operational efficiency, and offer
innovative services as Nedbank has done over the past 10 years.
Upgrading legacy systems and digitising processes improve
employees’ productivity and ensure greater job satisfaction by
providing them with modern tools and technologies.
Mobile banking – The
rise of mobile banking
continues to transform
how clients interact
with their banks, making
services more accessible
and convenient.
Data-driven
decision-making –
Advanced data analytics
enable banks to make
informed decisions,
personalise client
experiences, optimise
processes and identify new
business opportunities.
Cloud computing
– Embracing cloud
technologies allows
banks to scale
operations efficiently
and enhance agility in
responding to market
changes.
Client-centred innovations –
Enhancing client experience
through personalised
services and seamless digital
interactions has become a top
priority for banks, as they aim
to improve the overall client
experience, which leads to
increased loyalty and retention.
Cybersecurity – With the rise of digital banking,
cybersecurity threats continue to increase. Financial
institutions are prime targets for cybercriminals due
to the sensitive nature of the data they hold and the
substantial amounts of money they handle. In response,
banks are implementing robust measures to protect
sensitive client data as well as financial and transactional
systems, while complying with regulatory requirements.
While clients continue to be concerned about the safety
of their personal and financial data, robust cybersecurity
measures build trust and confidence in digital
banking services.
Artificial intelligence (AI) – AI is driving change in financial services by enabling the
automation of increasingly complex processes, improving client experiences, and
enhancing risk management. AI technologies such as machine learning, natural
language processing, and predictive analytics are being used to automate routine tasks,
reducing costs and increasing efficiency. AI can also help improve client experiences by
providing personalised services, such as through chatbots and virtual assistants, which
can respond to queries in real time. In risk management, AI can be used to detect and
prevent fraud, assess credit risk, and monitor transactions for suspicious activity. While
AI and automation can streamline operations, they
also require employees to upskill and adapt to new
roles, emphasising the need for continuous learning
and development. AI-powered tooling and solutions
are also augmenting human skills and capabilities
for further efficiencies and client experience
enhancements. However, it has also introduced far
greater risks, especially with regard to fraud, as video
and voice generation and mimicking have improved.
Other – Technologies
such as blockchain
or distributed-ledger
technology and quantum
computing are at early
stages of development in
SA, but remain top of mind
given their potential for
use in financial services.
> 70%
of software used by Fortune 5 000
companies was developed 20 or
more years ago.
– Dell
Financial services companies are 300 times
more likely to be targeted by a cyberattack when
compared to other companies.
– Boston Consulting Group
Nedbank Group
Integrated Report
2024
44
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our operating environment and material matters continued
Material matter 4
Increased
competition
Competition in the South African banking sector continues to intensify given the presence of strong incumbents and the growing
threat posed by new entrants. Large banks are competing fiercely for deposits and high-quality assets, which has resulted in margin
pressure, while new entrants in the retail banking market are ensuring that bank fee increases remain well below inflation. Competition
in the SME market continues to rise. Responding appropriately to these threats helps reduce the risk of value erosion while building our
competitiveness in areas targeted for growth. These are all beneficial for clients.
Competition among incumbent banks
Universal banks in SA typically have strong capital and liquidity positions that,
in a slow-growth economy, increase competition for good-quality assets and
deposits, and related transactional business.
• The South African wholesale banking market has experienced intensified
competition for good-quality assets as demand for credit remained
muted up to now due to low levels of business confidence and a delay in
committing to long-term capital expenditure projects. However, prospects
for infrastructure-related finance, as shown on page 39, are very positive and
may alleviate some pressure over the next few years.
• Small-and-medium-enterprise (SME) banking has emerged as the next
battleground, driven by enhanced digital capabilities at incumbent banks
and the entry of non-traditional competitors. Key investor concerns include
the potential impact of Capitec replicating its retail market successes in the
SME market.
• In retail banking, asset pricing has become more competitive in secured
lending products such as home loans and vehicle finance. Banks also continue
to price competitively to retain market share in term and notice deposits.
Cross-subsidisation to cross-sell transactional products and competitive
loyalty and rewards programmes remain key tactics to deepen share of wallet
and increase client primacy. Over the past 4 years Nedbank has grown its
share of transactions at a time when the market shares of most universal
banks have declined.
Ongoing threat of new entrants
In recent years, new entrants like Discovery Bank and TymeBank have added
to the competitive pressures in South African retail banking. Insurers such as
Old Mutual and telecommunication providers like MTN and Vodacom have also
ventured into attractive banking profit pools, focusing primarily on transactional
services, insurance and deposits. The impact so far has been mixed:
Key risks
A loss of deposit and transactional banking
market share, persistent margin pressure and
excessive pressure on bank fees could strain
revenue growth ambitions should we not
respond appropriately through our strategy.
1 Strategic execution
2 Business
Opportunities
• Remain highly competitive – In a fast-
changing competitive landscape we need to
remain flexible, agile and responsive, enabled
by our modern technology platform (page 53),
ongoing enhancements to our operating
model (page 67), investing in key skills and
evolving our corporate culture (page 66),
particularly to sell better.
• Client primacy – We have increased our
ambition to grow market share, deepen share
of wallet, and differentiate Nedbank in a
competitive market through digital leadership
(page 7), market-leading client experiences
(page 58), strategic portfolio tilt (page 60)
and creating positive impacts as a purpose-led
bank (page 62). Our reorganisation into an
individual- and juristic-focused business
will support client primacy.
• Growth focus – We plan to unlock new
revenue streams through growth vectors
(page 59) such as the commercialisation
of data, portfolio diversification and a large
insurance cross-sell opportunity (page 60).
Digital
leadership
Client experiences
(CX)
• The number of clients gained by
new entrants remains impressive,
but incumbent retail banks,
in general, have not seen any
significant client losses. This
implies that clients have become
more multibanked, and that a large
part of the growth has come from
previously low-revenue-generating
unbanked or underbanked
consumers.
• While no comparable disclosures
are available for main-banked
clients, debit-card-related
transactional volumes on our
more than 110 000 point-of-
sale (POS) devices, show that
Capitec and Nedbank, along with
the smaller banks, including new
entrants, have grown their share
of transactions over the past year
when compared with other large
incumbent retail banks.
• From a balance sheet perspective
there have been no material lending
or deposit market share gains for
new entrants. New entrants plan
to expand into more sophisticated
lending products over time,
which will come with additional
operational complexity, credit risk
and capital requirements.
Bank D
Bank C
Bank B
Nedbank
Bank A
6,0
0,4
(1,3)
(2,4)
(5,0)
Debit order transactions on Nedbank
POS devices
(Change in % share, 2021–2024)
Retail deposit growth in 2024
(Rbn, SARB BA900)
TymeBank
Discovery
Capitec
Nedbank
29
• The most significant impact of
new entrants has been evident in
general bank fee increases having
been kept well below inflation.
Nedbank Group
Integrated Report
2024
45
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our operating environment and material matters continued
Material matter 5
World of
work
The world of work is continually shaped by macroeconomic, social and political developments; digital transformation and rapid
technological change; and heightened demand for scarce skills and the war for talent. Additionally, in SA, employment equity legislation
plays a significant role. These factors present both opportunities and threats that could impact sustainable value creation.
Large social
imbalances,
income inequality,
poverty and high
youth unemployment
in SA.
Disparity in race
and gender
representation
of the workforce
in SA.
Amended EE
legislation requiring
businesses to meet FSC
targets within 5 years to
continue doing business
with government
entities.
Economic
consequences of
a difficult economic
environment.
An
underperforming
education system
in SA that limits the
supply of future skills.
The adoption of
AI and focus on
big data.
Digital
transformation
impacting client and
workforce behaviours,
while organisations
push the boundaries
for efficiencies and
innovative offerings.
Key influences on the world of work
Key risks
•
Scarce skills – The demand for scarce skills accelerates as technological
change rapidly transforms skills requirements, emigration continues to
pose a risk, and the war for talent intensifies.
•
Cost pressure – The cost of attracting and retaining key talent increases.
•
Employee well-being – The pace of change in the workplace, coupled
with social and economic distress in our society, impacts employees’
emotional and financial well-being as well as their safety. This poses a
risk to employee engagement and productivity.
Opportunities
•
Talent – Attract and retain the best talent through enhanced employee
value propositions (EVPs), flexible work practices, meaningful work
that is purpose-led, and unlocking opportunities for career growth and
development, to name a few (human and intellectual capital).
•
Culture – Embed The Nedbank Way (our culture principles) as
described on page 66 to accelerate strategic delivery, differentiate
Nedbank in the market, and become more agile, client-centred
and competitive.
Digital
leadership
Create positive
impacts
Human Capital
Strategy
Sources: WEF, Future of Jobs Survey 2024.
Core skills required by 2030
0%
80%
100%
% of employers considering as a core skill in 2025
% of employers expecting increased
skills use by 2030
Networks and
cybersecurity
Environmental
stewardship
AI and big data
Life-long
learning
Creative thinking
Systems
thinking
Leadership and
social influence
Analytical
thinking
Service orientation
and customer service
Resource management
and operations
Programming
Marketing
and media
Quality
control
Manual work
Reading, writing
and maths
Attention
to detail
Heightened
demand for
scarce skills
and war for talent.
Empathy
Design
and UX
Core now, but not expected to increase in use
Core now and expected to increase in importance
Less essential now, but expected to increase in use
Less essential now and not expected to increase in use
5 Operational
6 People
Nedbank Group
Integrated Report
2024
46
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our operating environment and material matters continued
Material matter 6
Regulatory
demands
Regulatory requirements are continually evolving in response to ever-changing and competitive global and local environments, including
those pertaining to payments, consumer protection, financial crime, ESG (including climate change), technology, cybersecurity and
banking regulation. This evolution places additional demands on, but also creates opportunities for, financial institutions, requiring them to
adapt strategically through operational changes as well as enhanced compliance and risk management practices.
Regulatory scrutiny, through supervision, investigations, and enforcements, reinforces compliance within stipulated timelines. This necessitates that financial institutions proactively identify and assess
regulatory developments for impact or commentary. The following key developments are closely monitored as they may impact Nedbank and our stakeholders in the coming years:
and scalable to meet both regulatory and the modern
client’s requirements, which focus on speed, ease of
use and accuracy. This has been the impetus behind the
contemplated publication of a new national payments
system (NPS) bill to ensure, through revised requirements,
the safety, efficiency, integrity, transparency and
accessibility of the NPS and thereby strengthen consumer
protection and elevate their experience.
Consumer protection
The Financial Sector Conduct Authority (FSCA) continues
to focus on developing regulatory frameworks for open
finance and on other digital innovation with emphasis
on consent, financial inclusion, and consumer education
and protection. Considerable efforts have been made
to develop a comprehensive consumer protection
regulatory framework that includes conduct risk reporting
to ensure good client outcomes such as the Conduct of
Financial Institutions Bill, which encompasses regulatory
requirements to manage consumer protection across the
financial services industry. These necessitated extensive
industry consultations in 2024 and they will continue in
2025 to ensure the requirements, once finalised, will be fit
for purpose across all sectors.
Financial crime
SA is now deemed to have largely addressed 20 of
the 22 action items in its Action Plan in relation to the
deficiencies that were identified in the 2021 Mutual
Evaluation Report issued by FATF, leaving 2 items to
be addressed in the next reporting period that runs
from March to June 2025. This would enable SA to
be considered for delisting from the FATF greylist in
October 2025. Financial institutions continue to ensure
compliance with legislation through new or enhanced
existing controls. In addition, regulators have ramped up
enforcement efforts, imposing penalties to deter financial
crimes. These measures reflect SA’s ongoing commitment
to improve its financial crime regulatory framework and
ensure compliance with international standards.
ESG
• ESG reporting – An increase in reporting obligations is
placing pressure on regulatory reporting processes, data
and infrastructure. Financial institutions are expected
to report on social and environmental risks through
effective, consistent, and comparable sustainability-
and climate-related disclosures to demonstrate
accountability in addressing social and environmental
challenges.
• Diversity, equity and inclusion – A growing number of
laws and requirements are being enacted to support
greater DEI in the workplace. In addition to amendments
to existing transformation laws, such as the Employment
Equity Act, 55 of 1998, regulatory scrutiny and demands
from the FSCA have increased.
Digital transformation
Technological change continues to drive an increase in
automation and the use of AI, as businesses seek faster,
more efficient and less resource-intense processes. These
developments attract attention from various regulators
and influence regulatory frameworks, which has led to
(i) the South African government declaring cybersecurity
as a ‘central national priority’ and it is expected to finalise
the National Data and Cloud Policy, which will increase
attention on data security, cyberrisk and cybersecurity,
and, (ii) publication , among other regulatory developments,
of the National AI Policy Framework, which will steer the
regulatory framework for AI in SA going forward.
Payments
There is an ever-growing amount of regulatory change and
industry initiatives in payments, which aims to increase
financial inclusion, competition, security and payment best
practices. Increasing regulatory control, rapid technology
advancement and competitive business environments
dictate that financial institutions need to be more agile
Prudential regulatory developments
Key regulatory changes from a banking perspective over the next few years include the following:
• Basel III reforms – In 2024 the PA published the 3rd draft of the proposed directives with amendments to the
regulations relating to banks, addressing key matters related to the Basel III post-crisis reforms; revisions to the
standardised and internal ratings-based approaches for credit risk; the new standardised approach for operational
risk; refinements to the definition of the leverage ratio exposure measure; and revised output floors that limit
regulatory capital benefits that a bank, using internal models, can derive relative to the standardised approaches.
We closely monitor international developments regarding approaches and implementation guidelines and remain
committed to adhering to the roadmap and methodology provided by the PA.
• Flac instruments – SARB introduced a new tranche of loss-absorbing, non-regulatory, bail-inable debt instruments
that will enable the Resolution Authority to execute statutory bail-in during a resolution scenario to recapitalise
the failing institution. It is anticipated that the issuance of Flac instruments will incur additional costs, as these
instruments are envisaged to replace maturing senior unsecured debt instruments over the phase-in period.
The new standards will come into effect on 1 January 2026 and will be phased in according to the transitional
arrangements starting in 2028.
• Countercyclical capital buffer – In December 2024, the PA published Directive 6/2024, which mandates the
implementation of a positive cycle-neutral (PCN) countercyclical capital buffer (CcyB) set at 1% of risk-weighted
exposures. This directive will come into effect on 1 January 2026, resulting in an increase in the regulatory minimum
capital requirements and consequently impacting the group’s surplus capital position.
• Environment/Climate – Key legislative developments
include the release of a consumer risk report by the FSCA
that clarifies its role in sustainable finance and the need
for consumer education and protection; the publication
of guidance on climate-related disclosures and risk
practices by the PA; and promulgation of the Climate
Change Act, 22 of 2024.
• Remuneration – The Companies Amendment Act, 16 of
2024, saw the inclusion of a new requirement dealing
with the governance and disclosure of a company’s
remuneration policy and directors’ remuneration
implementation report. These amendments (still to take
effect) seek to ensure transparency and fairness within
the company and to the wider public.
Nedbank Group
Integrated Report
2024
47
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Managing risk strategically, while unlocking opportunities
An inherent element of banking is
risk-taking
The landscape of risk is rapidly changing and safely managing
risk in such an unprecedented climate involves minimising
the elevated downside risk and unlocking potential upside
opportunities that arise. To enable us to keep pace with these
changes and ensure our approach to safety and soundness
remains relevant, our risk management approach will be agile and
foster a culture of continuous learning and adapting.
In line with global leading practice, 6 key risk management
objectives underpin our risk strategy:
Threat (downside)
Volatility (uncertainty)
Opportunity (strategic upside)
Organisational resilience (sustainability)
Velocity (agility)
Predictor (advanced analytics)
New emerged or emerging risks
The landscape of newly emerged and emerging risks for banks
is multifaceted and ever-evolving. We remain committed to
identifying, assessing, and mitigating these risks through
comprehensive risk management practices. By staying vigilant
and proactive, we aim to safeguard our financial stability and
ensure sustainable growth for our stakeholders. The identification
and management of new emerged and emerging risks are
crucial to the resilience and success of Nedbank while ensuring
value creation.
In a difficult and volatile environment, our overall internal control environment continues to support high levels of safety and soundness and remains
positive, including the state corporate governance, risk management, internal controls, conduct and culture, and regulatory and balance sheet profiles.
We are well positioned to navigate these challenges and maintain our commitment to financial stability.
Inherent vs residual risk
The overall status, outcomes and effectiveness of our risk management have remained favourable and stress-tested in 2024. In
our risk management approach, we look at our risks from an inherent and residual perspective. Inherent risk is the ‘gross risk’ and
a gauge of the temperature before we take any actions.
It considers the external environment and internal risk factors, and it allows subjective judgement. Residual risk is the ‘net risk’
and outcomes that remain once risk management activities (mitigation and controls) have been implemented. Our residual risk
outcomes, as seen below, were favourable even though our external business environment was challenging and complex.
1 Market conduct risk received an amber inherent rating and a green residual rating for the indicated periods.
Risk type
Inherent
Residual
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
Strategic execution
Business
Credit
Cyber
Operational
People
Climate
Organisational resilience
Reputational and market conduct1
Capital
High
Medium
Low
Nedbank Group
Integrated Report
2024
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Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Managing risk strategically, while unlocking opportunities continued
Our top 10 risks, identified for 2025 and beyond, inform our risk management response and unlock potential opportunities.
3 Credit
Our response
• Maintain strong emphasis on the effectiveness of our
key strategic execution enablers, including robust
programme management and sound governance.
• Ensure that strategic execution takes place in a
sustainable manner that preserves and enhances
organisational value.
Opportunities
• Actively leverage existing areas of strategic leadership,
expertise and strength.
• Develop strong foundational, organisational and
technology capabilities with built-in risk guardrails to
support growth and sustainable value creation in a
dynamic operating environment.
Our response
• Developed the Nedbank AI Risk Management Standard to
ensure safe and sound AI adoption within the group.
• Updated our risk appetite framework to ensure it remains
fit for purpose as we navigate through a dynamic external
environment.
Opportunities
• We identified financing opportunities in infrastructure and
renewable energy while planning for an improvement in key
macroeconomic outcomes such as lower interest rates.
• Some countries on the African continent offer opportunities
for higher growth and returns, and we plan to leverage our
skills, expertise and strengths to unlock value in selected
markets such as East Africa.
Our response
• Keep focused management interventions, including
effective collections strategies and improved loan
origination, top of mind.
• Resolve material risks relating to clients in distress or
on internal watchlists.
• Enhance oversight, monitoring and reporting on the
credit life cycle.
Opportunities
• Refresh our concentration risk approach to support
participation in the large renewable energy finance
opportunity.
• Profitably grow the unsecured lending portfolios and
other key retail products such as home loans.
Our response
• Maintain our #1 Bitsight rating among South African banks
and top cyberresilience benchmark average maturity
score.
• Through our cyberresilience programme address key
focus areas with annual reviews performed to assess the
changing threat landscape and emerging risks.
• Continuously monitor cyberrisk metrics related to
key controls.
Opportunities
• A proactive, intelligence-driven approach to cybersecurity
requires continuous adaptation and investment in
technology and human resources to manage and mitigate
cyberrisks effectively.
Expectations are high to deliver on the group’s
dual ‘Perform’ and ‘Transform’ strategic
agendas and improve the group’s ROE towards
our long-term strategic target of > 18%. This
includes landing new digital capabilities,
optimising our operations and unlocking
growth in key areas of opportunity to maximise
value creation.
Strategic execution risk is also significantly
impacted by broader external factors,
including macroeconomic and geopolitical
developments, technological change, evolving
client expectations and competitive pressures.
Emerging risk factors continue to evolve
rapidly, adding further uncertainties to both
local and global markets. This is elevated by
rapid technological advances (such as the use
of AI), heightened geopolitical tensions as well
as the outcomes of global elections, particularly
developments in SA and the US.
The South African economy is forecast to grow
faster than in prior periods. However, risks
such as reform reversals, unsustainable public
debt, challenging external environments, high
electricity prices and a weaker rand persist.
Credit risk management remains a core
competency of a bank.
The impacts of declining interest rates,
lower inflation and an improving political
environment as a result of the establishment
of the GNU, along with the resolution of a very
small number of problematic loans in CIB,
resulted in the group’s credit loss ratio (CLR)
improving to 87 bps, now within the group’s
through-the-cycle risk appetite target range of
60 bps to 100 bps.
However, consumer finances remain strained
and pockets of stress are evident in areas such
as vehicle finance.
Cyberrisk requires ongoing focus considering
its relevance to our digital strategy and
the increase in the threat landscape with
emerging technologies such as AI and quantum
computing, as well as an increase in digital
footprint, making us and clients vulnerable
to potential cyberattacks. This is further
exacerbated by heightened geopolitical and
regulatory risk.
Our cyberrisk management remains mature,
and we continue our cyberresilience journey.
Link to our capitals
Link to our capitals
Link to our capitals
Link to our capitals
Link to strategy
Link to strategy
Link to strategy
Link to strategy
1 Strategic execution
Financial
Intellectual
Natural
SPT
Creating positive impacts
Digital leadership
Growth vectors
Creating positive impacts
Human Capital Strategy
SPT
Growth vectors
Creating positive impacts
Financial
Intellectual
Manufactured
Human
Financial
Intellectual
Social and relationship
Natural
Digital leadership
2020
2025
11
3
2
5
1
5
2020
2025
1
1
1
1
2
1
2020
2025
4
2
3
2
3
2
2020
2025
7
5
4
3
4
3
2 Business
(including country and geopolitical)
4 Cyberrisk
Financial
Intellectual
Manufactured
Human
Nedbank Group
Integrated Report
2024
49
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Managing risk strategically, while unlocking opportunities continued
5 Operational
6 People
8 Organisational resilience
7 Climate
Intellectual
Manufactured
Human
Social and relationship
Our response
• Enhanced Operational Risk Management Framework
to support our digital strategy and respond to evolving
regulations through integration and digitisation.
• Developed the integrated Third-party Risk Management
Framework to enhance control over key third parties, etc.
• Enhanced oversight of the payments landscape and risk
profile, including risks related to transaction processing
and execution.
• Advanced risk management and oversight of business
processes.
Opportunities
• Unlock opportunities linked to our digital strategy to
enhance operational risk management across the group.
Our response
• Leverage our EVP as a talent magnet.
• Invest in talent practices that promote career growth and
advancement.
• Build critical enterprisewide capabilities ahead of demand.
• Leverage our integrated reward and benefits offering to
attract and retain talent.
• Continuously enhance our culture and human-centred
leadership for a differentiated employee experience.
Opportunities
• Adopting AI-powered HR technology solutions and
advanced people data analytics that unlock the full
potential of talent management.
Our response
• Ensure our ESG and Climate Risk Management Frameworks
are robust and relevant in managing ESG risks based on
leading practice.
• Integrate climate-related risk into traditional financial risks
across the group.
• Report on sustainability and climate risk aligned with
regulatory guidance from SARB and international disclosure
requirements.
• Conduct climate-related stress testing and scenario analysis.
Opportunities
• Provide finance solutions aligned with the UN SDGs.
• Deliver on glidepath interim emission targets.
Our response
• Enhance collaboration between various disciplines to
integrate and streamline operational resilience efforts.
• Manage emerging risks.
• Apply sound strategic planning to increase our ability to
adapt and respond to change.
• Our approach to strategic resilience risk is built
around ensuring business model viability (short-term
performance) and ongoing assessment of our business
model sustainability (long-term performance).
Opportunities
• Continuously embed a culture of proactiveness to
anticipate and prepare for disruptions.
Operational risk remains a focus across
Nedbank. Necessary actions are driven by
various committees across the group to
manage the operational risk impact on people,
processes and technology, and from external
sources such as legal risks and third-party and
associated concentration risks.
The optimal synergy of people, process,
and technology results in a resilient,
high-performing business with increased
productivity, enhanced collaboration, greater
agility, better decision-making, and increased
satisfaction among both employees and clients.
People risk remains elevated in the context of an
increasingly dynamic human capital landscape.
The main drivers of this risk include competition
for and shortage of in-demand skills, the impact
of internal operating model changes, external
socioeconomic challenges on our workforce,
and the need to promote demographic
representation and inclusion.
The challenge is likely to be intensified by the
concurrent developments in technology,
digitisation and ESG in the financial services
sector.
Our Human Capital Strategy provides targeted
talent solutions designed to address the risk
and secure our access to skills and capabilities
needed for today and the future.
Severe weather events, driven by climate change,
are increasing in both frequency and intensity.
This year 2024 was the hottest year on record
globally and the first year that the average
global temperature surpassed the threshold of
1,5 ºC, despite countries pledging to prevent
this breach via the 2015 Paris Agreement.
As pressure mounts to speed up the transition
to a low-carbon economy, the associated
transition risks impacting our clients and own
operations need to be carefully managed.
Nature risk, which is closely linked with
climate change, is an emerging risk indirectly
impacting financial institutions.
Organisational resilience is overarching
and has the aim of ensuring that we remain
relevant and competitive through products
and service offerings that are aligned with
the ever-changing demands and needs of
clients. It includes operational resilience
to ensure the continuous delivery of these
products and services through disruption.
Strategic resilience of our business model
is vitally important in the context of the
dynamic and unpredictable environment in
which we operate. This involves fostering
a proactive organisational culture of
innovation, agility and risk-managed change.
Link to our capitals
Link to our capitals
Link to our capitals
Link to our capitals
Link to strategy
Link to strategy
Link to strategy
Link to strategy
Financial
Natural
Social and relationship
Creating positive impacts
Digital leadership
Digital
Human Capital Strategy
Human
Intellectual
Financial
Client experiences
Growth vectors
2020
2025
2
6
6
7
5
7
2020
2025
2
6
5
4
6
4
2020
2025
12
8
8
7
8
2020
2025
X
X
X
6
8
6
Intellectual
Manufactured
Social and relationship
Human
10
Nedbank Group
Integrated Report
2024
50
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
10 Capital
9 Reputational and market conduct
Managing risk strategically, while unlocking opportunities continued
Intellectual Social and relationship
Our response
• Continue managing reputational risk through our proactive
Reputational Risk Management Strategy, with this
underpinned by comprehensive governance and oversight.
• Perform benchmarking according to international trends
and developments for reputational and market conduct
risk management.
• Continuously analyse and monitor potential impacts of the
unprecedented level of change on conduct and culture.
Opportunities
• Enhance proactive reputational risk management tools,
with further use of data and technology driven solutions.
• Establish predictive market conduct risk appetite metrics
to proactively manage conduct risk across the group.
Our response
• Review the group’s dividend cover and payout ratio.
• Focus on risk-weighted assets (RWA) optimisation and
forecasting quality.
• Continuously refine our capital plan and execution of its
objectives.
Opportunities
• Leverage our strong balance sheet position to pursue
growth opportunities.
• Optimise the capital stack across common equity tier 1
and total capital positions.
Our reputational risk is predominantly
influenced by adverse media and shaped by
public perceptions.
We maintain a zero-tolerance approach to
corruption and hold all stakeholders, including
clients, service providers, and employees, to
the highest standards of ethical conduct and
integrity.
Our market conduct risk control environment
remained stable, with ongoing oversight
of open issues being performed and no
material concerns relating to internal control
environments having arisen.
We have a fortress balance sheet in place,
supported by strong capital and liquidity ratios
as shown on page 73.
Resilience has become a defining characteristic
of sustainability and success for banks, both
locally and globally.
Link to our capitals
Link to our capitals
Link to strategy
Link to strategy
Client experiences
Digital leadership
SPT
Create positive impacts
Growth vectors
Financial
Intellectual
2020
2025
9
9
9
9
9
9
2020
2025
5
4
10
10
10
10
Stakeholders
Ensuring and protecting value in 2024
Focus for 2025 and beyond
• Foster a proactive and forward-looking risk
management approach to safely integrate
emerging technologies in Nedbank by
mitigating any potential risks while optimising
benefits to drive efficiency and build on
strategic goals.
• Continue to manage and mitigate risks that
may arise from failed data risk management
processes and procedures, thereby ensuring
protection of Nedbank client and proprietary
data and maintaining trust.
• Review and approve the 2025 ICAAP and
ILAAP and update the 2026–2028 risk
management plan, including the risk appetite
plan, and recommend them to the board
for approval.
A comprehensive GRCMC Report is available online in our 2024 Governance Report on our group website at group.nedbank.co.za.
Board oversight – ensuring and protecting value
Group Risk and Capital Management Committee (GRCMC)
Errol Kruger, Chair
‘The GRCMC is dedicated to upholding high standards of risk management
and governance. By fostering a culture of transparency and accountability,
the committee has not only safeguarded the group’s assets but has also
preserved shareholder value. We remain committed in ensuring that
Nedbank remains resilient and poised for sustainable growth.’
Top 10 risks
Clients
Employees
Regulators
Shareholders
7 Climate
9 Reputational and market conduct
10 Capital
6 People
3 Credit
2 Business
4 Cyberrisk
1 Strategic execution
8 Organisational resilience
5 Operational
• Monitored market conditions and the
dynamic political climate before and after
national elections in SA and many other
countries to ensure Nedbank remained
agile and responsive to shifts in the
external environment.
• Monitored the effectiveness of the
Enterprisewide Risk Management
Framework (ERMF) in ensuring it
fostered a strong risk-aware culture and
Nedbank’s resilience.
• Assessed the robustness and effectiveness
of our internal control environment and the
3 lines of defence to ensure alignment with
regulatory standards and best practices to
strengthen Nedbank’s ability to create and
preserve value.
• Monitored emerging and digital risks to
bolster Nedbank’s resilience while navigating
the ever-evolving operating landscape and
safeguarding our digital infrastructure.
Nedbank Group
Integrated Report
2024
51
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Perform and Transform agendas
Our 2024 planning cycle provided an opportunity to
refresh and evolve our strategy, with the board and Group
Exco deliberating on Perform and Transform outcomes
for the group over the next few years.
• Perform outcomes focus on our existing strategy,
managing the business within the changing
operating context and accelerating execution in
the short-to-medium term to ensure delivery on
stakeholder expectations.
• Transform outcomes focus on unlocking
transformational growth opportunities in
the medium-to-long term in support of our financial
targets. The various Transform initiatives can be
summarised into 5 broad categories: (i) unlock value
from the technology investments we have made
over the past 10 years, while we invest in data and
AI capabilities; (ii) scale our retail business in order
to reduce its cost-to-income (CIR) and increase
Our strategy
Our strategy provides a clear framework that outlines where we need to focus as a purpose-led organisation and what actions we need to take to
achieve our short-, medium- and long-term targets. This approach ensures we create value for our shareholders and other stakeholders.
Market-
leading client
experiences (CX)
Focusing on
areas that create
value (SPT)
Digital
leadership
(DX)
Growth
vectors
(new)
Creating positive
impacts
(purpose delivery)
Growth
Productivity
Risk and Capital
Management
Strategic value drivers
Strategic value unlocks
Our employees and differentiated
corporate culture (EX)
A modern
technology platform
Underpinned by:
its ROE; (iii) diversify our portfolio into new segments
and markets; (iv) leverage our market-leading sector
skills and expertise in CIB to support revenue growth;
and (v) expand more deliberately into key SADC and
East African countries. At the same time, we are busy
finalising a strategic review of our financial investment
in ETI.
Strategic value unlocks
Our strategy, enabled by the modern technology platform
we have put in place and our employees as our most
valuable asset, is delivered through 5 strategic value
unlocks: digital leadership and digital experiences (DX);
market-leading client experiences (CX); focusing on areas
that create value (SPT); growth vectors [new: replacing
the target operating model (TOM) programme which
has been completed]; and creating positive impacts. The
progress we have made and outlook for these strategic
value unlocks will be discussed in more detail in the next
few pages.
Short-, medium- and long-term targets*
The more-difficult-than-expected macroeconomic environment and, in particular, muted
industrywide loan growth have made it more challenging to achieve the original 2025
medium-term targets we set at the start of 2023. We will continue to focus on creating
value for shareholders by delivering on our revised short-, medium- and long-term targets to
improve our financial performance in 2024.
• Short term – In 2025 we aim to grow diluted headline earnings per share (DHEPS) by more
than mid-single digits and achieve an ROE of greater than 16%, although our CIR is expected
to increase slightly, partly due to the full-year impact of Eqstra in June 2024.
• Medium and long term – In the medium term, we will continue to progress our ROE to > 17%
while our CIR declines to around 54% as revenue growth picks up. In the long term we
remain focused on increasing our ROE further to > 18% (around COE + 3%) and improve our
CIR to below 50%.
These targets are supported by various strategic and stakeholder-related key performance
indicators (KPIs) and targets as shown on pages 69 and 70 and 89 and 90 respectively.
* The guidance provided and targets set exclude the impact of any potential merger-and-acquisition-related
corporate action.
Strategic value drivers
Through our strategy, we aim to grow revenues faster than expenses, increase
levels of productivity and maintain strong risk and capital management metrics.
Growth – To grow faster, we will focus on gaining profitable market share in key
lending categories, increase our share of main-banked clients and related transactional
deposits, and deliver market-leading client experiences to attract new clients and
deepen our share of wallet among existing clients. We also look to unlock new growth
opportunities, including the cross-sell of insurance products and portfolio diversification
into East Africa and other new market segments, and leverage our modern technology
platform for commercial value.
Productivity – To boost productivity we are building on existing efforts to optimise
our structure and operating model, as well as leveraging technologies such as AI and
intelligent hyperautomation.
Risk and capital management – Our world-class risk management capabilities
ensure we balance risk and reward appropriately. Our CLR will be managed within our
through-the-cycle (TTC) target range, while capital levels will remain strong, supporting
future growth.
Perform
Transform
Nedbank Group
Integrated Report
2024
52
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Managed Evolution IT build completed
A key highlight of 2024 was the material completion of our Managed
Evolution (ME) IT build, fundamentally within scope, time and budget.
The final deliverables were the refactoring and modernisation of
core banking systems that were completed at the end of 2024 and
the digitisation of the secured lending digital client onboarding
and servicing journeys in home loans and vehicle finance that were
completed in Q1 2025.
As part of the programme, we reduced the number of core banking
systems from 250 to fewer than 60, which reduced complexity and
accelerated the time to bring new innovations to market; enabled
real-time processing of the majority of transactions (previously batch
processing); and ensured outstanding levels of systems stability,
evident in 99,8% uptime in 2024, the highest level in 5 years.
The benefits of ME are evident in
ongoing strong growth in digital
metrics (page 54); enhanced
client experiences (page 58); solid
main-banked client gains and higher
levels of cross-sell (page 60); as well
as the realisation of benefits through
our TOM and expense optimisation
programmes (page 59).
As noted in prior Integrated Reports,
our ME programme was benchmarked
against a globally recognised peer
group of 14 local and international
banks by 2 global consulting firms.
Their findings concluded that Nedbank’s technology strategy
delivered ongoing value and that the group was one of a few
enterprises in the peer group that achieved revenue uplift from its
IT transformation programme. While cost optimisation was initially
slower when compared with that of other leading global peers, the
benefits have since increased given Nedbank’s approach of using
natural headcount attrition to optimise costs.
Our strategy continued
Through our technology strategy, we have built a modern financial services technology platform (manufactured and intellectual capital) that
enables the delivery of innovative digital solutions through faster product development cycles. As a result, we have become more digitally
oriented, client-focused, competitive and agile, with benefits evident in enhanced activity as well as an improvement in client satisfaction
metrics and productivity. Looking forward, we will leverage the foundations that we have put in place to commercialise our technology
investment and unlock new benefits.
Modern
technology
platform
Digital client onboarding
Our simplified digital client-
onboarding and service platforms
enable clients to open FICA-
compliant accounts remotely
through our employee-assisted
and self-service digital channels.
These platforms provide a seamless
omnichannel experience and include
our apps, Online Banking, kiosks,
contact centres and in-branch
channels.
Digital product sales
Our top 10 retail products are now
available digitally, including home
loans, vehicle finance, personal loans,
transactional, overdrafts, credit cards,
investments, forex, stockbroking and
insurance products.
Digital servicing
Various services that were
traditionally available only at a branch
or through human interaction were
digitised and automated. Today,
more than 200 retail client services
Benefits from our ME technology investment
Case in point
and over 400 juristic services
are available on our apps and
via electronic platforms, which
enables our clients to benefit from
self-service options.
Independent benchmarking by
McKinsey shows that Nedbank
consistently ranks above local
peers and above the average
of global leaders on servicing
features offered to clients via our
mobile channels.
Service features offered
(%)
27
26
25
24
23
22
21
20
19
18
17
16
15
14
Illustrative only
2,3
1,8
1,6 to 1,9
IT software development spend
(Rbn annual cash flow)
Cloud migration
In line with global learnings, our cloud strategy is evolving with a
focus on commercial viability and strategic intent, moving from
purely ‘compute’ and ‘storage’ migration (2024: 51%) to a more
deliberate focus on modernising applications onto platform-as-
a-service, or the adoption of software-as-a-service offerings,
where it makes commercial sense. These technology placement
decisions, across private or public cloud, are guided by strategic
and commercial principles that ensure an appropriate balance
between scalability, client experience and cost efficiency,
through targeted migrations and timely retirements of
legacy platforms.
Core to bank systems
250
< 60
Total ME
programme spend
R11,7bn
real time
Batch
Processing
24/7
Looking forward
As the ME programme comes to an end, our focus now shifts to extracting
commercial value from this technology investment. This is discussed in more
detail as part of our digital leadership (DX) strategic value unlock on page 56.
The final cost of the ME programme over the 10-year period
was R11,7bn and 76% of the initial business case benefits have
been realised so far. Intangible software assets on our balance
sheet at the end of 2024 were R8,4bn, down from a peak in
2020 of R9,0bn. The decline corresponds with lower levels
of IT cash flow spend, which peaked at R2,3bn in 2017 and is
anticipated to remain around R1,6bn to R1,9bn into the future
(2024: R1,8bn) as we continue to invest to remain competitive
and unlock benefits from new technology developments.
2023
2022
2021
2020
Nedbank
SA average
Mobile leaders average
Nedbank Group
Integrated Report
2024
53
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our strategy continued
Digital transactions
Digital transaction volumes continue to increase,
up by 12% yoy and 90% since 2020, as we see
client behaviour shifting away from manual and
in-branch transactions. Digital transaction values
were also up by 12% and 69% since 2020. Going
forward, we expect these trends to continue as
manual in-branch and ATM transactions decline as
more clients make use of digital channels.
Apps and digital platforms
Our apps have evolved to being one of the
primary channels that clients use to transact.
Active Nedbank Money app clients increased
by 14% to 2,7 million in 2024, while transaction
volumes increased by 16% (up by > 184% since
2020) and transaction values increased by
21% (up by > 210% since 2020). The Nedbank
Money app (Africa), which offers convenience,
a wide range of functionality and great user
experiences for our NAR clients, reported a 21%
increase in app users.
The adoption rate of the Nedbank Business Hub
(NBH) for activities across all juristic segments
increased to 65% in December, from 48%
at the start of the year. With the introduction
of a new mobile app and the migration of our
domestic transaction platform onto the NBH
in 2025, we believe this trend will continue.
A key strategic focus in the period ahead is
the redesign of our apps, through our Digi 2.0
programme, to create leading next-generation
hyper-personalised contextual experiences.
By leveraging and commercialising our technology foundations (manufactured and intellectual capital) we will continue to enhance digital experiences
(DX) for our clients (social capital) and employees (human capital). Companies that successfully meet the digital challenge by providing client-focused
and market-leading digital solutions are also more likely to see an increase in client satisfaction (CX) and a strong shift towards digital adoption by their
clients and, as a result, gain share of client revenue, improve client retention and improve productivity.
Digital
leadership
(DX)
Digitally active clients
The number of digitally active retail clients in
SA increased by 7% yoy (almost 50% since
2020) to 3,1 million, representing 70% of retail
main-banked clients (2023: 69%), while we
make ongoing progress towards our target of
> 80%. Digitally active clients across the NAR
business increased from 64% to 72% of its total
active client base.
Digital product sales
Digital product sales in our retail
business increased to 64% of all sales
(2023: 55%), showing the remarkable
digital transformation over the past few
years, from 28% in 2020. We retained
our advantage over local banks but
more needs to be done to get closer
to global mobile leaders and our target
of more than 75% in the medium-
to-long term. The digitisation of our
home loans and vehicle finance client
journeys, extending our insurance
quoting, fulfilment, and claims
functionality on digital channels, as well
as the use of AI and digital marketing,
will contribute to higher levels of digital
sales in the years to come.
2024
2023
2022
2021
2020
68
87
103
116
129
Digital transaction volumes
(Million)
2024
2023
2022
2021
2020
2,1
2,3
2,6
2,9
3,1
Digitally active retail main-banked clients
(Million)
2024
2023
2022
2021
2020
13,4
10,6
8,5
6,8
5,6
Branch teller volumes
(Million)
Digital sales contribution
(%)
Source: 2024 Finalta Survey (McKinsey).
2024
2023
2022
2021
2020
1,2
1,6
2,0
2,3
2,7
Active Money app users
(Million)
12%
digital
transactional
volumes
64%
digital product sales
(MT target: 75%)
14%
active Money app
users
(MT target: > 4 million)
65%
Nedbank Business
Hub adoption rate
Transform
initiatives KPIs
being developed for
future disclosure
70%
digitally active main-
banked clients
(MT target: > 80%)
2024
2023
2022
2021
2020
Nedbank
SA average
Mobile leaders average
Nedbank Group
Integrated Report
2024
54
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Digital when you want it; human when you need it
Our strategy continued
Planned reduction in number of products
Digital product simplification
The new MiGoals transactional products
released off our new core banking systems
now have more than 2,4 million active clients.
The launch of these MiGoals products is part of
the optimisation process of our transactional
product range (60% reduction), which will be
followed by the release of similar transactional
products for private clients, high-net-worth
clients and businesses, including the relaunch
Our approach of ‘Digital when you want it; human when
you need it’ not only offers our clients cutting-edge, fast,
safe and convenient digital banking but also a human
touch for clients who have more complex needs.
At the end of 2024, 92% of our points of presence had
been converted to the Imagine branch design, which is
more digitally oriented, and we plan to have converted
all our points of presence by December 2025. In-branch,
clients are presented with 3 distinct service zones offering
self-service options, employee-assisted services, and
expert advice. Our continued focus on sales productivity
and our Everyone Sells
Strategy has resulted in
in-branch sales productivity
improving by more than
100% since 2021, with
servicing employees now
contributing 27% of overall
sales from zero 5 years ago.
As we continue to digitise
our interface with wholesale
banking clients, we remain
aware of the need for the
‘human touch’ in certain
interactions and service our
clients in the most efficient,
effective, and empathetic
way. Our ‘digital first with
human support’ approach
means that relationship managers can
guide clients through complex deals and
services to ensure that their financial needs
are being met, while clients can also use
digital self-service tools to find what they
need on their own.
Cybersecurity
Cyberrisk remains a top risk globally, with
increased cyberattacks when compared
with those in 2023 in both volumes and
sophistication. To mitigate cyberrisk, we
are continuously investing in cybersecurity
measures as part of a comprehensive
defence-in-depth approach. Additionally,
we conduct regular training programmes
for employees and clients to enhance
awareness of cyberthreats and promote
safe online practices. We maintained
our advanced-level Bitsight Security Rating,
which positions us within the top tier of the
South African banking sector and exceeds
the board-approved target. The rating
evaluates an organisation's cybersecurity
posture and risk using data-driven analytics.
Transactional
Investment
Lending
of an optimised set of investment (80% reduction)
and lending products.
60%
80%
To be
determined
Stakeholders
Focus for 2025 and beyond
• Monitor systems’ availability and stability.
• Ensure that IT-related risks remain well
managed.
• Oversee and monitor the progress on
delivering the approved technology
strategy, building on existing assets in
support of the group’s operating model and
investment case.
• Monitor maturation of Nedbank’s data
infrastructure, governance and capabilities
including responsible AI embedment.
• Monitor the commercialisation and
consumption of technology and data
initiatives, including increased focus on
client sentiment.
• Monitor the optimisation and automation
of processes across Nedbank.
A comprehensive GITCO Report is available online in our 2024 Governance Report on our group website at group.nedbank.co.za.
Board oversight – ensuring and protecting value
Group Information Technology Committee (GITCO)
Rob Leith, Chair
‘Our commitment to robust IT governance has enabled us to navigate
complexities and drive value creation, ensuring long-term success. Through
diligent governance and strategic oversight, we have harnessed technology
to enhance operational efficiency and support sustainable growth, ensuring
our technology initiatives are aligned with our strategic goals.’
Top 10 risks
Clients
Employees
Regulators
Shareholders
9 Reputational and market conduct
1 Strategic execution
5 Operational
4 Cyberrisk
Ensuring and protecting value in 2024
• Ensured the adequacy, effectiveness and
efficiency of information systems from a risk
and strategic-alignment perspective.
• Monitored the availability, stability and
security of systems, as well as IT-related
risks, including operational, digital, cyber and
strategic-execution risks.
• Oversaw the progress of large IT
programmes, particularly the conclusion
of Nedbank’s IT transformation and
modernisation programme, Managed
Evolution. Specific focus areas included
project management disciplines, skills
resourcing and workforce well-being.
• Reviewed and recommended to the
board for approval the group’s technology
and data strategy up to 2027, with its
increased focus on commercialising
the modernised technology stack to
increase competitiveness and sustainable
value creation.
Branch employee sales
(Sales/role/day)
2024
2023
2022
2021
Service employees
Sales employees
121%
Nedbank Group
Integrated Report
2024
55
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our strategy continued
Beyond banking
We continue to explore new sources of revenue and cross-sell opportunities while concentrating on client acquisition and retention as traditional
revenue streams for banks come under pressure from heightened competition. Our Beyond Banking Strategy aims to integrate with selected
ecosystems through digital engagement platforms to help businesses and consumers access solutions, goods, and services.
Application programme interfaces (APIs)
After having been the first bank in Africa to launch an API platform
(API_Marketplace), we made ongoing progress in scaling the
platform and driving our embedded finance
strategy. Our payments product set has
expanded to include CashOut, Direct
EFT and PayShap APIs, processing over
R2,8bn collectively.
The number of subscriptions active on
API_Marketplace continued to grow, with
16% growth yoy. In 2024 we extended our
API product offering to Common Monetary Area (CMA) countries
(Namibia, Lesotho and Eswatini), having enabled EFT payments and
wallet APIs.
Value-added services
Revenue from value-
added services grew by
32% yoy (> 230% since
2020) and volumes were
up by 17% (> 120% since
2020) across prepaid data,
voucher, and electricity
purchases, as well as
LOTTO, sending of money
to cellphones, and instant
payments. New additions
for 2024 include the
ability for clients to renew
their vehicle licence discs
seamlessly through our
digital channels as well
as the ability to pay any
outstanding traffic fines.
Transform: Extracting
value from our technology
investments
Having completed ME, our focus now shifts to
extracting further commercial value from our
technology investments, with the emphasis
now on converging for scale, including
harmonisation of our NAR systems, leveraging
data and AI, optimising processes end-to-end,
and modernising payments.
Harmonisation
Consolidating systems across the group, including
our subsidiaries such as NAR, is underway as we
seek to leverage the capabilities that we have put
in place in SA for our NAR business to unlock the
same benefits we achieved locally as highlighted
on pages 53 and 54.
Data commercialisation
We have invested significantly in our data
capabilities, leveraging data and AI through
appointing a strong analytics team, including a
Chief Data and Analytics Officer, to spearhead
our strategy in this space and drive commercial
outcomes. Various solutions based on data
science techniques
to make intelligent
decisions have already
been delivered,
including next-best-
action strategies to
drive higher levels
of cross-sell. We are
currently investigating
more than 50 use cases spanning credit scoring,
cross-sell and up-sell, fraud analytics, and digital
marketing, to name a few.
2024
2023
2022
2021
2020
Value-added services revenue
(Rm)
• Avo Home grew GMV by 26% yoy,
providing discounts on Apple and
Samsung devices as well as travel.
Market-competitive products
offering 0% interest loans akin to
buy-now-pay-later arrangements
and Avo Care (free screen repair and
extended warranty on devices) were
also introduced in 2024.
• Avo Auto, a virtual vehicle
mall with approximately 1 000
MFC-accredited dealers and
over 30 000 vehicles available
on the platform, grew GMV by
30% yoy. Two new businesses
were introduced in 2024: Assisted
Sales (helps customers in distress
to sell their vehicles) and Auto
Care (enables clients to use credit
available to finance tyres), which
grew the Auto ecosystem beyond
financial services.
• Avo’s renewables ecosystem
(Avo Solar and Avo Water) aligns
with the UN SDGs and our SDF
ambitions. Avo Solar Residential
introduced lower-priced packages
and grew GMV by 42% yoy
and continues to be the largest
partner for our clients’ solar
financing solution, despite the
2024
2023
2022
2021
2020
0,1
0,7
2,0
2,5
2,8
Registered Avo clients
(Million)
slowdown in market due to the
absence of load-shedding. In 2024
Avo Solar C&I was the preferred
partner for sourcing and rooftop
implementations for all Nedbank
branches and for our wholesale
businesses. Avo Water for
residential customers was launched
successfully in 2024, offering
customised water solution products
to the public on the Avo Home
section of the Avo website as well
as at a dedicated Avo Water website.
Avo SuperShop launched in Namibia
in H2 2023 and showed good progress,
with 25 merchants and over 3 300
products on offer. Progress is expected
to continue as more merchants are
added to the platform.
Avo super app
Avo SuperShop, which has been in the market for 4 years, has approximately
2,75 million registered clients (up by 9% yoy) and continues to scale, with total gross
merchandise value (GMV) increasing by 21% yoy across Avo ecosystems.
Third parties on
API_Marketplace
increased by
16%
We have invested
significantly
in our data
capabilities,
leveraging data
and AI
Nedbank Group
Integrated Report
2024
56
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Nedbank Intelligent Hyperautomation (NIHA)
Our strategy continued
We offer our clients, both individuals and juristics, access to modernised payments, meeting their
current and evolving needs. For individuals, these payments include account-to-account, instant, card,
e-commerce, virtual, and tokenised payments such as through Apple Pay and Send money. For juristics,
our payments offering includes card payments (both physical and virtual), account-to-account payments,
POS offerings, integrated payments, the processing of DebiCheck and cross-border payments.
The payments landscape continues to undergo a transformative shift driven by changing client behaviours,
technological advancements and the rise of digital economies. We embrace these changes and invest in
innovative solutions designed to enhance the client experience through seamless, secure, cost-effective
and intuitive payment offerings. In 2024 our focus was to implement new offerings that serve the evolving
needs of clients, enhance existing offerings, scale digital payments and shape future plans to maintain our
leadership position.
The payments regulatory environment is also undergoing significant changes, with regulators aiming
to modernise the payment ecosystem to achieve financial inclusion and greater competition, among
other objectives. We actively participate in industry associations and other forums, contributing to the
realisation of successful outcomes for SA, consumers and the financial sector. Our participation in industry
modernisation initiatives and our own payments efforts have enabled us to create a fully interoperable
enterprise payment service hub that will optimise cost to serve, increase innovation cadence, respond to
open-finance opportunities, and unlock competitive advantages by enabling contextual and embedded
payments in real time.
Our ‘digital first with human support’ approach in payments supports ongoing strong growth in digital and
mobile payments as shown on page 54, led by digital wallet payments, instant payments, Send money and
e-commerce. Clients increasingly prefer the convenience of paying through mobile wallets with contactless
payments, including Apple Pay and Samsung Pay, which payments grew 98% yoy. Payments originated
on our digital channels continue to grow strongly on our Nedbank Money app and Nedbank Business Hub.
E-commerce payments in our acquiring business grew 35%, with us holding a formidable position
through strategic partnerships and differentiated solutions. Cash in circulation in SA remained stable yoy
in 2024, but still remains the dominant form of payment, especially in the informal economy. According to
BankservAfrica, displacing just 10% of cash transactions would yield approximately R450bn worth of new
digital payment flows, which also brings about benefits associated with increased digital engagement via
banking apps, thereby creating more cross-sell opportunities. We therefore continue with our digitisation
strategies and cash optimisation across Nedbank.
Leading in an evolving payments landscape
Case in point
Advanced
credit
scoring
models
Copilot, a
new GenAI
tool for MS365
productivity apps
Early-warning
systems,
eg defaults on
loan payments
Client
profitability
enhancements
Preapproved
lending
offers
Cross- or
upsell lead
creation
Optimised
cash
operations
based on the
predicted need
Fraud
detection
and prevention
Our NIHA vision seeks
to harness the power
of AI, GenAI, machine
learning and robotic
process automation
to extract benefits,
including optimising
cost, enhancing client
experiences, increasing
revenue growth and
streamlining work
processes. We
invested significantly
in our AI capabilities
and have already
delivered numerous
AI solutions that
have generated
benefits.
Examples of data and AI use cases
Payment modernisation
The modernisation of our payments domain is progressing well. Our
participation in industry initiatives and our own payments efforts have
enabled us to create a fully interoperable enterprise payment service
hub. We were the first South African bank to build a centralised payment
services hub, fully componentised and cloud-enabled, with a centralised
payment execution structure. This approach assists with continuously
driving increased straight-through processing, optimising fraud and
cybersecurity capabilities and seamlessly unlocking digital experiences
on various digital properties. The focus going forward is using AI and
GenAI in digitising payment offerings and leveraging the data-rich
insights to create agentic and seamless client experiences.
• Following a successful M365 Copilot
early-access programme in partnership
with Microsoft, we have now rolled out more
licences across the bank. Several use cases
have already been implemented, resulting in
productivity gains and quality improvements
to business correspondence, research, and the
maintenance and application of policies. Pilot
users have noticed an average time saving
of 42 minutes a day, with the top time-saving
activities relating to creating and summarising
documents, emails and chats.
• In addition, we have implemented GitHub
Copilot, an AI-powered coding assistant that
helps more than 980 developers by providing
code suggestions and autocompletions
within their integrated development
environments, resulting in faster, more
efficient and more accessible software
development while helping developers of
all skill levels write higher-quality code and
focus on problem-solving.
The modernisation of our technology systems is accompanied by investment in complementary
and critical new capabilities and skills in digital, emerging technologies, data science and predictive
analytics, specialised finance and emerging risk types, including cyberrisks. This is underpinned
by the creation of a competitive culture that emphasises the importance of human-centred
interactions to enhance the client experience and client service, ensuring digital convenience
when wanted and human contact when needed.
Nedbank Group
Integrated Report
2024
57
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our strategy continued
Market-leading
client experiences
(CX)
In 2024 we introduced new martech that will greatly improve
how we market to our clients, enhance our interactions,
ensure marketing efforts are more efficient, and help us
grow revenues.
This technology helps us deliver more personalised and
relevant banking experiences to our clients. Instead of sending
out mass messages and campaigns, which have low response
rates, we can now share content that is specifically tailored to
each client’s unique preference and behaviour. When clients
log in to our digital banking channels, they will see offers and
information that resonate with them, and they can choose
when and how to interact with our marketing initiatives.
In 2024 we successfully launched 28 conceptual marketing
campaigns across various business units, which resulted
in cost savings and net new sales. A few examples are
the following:
• Nedbank Group Investments reached out to clients who
did not have long-term investment options. Our campaign,
run entirely on the new platform, saved significant costs
(no distribution costs) versus a traditional campaign that
would cost up to R25 000. By educating 6 000 clients,
we onboarded 38 new investment clients and gained
investments of R2,8m in less than a month.
• We also used our data to better identify our audience. In a
credit card usage campaign, we reported a 22% increase
in client engagement, meaning we were more successful
in reaching the right people at the right time. This not only
improved the client experience but also saved us 20%
in costs.
In 2025 we plan to run 100 campaigns of a similar nature and,
by doing so, we will continue to learn how to manage costs
better and increase revenues.
Revolutionising product sales through martech
Case in point
Net Promoter Score
Nedbank ranked #1 on NPS, with a score of
68 in the 2024 Kantar NPS survey, based on
survey feedback provided by a random sample
of all retail clients who bank with the large
South African retail banks. This compares
with a #3 rank in 2019 (NPS score of 47) in the
Consulta survey, which was similarly based on
a sample of all clients. In 2022 the Kantar NPS
survey replaced the Consulta survey, although
at that stage it was based on main-banked
clients only. In 2024, on a main-banked basis,
Nedbank achieved a score of 70 LA1, tying
with the second-highest ranking.
In 2024 our Small Business Services and
Private Clients business segments recorded
their highest levels of NPS in more than
8 years.
In NAR, Nedbank was the market leader
in client experience (NPS) in Mozambique
and the leader in brand sentiment scores
in Eswatini, Lesotho and Mozambique.
Our client satisfaction score in CIB was 81% in
2024, above the global benchmark of 80%.
App ratings
Our apps remain highly rated on the iOS
and Android app stores, with lifetime store
client ratings for the Nedbank Money app,
Nedbank Private Wealth app and Nedbank
Money app (Africa) 4,3; 4,6; and 4,2 (out
of 5) respectively. Through our Digi 2.0
programme, we will be creating enhanced
experiences for clients, making our apps
even easier to use, more personalised,
more supportive of greater levels of
straight-through processing, and more
integrated across digital and employee
channels. To do this we are leveraging
next-gen data and AI-infused capabilities,
as well as modernised payments and app
architectures.
Nedbank brand value
In 2024 the value of the Nedbank brand,
as measured by Brand Finance, declined
by 5% to R16,4bn and its rank dropped
to #14 among South African companies.
This decline was more reflective of 2023
data points and we were therefore pleased
that the Nedbank brand value in the 2025
Brand Finance report increased by 24% to
over R20bn and Nedbank’s rank improved
to #8. By leveraging data to enable the
deployment of marketing technology
(martech) we aim to unlock new commercial
opportunities, improve brand preference
and deliver marketing campaigns that are
relevant to our clients at an individual level.
IT systems availability
In a 24/7 digital world, the availability of
banking products, platforms and systems
is critical to ensuring high levels of client
satisfaction. Our IT systems availability
uptime score improved to 99,8% LA1 in
2024 (up from 99,6% in 2023), above our
target of > 99,1%.
Client complaints
In 2024 the total number of client
complaints declined slightly yoy to 77 504
(2023: 77 682), with RBB the largest
contributor at 71 255 given its large
client base. Pleasingly, 51% of cases were
resolved within 5 days. On the back of
the launch of lower-priced products such
as MiGoals, complaints around pricing
declined by 11%.
2024
2023
2022
2021
2020
79
82
87
71
71
RBB client complaints
(000)
Nedbank NPS
All
clients
68
Main-banked
clients
70 LA1
#1
NPS among large
South African banks
surveying all clients
99,8%
IT systems availability
(target: > 99,1%)
4,3
Money app iOS and
Android ratings
0,5%
RBB client
complaints
71 255
5%
Nedbank brand value
R16,4bn
81%
CIB client
satisfaction score
In a highly competitive financial services market, the ability to deliver exceptional client experiences (CX) is a crucial differentiator, supported by a
strong competitive brand (intellectual capital). Our aspiration is to be Africa’s #1 digital financial services provider by retaining the #1 position among
South African banks in client satisfaction, thereby enhancing our social capital.
External limited assurance on selected sustainability information – refer to pages 99 and 100 for the independent assurance practitioner’s Limited Assurance Report on selected
key performance indicators.
LA1
Nedbank Group
Integrated Report
2024
58
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our strategy continued
TOM 2.0
Our Target Operating Model (TOM) 2.0 programme
reached cumulative cost benefits of R3,0bn in 2024
and, although now closed, our focus on productivity
gains and expense optimisation will continue.
TOM 2.0 optimised the shape of our infrastructure
(branches and corporate real estate), shifted our
RBB organisational structure to become more
client-centred, and optimised our shared-services
functions across the group as a direct result of the
digital benefits from ME. Key outcomes included
reducing our branch floor space to 118 000 m2 in
2024 (cumulatively by almost 72 000 m2 from 2020
levels) and, through our strategy of consolidating
and standardising our own buildings, saving more
than 208 000 m2 since our optimisation initiative
started in 2016.
2024
2023
2022
2021
2020
0
1,0
1,5
2,2
3,0
Cumulative TOM 2.0 benefits
(Rm)
Growth vectors
As part of our annual strategy review in 2024 we identified various opportunities that will deliver incremental benefits in the medium-to-
long term. These Transform initiatives, or ‘growth vectors’, leverage our strong foundations and areas of expertise, help us become more
competitive, and unlock new revenue and cost optimisation opportunities, enabling us to make progress towards our long-term ROE of > 18%.
Unlocking value from our technology
investments (leveraging AI, commercialising
data, modernising payments and harmonising our
IT systems in NAR) is discussed in more detail
on page 56, while gaining market share and
unlocking a large insurance growth and cross-sell
opportunity to help scale our retail business are
discussed on page 60.
Through portfolio diversification, we seek to
unlock new growth opportunities. We highlight
2 key initiatives as examples:
• Growing our presence in East Africa through a
CIB-led approach by deepening our sector-led
coverage of priority countries and investing
in product capabilities. This is supported by
model. Senior roles across coverage and credit
underwriting are already contributing towards
favourable client experiences. Pivotal to the
success of this initiative is the ability of the
leveraged-finance team to deliver tailor-made,
highly differentiated solutions to our clients
and, during 2024, we provided lending of
R10bn to commercial clients.
A key catalyst to for accelerating the retail
and commercial-related growth vectors is the
reorganisation of RBB and Nedbank Wealth to
create 2 new client-focused clusters: Personal
and Private Banking (PPB) and Business and
Commercial Banking (BCB), which are discussed
in more detail on page 67.
Key Transform initiatives
Unlock value from
technology
investments
Scale our retail
business
Portfolio
diversification
Leverage our sector
skills and
expertise in CIB
A more deliberate
expansion into key
African countries
Leverage
artificial intelligence
Gain market share
(in key lending and deposit-taking categories)
Deliver new
mid-corp offering
Commercialise
data
Grow and enhance
insurance cross-sell
Grow our
presence in SADC and East Africa
Modernise
payments
Enhance
productivity
Build out our
transactional banking franchises
Harmonise
IT systems in NAR
Leverage data-driven marketing
martech
Evolve our purpose and
SDF ambitions
Growth
vectors
We identified various new initiatives that will, over time, help us to get to our long-term ROE target. These ‘growth vectors’ cover 5 broad categories:
unlocking value from the technology investments we have made over the past 10 years, while we invest in data and AI capabilities; delivering
initiatives that will assist in scaling our retail business in order to reduce its CIR and increase its ROE; diversifying our portfolio into new segments and
markets; leveraging our market-leading sector skills and expertise in CIB; and expanding more deliberately into key SADC and East African countries.
R3,0m
TOM 2.0 benefits
(programme
completed)
R4,0bn
gross earned
premiums
(MT target: > 50%
growth)
15%
CIB gross operating
income from Africa,
excluding SA (MT
target: > 20%)
Launched a new
mid-corp
offering
leveraging our market-leading expertise and
capabilities as highlighted on page 7. As a
result, we seek to grow the contribution of
business (gross operating income) generated
on the rest of the African continent within
CIB from around 15% to > 20% over the
medium term. In addition, we will explore
inorganic growth opportunities that play
to our strengths and can contribute to our
strategic intent to grow scale in NAR.
• Mid-corp, our new dedicated mid-corporate
service model that was launched during
H1 2024, has been extremely well received.
Positive progress has been made in
appointing key talent into the mid-corporate
Nedbank Group
Integrated Report
2024
59
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our strategy continued
We aim to create value by strategically focusing on and achieving profitable market share growth. This involves integrated client-led strategies,
leveraging origination points to enhance cross-selling, and prioritising transactional banking relationships and main-banked client gains.
Focusing on areas
that create value
(SPT)
Main-banked client gains and cross-sell
improving our cross-sell ratio to
> 2,5 products per client, supported
by technology initiatives and
enhancing our sales culture.
• In Nedbank Africa Regions the
number of clients increased by 14%
to 396 733 LA1, of which around
166 000 are main-banked clients.
Insurance remains a large Transform opportunity for the group as we seek to grow and
cross-sell our insurance products (both traditional bancassurance and new solutions
such as the MyCover suite) into the 7,6 million Nedbank client base. Over the past few
years we have built strong capabilities and expanded our insurance product suite to
17 products. We seek to improve client penetration from around 19% to > 30% and
thereby grow gross earned premiums (GEP) by more than 50% in the medium term. The
strategic reorganisation of our insurance business into the new PBB Cluster will help
with cross-sell, embed insurance more closely into client journeys and align incentives.
Insurance growth and cross-sell
Case in point
2024
2023
2022
2021
2020
1,78
1,86
1,94
1,96
1,99
Cross-sell ratio
(Number of products/client)
• In 2024 main-banked clients in
retail grew by 5% to 3,7 million
(23% growth since 2020), indicating
solid progress towards our target of
> 4 million in the medium term. The
increase was supported by growth
across all client segments, including
youth, by 2% (1% since 2020);
entry-level clients by 9% (29% since
2020); middle-market clients by
1% (27% since 2020); and private
clients by 5% (41% since 2020).
Small-business clients increased
by 4% (12% since 2020) in a highly
competitive market.
• Corporate and Investment Banking
gained 20 new primary clients in
the period.
• Cross-sell in retail improved
to 1,99 (compared with 1,96 in
2023 and 1,78 in 2020), given
significant growth in the Greenbacks
programme, notice investment
products and funeral plans. The
opportunity to cross-sell insurance
products across the group remains
significant and is included as part
of the group’s growth vectors on
page 59. Our focus remains on
2024
2023
2022
2021
2020
3,0
3,1
3,2
3,5
3,7
Main-banked retail clients
(Million)
1,99
retail cross-sell ratio
(target: MT > 2,5%)
20
primary client wins
in CIB (target: > 25
per annum)
0,4%
core lending
market share
19,2%
0,4%
retail deposit
market share
16,8%
5%
3,7 million retail main-
banked clients (MT
target: > 4 million)
5%
2024
2023
2022
2021
2020
1 309
1 365
1 412
1 609
1 755
29%
2024
2023
2022
2021
2020
104
95
114
127
134
41%
2024
2023
2022
2021
2020
1 005
892
1 062
1 120
1 134
27%
2024
2023
2022
2021
2020
180
177
185
192
199
12%
Main-banked clients
(000, % growth 2020 to 2024)
Entry level
Middle
Private clients
Small-business services
Our strategy continued
We aim to create value by strategically focusing on and achieving profitable market share growth. This involves integrated client-centred strategies,
leveraging origination points to enhance cross-selling, and prioritising transactional banking relationships and main-banked client gains.
Focusing on areas
that create value
(SPT)
Insurance growth and cross-sell
Case in point
1,99
retail cross-sell ratio
(target: MT > 2,5%)
20
primary client wins
in CIB (target: > 25
per annum)
0,4%
core lending
market share
19,2%
0,4%
retail deposit
market share
16,8%
5%
3,7 million retail main-
banked clients (MT
target: > 4 million)
5%
External limited assurance on selected sustainability information – refer to pages 99 and 100 for the independent
assurance practitioner’s Limited Assurance Report on selected key performance indicators.
LA1
GEP growth
> 50%
Nedbank Group
Integrated Report
2024
60
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Lending and deposit-taking market shares
Progress in achieving our desired portfolio tilts in 2024 was mixed, although total core
lending market share increased by 0,4% to 19,2% and retail deposits, a key indicator of
franchise strength, also increased by 0,4% to 16,8% as reported in the December 2024 SARB
BA900 returns.
Our strategy continued
• Market share gains – We gained market
share in wholesale term loans (+0,2%) and in
retail products such as home loans (+0,3%)
and vehicle finance (+0,8%), where we are the
market leader. Retail deposits now achieved
5 quarters of gains after 5 years of losses.
• Market share losses – Given ongoing risks in
the environment and quality of applications
that did not align with our risk appetite, we
deliberately lost market share in personal
loans (-0,9%). After gaining significant share
in retail overdrafts over the past 5 years
(+5%), we consolidated our position and
market share also declined by 0,9%. In credit
card we disappointingly lost share (-0,8%)
and this is receiving significant focus.
Looking forward, under our Transform agenda,
we seek to grow market share in key areas. Our
ambition over the long term is to scale retail
lending market share in products such as home
loans, card and personal loans to > 16%. We
will leverage our strengths in CIB to expand
into East Africa and grow our deposit market
share further, with a focus on transactional
deposits as we expand our transactional
banking franchises across retail, commercial
and corporate.
BA900 market share
Dec
2023
(%)
Dec
2024
(%)
yoy
change
Total core loans
18,8
19,2
Wholesale term loans
16,0
16,2
Commercial mortgages
36,0
35,9
Home loans
14,7
14,7
Retail vehicle finance
35,1
35,9
Retail overdraft
15,1
14,4
Personal loans
11,0
10,1
Credit card
10,0
9,2
Retail deposits
16,4
16,8
Commercial deposits
15,8
15,4
Achieving sustainable and profitable market share gains is not linear as one needs to navigate
external macroeconomic conditions and market influences such as competitive practices at peers
(discussed on page 45). Each of our products also has its own individual flight path towards market
share gains linked to factors of internal readiness, such as credit policies; digital capabilities;
marketing focus; product profitability; and client affordability, behaviours and needs.
Stakeholders
Ensuring and protecting value in 2024
Focus for 2025 and beyond
• Oversee ongoing credit risk
management across all portfolios to
optimise the outcome of the cost of
credit and credit RWA.
• Monitor the progress made on the
implementation of Basel III Reforms on
the credit portfolio.
• Monitor developments emanating
from SARB’s proposed amendments
to Directive 7/2015 relating to the
treatment and classification of
distressed restructures on the credit
portfolio.
• Monitor the effectiveness of
originations and pricing models in the
Retail credit risk environment.
A comprehensive GCC Report is available online in our 2024 Governance Report on our group website at group.nedbank.co.za.
Board oversight – ensuring and protecting value
Group Credit Committee (GCC)
Errol Kruger, Chair
‘Credit risk management and governance remained excellent, amid a
challenging yet slowly improving macroeconomic environment characterised
by decreasing interest rates, easing inflation and a stabilising political
environment, particularly with the establishment of the GNU. The GCC
provided independent oversight and guidance, ensuring a sound, good-
quality credit portfolio, which remained adequately impaired.’
Top 10 risks
1 Business
Clients
Employees
Regulators
Shareholders
3 Credit
2 Business
7 Climate
• Approved the adequacy of impairments
(biannually) to ensure that the expected
credit loss (ECL) held against gross loans and
advances (GLAA) was appropriate.
• Approved the adequacy of credit risk-
weighted assets (RWA) to ensure that the
capital held is appropriate.
• Monitored originations and collection
initiatives in Retail as well as large counter
resolutions in the wholesale portfolio, which
resulted in an improved credit loss ratio
(CLR) outcome in 2024
• Ensured the application of effective credit
risk mitigation strategies, including early
identification of distressed portfolios and
proactive management of watch list clients.
Nedbank Group
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2024
61
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reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
19%
SDF as % of
total loans (2025
ambition: 20%)
5,1 mtCO2e
oil and gas GHG
emissions financed
(2030 target: 26%)
71 ktCO2e
own operational
GHG emissions
(2025 target: 40%
from 2019 levels)
10%
own operational
renewable energy
sourced (2030
target: 100%)
Level 1
BBBEE status
for 7 years
(target: retain
level 1)
3,3 mtCO2e
thermal coal GHG
emissions financed
(2030 target: 47%)
32%
R40bn renewable
energy finance
(exposures)
For our business to thrive, it is essential to have a robust economy, a well-functioning society, and a healthy environment. We also acknowledge that
sustainability issues such as climate change, inequality, and social justice significantly influence this system and establish the parameters within which
we operate. Through capital allocation decisions, we can play a significant role in supporting positive societal, environmental and economic outcomes.
Our strategy continued
Creating positive
impacts
(purpose
delivery)
The necessity for banks to comprehend, adapt to,
and support the climate and broader sustainability
agenda remains a significant trend shaping the
financial sector. The rapid pace of change, driven
by the urgent climate reality, stakeholder demands,
evolving regulations, and increasing disclosure
requirements, has led to many banks struggling
to keep up. This requires comprehensive changes
and responses – from strategy and compliance
to product innovation. We are fully committed to
our sustainability journey, investing in institutional
capability and capacity building to ensure
coordinated progress across the group.
Achieving our purpose of using our financial
expertise to do good is best accomplished by
supporting our clients’ SDF needs. We intentionally
direct our lending portfolio towards initiatives that
generate beneficial impacts and align with the
UN SDGs, while minimising harm involves reducing
our carbon footprint through both our financing
activities and internal operations. The SDGs
serve as forward-looking strategic levers, while
ESG metrics provide a retrospective measure,
collectively keeping us aligned with our purpose.
Purpose Programme of Work
In 2023 we launched our groupwide Purpose
Programme of Work (PPOW), endorsed by the
board and Group Exco, to enhance our purpose
fulfilment. The intent of PPOW is to (i) effectively
coordinate, streamline and institutionalise the
fulfilment of the bank’s purpose across the
enterprise; (ii) meet regulatory requirements;
and (iii) secure a leading, differentiated position
for Nedbank through unlocking purpose-led
commercial opportunities and new areas
of growth.
PPOW integrates sustainability and climate
considerations across 8 workstreams: planning,
strategy, risk and compliance, reporting, people,
governance, data, and processes. These efforts
aim to accelerate ESG data and systems, embed
decisions in credit and lending, and enhance
capabilities for financed emissions as part of
Nedbank’s transition plan.
Key outcomes in 2024 resulted in the following:
• The inclusion of specific requirements
into our business plans, including KPIs for
purpose enablement, training commitments
for employees on climate and nature issues,
financial targets for delivery of SDF, and
strengthening of governance structures
across our businesses.
• The advancing of the metrics and targets
section of our net-zero transition plan
that prioritises financed emissions
calculations and a timeline for disclosures
of our emission-intense sectors.
• Membership of PCAF and ANCA to continue
learning and alignment with industry best
practices.
• Completion of phase 1 of a Nature Risk
Materiality Assessment to understand
nature-related financial risks within the
portfolio, following the release of Nedbank’s
Nature Position Statement.
• Engagement with over 350 clients, primarily
in climate-sensitive sectors.
• Development of a high-level ISSB IFRS
Adoption Roadmap to align with the new
reporting standards.
• Enhancement our climate approach to
incorporate nature.
Sustainable development
finance
Our approach to SDF involves increasing our
investment and lending to both juristic entities
and individuals to achieve positive social and
environmental outcomes in various sectors.
This is carried out through core business
with a focus on sustainable finance, financing
the transition and financial inclusion. While
acknowledging the importance of all 17 SDGs,
we have prioritised 9 of them where we can
make a significant impact through innovation
in our banking products, as well as our lending
and investment practices.
As of 31 December 2024, we had R183bn of
exposures that support SDF, representing
19% of our gross loans and advances
(2023: R145bn, 16%). Our ambition, set in
2022, was to increase this to 20% by the end
of 2025, after which we will be looking to set
a new target to 2030, as we expect these
exposures to grow at least 1,5 times faster than
traditional loans. Growth is likely to be driven by
More detailed disclosures are available in our
2024 Society Report at group. nedbank.co.za.
SDG 7 (renewable energy), SDG 12 (agriculture), SDG 8
(SMME lending) and SDG 6 (water).
Sustainable development finance
(Rbn)
% of gross loans and advances
R29bn support
for farmers and
the agriculture
sector
R33bn for green
certified buildings
and affordable
home loans
R4bn
financing for
clean water
and sanitation
R40bn total
renewable
energy
exposures
R25bn lending
exposure to small
businesses and
their owners
R17bn sustainable
finance across
multiple SDGs
2025
ambition
2024
2023
2022
2021
108
123
145
183
13%
14%
16%
19%
20%
Nedbank Group
Integrated Report
2024
62
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reporting
An overview of
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Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our strategy continued
Reducing our carbon impact
Climate change resolutions
passed with 100% votes of
approval at our 53rd AGM.
• Disclosed financed emissions
for home loans, vehicle
finance, commercial
property and mining.
• No provision of project
financing for new
thermal coal mines.
• Reduce Nedbank’s own
operations’ carbon emission
by > 40% (from 2019 levels).
• Generate > 30% of
Nedbank’s own energy needs
from renewable sources.
Disclose net-zero-aligned
glidepath for upstream fossil
fuels and power generation.
2020
2025
• Thermal coal financing to
be < 0,5% of gross loans
and advances; and financed
emissions to decline by 47%
from the 2022 baseline.
• Oil and gas financed emissions
to decline by 26% from
2022 levels.
2030
No new finance
for oil production.
2035
Zero exposure to
fossil-fuel-related activities.
2045
100% of lending and
investing supporting a
net-zero carbon economy.
Our journey to net zero continues to evolve. After previously disclosing our fossil fuel and power generation glidepaths that guide our transition to supporting a low-carbon economy, along with financed emissions
disclosures for residential home loans, vehicle finance and power generation, in our 2024 year-end reporting we are expanding our disclosures to include commercial property and mining. We also continue to reduce
our own operational carbon footprint and increase sourcing of renewable energy for our own operations.
Own operational GHG
emissions
(ktC02e)
Our own scope 1, 2 and 3 GHG emissions were
119 ktCo2e, with a reduction target of scope 1
and 2 (own operations) of more than 40% by
2025 (from the 2019 base) achieved a year
earlier in 2024 at 71 ktCo2e. In 2024, 10% of
our energy use was from renewable energy
sources (6% in 2023), and we aim to increase
this to more than 30% by the end of 2025.
We are likely to achieve 20% of renewable
energy by 2025. The current constraints are
that we currently can only wheel to our Eskom
supplied campuses.
Our journey to net zero
2024
More detailed disclosures are available in our 2024 Climate Report
at group.nedbank.co.za.
External limited assurance on selected sustainability information – refer to pages 99 and 100 for the
independent assurance practitioner’s Limited Assurance Report on selected key performance indicators.
Our financed emissions metrics, calculated in accordance with the Partnership for Carbon Accounting Financials (PCAF)
standard, have been assured through an internal audit review of the internal controls and related processes.
LA1
IA
Own operational renewable
energy sourced
(% of total electricity)
25
target
24
23
20
1,5
6,5
10
>30
25
24
23
22
21
20
19
139
119
112
103
88
70
2050
Our own operational emissions
(40%)
Upstream oil and gas glidepaths
(ktC02e financed)
45
30
24
23
22
6 017
4 404
5 118
Zero
Thermal coal glidepaths
(ktC02e financed)
45
30
24
23
22
7 586
7 845
3 361
Zero
Financed emissions
In line with our commitment to have zero fossil fuel exposure by 2045 (based on science-based targets), in 2024 we finalised our first sectoral glidepaths
that inform our exit from the thermal coal, oil and gas sectors over time, using the widely adopted International Energy Agency (IEA) Net Zero (NZE) 2050
pathway as a basis for our first targeted commitment to 2030 (31 December 2029). This will result in targeted reductions, from 2022 to 2030, of 47% for
thermal coal (2024: 57% decline from base) and 26% for oil and gas (2024: 15% decline from base). As a result of our significant renewable energy power
generation book, the carbon intensity of the energy book is already below the 2030 NZE target of 165 gCO2e/kWh, and we have therefore adopted the
2030 IEA target as a cap, with the beyond-2030 cap to be assessed closer to the time (2024: 127 gCO2e/kWh). This year, in addition to fossil fuel, home
loans and vehicle finance base lines, we included commercial property and mining, which in total represents approximately 65% of Nedbank’s loans and
advances, including high GHG intensive sectors.
2,9
2,3
0,4
2,2
1,7
1,9
0,7
Total
12,1
mtCO2e
Upstream oil and gas
Thermal coal
Power generation
Transport
Commercial property
Home loans
Mining (CIB)
GHG financed emissions
(mtCO2e)
(47%)
(26%)
Finance emissions presented for portfolios where
base line assessments have been completed.
The line with 47% represents the reduction target
in absolute financed emissions from thermal coal
by 2030, compared to 2022 levels.
The line with 40% represents the reduction target
in absolute scope 1 and scope 2 emissions from own
operation by 2025, compared with 2019 levels.
The line with 26% represents the reduction target
in absolute financed emissions from thermal coal
by 2030, compared to 2022 levels.
IA
Nedbank Group
Integrated Report
2024
63
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our strategy continued
Other ESG highlights
In 2024 external stakeholders again acknowledged our efforts in sustainability and ESG matters,
with the following as key highlights over and above the progress we have made on climate and
sustainability:
• Maintained our level 1 BBBEE status for 7 years.
• Offered more than 3 500 first-time job opportunities for unemployed youth through the YES
Programme (> 13 500 since inception).
• Continued to improve our DEI metrics, as demonstrated by increased numbers of black and
female employees, as well as increasing middle and senior African management representation by
> 4%.
• Through our township branches that have dedicated spaces for community financial education,
we hosted > 400 workshops equating to more than 1 000 hours of training interventions covering
financial education, as well as business guidance.
• We supported approximately 318 000 small businesses (2023: 305 000) with solutions, advice,
and financial and business support, contributing to their growth and development.
• Entry-level main-banked clients increased by 9% to 1,8 million as we support financial inclusion.
• Effective management of our facilities has resulted in a decrease in resource consumption during
2024, while the number of employees working from the office continued to increase. Water
consumption was 150 465 kℓ LA1 reflecting a 5% decrease (159 105 kℓ in 2023) and there has
been an 40% decrease in tonnes of waste sent to landfill to 92 tonnes LA1 (154 tonnes in 2023).
There was a 6% decrease in waste recycled to 403 tonnes LA1 (427 tonnes in 2023).
Independent ESG ratings
We are proud to have maintained our top-tier ESG ratings.
Stakeholders
Ensuring and protecting value in 2024
Focus for 2025 and beyond
• Enhance reporting against the
requirements of IFRS S1 and S2 and the
Taskforce on Nature-related Financial
Disclosures.
• Integrate the metrics and targets of the
bank’s Transition Plan across business.
• Prioritise and scale sectoral glidepath
developments for high-emissions
portfolios.
• Monitor sustainability, climate and
ESG risk.
• Monitor the enablement of sustainable
development finance through our
purpose.
• Focus on the alignment and execution of
the ESG Tech Steerco initiatives with the
broader programme of work.
• Oversee client engagements to assist
with their transition journeys.
A comprehensive GSCRC Report is available online in our 2024 Governance Report on our group website at group.nedbank.co.za.
Board oversight – ensuring and protecting value
Group Sustainability and Climate Resilience Committee (GSCRC)
Brian Dames, Chair
‘Nedbank’s clients are impacted by the inescapable impacts of climate
change. As our clients adapt to these changes, our commitment to
supporting them on this journey is guided by our approach to protecting
nature and mitigating social and environmental risks.’
Top 10 risks
Clients
Employees
Regulators
Society
Shareholders
3 Credit
2 Business
7 Climate
10 Capital
1 Strategic execution
• Supported the development of an ISSB IFRS S1
and S2 standards adoption roadmap to begin
aligning our sustainability and climate reporting
with these standards.
• Oversaw the adoption of the Nature Position
Statement and the Nature-related Financial
Disclosures as the basis of reporting.
• Oversaw the adoption of fossil fuel (upstream
coal, oil and gas) and power generation
glidepaths.
• Added a prohibition of lending towards activities
that may negatively impact biodiversity
resources in protected areas or critical habitat
or conservation areas.
• Oversaw the central coordination of
sustainability; environmental, social and
governance (ESG); and climate-related
functions, led by the Group Executive:
Group Strategy.
• Oversaw the Purpose Programme of Work
as the approved construct to institutionalise
purpose fulfilment across the organisation.
Nedbank YES Youth attending the Induction Event in July 2023, Nedbank Sandton.
Read more about our
ESG ratings on page 22.
External limited assurance on selected sustainability information – refer to pages 99 and 100 for the
independent assurance practitioner’s Limited Assurance Report on selected key performance indicators.
LA1
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Integrated Report
2024
64
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our strategy continued
A culture shift that enables the evolving Nedbank
operating model, leveraging human-centred
leadership and inspiring our workforce.
Sustained performance of our workforce, which
can be achieved only through a focus on their
holistic well-being and a range of competitive
benefits that offers greater choice.
Digital transformation that is supported by a changed
operating model, organisational design and workforce
composition with the aim to drive efficiency, agility and
competitiveness.
A highly skilled, diverse and transformed workforce,
representative of society, which is key to remaining
competitive. We continue to focus on reskilling our
workforce for a new reality and creating a sense of
belonging for all.
Future-fit operating model and
workforce composition
Human-centred leadership that role-
models and enables The Nedbank Way
Access to an appropriately
skilled and diverse workforce
A thriving
workforce
Targeted workforce distribution model
(%)
90
10
Full-time on premise
and hybrid
2024
Optimal mix
Work from
home
12
88
Employee diversity
(%)
17
83
White
Black
38
62
Male
Female
Employee 'Great place to work' NPS
(%)
2024
2023
2022
2021
2020
17
19
22
20
18
Employee attrition
(%)
2024
2023
2022
2021
2020
7,1
9,3
10,6
9,2
8,0
Key human capital allocations and developments in 2024
We continue to offer attractive salaries and
benefits, with an average salary increase of 6,0%
in 2024.
A total of 2 313 employees participated in on-site
comprehensive health screenings (2023: 1 611),
which is significantly higher than the 2,6% sector
average. Approximately 98,5% of participating
employees indicated that the offering improved
their well-being.
Over 6 200 employees attended financial education
awareness workshops: 1 042 on-site sessions and
987 1-on-1 financial conversations
Transformation initiatives such as LGBTQ+ and our
women’s and disability forums added value through
various channels and activities.
We spent R1,0bn on learning and development
and continue to invest in talent hotspots such as
software engineering, data and quant analysis, as
well as risk management.
We continue to make progress on our diversity
profile, with an increasing focus on African talent.
We continued to make significant progress in our
leadership and culture transformation journey,
ensuring that we meet the evolving needs of our
workforce, clients, market and operating context.
We continued building on The Nedbank Way,
(our culture principles) through our CultureShift
sessions hosted by Nedbankers and expert speakers
to drive specific mindsets and behavioural shifts we
require. The CultureShift sessions in 2024 focused
on 3 culture principles: learn to grow, play to win, and
stronger together.
Our Pulse survey results remain favourably strong.
We achieved the highest response rate to date,
90%, in our September 2024 Pulse survey, which
demonstrates that employees find the surveys
worthwhile and shows the high levels of willingness
from our employees to share their feedback.
Our workforce composition continued to be
reshaped from a hierarchical pyramid structure
to a more diamond shape, influenced by
growth in specialist skills roles and fewer
administrative-based roles.
We adapted our work model to facilitate agility and
efficiency, but at the same time bring more people
back to the office to deepen collaboration.
High-demand skill hotspots
Wealth managers | Software engineers | Data
engineers | Quant analysts | Digital marketers |
Systems analysts | Credit managers | Compliance
officers | Risk managers | Business intelligence
analysts | Digital and design experts | Process
engineers
Read more about how we created and protected value for our employees on page 80, as well our Human Capital Review in our 2024 Society Report available at group.nedbank.co.za.
Our Human
Capital
Strategy
Our Human Capital Strategy serves as a crucial enabler of our overarching strategy, recognising employees as our most valuable asset and our
culture as a significant differentiator. Our primary focus remains on achieving 4 strategic outcomes.
Nedbank Group
Integrated Report
2024
65
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Despite our different roles and locations, we are all
Nedbankers. Teamwork is powerful. Collaboration is
essential, bridging silos across teams and countries,
making us stronger together.
The restructuring of RBB and Nedbank Wealth,
discussed on page 67, is a clear example of how
silos are being broken down to better serve our
clients and collaborate.
Stronger
together
Put
purpose
into
practice
A total of > 18 300 employees completed our
Climate 101 e-learning module and > 22 000
completed our Sustainability 101 training
programme.
Our purpose connects and unites us,
focuses our efforts, and defines our role
in society. It balances short-term profit
with long-term value and highlights our
commitment to a green economy and a
sustainable African future.
Our strategy continued
The Nedbank Way
The Nedbank Way articulates the culture we aim to
cultivate in order to realise our strategic objectives.
It aligns with our purpose, values, People Promise,
and leadership framework, serving as an employee
value proposition. It delineates the workforce
experience we aspire to create and provides
practical, actionable guidance for all our employees.
Our 7 culture principles are the following:
We drive diversity, equity, and inclusion in our engagement,
solutions, and care. Nedbankers feel a sense of belonging, showing
up authentically and respecting each other. DEI is part of our DNA,
not just policy. We support the marginalised and stand for what is
right, creating a safe environment for all voices.
We set ambitious goals, take calculated risks, and learn
from mistakes. We value speed and agility, resilience,
and human-centred leadership. Success is balanced
with people’s well-being, ensuring commercial success
and sustainability.
We value trust, ethics, and
integrity. We hold ourselves to
high standards, ensuring our
actions reflect our intent to be
money experts who do good.
We protect trust and do the
right thing for everyone.
We deliver value and build relationships with clients. This is
how we achieve success. Our clients are our priority; without
them, we don’t exist. We create value, care, connect, or build
strong relationships with them. We keep our promises and
delight clients every time.
Client
obsession
Different
is good
Learn to
grow
Do the
right thing
and do
things
right
Play to
win
A key initiative in 2024 was providing
ethics and human rights training to 11 838
employees (2023: 1 601).
The strategic reorganisation announced in Q1 2025
will support an organisational design more focused
on client centredness (page 67).
The progress we are making in shifting our African talent
representation, as discussed on page 80, is testament to this
culture principle.
We spent R1,0bn on learning and development of our
employees, and continue to invest in talent hotspots such
as software engineering, data and quant analysis, as well
as risk management.
At our annual leadership event, 300 of our top leaders
provided input that emerged as our new Transform
initiatives and growth vectors (page 59) that will assist
Nedbank to win and become more competitive.
We embrace change and the future’s potential. To stay ahead, we
must continuously learn, adapt, and evolve both individually and as
an organisation. We challenge the status quo with a solution-focused
mindset, valuing curiosity, creativity, and critical thinking. This growth
mindset keeps us relevant and effective as Nedbank.
Nedbank Group
Integrated Report
2024
66
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Strategic reorganisation to unlock benefits
Strategic capital decisions and trade-offs
The Nedbank Board and Group Exco continue to demonstrate integrated thinking as they make strategic decisions regarding the group’s capitals and, as a result,
strategic trade-offs. In their deliberations they assess the availability and quality of the group’s capitals, as well as the potential impact on various stakeholders and
value creation, preservation and erosion outcomes over the short, medium and long term. The following examples highlight some recent decisions and actions:
We anticipate substantial benefits for all our
stakeholders:
Employees (human capital) will be more empowered
as we break down structural barriers to collaboration,
create increased focus and align incentives across
the organisation.
For clients (social and relationship capital), the
reorganisation represents a transformative leap
forward in how they will experience Nedbank. By
unifying our personal and juristic business segments
into distinct, focused clusters, we will be able to offer
more seamless and integrated banking experiences.
Clients will benefit from holistic financial solutions,
enhanced client service, more tailored business
solutions from BCB, greater access to financial
expertise in PPB, and increased investment and
innovation in product offerings enabled by efficiencies
and accelerated growth.
Our shareholders can expect improving financial
performance from Nedbank over time, underpinned
by delivering focused growth strategies, including
the unlock of cross-sell opportunities and increased
productivity. Streamlining our operations and creating
increased segment focus would contribute to our
achieving a long-term ROE of > 18%.
In Q2 2025 we will refine and implement effective
structures and finalise leadership and changes will
become effective from 1 July 2025, with PPB and BCB
also reported as the new clusters as part of the group’s
2025 interim results.
To sharpen execution of our strategy, compete more effectively
in the market, improve levels of cross-sell and unlock new growth
opportunities, we have embarked on an organisational restructure of
our Retail and Business Banking (RBB) and Nedbank Wealth Clusters
towards an organisational design (manufactured capital) more focused
on client-centredness. This led to the creation of Personal and Private
Banking (PPB), an individual- or non-juristic-focused cluster that will
provide a full suite of solutions to individual clients across the youth,
entry-level, mass, middle, affluent and high-net-worth segments. The
reorganisation will also see the creation of Business and Commercial
Banking (BCB), a juristic-focused cluster that will cover the spectrum
of small-and-medium-enterprise (SME), commercial and mid-corporate
clients, to unlock accelerated growth through new compelling value
propositions while elevating the cluster to Group Exco level.
As part of the reorganisation, Nedbank Insurance and Nedbank
Wealth Management will be incorporated into PPB as we seek to
unlock cross- and upsell opportunities into the existing Nedbank client
base, create scale, and leverage capability synergies between Wealth
Management and Private Clients to strengthen our value proposition
in the market.
Our Asset Management business will move into CIB and focus
on building out its product offerings while improving new
business origination.
CIB
NAR
Mid-corp
SME
Commercial
Banking
Asset
Management
Private and
Wealth
Wealth
Management
Insurance
Nedbank Wealth businesses moved into CIB and PPB.
Personal
Banking
Private
Clients
From 1 July 2025
BCB
(Business and Commercial Banking)
PPB
(Personal and Private Banking)
Nedbank Group
Private and
Wealth SA
Capital outcomes
Manufactured capital
Human capital
Financial capital
Social and relationship capital
Nedbank Group
Integrated Report
2024
67
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
In a volatile and difficult environment, we consider it appropriate to maintain
a CET1 ratio above our 11% to 12% target range, as evident in R12bn of
excess capital (financial capital) at the end of 2024.
We acknowledge that in many cases the immediate financial returns on
fossil-fuel-related lending are higher than those earned on renewable energy
lending. However, given the societal and environmental impacts related to this
lending, we are choosing to focus on growing our renewable energy book multiples
faster than other portfolios. Tilting our lending and financing activities to align with
our purpose and the SDGs, as well as reducing our financed and own operational
carbon emissions, can make a tangible difference to the environment and society.
With the ongoing increase in digital use of
financial solutions (manufactured capital),
there is a shift emerging from clients using
cash (as evident in ATM volumes), which is
expensive and risky, towards cheaper and
more efficient digital payments (manufactured
and intellectual capital).
Strategic capital decisions and trade-offs continued
As economic growth picks up, as
discussed on page 40, we aim to
allocate more capital to provide
loans to our clients (social capital),
particularly in the context of a large
infrastructure financing opportunity
and our SPT growth objectives
(page 61). We see this taking
preference over other capital actions
as it will ensure sustainable earnings
growth and support an increase in
ROE in the future.
We will also continue to explore
complementary bolt-on acquisitions,
should they arise (intellectual and
manufactured capital); pay dividends
at the top end of our dividend
payout ratio (57%), subject to board
approval; and consider buying back
shares at appropriate levels, which
would support per-share metrics
and ROE.
On 1 January 2026 the Basel III PCN
CcyB of 1% becomes effective,
meaning our minimum regulatory
CET1 ratio increases from 8,5% to
9,5%. This will reduce our surplus
capital but not impact our ratios or
capital position.
Do more of …
‘Creating positive impacts’ strategy
(page 62) focuses on providing SDF
(2024: R183bn) to our clients (social
capital) that support the SDGs (social,
natural and societal capitals). In 2024
SDG-related finance increased to 19%
of total gross loans and advances, up
from 13% in 2021 and well on the way
to the 20% ambition we have set. Our
track record, capabilities, expertise and
experience (intellectual capital) have
positioned us as the market leader in SA.
Do less harm …
At the same time, we are assisting
our clients to reduce their own carbon
footprint and, as a result, the negative
impact on the environment (natural
capital). In 2024 we became the
first South African bank to publish
thermal coal and oil and gas carbon
emission reduction glidepaths
(reduction targets to 2030) and we
plan to publish glidepaths for other
carbon-intensive portfolios in the
future. Careful consideration is given
to the social implications of these, as
we support a Just Transition in the
South African context (social capital).
Automation, innovation and client adoption
of digital solutions have also resulted in
enhanced client experiences (social and
relationship capital) as highlighted on
page 58. To accelerate the shift from cash
to digital, we have reduced pricing (page 81)
and identified payment modernisation as a
key strategic imperative, discussed in more
detail on page 57.
SDG-aligned exposures
(% of gross loans and advances)
Return on equity
(%)
2024
2023
2022
2021
2020
6,2
12,5
14,0
15,1
15,8
2025
ambition
2024
2023
2022
2021
13
20
14
16
19
CET1 capital adequacy ratio
(%)
2024
2023
2022
2021
2020
13,3
10,9
12,8
14,0
13,5
Trade-off between coal and
renewable energy finance
(Limits, % of gross loans and advances)
2024
2023
2022
2021
2020
0,3
0,3
0,3
0,3
0,7
4,3
4,3
4,3
6,0
5,1
Thermal coal Renewable energy
Active capital management
Using our financial expertise to do good
Trade-off between cash
and digital payments
Capital outcomes in 2024
Capital outcomes in 2024
2024
2023
2022
2021
2020
68
135
152
87
133
102
146
116
150
129
Digital
Cash
Digital transactional and ATM
withdrawal volumes
(Million)
Manufactured capital
(cash handling and ATMs)
Manufactured capital (digital solutions)
Intellectual capital (IT skills)
Social and relationship capital (client
experiences)
Financial capital (efficiencies)
Capital outcomes in 2024
Financial capital
(capital and profit retention, dividends and share buybacks)
Social and relationship capital (client support)
Intellectual capital (acquisitions)
Manufactured capital (acquisitions)
Financial capital
Social and relationship capital (client and societal support)
Natural capital (environmental benefit)
Nedbank Group
Integrated Report
2024
68
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Key performance indicators: Strategy
Link to
remuneration
Outlook
Assurance
Strategic value unlocks
Value drivers
yoy
change
2024
2023
2022
2021
2020
2025
Medium term
Long term
Digital leadership (DX)
Percentage of digitally active retail clients
(% of total active retail clients)
Growth/Productivity
GCC
44
41
39
35
30
Increase
> 70
Increase
[MO] [LA1]
Digitally active clients (million)
Growth
GCC
3,1
2,9
2,6
2,3
2,1
Increase
Increase
Increase
[MO]
Digital sales (% of total sales)
Growth
GCC
64
55
53
32
28
Increase
Increase
> 75
[MO] [LA1]
Nedbank Business Hub adoption rate (%)
Growth
GCC
65
48
ND
ND
ND
Increase
Increase
increase
[MO]
Avo super app – registered clients (million)
Growth
GCC
2,8
2,5
2,0
0,7
0,2
Increase
Increase
Increase
[MO]
Managed Evolution completion (%)
Growth/Productivity
GCC
Materially
complete
95
91
85
78
Completed
[MO]
Data commercialisation and AI
Growth/Productivity
GCC and CPT
Over 50
use cases
KPIs to be
determined
[MO]
IT software development spend (Rbn)
Growth
GCC
1,8
1,3
1,3
1,6
1,9
1,6–1,9 pa
1,6–1,9 pa
[FS]
Use of cloud computing (%)
Productivity
GCC
51
45
24
ND
ND
Increase
Double from 2023
levels
Increase
[MO]
Market-leading client experiences (CX)
Brand value in SA (rank)
Growth
GCC
14
8
9
4
4
8
Improve ranking
Improve ranking
[IN – brand finance]
Consumer NPS ranking all clients (rank)
Growth
GCC and CPT
#1
n/a
n/a
#2
#2
#1 SA bank
#1 SA bank
#1 SA bank
[IN – Kantar; 2021–
2020: Consulta]
Consumer NPS ranking main-banked clients (rank)
Growth
GCC and CPT
#2
#1
#1
n/a
n/a
#1 SA bank
#1 SA bank
#1 SA bank
[IN – Kantar]
CIB client satisfaction score (%)
Growth
GCC
81
ND
ND
ND
ND
Above the global
benchmark of 80%
Maintain top rating
Maintain top rating
[MO]
Nedbank Money app average rating (out of 5)
Growth
GCC
4,3
4,3
4,1
4,4
4,4
Maintain top rating
Maintain top rating
Maintain top rating
[IN – iOS and
Android app stores]
Systems availability uptime score (%)1
Productivity
GCC
99,8
99,6
99,3
99,3
99,6
> 99,1
> 99,1
> 99,1
[LA1]
1 The 2023 Integrated Report key performance indicators disclosed the systems availability uptime score (%) as 99,5 whereas it should have been 99,6.
Information sourced
from external sources,
eg independent surveys.
IN
FS
Financial information extracted
from the 2024 Nedbank
Group Limited Audited Annual
Financial Statements.
OV
Independent oversight by
regulatory bodies, including
SARB, FSCA and National
Financial Ombud Scheme.
LA
External limited assurance on selected
sustainability information [LA1] and
the application of the Amended
FSC and the group’s BBBEE status
[LA2]. Related opinions are available
at group.nedbank.co.za.
MO
Management and board
oversight through rigorous
internal reporting governed by
the group’s ERMF.
Assurance
indicators
Nedbank Group
Integrated Report
2024
69
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Key performance indicators: Strategy continued
Link to
remuneration
Outlook
Assurance
Strategic value unlocks
Value drivers
yoy
change
2024
2023
2022
2021
2020
2025
Medium term
Long term
Focusing on areas that create value (SPT)
Main-banked clients (million)
Growth
GCC and CPT
3,7
3,5
3,2
3,1
2,9
Increase
> 4
> 4
[MO] [LA1]
Retail cross-sell for new sales (times)
Growth
GCC
1,99
1,96
1,94
1,86
1,78
Increase
> 2,5
> 3,0
[MO]
Primary client wins (number)
Growth
GCC and CPT
20
20
25
35
37
> 20
> 20
> 20
[MO] [LA1]
Wholesale term loans market share (%)
Growth
GCC and CPT
16,2
15,5
16,4
16,8
18,1
Increase
> 18
> 18
[IN - SARB BA900]
Home loans market share (%)
Growth
GCC and CPT
14,7
14,4
14,1
14,2
14,4
Increase
> 15,5
> 16
[IN – SARB BA900]
Personal loans market share (%)
Growth
GCC and CPT
10,1
11,0
11,6
12,2
11,2
Increase
> 11
> 16
[IN – SARB BA900]
Credit card market share (%)
Growth
GCC and CPT
9,2
10,0
11,2
11,9
12,6
Increase
> 10
> 16
[IN – SARB BA900]
Household transactional deposit market share (%)
Growth
GCC and CPT
13,3
13,4
13,8
13,5
15,0
Increase
> 15
> 16
[IN – SARB BA900]
CET1 (%)
Risk and capital
management
GCC
13,3
13,5
14,0
12,8
10,9
Above board target
Above board target
11–12
[FS]
CLR (bps)
Risk and capital
management
GCC
87
109
89
83
161
Around midpoint
of 60–100
Around midpoint
of 60–100
60–100
[FS]
Growth vectors
TOM 2.0 benefits (Rbn)
Productivity
GCC
3,0
2,2
1,5
0,98
Launched
in 2021
Completed
[MO]
Cost-to-income ratio (%)
Productivity
GCC
55,9
53,9
56,5
57,7
58,1
Increase
54
< 50
[MO] [FS]
Insurance gross earned premium (Rbn)
Growth
GCC
4,0
3,8
3,6
3,6
3,4
Increase
Up by > 50%
Increase
[FS]
Insurance client penetration (%)
Growth
GCC
19
ND
ND
ND
ND
Increase
> 30%
Increase
[FS]
CIB Africa gross operating income (%)
Growth
GCC
15
ND
ND
ND
ND
Increase
> 20%
Increase
[FS]
Creating positive impacts (purpose and ESG)
Sustainable development financing (Rbn)
Growth
GCC and CPT
183
145
123
108
Not
disclosed
20% of gross loans
Increase beyond
20%
New ambition to be
set in 2025
[MO] [FS] [LA1]
Sustainable development financing (% of GLAA)
19
17
14
13
Not
disclosed
[MO] [FS]
Renewable energy lending (Rbn) – exposure
Growth
GCC and CPT
40
30
27,3
29,6
32,3
Increase
Increase strongly
Increase strongly
[MO] [FS]
Renewable energy lending (Rbn) – limits
Growth
GCC and CPT
57
46
37,2
36,5
37,2
R30bn pipeline
R30bn pipeline
Increase strongly
[MO] [FS]
Thermal coal funding (% of total GLAA) – limits
Risk and capital
management
GCC
0,2
0,3
0,3
0,3
0,7
< 0,5
< 0,5
< 0,5
[MO] [FS] [LA1]
Thermal coal financed emissions (mtCO2e)
Risk and capital
management
GCC and CPT
2,3
5,5
8,0
ND
ND
Reduce by 47%
by 2030
[MO]
Oil and gas financed emissions (mtCO2e)
Risk and capital
management
GCC and CPT
2,9
2,9
3,1
ND
ND
Reduce by 26%
by 2030
[MO]
Own operational carbon emissions (tCO2e)
Risk and capital
management
GCC and CPT
105 340
113 339
128 149
123 847
137 540
Reduce by 30%
from 2019 levels
Decline
Decline
[LA1]
BBBEE contributor status (level)
Growth
GCC and CPT
1
1
1
1
1
Level 1 – subject
to any FSC
amendments
[MO] [OV]
Information sourced
from external sources,
eg independent surveys.
IN
FS
Financial information extracted
from the 2024 Nedbank
Group Limited Audited Annual
Financial Statements.
OV
Independent oversight by
regulatory bodies, including
SARB, FSCA and National
Financial Ombud Scheme.
LA
External limited assurance on selected
sustainability information [LA1] and
the application of the Amended
FSC and the group’s BBBEE status
[LA2]. Related opinions are available
at group.nedbank.co.za.
MO
Management and board
oversight through rigorous
internal reporting governed by
the group’s ERMF.
Assurance
indicators
Nedbank Group
Integrated Report
2024
70
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Delivering, measuring and
rewarding value creation
Assessment of value creation, protection, and erosion for stakeholders in 2024 and how
remuneration outcomes are aligned with our strategy, targets and performance.
Nedbank Group
Integrated Report
2024
71
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Reflections from our Chief Financial Officer
The operating environment in 2024 was difficult and volatile, although we did
see some improvement in the second half of the year. It was the particularly slow
GDP growth and muted demand for credit that impacted our numbers most.
According to SARB BA900 data this phenomenon was sectorwide.
Mike Davis, Chief Financial Officer
Mike discussed the
group’s financial
performance at
our 2024 results
presentation.
Negative environmental impacts offset by good strategic delivery
A peaceful and fair election outcome and the prompt formation
of a GNU resulted in cautious optimism in financial markets. As
the environment gradually improved into Q4, inflation declined,
interest rates decreased, and business confidence increased.
We’ve made good strides in implementing and executing our
strategy, as discussed on pages 52 to 66, and this supported our
financial performance. We unlocked revenue and cost benefits
from our modern technology platform and gained market share
in term loans, home loans, vehicle finance, and retail deposits,
while increasing main-banked clients, improving cross-sell, and
growing SDF faster than average loans and advances.
As a result, we delivered an improved financial performance
in 2024 as diluted HEPS increased by 11% and our ROE
strengthened to 15,8%. HE growth of 8% was supported by
strong double-digit NIR growth, lower impairments and targeted
expense management.
H1
H2
H1
H2
2024
Global geopolitical
environment
SA household
credit growth
Technology/Digital
(DX)
SA political and
social environment
SA corporate
confidence/credit
growth
Cross-sell, main-
banked client gains/
market share (SPT)
SA economic
activity
Currency (rand)
Client experiences
SA inflation
Competition
Efficient execution/
productivity
SA interest rates
Regulation
Creating positive
impacts
Operating environment
Strategic delivery
Nedbank Group
Integrated Report
2024
72
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Value creation for shareholders
The key drivers of value creation for our shareholders
showed positive momentum in 2024.
• The Nedbank share price increased by 30%, ahead of
the 17% increase of the SA Banks Index.
• Our ROE strengthened to 15,8%, now sustainably above
our estimated cost of equity of 15,0%.
• NAV per share increased by 4%, absorbing R1,8bn
foreign currency translation reserve losses.
• The total dividend per share for the year increased by
10%, following earnings growth and strong capital and
liquidity positions.
As we progress
towards our medium-
and long-term
targets, discussed
in more detail on
page 52, we expect
our price-to-book
ratio to improve further (December 2014: 1,2 times).
Fortress balance sheet
We retained a fortress balance sheet, evidenced in our
strong capital, liquidity and coverage ratios.
• Capital – CET1 and tier 1 capital ratios of 13,3% and
15,1% were well above the SARB minimum requirements
and the group’s board-approved target ranges.
• Liquidity – The average liquidity coverage ratio (LCR)
of 135% for Q4 2024 and the net stable funding
ratio (NSFR) of 116% were both well above the 100%
regulatory minimum.
• Coverage – Our total expected credit loss (ECL)
coverage ended the year at 3,32%, highlighting prudent
levels of provisioning.
Read more about how we think about managing our capital on page 68.
Return on equity
(%)
Headline earnings
(Rm)
NAV per share
(Cents)
NII
(Rm)
Return on
shareholders’ capital
Book value of
Nedbank Group
Dividend per share
(Cents)
NIR
(Rm)
CET1 ratio
(%)
CLR
(Bps)
Dividends paid to
shareholders
Indication of the strength
of our balance sheet
based on our own capital
2024
2023
2022
2021
2020
6,2
12,5
14,1
15,1
15,8
2024
2023
2022
2021
2020
5 440
11 689
14 061
15 650
16 934
2024
2023
2022
2021
2020
30 081
32 500
36 277
41 470
41 806
2024
2023
2022
2021
2020
24 140
24 889
26 171
27 709
30 412
2024
2023
2022
2021
2020
161
83
89
109
87
2024
2023
2022
2021
2020
18 391
20 493
21 533
23 192
24 039
2024
2023
2022
2021
2020
0
119
1 649
1 893
2 075
2024
2023
2022
2021
2020
10,9
12,8
14,0
13,5
13,3
Profits we
generate
Difference between interest
paid to depositors and interest
received from borrowers
Revenue from providing
banking services, trading,
insurance, etc
Bad debt charge on the
loans we provided
An improved financial performance
The 8% increase in headline earnings (HE) to R16,9bn
was supported by strong non-interest income
and revenue (NIR) growth, lower impairments and
targeted expense management, partially offset by
slow balance sheet and resulting net interest income
(NII) growth.
• NII increased by 1% as growth in average interest-
earning banking assets (AIEBA) of 5% was offset
by a 16 bps reduction in the net interest margin
(NIM) to 405 bps.
• NIR increased by 10%, underpinned by strong
growth in commission and fees, solid growth
across trading income and insurance income,
as well as the 7-month benefit from the Eqstra
acquisition that was not in the 2023 base.
• Associate income decreased by 11%, reflecting in
part the impact of the non-repeat of the unwind of
an ETI provision in 2023.
• The impairment charge decreased by 17%, with
the group’s CLR decreasing to 87 bps, primarily
as a result of an improving macroeconomic
environment, credit policy interventions
and diligent management actions around
collections and origination efforts in RBB and the
resolution of large single-name counters in the
wholesale portfolio.
• Expenses increased by 8%, reflecting the impacts
of higher salary-related costs, higher short-term
incentive charges, increased communication and
travel costs, ongoing investment in technology
and digital solutions, as well as the acquisition
of Eqstra.
Headline
earnings
8%
NIR
10%
Impairments
17%
Dividend
per share
10%
Share
price
30%
Reflections from our Chief Financial Officer continued
Nedbank Group
Integrated Report
2024
73
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Statement of comprehensive income
Rm
Change
%
2024
2023
Net interest income
1
41 806
41 470
Non-interest income and
revenue
10
30 412
27 709
Share of gains of
associate companies
(11)
1 290
1 443
Total income
4
73 508
70 622
Impairments charge on
financial instruments
(16)
(7 997)
(9 605)
Net income
7
65 511
61 017
Total operating expenses
8
(41 074)
(38 059)
Indirect taxation
(4)
(1 084)
(1 129)
Headline profit before
direct taxation
7
23 353
21 829
Direct taxation
7
(4 781)
(4 484)
Non-controlling interest
(3)
(1 638)
(1 695)
Headline earnings
8
16 934
15 650
Diluted headline earnings
per share (cents)
11
3 538
3 199
Dividend declared per
share (cents)
8
1 104
1 893
Dividend cover (times)
1,75
1,75
2025 outlook (at 4 March 2025)*
Net interest income
Key drivers: NII increased by 1%, supported by 5% growth in AIEBA to R1 033bn
but offset by a 16 bps reduction in NIM to 4,05%. The increase in AIEBA was
underpinned by 5% growth in average RBB banking loans and advances and
3% growth in average CIB banking loans and advances. The NIM decrease was
driven primarily by a negative endowment mix impact due to net capital and
current account/savings account (CASA) balances growing slower than AIEBA
(-8 bps), asset pricing pressure (-6 bps) due to competition for good-quality
assets and liability pricing pressure (-5 bps).
NII is expected to grow by around mid-single digits, driven
by stronger advances growth, particularly in CIB. The
group’s NIM is expected to decline as a result of asset mix
changes (wholesale assets growing faster than retail assets),
competitive pricing for good-quality assets and the impact of
lower interest rates (endowment, although less than originally
expected given a shallower interest rate cycle).
Non-interest revenue
Key drivers: NIR increased by 10%, underpinned by strong growth in commission
and fees (+10%), solid growth across trading income and fair value (+11%)
and insurance income (+9%), as well as the 7-month benefit from the Eqstra
acquisition (R863m) that was not in the 2023 base. The increase in commission
and fees was supported by arranging fees in key growth sectors in CIB, higher
maintenance fees, and continued strong growth in value-added-services (VAS)
volumes and growth in card issuing and card acquiring volumes, offset by slower
transactional activity across most key lines in our retail business, notably in cash,
as clients increasingly opt for cashless alternatives.
NIR is expected to grow at upper single digits, driven by
higher levels of cross-sell, main-banked client gains, ongoing
deal flow in CIB and the residual impact of the Eqstra
acquisition.
Associate income
Key drivers: Associate income decreased by 11% to R1 290m and includes
associate income of R1 139m relating to our 21% shareholding in ETI for the
period. The decline reflects in part the base effect of the reversal in H1 2023 of
the R175m estimate provided by Nedbank Group for our share of the impact of
the Ghanaian sovereign debt restructure programme.
Associate income is expected to increase on the 2024 base
(excluding any potential merger-and-acquisition-related
activity).
Impairments charge on loans and advances
Key drivers: The 17% decrease in the impairment charge was primarily the result
of an improving macroeconomic environment, the resolution of large counters
in the wholesale portfolio, credit policy intervention and diligent management
actions around collections and origination efforts in RBB. The group’s CLR
declined from 109 bps to 87 bps and moved back to within the TTC target range
of 60 bps to 100 bps.
CLR for the full year is expected to be around the midpoint
of the group’s target range.
Total operating expenses
Key drivers: Expenses increased by 8%, reflecting the impacts of higher salary-
related costs (+9%), higher short-term incentive charges (+12%), increased
communication and travel costs (+44%), ongoing investment in technology and
digital solutions (+6%) and the acquisition of Eqstra (R683m).
Expenses are expected to grow at mid-to-upper single digits
given the residual impact of the Eqstra acquisition, while
we maintain our focus on managing costs in a more difficult
environment.
Dividends
Key drivers: The HEPS increase of 10%, along with balance sheet metrics that
all remained very strong, supported the declaration of 2 dividends (interim and
final) for the year that in total were 10% higher, at a payout ratio of 57%.
Dividend payments, subject to board approval, are expected
to be at the top end of our payout ratio of 57%.
* The guidance provided and targets set exclude the impact of any potential merger-and-acquisition-related corporate action.
Reflections from our Chief Financial Officer continued
Nedbank Group
Integrated Report
2024
74
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
2025 outlook (at 7 March 2025)
Banking loans and advances
Key drivers: Gross banking loans and advances increased by 7% due to strong
growth in CIB (+10%), particularly in Q4 2024, and moderate growth in RBB
(+4%) as consumer finances remain strained.
Banking loans and advances growth of mid-to-
upper single digits, with stronger growth from
CIB and moderate growth in retail.
Amounts owed to depositors
Key drivers: Deposits increased by 8% to R1,2tn, driven by clients placing cash
into higher-interest-rate, longer-term products, leveraging our competitive
offerings.
Deposit growth ahead of loan growth.
Liquidity and funding
We remain well funded, with a strong liquidity position, underpinned by a
significant quantum of long-term funding through client term and fixed deposits,
money market instruments and instruments issued in the capital markets; an
appropriately sized surplus liquid asset buffer designed to absorb seasonal,
cyclical and systemic volatility; a strong loan-to-deposit ratio; and low reliance on
interbank and foreign currency funding.
CET1 ratio
Key drivers: The change in the CET 1 ratio reflects the payment of dividends,
changes in share-based payment reserves and increased risk-weighted assets
(RWAs) due to credit, equity, operational and other risks.
CET1 capital ratio to remain above the top
end of the board-approved target range of
11% to 12%.
Financial position
Rm
Change
%
2024
2023
Cash and securities
9
353 636
324 380
Loans and advances
8
962 184
891 619
Other assets
8
102 717
95 409
Total assets
8
1 418 537
1 311 408
Total equity attributable to ordinary
equity holders
4
112 264
107 749
Non-controlling interest
21
13 822
11 462
Amounts owed to depositors
8
1 174 691
1 087 645
Provisions and other liabilities
20
67 979
56 775
Long-term debt instruments
4
49 781
47 777
8
1 418 537
1 311 408
Assets under management
6
473 675
448 467
Key ratios (%)
Return on equity
15,8
15,1
Return on assets
1,24
1,21
NIM
4,05
4,21
CLR
0,87
1,09
Cost-to-income ratio
55,9
53,9
CET 1 ratio
13,3
13,5
RBB gross banking advances
(Rbn)
CIB gross banking advances
(Rbn)
Assets under management
(Rbn)
Reflections from our Chief Financial Officer continued
2024
2023
2022
2021
2020
Local
International
375
424
393
448
474
3%
10%
2024
2023
2022
2021
2020
446
406
406
391
403
361
352
382
380
417
Average
Actual
5%
4%
2024
2023
2022
2021
2020
348
366
391
439
459
375
400
430
453
473
Average
Actual
We hosted 50 CAs and quantitative analysts for vacation work.
Nedbank Group
Integrated Report
2024
75
Integrated
reporting
An overview of
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Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
LT
MT
2024
2023
17%
target
>
18%
target
>
15,1
15,8
Pathway to our medium- and long-term ROEs
To achieve an ROE of > 17% in the medium term and > 18% in the long term, it is expected that revenue growth improves on the
back of a more supportive macroeconomic environment as discussed on page 40, and strategy execution enables stronger
NII and NIR growth. We need to continue to manage expenses wisely, balancing investment in the business with further
optimisation opportunities. Along with stronger revenue growth this will deliver a lower cost-to-income (CIR) ratio over time.
Our CLR will need to be around or even below the middle of our target range.
To achieve our targets (page 6) and ultimately create value
for shareholders, we continuously make decisions around
our capitals.
Financial capital – We will continue to optimise returns (ROE)
by ensuring sustainable earnings growth over the short,
medium and long term, while retaining an active and flexible
capital management approach. In the short term we prefer
to operate at CET1 levels above our target range and allocate
capital to growth initiatives that support our clients’ needs.
Growing transactional deposits and client primacy will receive
heightened focus.
Human capital – We will continue to make key trade-offs
between ongoing productivity as well as investing into skills for
the future, incentivising and rewarding our employees (R22,6bn
in 2024), and employee development (R1bn annual skills
development spend) to name a few.
Intellectual capital – We will continue to invest in the Nedbank
brand and marketing initiatives but also expect to extract
benefits from our martech strategy. Portfolio diversification
into new markets and segments will require initial investment,
resulting in new revenue sources over time.
Manufactured capital – As we continue to optimise our real
estate portfolio and physical assets, we are maintaining
consistent investment into new technologies and our digital
capabilities, supported by an annual IT cash flow spend of
R1,6bn to R1,9bn.
Social and relationship capital – We will maintain a focus on
building relationships with our clients and all other stakeholders.
Natural capital – Our focus on doing good through SDF and
fulfilling our purpose will accelerate while we progress in
lowering the carbon emissions of our own operations and our
financing activities.
Capital allocation decisions
Case in point
Stronger NII growth,
supported by good
advances growth, will be
achieved as we unlock
renewable energy and
other infrastructure
opportunities in CIB, and
deliver on our SPT 2.0
objectives (page 61) across
key deposit and advances
categories. NIM is expected
to decline slightly, primarily
because of a change in
the assets mix, while
endowment income will be
less negatively impacted
as interest rates decline
to only 10,75%, less than
expected.
CLR is expected to
improve to around
the midpoint of our
TTC target range
of 60 bps to 100
bps, and even lower
should wholesale and
secured lending grow
faster (lower cost of
risk) than higher-risk
products.
Strong NIR growth is
expected to be driven
by ongoing main-
banked client gains,
higher levels of cross-
sell, good deal flow
linked to advances
growth in CIB, the
unlock of the large
insurance income
opportunity across
our retail client base,
and other initiatives as
discussed as part of
the growth vectors on
page 59.
Further expense
optimisation will be
realised as we leverage
our technology
investment (page 56),
with our CIR declining
into the medium and
long term to 54% and
50%, respectively.
An active and flexible
approach to capital
management, as
discussed on page 68
(trade-offs), will
support growth and
dividend payouts
at the top end of
the group’s payout
ratio (57%), subject
to board approval,
and further capital
optimisation will be
considered, if and
when appropriate. In
the longer term we
expect our CET1 to get
back into the 11% to
12% range.
4
5
3
2
1
Pathway to higher ROEs
(%)
Reflections from our Chief Financial Officer continued
1
Stronger
NII
growth
3
Strong
NIR
growth
4
Manage
expense
growth for
+ Jaws
2
Lower
cost of
risk
5
Active
capital
management
Nedbank Group
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2024
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An overview of
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Ensuring value creation
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Sustainable value creation
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Delivering, measuring and
rewarding value creation
Supplementary
information
Audit firm rotation
Following a comprehensive tender process,
KPMG was appointed in Q4 2023 as joint
external auditors of Nedbank Group for the
financial year ending 31 December 2024,
together with Ernest & Young. As 2024 was
the first year of the new joint audit of KPMG
and Ernst & Young, additional time was
spent to onboard KPMG effectively and to
consider the audit work split within the group.
GAC recommended to shareholders the
appointment of Ernst & Young and KPMG for
the 2025 financial year.
CE and CFO internal financial
control responsibility
Nedbank continues to maintain a strong risk
culture and has implemented adequate and
effective internal financial controls to confirm
the integrity and reliability of the bank and
group financial statements. These controls
safeguard, verify and maintain accountability
of our assets; are based on established
policies and procedures; and are implemented
by trained and skilled employees, whose
duties are duly segregated. As a result, Jason
Quinn (CE) and I (Mike Davis) as CFO have
made the appropriate attestation required by
the JSE.
Appreciation
I would like to extend my sincere appreciation
to my fellow boardmembers and the Group
Exco for their steadfast support and guidance
throughout another demanding year. I
especially thank the dedicated finance, risk,
balance sheet management, and strategy
teams across the group for completing our
2024 reporting and maintaining our high
standards of professionalism, as evidenced
by the numerous reporting awards Nedbank
received in 2024 and being announced CFO of
the year in SA.
Reflections from our Chief Financial Officer continued
Access our current and historic disclosures here.
Ensuring and protecting value in 2024
• Monitored the transition and onboarding of the newly appointed
audit firm, KPMG Inc, as well as the finalisation of the 2023 year-
end with the previous joint auditors Deloitte & Touche.
• Considered the control deficiencies identified via the group’s
3 lines of defence (first line via cluster finance and risk functions,
second line via Group Finance and Group Risk and third line
via GIA) and the appropriateness of management’s response,
including remediation, reliance on compensating controls and
additional review procedures.
• Reviewed the findings and recommendations of the
external auditors, confirming that there were no material
unresolved findings.
• Ensured that the appointment and independence of the
external auditors complied with the Companies Act and all other
regulatory and legal requirements. This included receiving from
the external auditors all decision letters and explanations issued
by the Independent Regulatory Board for Auditors (IRBA) or
any other regulator, and any summaries relating to monitoring
procedures or deficiencies (if applicable) issued by the external
auditors to confirm their and designated individual partners’
suitability for appointment.
Focus for 2025 and beyond
• Ensure that the group’s financial
systems, processes and
controls operate effectively,
are commensurate with the
group’s complexity, and respond
to changes in the environment
and industry.
• Continue to monitor the
implementation of the JSE
Listings Requirements, including
the effectiveness of internal
financial controls.
• Monitor the financial reporting
system upgrade during the
2025–2027 implementation plan.
• Ensure, through the Chairperson’s
College of Audit Committee
Chairs, that there is meaningful
engagement between the GAC
chair and the chair of subsidiary
audit committees.
A comprehensive DAC Report is available online in our 2024 Governance Report on our website at group.nedbank.co.za.
Board oversight – ensuring and protecting value
Group Audit Committee (GAC)
Stanley Subramoney, Chair
‘GAC continued to focus on enhancing the integrity of financial and corporate
reporting through formal audit committee meetings, the internal financial
control environment, the integrated reporting process, and regular
engagements with the Nedbank management team, the Chief Internal Auditor
and external auditors. GAC also oversaw the successful transition and
onboarding of the newly appointed audit firm, KPMG Inc.’
Stakeholders
Top 10 risks
Regulators
Shareholders
6 People
3 Credit
2 Business
10 Capital
5 Operational
Additionally, I am grateful to all our
shareholders, and the broader investment
community, both locally and internationally,
for their continued investment and interest
in Nedbank Group. I look forward to further
engagements in 2025.
Mike Davis
Chief Financial Officer
Nedbank Group
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2024
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Ensuring value creation
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Sustainable value creation
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Supplementary
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Value for stakeholders
Banks are essential in facilitating economic activity and supporting sustainable growth and development by directing capital where it is needed.
The success of a bank depends on its ability to deliver value to society and its stakeholders. Therefore, it is important for banks to understand their
role in society and how they can contribute to societal improvement.
A strong and profitable business enables
continued investment in our employees and
operations, which in turn creates value for our
clients, shareholders, and society at large.
Nedbank Group
Our employees are our
greatest asset and key to making
Nedbank a great place to bank
and work. Motivated and skilled
employees, together with efficient,
innovative, and value-creating
solutions, services, and operations,
offer value to our clients. Employees,
as part of society, contribute
materially to the communities
where they live and work.
Our clients are our largest source of
deposits, which enables us to fund
lending activities. Gaining more
clients and deepening existing
relationships result in greater
revenue growth, while responsible
banking practices and world-class
risk management mitigate value
erosion.
Employees
Clients
Value is created and preserved through:
• employment opportunities in the countries in which
we operate;
• rewarding employees for the value they add;
• encouraging our employees to embrace technological
changes, further their careers, and improve our
services and products; and
• contributing to the transformation towards a more
inclusive society through DEI.
Value is created and preserved through:
• safeguarding deposits, investments, and wealth while
growing returns;
• providing credit in a responsible manner that enables
wealth creation, sustainable development and job
creation aligned with the SDGs and the drive to
transition to a net-zero economy;
• facilitating transactions that are the backbone of
economic value exchange;
• enabling financial inclusion by offering unbanked
clients access to affordable products;
• providing financial education and advice; and
• developing innovative solutions that meet our clients’
specific needs.
We embrace our role in society as an active
contributor to building a thriving society and can do
this only with engaged communities that have the
same values.
Society
Regulation reduces systemic risk and promotes
the healthy functioning of an economy in which
all stakeholders prosper. Good governance and
compliance support client and investor confidence in
Nedbank. We have a responsibility to comply fully with
the regulations of the countries in which we operate.
Regulators
Value is created and preserved through:
• embracing responsible banking practices and regulatory
compliance, which enable a safe and stable banking system
and a thriving society.
The tax we pay and investments in government
and public sector bonds are imperative for the
economic and social development of the countries
in which we operate.
Government
Value is created and preserved through:
• contributing meaningfully to government budgets through our
own corporate taxes and employees paying personal taxes;
• investing in government and public sector bonds as required by
prudential regulation, thereby partially supporting the funding
needs of government; and
• participating in public-private partnerships to leverage the
strengths of corporate SA to address SA’s Just Transition,
including investment needed in energy and infrastructure.
The financial capital we source from our equity and
debt investors and our retained earnings enable
business continuity and growth, including strategic
investments.
Shareholders
Value is created and preserved through:
• increasing NAV, returns, dividends and share price;
• maintaining a strong balance sheet to support growth and
protect against downside risk;
• investing in and growing our client franchises and employees
sustainably;
• following good ESG practices that ensure a sustainable
business for the long term; and
• operating within our risk appetite.
Value is created and preserved through:
• transforming economies, the environment and society
positively through our lending and investment activities that are
aligned with the SDGs;
• playing a meaningful role in the broader society as a procurer
and consumer of goods and services; and
• making a difference through our partnerships, and corporate
social investment activities.
Nedbank Group
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2024
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reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
2024
2023
2022
2021
2020
103
127
154
233
121
Government (taxes)4
(Rm)
2024
2023
2022
2021
2020
8 722
11 385
13 368
15 382
11 289
Socioeconomic development spend
(Rm)
Other expenditure3
(Rm)
2024
2023
2022
2021
2020
11 118
11 545
12 640
13 775
11 628
24,9%
14,9%
15,3%
21,0%
23,5%
0,4%
R65 376m
Our solid financial performance in
2024 enabled us to create value
for employees (remuneration),
clients (investments in the
Nedbank franchise to support
their needs), shareholders
(dividends), regulators (tax paid)
and society (socioeconomic
spend) as well as retain profits
to support future growth (value
for Nedbank).
¹ Includes non-interest income and revenue, impairments
charge on non-financial instruments and sundry gains or
losses items, and share of profits of associate companies.
2 Value is allocated to shareholders in respect of cash
dividends (excluding the underlying value of capitalisation
shares awarded) and income attributable to non-controlling
shareholders.
3 Includes expenses relating to computer processing,
communication and travel, occupation and accommodation,
marketing and public relations, as well as fees and insurances.
4 Includes direct and indirect tax, payroll tax, dividends
withholding tax, and other taxes.
How
value
is allocated
Other
Income1
R28 180m
Other
income1
R31 567m
Impairment
losses on loans
and advances
(R7 997m)
Value
added
R65 376m
Net interest
income
R41 806m
2024
2023
2022
2021
2020
3 696
7 479
9 008
9 985
2 268
Dividends paid to shareholders2
(Rm)
2024
2023
2022
2021
2020
2 952
11 727
9 454
9 749
10 480
Retention for growth
(Rm)
Payments to employees
(Rm)
2024
2023
2022
2021
2020
12 865
14 247
15 996
16 252
15 175
Value for stakeholders continued
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2024
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An overview of
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Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Value for stakeholders continued
Employees –
investing in our
employees
Employee engagement levels remained high, with
employees’ participation rate at 90% in our 2024
Workforce Insights Pulse survey. Our ‘Great place to work’
NPS remained positive at 18 (2023 NPS: 20). In 2024
we introduced a new employee engagement measure to
deepen our understanding of how Nedbankers experience
their work. The inaugural 2024 score of 79% was positive,
with only a 1% increase required to be considered highly
engaged.
Highest scores from our employee survey:
• Service excellence for our clients.
• I am immersed in my work.
• I am enthusiastic about the work I do.
• At work, I am treated with respect
• We value diverse backgrounds, talents and
perspectives.
• I would recommend Nedbank as a great place to bank.
We paid employee salaries and benefits of R22,6bn
(2023: R21,1bn) and concluded annual salary increases
with our bargaining-unit employees of 7%, higher than the
non-bargaining-unit employee increases of 5%. In 2025
bargaining-unit increases have been concluded at 6%,
the minimum annual pay will increase by 7% and non-
bargaining-unit increases have been concluded at 5%.
Value creation, preservation and erosion in 2024
Our hybrid work model saw 88% of our employees come
to work in the office on a permanent or regular basis as
we seek to enhance collaboration, embed our culture
principles to foster meaningful connection and drive
higher levels of performance.
Our focus on DEI remains top of mind and a key imperative
to ensure that we remain relevant in a transforming
society. We have a diverse talent complement, with 83%
of total employees being black (African, Coloured or
Indian), this improving from 82% in 2023, supported by
strong improvements in the representation of African
talent at both senior- and middle-management levels by
4%, to 30% and 42% respectively. Total female employee
representation remained at 62%.
Skills development spend in 2024 was R1,0bn
(2023: R1,2bn) as we continue to optimise our leadership
and skills development initiatives for enhanced impact and
efficiency. This is evident in our BBEEE skills development
points increased from 19,9 to 20,3.
We supported our employees in managing their mental,
physical, and financial well-being, including health-
screening days (Bank on Your Well-being) across all
campus sites attended by more than 2 300 employees.
Our employee attrition rate declined to 8,0% in 2024
(2023: 9,2%), now firmly below the industry benchmark
of 11%.
During the year 33 employees were regrettably
retrenched due to necessary operational changes, a more
than 50% decline on 2023. We continue to focus on
timeous reskilling and upskilling of impacted employees to
transition them to future internal or external roles.
Value creation
Value preservation
Value erosion
18
‘Great place
to work’ NPS
83%
AIC
representation
R1,0bn
skills development
spend
8,0%
employee
attrition
33
employees
retrenched
R22,6bn
employee salaries
and benefits paid
Key performance indicators
The Nedbank Future Me programme
In 2024 we introduced the Future Me programme, designed to empower
employees to make informed career choices in a changing world. The
initiative encourages employees to develop in their current roles or
prepare for new ones, including starting a side hustle. Future Me offers
virtual workshops, learning journeys, toolkits and access to resources
and support for both employees and line managers.
The programme empowers line managers to facilitate development
conversations, provide guidance and support employees’ growth.
Beyond career guidance, the entrepreneurial component of the
programme provides guidance on starting, declaring, managing, and
growing side hustles, emphasising practical skills and guidelines
delivered by internal subject matter experts and an accredited business
incubator.
Our Human Capital Strategy aims to deliver a high-performing and
future-ready workforce. Future Me supports this by helping employees
take ownership of their personal development and aligning with The
Nedbank Way culture to promote personal purpose (Put Purpose into
Practice) and professional growth (Learn To Grow) within and beyond
the organisation. Our approach to proactive reskilling, upskilling and
redeployment led to a significant decrease in retrenchments in 2024
(33 compared with 75 in 2023). The number of employees who entered
the Organisational Redeployment Pool (ORP) due to structural changes
dropped sharply to 144, from 605 in 2023.
Case in point
Find out more about a career at Nedbank here.
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2024
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Integrated
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An overview of
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Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Case in point
Clients –
delivering market-leading
client experiences
Client satisfaction levels remained at market-leading
levels, evident in the following metrics:
• Nedbank’s NPS ranked #1 among the large South
African banks in 2024 (Kantar survey) when surveying
all clients. NPS on main-banked clients was joint second
highest.
• Small Business Services and Private Clients business
segments recorded their highest levels of NPS in more
than 8 years.
• In NAR, Nedbank was the market leader in client
experience (NPS) in Mozambique and the leader in
brand sentiment scores in Eswatini, Lesotho and
Mozambique.
• Our client satisfaction score in CIB was 81% in 2024,
above the global benchmark of 80%.
Our clients’ access to banking improved as they continue
to shift to digital channels. Digitally active retail users
increased by 7% to 3,1 million (up by 48% since 2020).
We supported clients by advancing R367bn (2023:
R332bn) in new loans to enable them to finance their
homes, vehicles and education, as well as grow their
businesses in support of the UN SDGs.
Value creation, preservation and erosion in 2024
Nedgroup Investments saw an increase in client AUM of
6% to R474bn. The business is ranked the third-largest
offshore manager for the seventh year in a row, is the
eighth-largest South African manager according to
Q4 2024 ASISA stats and won the Best Flexible Allocation
Fund Award at the Morningstar Awards.
We safeguarded R1,2tn in deposits at competitive rates,
reflected in our market share gains in retail deposits.
During the year we implemented deposit insurance, which
covers > R100bn of client deposits.
Average bank fee increases were kept below inflation
and the launch of our MiGoals product suite assisted
Nedbank’s favourable ranking among peers in key
categories. PayShap usage has grown rapidly, with over
27 million PayShap payments having been made and
received by Nedbank clients by the end of 2024, up from
2,5 million in 2023. At the start of 2025 we reduced
PayShap fees for payments to ShapIDs to only R1 and zero
if the value of the transactions is below R100.
We received 71 255 retail client complaints in 2024
(2023: 70 860), which represent only 1,0% of our total
active retail client base.
Value creation
Value preservation
Value erosion
Leading the way in payments
At Nedbank, we recognise that real-time digital payments are what clients increasingly demand.
We also recognise the enormous potential of digitising small payments instead of using cash (which
has become very expensive to manage) for client security and convenience, and for the benefits of
added data that could support value-adding solutions. Our pricing strategy therefore follows suit in
being among the market leaders in our pricing on PayShap. For example, our MiGoals Account has a
monthly maintenance fee of only R7 and payments to a ShapID are only R1 per transaction (and zero
if the value is below R100).
Case in point
Top-tier
NPS rank among
South African
banks
R367bn
new loan payouts
to clients
R474bn
assets under
management
R1,2tn
deposits
safeguarded
0,5%
client
complaints
Below-
inflation
bank fee increases
Key performance indicators
Value for stakeholders continued
Powering 300 000 homes with clean energy
Multi billion-rand finance for Envusa
Energy will enable the delivery of
520 MW of wind and solar power,
which is enough to supply > 300 000
homes and reduce carbon emissions
by 1,5 million tonnes annually
(clean energy for Anglo American’s
operations).
Securing water access in Limpopo
R4,5bn loan will support a project
to transfer 75 million cubic metres
of water from the Crocodile River
to the Lephalale area in Limpopo.
The project will support local
communities as well as Eskom and
Exxaro by ensuring sufficient water
supply for people and businesses.
This will create jobs and boost the
local economy.
Advising on an innovative BBBEE transaction
By increasing Coronation Fund Managers’ black ownership to 51% we have
helped the company to better attract and retain black employees by further
aligning its interests with those of its shareholders. We have also enhanced
Coronation’s competitiveness and sustainability, while it simultaneously
benefits and uplifts a broad base of beneficiaries.
City of Cape Town infrastructure investment
A R3,5bn term funding facility
will contribute to the creation of
> 130 000 construction-related
jobs, upgrading of essential services,
and ensuring that 75% of the
planned R12bn for 2024/25 benefits
lower-income households.
Nedbank Group
Integrated Report
2024
81
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Shareholders –
delivering consistently
to our shareholders
Key financial drivers of shareholder value creation improved in
2024. DHEPS increased by 11% and ROE strengthened to 15,8%
above the group’s cost of equity of 15,0%, while NAV per share
increased by 4%. Looking forward, we seek to continue to improve
the group’s ROE towards our medium- and long-term targets
of greater than 17% and 18% respectively, underpinned by new
Transform initiatives.
The group’s dividend yield at 7,3% remains attractive, supported by
a 10% increase in dividend per share in 2024.
To enable the group to grow and protect against downside risk, we
continue to report strong capital and liquidity positions. Looking
forward, we have created flexibility in managing our capital base.
The Nedbank Group share increased by 30% in 2024,
outperforming the SA Banks Index, which increased by 17%.
Including dividends, Nedbank delivered an attractive total
shareholder return of 39%.
In acknowledgement of Nedbank’s leadership and ongoing progress
on ESG-related disclosures, our ESG ratings remain towards the top
end of global banks as shown on page 22.
The leadership transition from Mike Brown to Jason Quinn was
seamlessly executed.
We ensured world-class transparent, relevant and timeous
reporting as evidenced in various reporting awards and ongoing
positive shareholder feedback. In 2024 Nedbank’s investor relations
activities were rated #2 among South African large cap companies
in the Extel (institutional investor) Developed Europe and Emerging
EMEA Executive Team survey, following a top 2 rank in the Krutham
(Intellidex) Top Investor Relations 2022 and 2023 surveys.
All resolutions at our 57th AGM were passed, including those for
remuneration at above 90%.
Value creation, preservation and erosion in 2024
Value creation
Value preservation
Value erosion
1,2 times
price to book
ratio
7,3%
dividend yield
10%
full-year dividend
2 075 cents
4%
NAV per share
R24 039
AAA
MSCI ESG
rating
39%
total shareholder
return
Key performance indicators
Value for stakeholders continued
Foreign shareholding
(December, %)
Index-classified shareholding
(December, %)
2024
2023
2022
2021
2020
24,1
31,4
33,2
35,7
36,3
2024
2023
2022
2021
2020
28,4
21,1
26,5
26,5
28,4
Major shareholders/managers
% holding
2024
% holding
2023
Public Investment Corporation (SA)
14,8
14,8
Allan Gray (SA)
8,0
9,4
Coronation Fund Managers (SA)
5,2
4,9
BlackRock Incorporated (international)
4,7
4,5
Nedbank Group treasury shares
4,3
4,8
The Vanguard Group (international)
3,9
3,8
Old Mutual Life Assurance Company (SA)
3,9
3,8
Ninety One SA (SA)
3,7
3,4
Sanlam Investment Management (SA)
3,3
3,1
Lazard Asset Management (international)
2,9
2,7
Source: JP Morgan Cazenove and Vaco Ownership.
Relative 2024 share price performance
(100 at 1 January 2024)
Our top 10 shareholders
Our shareholding profile reflects a large and diversified group of long-term-oriented
shareholders, a strong foreign shareholder base and an ongoing increase in index-
classified shareholdings.
Nedbank Group website
50
75
100
125
150
175
Nedbank
Absa
FirstRand
Standard Bank
Jan
Dec
Capitec
On our newly
launched website
(group.nedbank.co.za)
you can find all the
information you need as
a debt or equity investor,
including current and
historic disclosures,
and the latest news and
contact information.
Click on the picture to
navigate there.
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Integrated Report
2024
82
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Competition in the SME market
The expansion of
new entrants in
the SME market
has heightened
conversations about
incumbent banks’
positioning and
strategies to counter
this risk. Nedbank
has built strong commercial and SME franchises over time, and
our planned reorganisation, which elevates these businesses to
Group Exco level, will enable us to become even more client-
focused and competitive. Download our presentation from the
RMB Morgan Stanley Banks Showcase by clicking on picture.
Value for stakeholders continued
GNU upside potential
The peaceful and fair SA election outcome
and swift formation of a GNU was well
received by financial markets as evident in
lower bond yields, stronger equity markets, a
stronger rand and improved spreads on credit
default swaps. Higher levels of GDP growth
are attainable should the GNU accelerate
structural reform and achieve meaningful fiscal
consolidation. In this context, Nedbank is well
positioned (90% of our business from SA) to benefit relatively more from an improving
SA macroeconomic environment than peers and the expected large infrastructure
finance opportunity given our leadership and experience in this area. The presentation
of our CFO, Mike Davis, on the topic ‘Capitalising on the GNU opportunity’ was voted
best presentation among listed banks at the 27th UBS Financial Services conference.
Download this presentation by clicking on the picture.
Strategic change
A key question from investors, following the
appointment of a new CE, was whether the group will
change its strategy. While many investors endorsed
the Nedbank strategy, we noted that the group will,
as part of our annual strategic review and business
planning process, evolve the strategy. This resulted
in the identification of various exciting Transform
initiatives as discussed on page 59. These initiatives
seek to unlock further value from our technology
investments, address scale issues in the retail bank,
leverage our strengths in CIB, diversify the group’s
portfolio and expand more deliberately into SADC
and East Africa, while we are finalising a strategic
review of our 21% investment in ETI.
Technology strategy
Technology and digital strategies of various banks and their
outcomes are top of mind for investors. In this context,
our ME technology build has been regarded as very
successful, delivering multiple benefits as we discuss on
pages 53 to 57. Our Chief Information Officer, Ray Naicker,
shared his
thoughts on this
and the future
as part of
the group’s
Transform
prospects
(page 59) in the
presentation.
CE succession
In anticipation
of Jason Quinn
joining Nedbank
as the new CE,
many investors
sought clarity
on the process
that the board
followed. This was
extensively covered in discussions and as part of our 11th ESG
roadshow, followed by overwhelming shareholder support of
Jason’s appointment at the group’s 2024 AGM (100% votes
of approval). Download our ESG roadshow presentation by
clicking on the picture.
ROE targets
The group’s ROE
improvement over the past
few years has been well
received and supported
Nedbank’s relative share
price outperformance. To
ensure further value creation,
investors continuously seek
to understand how higher ROEs will be obtained, particularly since
historic ROE targets were seen as a stretch. At the start of 2025 we
reset our medium- and long-term targets (page 6) given the negative
impact of a more difficult-than-expected macroeconomic environment
and slower-than-expected loan growth in particular. The path to higher
ROEs (equity story) is discussed in more detail on page 76.
Engaging with the investment community
We provide information on our financial performance, strategy, and progress on ESG matters to shareholders through detailed disclosures and an active investor
relations programme. Our management regularly meets with the investment community, while our board, through the Chairperson and Lead Independent Director,
engages on board matters and ESG-related topics. The following were key areas of discussion during our engagements in 2024:
Shareholders –
delivering consistently
to our shareholders continued
Nedbank Group
Integrated Report
2024
83
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Value for stakeholders continued
Regulators –
ensuring sustainable
banking with our regulators
During the year we paid R15bn in direct, indirect and employee taxes
to support the governments and societies where we operate, this
representing an increase of 14% on 2023 (SARS). In the 2024 PwC
Global Tax Transparency and Tax Sustainability Report, Nedbank
ranked #2 out of 872 companies across all the countries and industries
included in the review, and #1 out of 229 global companies in the
financial sector.
We continue to collaborate closely with the government, regulators,
and the Banking Association South Africa to ensure the safety and
soundness of the South African banking system. Additionally, we
remain well informed about international developments in this regard,
ensuring that our practices align with global standards and best
practices:
• Basel III reforms – With implementation starting mid-2025, the
impact on the capital holdings of the group is currently estimated
to emerge through 2026 to 2027 with the phase-in of capital floor
requirements. We are working through the various committees
and subcommittees to optimise not only capital holdings, but also
product offerings to absorb the impact of these Basel III reforms.
Nedbank is well positioned to absorb these changes through
current capital buffers. Nedbank closely monitors international
developments regarding approaches and implementation roadmaps.
However, the bank remains committed to adhering to the roadmap
and methodology provided by the PA.
• Positive cycle-neutral countercyclical capital buffer (PCN CcyB)
– The PA increased the CcyB rate from 0% to 1%, effective from
1 January 2026, which will increase the regulatory minimum capital
requirement and consequently impact the group’s surplus capital
position, if implemented.
• Deposit insurance – The Corporation for Deposit Insurance (CODI)
was successfully implemented on 1 April 2024. The annual cost of
CODI for Nedbank is around R230m for covered deposit balances
of over R100bn. The covered deposit balance is the amount covered
by CODI for a qualifying depositor and a qualifying deposit product,
which is currently proposed at a maximum of R100 000.
Value creation, preservation and erosion in 2024
We hold investments of over R198bn in government and public sector
bonds as part of our high-quality-liquid-assets (HQLA) requirements.
All government bonds held in the trading book are held at fair value
and all government bonds held in the banking book for LCR purposes
are hedged, with interest rate swaps through Nedbank’s macro fair-
value hedge accounting solution. From an LCR perspective, all HQLA
are measured at their fair value.
We retained a strong capital position, with a group tier 1 capital ratio
of 15,1% and a CET1 ratio of 13,3%, well above the SARB regulatory
minimum and above our board-approved targets of more than 12%
and 11% to 12% respectively. Our forecast capital ratios are projected
to operate well above the regulatory minimum and above our board-
approved targets (SARB).
We continue to maintain a strong liquidity position, with Nedbank
Group achieving an LCR of 135% in Q4 2024 (above the minimum
regulatory LCR requirement of 100%). The structural liquidity position
of Nedbank remains resilient, with Nedbank Group attaining an NSFR
of 116%, exceeding the minimum regulatory requirement of 100%.
In 2024 there was an
increase in suspicious
transactions reported to
the Financial Intelligence
Centre. This increase can
be attributed mainly to
the growth in digital fraud,
specifically transactional
fraud such as scams
in line with industry
increases, and an increase
in automated transaction
monitoring alerts as we
refined our rules.
We retained our level 1 BBBEE contributor status for the seventh year
in a row (FSC).
We received fines, administrative sanctions or penalties to the value
of R15m (2023: R17m), mainly relating to a vendor-related VAT
administration issue.
Value creation
Value preservation
Value erosion
13,3%
CET1 ratio
116%
NSFR ratio
R15bn
direct, indirect
and employee
taxes
Level 1
BBBEE
contributor
status
R15m
fines, administrative
sanctions and
penalties
135%
LCR ratio
2024 SARB climate risk stress test
SARB and PA have underscored the critical importance of
managing climate change, which poses physical and transition
risks that could impact the safety and soundness of banks
and insurers, with broader implications for financial stability.
Consequently, it is essential for banks and insurers to take
proactive measures to address climate-related risks.
To ensure the resilience of the financial sector participants
are mandated to integrate climate risks into their governance
and risk management frameworks. In line with its mandate
to preserve financial stability, SARB’s Financial Stability
Department conducted a climate risk stress test throughout
2024 to evaluate the resilience of systemically important
financial institutions to climate risk. As Nedbank, we actively
participated in this industrywide stress test, demonstrating our
commitment to assessing the financial stability and resilience
of SA’s banking sector. By evolving our internal climate risk
scenario analysis and stress-testing processes, we align with
global best practices, such as utilising scenarios developed
by the Network for Greening the Financial System, ensuring
robust risk management and contributing to a sustainable
financial future.
Additionally, we incorporated the guidance from SARB PA
Guidance Notes 1 and 2 of 2024 (GR1-2024 and GR2-2024,
on climate-related governance and risk practices for insurers
and banks) into our risk management practices, integrating
climate-related factors into our risk management framework.
This proactive approach ensures risk mitigation, enhanced
resilience, reputational management, and the unlocking of
strategic market opportunities, thereby enhancing shareholder
value while promoting responsible capital allocation.
Case in point
Suspicious transactions
reported to the FIC
(000)
2024
2023
2022
2021
2020
17,1
18,8
15,6
24,8
32,6
Nedbank Group
Integrated Report
2024
84
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Sustainable development finance
Society –
delivering impactful and
purpose-led value
As a purpose-driven organisation that leverages our financial expertise to
do good and impact society positively, our purpose guides our business
strategy, behaviours, and short- and long-term actions. We are committed
to reducing systemic risks to the environment and the people we serve
while delivering significant and long-term societal value.
We use the Nedbank Sustainable Development Framework to focus our
sustainable development efforts and identify business opportunities,
risks, and cost savings. These opportunities and savings are significant,
estimated to have global value of trillions of dollars every year.
Value creation, preservation and erosion in 2024
R233m
socioeconomic
spend
10%
green power from
own operations
563
CIB SEMS deals
reviewed
89%
of our own
premises have
Green Star ratings
15%
in carbon
emissions per
employee
R183bn
sustainable
development
finance provided
Key performance indicators
We prioritise 9 of the 17 SDGs, focusing on areas where we can make a
meaningful impact through innovation in our banking products, lending,
and investment practices. Our purpose fulfilment strategy is essential to
our strategic value driver, creating positive impacts, driven through core
business focus on: SDF, sustainable finance, financing the transition, and
financial inclusion. These focus areas are enabled or supported by our
approach to human capital, client responsibility, human rights, sustainable
procurement, corporate social investment (CSI) and commitment to
transformation, and guide our focus on creating positive impact.
SDG 4: Ensure inclusive and equitable quality
education and promote lifelong
learning opportunities for all
• We offer student loans that cover more than just
tuition fees, taking a comprehensive approach
that includes other educational expenses such as
textbooks, accommodation, and transport. Our loans
are designed to support students throughout their
studies, regardless of their financial needs. In 2024
our exposures to student loans workstream increased
to R206m and we provided over R64m (2023: R61m)
disbursements in student loans to help 670 students
(2023: 1 099 students).
• Recognising the pivotal role of accommodation in
a student’s success, we have taken a leading role in
funding student housing and addressing the lingering
accommodation shortage that has historically left 80%
of students without on-campus housing. Our current
student housing exposure is R5,7bn, and we have
created almost 47 000 beds since 2015, with just over
300 new beds created this year to further enhance SA’s
educational landscape.
SDG 6: Ensure availability and sustainable
management of water and sanitation for all
• We are committed to playing a pivotal role in fostering
effective water partnerships and investments, which are
crucial for sustainable socioeconomic development. In 2024
our exposure to water projects increased substantially from
R1,1bn in 2023 to R3,7bn, primarily due to our support to the
Trans-Caledon Tunnel Authority for its Mokolo–Crocodile
River Water Augmentation Project concerning water supply
from the Crocodile River.
• We aimed to reduce water usage in our own offices by
40% by the end of 2025, based on 2019 levels. This
target equates to a 152 900 kℓ or 8,0 kℓ per full-time
employee, whichever is met first. In 2024 the total
water consumption of our campus sites declined by
5% to 150 465 kℓ, resulting in achieving our absolute
consumption target, a year ahead of target.
• Since 2020 the WWF Nedbank Green Trust has invested
R20m in 9 projects to protect and manage freshwater
habitats. One significant project is the WWF Water Risk
Filter, which helps companies assess and respond to water
risks. Over 2 000 companies have used this free online tool,
leading to comprehensive water risk assessments for major
retailers. Another initiative is the smart nappies project that
addresses water pollution by promoting reusable nappies in
rural areas around Matatiele. This initiative aims to reduce
disposable nappy waste and save costs for families, with
early successes in engaging over 200 households and
setting up local distribution systems.
• Since 2018, as a result of our support of the WWF Water
Balance Programme, we are operationally water-neutral.
Value for stakeholders continued
C
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a
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c
e
Students financed
(Cumulative number of students)
2024
2023
2022
2021
2020
617
1 192
2 126
3 255
3 895
Nedbank Group
Integrated Report
2024
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reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Our commitment to achieve net-zero carbon emissions by 2050,
supported by our Energy Policy, guides us to maintain our strong support
for the energy transition and the increasing integration of renewable
energy.
• At the end of 2024 the group’s total renewable energy exposures
across the government procurement programmes and private
power generation increased to almost R40bn (up by 32%), with
limits increasing by 24% to R57bn, highlighting strong deal pipelines
that we have in place. In addition to the closure of 12 private sector
renewable energy deals, our market-leading renewable energy team
was appointed joint mandated lead arranger for 7 out of the 8 projects
awarded under Renewable Energy Independent Power Producer
Procurement Programme (REIPPPP) Round 7, and 7 out of the 8
projects awarded under Battery Energy Storage Systems (BESS)
Round 2. Nedbank received approvals to support 63 projects with a
debt total of about R200bn.
• We offer flexible renewable energy financing options for business
clients, focusing on private power generation for medium enterprises.
These installations typically produce up to 1 MW of power and cost
between R3m and R4m. The funding supports clean energy sources
and energy-efficient initiatives, including smart grids and energy
storage. In 2024 we completed transactions to the value of R705m
(2023: R486m). We are also addressing energy security concerns
for retail businesses, including providing R25m per year for solar
financing to a shopping centre that supports its transition to 100%
renewable energy. The project highlights Nedbank’s dedication to
sustainability and energy security, offering significant cost savings for
our clients.
• In our own operations green power from independent power
producers to reduce our own carbon emissions increased to around
10% (2023: 6,5%).
• In 2024 our small-business bankers supported 318 000 business
clients, assisting with their transactional, payment, investment, and
financing needs. Our specialised services extend to sectors such as
medical, franchising, and agriculture. We facilitated R5,4bn in asset
payouts for small-business development during the year.
• We contribute towards the achievement of SDG 9 through funding
of infrastructure, including mass transit, roads, rail corridors, water
treatment plants, and information and communication technologies
to support growth in SA and across the continent. We have exposures
of R27bn to infrastructure-related projects spanning roads, rail, ports
and telecommunications infrastructure.
• A key success in 2024 was the conclusion of a R3,5bn facility for the
City of Cape Town to partially fund the city’s infrastructure investment
programme. This transaction underscores Nedbank’s commitment to
supporting SA’s economic growth through public sector funding and
infrastructure development. The facility is part of the city’s broader
10-year infrastructure project, estimated at R120bn.
SDG 7: Ensure access to affordable, reliable,
sustainable and modern energy for all
SDG 8: Promote sustained, inclusive and sustainable
economic growth, full and productive
employment and decent work for all
SDG 9: Build resilient infrastructure, promote
inclusive and sustainable industrialisation
and foster innovation
Value for stakeholders continued
• We also made significant progress in Africa by leveraging sector
expertise, including securing Nedbank’s first sustainable finance
transaction in Côte d’Ivoire. This €217,5m loan aims to finance various
social infrastructure projects, including food security programmes,
pedestrian bridges, urban trading markets, sporting and education
infrastructure, road maintenance, and airport infrastructure. The
initiative aligns with Nedbank’s investment philosophy that social
infrastructure is essential for economic growth and inclusive
social cohesion.
• We made significant advancements in enhancing offerings for small
businesses. Key initiatives include the launch of the new Nedbank
Android POS device, simplified digital onboarding, and same-day
settlements for our clients. Additionally, the adoption of the retail
digital platform with access to small-business loans on the Money app
has streamlined lending processes. The focus remains on supporting
small-business clients through affordable and easy-to-use banking
services, underpinned by digital innovation and proactive credit
experiences such as our preapproved overdrafts, directly supporting
local enterprises and instant small-business loans.
• Nedbank is playing a pivotal role in transforming SA’s small-business
ecosystem. Through strategic interventions and comprehensive
support mechanisms, the enterprise supplier development portfolio
has provided more than R169m in grant funding, benefiting over 5 400
businesses. Key partnerships with organisations like AWIEF, RLabs, and
Fix Forward have supported businesses with training, mentorship, and
incubation programmes, contributing to job creation, innovation, and
economic transformation.
• During the year we also welcomed our fifth intake of more than 3 500
YES participants as we continue to make an impact on South African
youth and their families and communities. With this intake included,
over 13 500 previously unemployed youth have been afforded the
opportunity of employment through participating in Nedbank’s YES
Programme and 700 of them have been employed permanently within
Nedbank and the remainder with our YES Programme partners.
Renewable energy financing
(Rbn)
2024
2023
2022
2021
2020
2019
2015
24%
32%
Government
Limits
Drawn exposures
Private power
Rooftop solar*
10
25
32
30
27
30
40
37
36
37
46
57
Nedbank Group
Integrated Report
2024
86
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
We finance green and sustainable buildings to
improve occupants’ quality of life, reduce carbon
emissions, and enhance waste management and
water stewardship. We evaluate properties based
on their attainment of green certifications like EDGE
and Green Star, and sustainable features such as
solar PV, wind or hydropower solutions, rainwater
harvesting, and advanced water systems, including
black- and greywater recycling.
• Our commitment to sustainability is reflected
in our financial exposure, with R16bn invested
in green-certified properties and R37bn in
properties with sustainable features, termed
‘green aspects’. Through these investments, we
are not just financing buildings; we are actively
fostering a future where living spaces are in
harmony with the planet.
• We leveraged our leading position in the property
finance sector for asset growth and innovation,
driving sustainability in the sector. The Mall
of Africa achieved EDGE certification, making
it the largest retail asset globally to earn this
prestigious recognition, promoting sustainable
urban living and resource efficiency.
• Sustainable production practices have become
increasingly important as companies recognise
the need to address their environmental impact.
Companies are doing this by implementing
circular economy initiatives, which aim to keep
resources in use for as long as possible through
recycling and reusing. This shift in mindset
requires a comprehensive understanding of the
entire supply chain and identifying areas where
waste can be minimised.
• Our sustainable agriculture funding solutions
aim to address the challenges farmers face due
to climate change. These challenges include
reduced rainfall and increased temperatures,
which make it difficult for farmers to produce
food sustainably. The sustainable agriculture
solutions help farmers to improve their farming
practices, such as water conservation and
storage, improved soil health, advanced irrigation
techniques, and shade-netting to minimise
evaporation. The solutions are offered either
directly or via financing cooperatives.
The financial sector plays a crucial role in addressing
nature’s loss and protecting biodiversity. There is a direct
link between nature impact (both positive and negative)
and our business activities through those of our clients.
Nedbank is committed to confronting environmental
threats by addressing the drivers of biodiversity
loss, climate change, pollution, desertification, and
deforestation. Our efforts build on our work towards a
net-zero economy and investments in strengthening
biodiversity and nature.
• In 2024 we published our Nature Position Statement,
a first for the South African banking sector. This
statement builds on the Climate Position Statement,
acknowledging the interconnectedness of nature and
climate. It outlines the bank’s approach and science-
aligned guiding principles regarding how the bank is
impacted by and impacts nature through financing
activities. The statement commits the bank to a path
aligned with global best practices, forming the basis
for related strategies and the foundation for setting
policy and nature commitments and targets.
• In 2024 we completed Phase 1 of our Nature Risk
Materiality Assessment, aligned with the Taskforce on
Nature-related Financial Disclosures LEAP framework.
This phase identified material nature-related impacts
and dependencies within the credit portfolio, revealing
high dependency on ecosystem services. Phase 2 in
2025 will focus on specific risks and opportunities
within prioritised sectors and clients, aiming to
develop a robust nature-positive strategy and risk
management plan.
SDG 11: Make cities and human
settlements inclusive,
safe, resilient and
sustainable
SDG 12: Ensure sustainable
consumption and
production patterns
SDG 15: Protect, restore and
promote sustainable use
of terrestrial ecosystems
Sustainable finance:
Across multiple SDGs
We are dedicated to and have been
leading in sustainable finance, ensuring
that the solutions and services that we
provide not only meet today’s needs, but
also address tomorrow’s challenges. Our
approach integrates sustainability criteria
directly into our debt-financing activities,
strengthening our position as a market
leader in ESG and sustainable finance.
In 2024 we have continued to grow
our sustainable finance exposure and
have made impacts across green, social
and sustainable categories. A notable
achievement was the successful
conclusion of a R2bn Sustainability
Tier II bond, which made us the first
South African bank to address both social
and environmental issues in 1 issuance.
By combining 3 important yet different
categories – affordable housing, water
infrastructure, and climate-smart
agriculture – with clear impacts, this
structure is innovative and addresses
real needs.
Value for stakeholders continued
• To address the housing challenge in democratic
SA, we approved R3,2bn in funding in 2024 for
affordable housing development for lower-income
households. The value of affordable home loans
exposures for lower-income households was
almost R17bn.
• We also continuously pursue Green Star ratings
for our own premises, and at the end of 2024,
89% of our space was Green Star-rated.
Sustainable finance
(Exposures, Rbn)
2024
2023
2022
2021
1
3
11
15
17
Sustainability-linked
bonds
Sustainability-linked loans
Use of proceeds (loans)
Limits
20
27
31
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Integrated Report
2024
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An overview of
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Ensuring value creation
through good governance
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rewarding value creation
Supplementary
information
Responsible finance
We actively manage ESG and climate risks using the
Nedbank Social and Environmental Management
System (SEMS). In 2024 a total of 563 deals (2023: 579)
were assessed in CIB (excluding Property Finance) and
1 583 (2023: 1 805) deals were assessed in Property
Finance. During 2024 in our RBB operations 1 434
(2023: 1 674) clients were assessed in high-impact
industries. In addition, 13 deals to the value of US$845m
(2023: 10 deals to the value of US$911m) were assessed
under the Equator Principles.
Responsible investment
In 2024 Nedgroup Investments published
its fifth annual Responsible Investment
Report. This report is a valuable resource
for clients and stakeholders to get an
update on the latest trends in sustainability
and responsible investment, covering key
topics such as water, the environmental
impact of data warehouses and AI, and the
importance of transformation and climate
action in South African fund management.
Corporate engagement is a central feature
of investment stewardship, and the report
highlights key ESG engagements that
have been undertaken on behalf of client
assets during the year. Read this report
and others here.
Corporate social investment
Through the Nedbank Foundation we support
interventions that have a positive, transformational
and systemic impact on the South African economy,
centred around green-economy activities in areas such
as renewable energy, water, waste and recycling, as well
as agriculture. In 2024 the total value of CSI support
and investment delivered across our group was R233m
(2023: R154m).
Value for stakeholders continued
Corporate social investment
(Rm)
We have been a signatory to the UN
Principles for Responsible Investment since
June 2022 and reported a yoy improvement
in 6 of the 7 assessment pillars in the 2023
assessments published in 2024, being policy,
governance and strategy; active equity;
active fixed income; active listed real estate;
passive equity; and passive fixed income.
The outcome for the 7th pillar, confidence-
building measures, remained unchanged.
Ensuring and protecting value in 2024
• Oversaw all measurements of the Amended FSC
and retained our level 1 BBBEE contributor status
for the 7th consecutive year.
• Monitored employment equity, transformation
and talent practices, including the retention of
underrepresented (specifically African) talent at
middle- and senior-management levels.
• Guided progress towards the fulfilment of our
purpose in line with our Sustainable Development
Framework.
• Monitored the state of ethics in the organisation,
including ‘ethics in remuneration’ that ensure fair
remuneration outcomes.
• Oversaw the well-being of employees.
• Oversaw the continued embedding of The
Nedbank Way (a framework that captures our
culture in 7 core principles) and launched a focus
on allyship.
Focus for 2025 and beyond
• Contribute towards retaining a
competitive BBBEE contributor status,
including dealing with any impacts from
the pending Amended FSC industry
review process.
• Oversee progress in respect of
employment equity, diversity, and
inclusion outcomes.
• Monitor skills development and the YES
Programme.
• Guide Nedbank’s transformation and
talent progression.
• Monitor people risk and the well-being of
employees.
• Oversee the development, enhancement
and implementation of our ethics and
human rights management plans, metrics
and assessments.
• Monitor the evolution of Nedbank’s
culture.
A comprehensive (GTSEC) Report is available online in our 2024 Governance Report on our group website at group.nedbank.co.za.
Board oversight – ensuring and protecting value
Group Transformation, Social and Ethics Committee (GTSEC)
Linda Makalima, Chair
‘At Nedbank, we are guided by our purpose, which remains relevant and
deeply ingrained in our initiatives. Our commitment to societal well-being is
demonstrated through our focus on ethics, employee well-being, diversity,
transformation and financial inclusion. We continue to invest in the green
economy for a sustainable future.’
Stakeholders
Top 10 risks
Clients
Employees
Regulators
Society
Shareholders
9 Reputational and market conduct
1 Strategic execution
7 Climate
6 People
5 Operational
More detailed disclosures are available in our 2024 Climate Report
and 2024 Society Report at group.nedbank.co.za.
68
21,8
130
22
9
2
2
Green economy
Education
Community
development
Arts & Culture Trust
Sports
Employee
volunteerism
External limited assurance on selected sustainability information – refer to pages 99 and 100 for the independent assurance
practitioner’s Limited Assurance Report on selected key performance indicators.
LA1
Nedbank Group
Integrated Report
2024
88
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Key performance indicators: Stakeholders
Strategic value unlocks
Value drivers
Link to
remuneration
yoy
change
2024
2023
2022
2021
2020
Outlook
Assurance
Employees
Salaries and benefits (Rbn)
Remuneration and benefits
to employees
22,6
21,1
19,9
18
16,8
Maintain competitive
remuneration
[MO] [FS]
Annual salary increase – bargaining-unit employees
(%)
Salary increases for bargaining-unit
employees
7,0
6,0
5,2
4,0
6,3
Above the increase
for management
[MO]
Training and skills development spend (Rbn)
Investment in employee development
1,0
1,2
0,9
1,1
0,9
Continue to invest in
employees
[LA2]
Staff attrition rate (%)
Ability to retain and rotate skills
GCC
8,0
9,2
10,6
9,3
7,1
Maintain
[MO] [LA1]
‘Great place to work’ NPS
Employee engagement drives higher
levels of productivity
GCC and CPT
18
20
22
19
17
Maintain above 20
[IN – Compass
survey]
Diversity, equity and inclusion (employment equity)
– black employees (%)
The transformation of the Nedbank
employee profile being broadly in line
with demographics in society
GCC and CPT
83,2
82,1
80,8
79,9
78,9
Continue driving
diversity, equity and inclusion
[LA2]
Diversity, equity and inclusion (employment equity)
– female employees (%)
Progressing gender diversity
GCC and CPT
61,5
61,7
61,8
61,4
61,2
[LA2]
Clients
Loan payouts (Rbn)
New loan payouts to clients
367
332
341
228
210
Continue extending credit
[MO]
Average annual price increase
Value-for-money banking
Below
inflation
Below
inflation
Below
inflation
At inflation
At inflation
Below inflationary increases
[MO]
Unit trust market share in SA (rank)
Investment performance for clients
GCC
8th
6th
6th
4th
4th
Top 5 in the industry
[MO]
Investment performance in asset
management business
Investment performance for clients
GCC
3 category
winners
2 category
winners
2 category
winners
None
1 category
winner
Rating among top 3
[IN – Raging Bull
Awards]
Nedbank Money app average rating
(out of 5)
Delivering market-leading client
experiences
GCC
4,3
4,3
4,1
4,4
4,4
Maintain top rating
[IN – iOS and Android
app stores]
Consumer NPS ranking all clients (rank)
Overall satisfaction with our
products and services
GCC and CPT
#1
n/a
n/a
#2
#2
#1 SA bank
[IN – Kantar; 2021–
2020: Consulta]
Consumer NPS ranking main-banked clients
(rank)
Overall satisfaction with our
products and services
GCC and CPT
#2
#1
#1
n/a
n/a
#1 SA bank
[IN – Kantar]
RBB client complaints received (000)
Quality of service experience through
effective complaints handling
GCC
71,3
70,9
87,2
82,3
79,1
Committed to providing
world-class service
[MO]
Banking Ombudsman cases in favour
of Nedbank1 (%)
GCC
79
69
73
71
66
[LA1] [IN – National
Financial Ombud
Scheme]
Information sourced
from external sources,
eg independent surveys.
IN
FS
Financial information extracted
from the 2024 Nedbank
Group Limited Audited Annual
Financial Statements.
OV
Independent oversight by
regulatory bodies, including
SARB, FSCA and National
Financial Ombud Scheme.
LA
External limited assurance on selected
sustainability information [LA1] and
the application of the Amended
FSC and the group’s BBBEE status
[LA2]. Related opinions are available
at group.nedbank.co.za.
MO
Management and board
oversight through rigorous
internal reporting governed by
the group’s ERMF.
Assurance
indicators
1 From 1 March 2024, the Banking Ombudsman was amalgamated as part of the new National Financial Ombud Scheme.
Nedbank Group
Integrated Report
2024
89
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Key performance indicators: Stakeholders continued
Strategic value unlocks
Value drivers
Link to
remuneration
yoy
change
2024
2023
2022
2021
2020
Outlook
Assurance
Shareholders
Share price performance (%)
Share price appreciation
30
11
21
35
–40
Performance above peers
[IN – JSE]
Full-year dividend per share (cents)
Dividends for shareholders
2 075
1 893
1 649
1 191
n/a
Grow strongly
[MO] [FS]
Full-year dividend per share cover (times)
Dividends for shareholders
1,75
1,75
1,75
2,02
n/a
At the low end of board range
[MO] [FS]
Price-to-book ratio
Valuation indicator of the Nedbank
share
1,2
0,9
1,0
0,9
0,7
#2 SA bank
[IN – JSE]
Net asset value per share (cents)
Growth in book value of Nedbank (new)
24 039
23 192
21 533
20 493
18 391
Increase
[FS]
MSCI ESG rating
ESG rating of most influential ratings
agency
GCC
AAA
AAA
AAA
AA
AA
Maintain ESG leader rating
[IN – MSCI]
Regulators
CET1 ratio – Basel III (%)
Strength of capital position
GCC
13,3
13,5
14
12,8
10,9
Above board range of 11–12
[MO] [OV]
LCR ratio – Basel III (%)
Strength of liquidity position
GCC
135
135
161
128
126
> SARB minimum of 100
[MO] [OV]
NSFR ratio – Basel III (%)
Strength of stable funding
GCC
116
117
119
116,1
112,8
[MO] [OV]
Notable regulatory fines or penalties paid (Rm)
Indicator of adherence to regulatory
requirements
GCC
15
17
25
< 6
< 7
Zero, although the risk of
fines has increased
[MO] [OV]
Taxes – direct, indirect and employees (Rbn)
Contribution to the fiscus
GCC
15,3
13,2
11,5
11,2
8,7
Responsible taxpayer
[OV]
Society
Number of entry-level banking (ELB)
main-banked clients (000)
Financial inclusion
GCC
1 755
1 609
1 412
1 309
1 365
> 1,8 million in medium term
[MO]
Number of SME clients (000)
Financial inclusion
GCC
318
312
305
299
297
Increase
[MO]
Total socioeconomic spend (Rm)
Contribution to society
233
154
127
121
103
Spend > R100m
[MO] [LA2]
Green Star-rated office space occupied in SA (%)
The impact of our business on the
environment and society
GCC
89
85
87
87
ND
The majority of Nedbank
office space is Green
star-rated
[MO]
Green power from own operations (%)
The impact of our business on the
environment and society
GCC and CPT
10,0
6,5
1,5
0
0
> 30% of energy sourced in
medium term
[MO]
Carbon footprint offset to neutral (tCO2e)1
The impact of our business on the
environment and society
GCC
119 519
122 643
128 149
132 847
137 540
Maintain carbon-neutrality
[MO]
CIB SEMS deals reviewed (number of deals)2
The impact of our business on the
environment and society
563
579
610
703
764
Enhance SEMS integration
[MO] [LA1]
Equator Principle deals that had their first
drawdown within the financial year
(number of deals)
The impact of our business on the
environment and society
13
10
4
1
2
Enhance Equator Principles
integration
[MO] [LA1]
CIB finance assessed under the Equator
Principles (US$m)
868
911
168
60
45
Enhance Equator Principles
integration
[MO]
Carbon footprint per full-time employee (tCO2e)
The impact of our business on the
environment
GCC
3,8
4,4
4,7
4,7
4,7
Continue reducing our impact
through reduction targets
[MO]
1 Our carbon footprint offset to neutral from 2024 includes the scope 3 emissions from our supply chain in addition to the 105 340 tCO2e of emissions from our own operations , refer to page 70. For more information on our methodology please refer to page 98
of our 2024 Climate Report. External limited assurance obtained over 105 340 tCO2e LA1 of emissions from our own operations, 137 tCO2e LA1 of emissions from cloud computing, 8233 tCO2e LA1 from cash on transit, and 50 tCO2e LA1 from courier with
3 254 tCO2e of offsite hosting and 2 505 tCO2e from the distributed workforce has not been included in the scope of the external limited assurance.
2 All CIB credit risk reviews and new applications included the screening of high-risk clients and EP-relevant deals via the Social and Environmental Management System (SEMS).
Information sourced
from external sources,
eg independent surveys.
IN
FS
Financial information extracted
from the 2024 Nedbank
Group Limited Audited Annual
Financial Statements.
OV
Independent oversight by
regulatory bodies, including
SARB, FSCA and National
Financial Ombud Scheme.
LA
External limited assurance on selected
sustainability information [LA1] and
the application of the Amended
FSC and the group’s BBBEE status
[LA2]. Related opinions are available
at group.nedbank.co.za.
MO
Management and board
oversight through rigorous
internal reporting governed by
the group’s ERMF.
Assurance
indicators
External limited assurance on selected sustainability information – refer to pages 99 and 100 for the independent assurance practitioner’s Limited Assurance Report on selected key performance indicators.
LA1
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2024
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Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Rewarding for value creation
Business performance
The group delivered an improved financial performance as HE increased by 8% to R16,9bn and the
ROE strengthened to 15,8%. HE growth was underpinned by good NIR growth, a lower impairment
charge and targeted expense management, offsetting muted NII growth given slower loan growth
and margin pressure. DHEPS increased by 11%, benefiting from the share buy-back executed in
2023. For shareholders the full-year dividends per share were up by 10% and the share price was
up by 30% yoy.
Key changes to our remuneration policy
• Following a market review, the minimum shareholding requirements were
increased: chief executive (CE) (from 2,0 to 3,0 x GP); executive directors (EDs)
and prescribed officers (POs) (from 1,5 to 2,0 x GP).
• A non-financial modifier was added to the short-term incentive (STI)
build-up methodology to measure and incentivise progress against
employment equity targets.
• Following a market review, the malus and clawback triggers were updated
to include a new trigger for conduct leading to reputational harm and made
refinements to existing triggers to include errors in non-financial reporting.
• The normal retirement age was increased from 60 to 63 years, effective
from 1 August 2025.
Remuneration outcomes
Guaranteed package increases, effective from April 2025
Vesting % of 2022 LTI awards, vested in March 2025
STI pool awards, effective from March 2025
Non-executive director fees, effective from July 2025
Headline earnings
R16,9bn
Return on equity
15,8%
Cost-to-income ratio
55,9%
2020
2021
2022
2023
2024
5,4
16,9
15,7
14,1
11,7
2020
2021
2022
2023
2024
6,2
15,8
15,1
14,1
12,5
2020
2021
2022
2023
2024
58,1
55,9
53,9
55,8
57,8
Non-financial performance
Managed
Evolution
IT build
fundamentally
completed
64%
of products sold
digitally
14%
increase in Money
app users to
2,7 million
#1
ranked bank on
NPS (based on all
clients surveyed)
R40bn
renewable energy
finance (up by
32% yoy)
R183bn
SDF exposures
(19% of gross loans
and advances)
82,6%
black (AIC)
employees, up from
81,5% in 2023
Non-bargaining unit
5,0%
(2024: 5,3%)
Group Exco
60,5%
(2024: 124,8%)
11,6% to R3 394m
5,6% overall increase recommended for shareholder approval
Minimum annual GP
6,7%
to R240 000
(2024: R225 000)
Other participation
80,3%
(2024: 117,1%)
Bargaining unit
6,3%
(2024: 7,0%)
Cluster exco
71,0%
(2024: 115,3%)
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Ensuring value creation
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Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Rewarding for value creation continued
Pay fairness
Pay fairness arguably starts with ensuring a decent living wage at the lower employee levels. Nedbank’s
minimum annual GP is R240 000, effective from April 2025 (2024: R225 000; a 6,7% increase).
This minimum GP is significantly above the legislated minimum wage in SA of R28,79 per hour,
which translates to just above R60 000 per annum. This was supplemented by an STI of 8,2% of the
guaranteed remuneration bill of qualifying employees in the bargaining unit (2024: 8%).
60
60
59
59
58
58
57
54
52
51
49
48
44
2013
2015
2017
2019
2021
2023
2025
CE GP to bank minimum
(Ratio)
208
222
236
168
177
186
159
168
176
2013
2015
2017
2019
2021
2023
2025
GP increases
(Indexed at 100)
Bargaining unit
Non-bargaining unit (below cluster exco)
Executive (including cluster exco)
Board-approved
target
Drives STI
pool build-up
Drives LTI
vesting
outcome
Included in
the GCCs
Headline earnings
(HE) and economic
profit
Diluted headline
earnings per share
(DHEPS) growth
Return on equity
Cost-to-income ratio
Environmental,
social and strategic
(including non-
financial goal
commitments)
Group performance against the short- and
medium-targets, drives the short-term
incentive (STI) pool build-up and LTI
vesting outcomes.
Board-approved targets
cascade into goal
commitment contracts (GCCs)
Individual STI awards are informed by
individual GCC performance.
Remuneration outcomes aligned to our KPIs and targets
Financial targets
refer to page 6 for
further information
Strategic KPIs refer to
pages 69 and 70
Stakeholder KPIs refer
to pages 89 and 90
Digital leadership
(DX)
Market-leading
client experiences
(CX)
Focusing on areas
that create value
(SPT)
Growth vectors
Creating positive
impacts
Shareholders
Clients
Employees
Society
Regulators
Employees have a right to freedom
of association and joining unions
representing their interests. There are
also collective-bargaining arrangements
in our subsidiaries in Lesotho, Namibia,
Eswatini and Zimbabwe. Care is
taken to ensure that salary increase
settlements are appropriate within the
context of local market and economic
conditions. We continue to remunerate
our employees in the bargaining unit
appropriately relative to the industry.
Executive level GP increases are set by
reference to, among other things, the
increases of the broader workforce,
which is represented by Sasbo, the
finance union in SA. In 2025, employees
at Group Exco level and NBU employees
will receive increases in their total GP
averaging 5%, compared with 6,3% for
the bargaining unit.
The ratio between the CE’s GP and
the bank minimum GP, measured from
2013 to 2025, has steadily declined.
As shown in the graph indexed at
100 from 2013 to 2025, the GPs at
bargaining unit level have more than
doubled (136%), while at non-bargaining
and exco level the average GPs have
increased by 86% and 76% respectively.
This is a result of a deliberate long-term
approach to narrow vertical pay gaps
and has the added effect of increasing
the STI awards of the bargaining-unit
members as variable pay is determined
as a percentage of GP.
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2024
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Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
2025 awards: Performance conditions and weightings
Vesting of Group Exco and cluster exco awards remain 100% business-performance based – the same as the
2024 and 2023 awards. Vesting below cluster exco level is 50% CPT-based and 50% subject to a minimum
acceptable individual performance requirement – the same as 2024 and 2023 awards.
CPTs
Group and cluster
exco % weighting
All other participants
% weighting
ROE vs COE
30
15
DHEPS growth
30
15
Efficiency ratio
20
10
Environmental and social
10
5
Strategic
10
5
Total
100
50
% of award linked to group business performance and
continued employment
100
50
% of award linked to individual performance and continued
employment
0
501
Total
100
100
1 Vesting of this portion is subject to a minimum acceptable individual performance standard and ongoing employment over
the vesting period.
Rewarding for value creation continued
2025 awards: Vesting ratios and targets
CPTs
Minimum vesting
0%
Target vesting
100%
Maximum vesting
200%
ROE vs COE 2027
RoE ≤ 15,5%
RoE = 17,0%
RoE ≥ 19%
DHEPS CAGR growth
≤ CPI + GDP%
= CPI + GDP + 3%
≥ CPI + GDP + 7%
Cost-to-income ratio 2027
≥ 55%
= 54%
≤ 52%
Straight-line vesting applies between the points in the above table.
CPTs
Minimum vesting
0%
Target vesting
100%
Maximum vesting
150%
Environmental, social, and
strategic
Rating = 0
Rating = 3
(Considerable progress)
Rating = 5
(Substantial progress)
Vesting will be interpolated both above and below target in the above table.
2025 awards: Environmental and social CPTs
Environmental
•
Achieve appropriate progress on our Energy Policy commitments: Renewable-energy
finance (SDG 7) and Energy Policy-related timelines and targets, including fossil-fuel
related glidepaths were communicated in 2024 with the sizing of the home loans and
vehicle portfolio carbon intensities (baselines) disclosed. The carbon intensities of the
next portfolios and associated glidepaths to be communicated as and when appropriate.
•
Our own carbon footprint to decline by 40% by the end of 2025 and renewable green
energy for our own operations to contribute more than 30% of energy sourced by 2025
and both to be progressed further by 2027 (subject to grid connectivity).
•
Meet SDF ambitions: It is our ambition to have increased SDF exposures to around 20% of
the group’s total gross loans and advances (2024: 19%) by the end of 2025, that is aligned
to the SDGs. Our plans currently suggest we will reach > R250bn of exposures by 2027,
and we are considering setting a 2030 target.
Social
•
Maintain a positive employee NPS.
•
Maintain a strong client NPS over the period.
•
Maintain competitive BBBEE status (inclusive of diversity). Retain level one status based
on the current amended Financial Sector Code (FSC) targets. This is still a pending status
given the industry review process underway and that amended FSC rules are yet to be
finalised, which may result in us targeting a different status.
2025 awards: Strategic CPTs
Nedbank
Africa Regions
•
Achieve improved coverage and
returns.
Digital
transformation
•
Unlock value from intelligent
hyperautomation and
data commercialisation by
strengthening capabilities in
data and analytics (scaling
commercial value from analytics,
GenAI, Digital 2.0
and transforming digital
customer engagement).
SPT
•
Achieve selected market share
gains in secured and unsecured
lending, within the appropriate risk
appetite.
•
Achieve market share gains in
household transactional and
non-transactional, retail deposits
and commercial transactional
deposits.
•
Make gains in main-banked
clients.
LTI Performance conditions, weightings, vesting ratios and targets
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Sustainable value creation
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Delivering, measuring and
rewarding value creation
Supplementary
information
Rewarding for value creation continued
Jason Quinn Chief Executive (7 months)
Mike Brown former Chief Executive (5 months)
Financial performance
Achieved HE and DHEPS growth of
8% and 11% respectively.
Strengthened the group’s ROE to
15,8%.
Total dividend increased by 10%.
Maintained fortress balance sheet,
evident in strong capital, liquidity and
balance sheet provisioning metrics.
Experienced a cost-to-income
ratio increase to 55,9%.
Strategy
Completed Managed Evolution
technology programme.
Completed TOM 2.0 programme,
realising cumulative expense
benefits of R3bn.
Increased retail main-banked
clients by 5% to 3,7m in RBB, NAR
clients by 14% and won 20 primary
transactional accounts in CIB.
Achieved ongoing strong digital
growth and digital sales of 64%.
Realised market share gains in
retail deposits, home loans, vehicle
finance and wholesale term loans.
Identified new transform
opportunities to support sustainable
growth and returns into the future as
part of our strategy refresh.
Ensured that Nedbank ranked #1
South African bank on NPS among
the large South African banks when
surveying all clients and second
highest NPS among main-banked
clients.
Guaranteed remuneration
(R000)
2024
2023
2022
9 656
10 144
6 391
+ 5%
-37%
Total STI
(R000)
2024
2023
2022
17 000
18 275
9 200
+ 8%
- 50%
Total LTI at face value
(R000)
2024
2023
2022
17 000
18 000
9 000
+ 6%
-50%
Experienced market share
loss in commercial deposits,
credit cards and overdrafts,
as well as deliberate loss in
personal loans.
ESG delivery
Continued to drive Nedbank’s
overall leadership in climate
change-related matters and
increased SDF to R183bn.
Maintained leadership
position in renewable energy
finance.
Achieved improvements in
ACI employees to 83% and 4%
increase of Africans in senior-
and middle-management
positions.
MSCI ESG rating for Nedbank
at AAA (top 9% of global banks).
Maintained high levels of
employee satisfaction with
Nedbank as a ‘Great place to
work’ employee NPS at 18.
Maintained level 1 BBBEE in
transformation for the seventh
year in a row.
Worked with government,
the banking industry, business
and labour through participation
and leadership in key industry
bodies.
Ensured sound cybersecurity.
Managed ongoing
reputational issues well.
Ensured seamless CE
leadership transition process.
Value creation
Value preservation
Value erosion
Ensuring and protecting value in 2024
• Group Remco and the board approved the terms of the
incoming and outgoing Chief Executive, in line with the group’s
Remuneration Policy.
• The minimum shareholding requirements were increased for
executive directors (EDs) and prescribed officers (POs).
• The malus and clawback triggers were updated to include a new
trigger and made refinements to existing triggers.
• The normal retirement age was increased from 60 to 63 years.
• A non-financial modifier was added to the short-term incentive
(STI) build-up methodology to measure and incentivise progress
against employment equity targets.
• The long-term incentive (LTI) vesting percentage on
environmental, social and strategic corporate performance
targets (CPTs) was increased for target vesting and maximum
vesting at a stretch level.
• The LTI financial CPTs have been retained to ensure alignment to
our board-approved medium-term targets.
Focus for 2025 and beyond
• Maintaining continued dialogue
with shareholders to ensure the
relevance and appropriateness of
the Remuneration Policy.
• Ensuring that the Remuneration
Policy and outcomes support our
strategic objectives and that these
are appropriate to the changing
environment.
• Complying with amended
Companies Act requirements on
remuneration, once finalised.
• Ensuring remuneration outcomes
are fair and responsible.
• Staying abreast of evolving
remuneration best practices.
• Reviewing the competitiveness of
the group’s LTI pool, the LTI CPTs,
weightings and vesting ranges.
A comprehensive Group Remco Report is available online in our 2024 Governance Report on our group website at group.nedbank.co.za.
Board oversight – ensuring and protecting value
Group Remuneration Committee (Group Remco)
Hubert Brody, Chair
‘Group Remco is satisfied that, for the reporting period it has fulfilled
the requirements of its charter, that the objectives of the Remuneration
Policy have been met, and that there has been no material deviation
from the Remuneration Policy.’
Stakeholders
Top 10 risks
Employees
Regulators
Society
Shareholders
7 Climate
6 People
2 Business
1 Strategic execution
5 Operational
Mike Brown
remuneration outcomes
Nedbank Group
Integrated Report
2024
94
Integrated
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An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Rewarding for value creation continued
Mike Davis Chief Financial Officer
Financial performance
Achieved HE and DHEPS growth
of 8% and 11% respectively.
Strengthened the group’s ROE to
15,8%.
Supported a total dividend
increase of 10%.
Managed expenses well across
shared services clusters.
Maintained fortress balance sheet,
evident in strong capital, liquidity and
balance sheet provisioning metrics.
Strategy
Achieved top-tier investor
relations rankings and maintained
strong relationships and
communication with the investor
community.
Ensured cost savings through
heightened focus on automation,
creating efficiencies and headcount
and office space optimisation.
Delivered liquidity risk and capital
management strategies optimally.
Continued to drive an optimal
capital structure through the raising
of AT1 and tier 2 at competitive
pricing.
Optimised liquidity risk
management strategies, including
high quality liquid asset holdings and
alternate funding raised.
Performed analysis and
quantification of the impact relating
to the management of Nedbank
endowment hedging programme.
Guaranteed remuneration
(R000)
2024
2023
2022
5 865
6 300
6 850
+7%
+9%
Total STI
(R000)
2024
2023
2022
11 250
12 500
14 500
+11%
+16%
Total LTI at face value
(R000)
2024
2023
2022
11 000
11 500
13 250
+5%
+15%
Managed taxation risk well.
ESG delivery
Recognised for leadership in
renewable energy finance.
Improved Nedbank Green
Star ratings for Nedbank’s own
premises, with 89% of our space
being Green Star-rated.
Ensured that water and
electricity consumption, and
recycling volumes tracked ahead
of target.
Oversaw smooth governance
process and brought KPMG onto
the audit.
Received multiple prestigious
industry awards in recognition
of Nedbank’s high standards
of financial reporting, including
being voted SA CFO of the Year,
as well as the Compliance and
Governance; as well as receiving
Strategy and Execution awards.
Ensured MSCI ESG rating for
Nedbank remained at AAA (top
9% of global banks).
Maintained robust and efficient
tax compliance and incurred no
penalties or interest charges.
Obtained good AGM outcomes
with all resolutions passed.
Ensured steady progress on
the achievement of procurement
aspirations.
Mfundo Nkuhlu Chief Operating Officer
Financial performance
Achieved HE and DHEPS growth
of 8% and 11% respectively.
Strengthened the group’s ROE
to 15,8%.
Managed expenses well across
all shared services clusters.
Experienced a decline of 17% in
associate income from ETI, mainly
due to accounting for the non-
repeat of a prior year reversal.
Strategy
Completed Managed Evolution
IT system transformation materially
on time, scope and budget.
Completed TOM 2.0
programme, realising cumulative
expense benefits of R3bn, which
resulted in an optimised shape of
our infrastructure.
Identified exciting new
transformation opportunities to
support sustainable growth and
returns into the future.
Invested significantly in our
artificial intelligence (AI) and data
capabilities.
Managed the COO function
well and continued to deliver
improvements in operational
excellence and collaboration.
Experienced a decline of 5% in
the Nedbank brand value.
Guaranteed remuneration
(R000)
2024
2023
2022
6 585
6 912
7 300
+5%
+6%
Total STI
(R000)
2024
2023
2022
11 500
12 500
14 000
+9%
+12%
Total LTI at face value
(R000)
2024
2023
2022
12 000
12 500
13 250
+4%
+6%
ESG delivery
Drove improvements in
diversity metrics, including in
representation of African talent
at both senior- and middle-
management levels.
Facilitated the approval of a
more competitive retirement
age of 63.
Continued efforts to
accelerate purpose fulfilment
effectively and ensured
Nedbank became first South
African bank to publish a Nature
Position Statement.
Managed key role succession
planning well, including
succession of the Group Chief
Compliance Officer.
Maintained high levels of
employee satisfaction (NPS at
18), while employee attrition
rate decreased to 8,0%.
Maintained level 1 BBBEE in
transformation for the seventh
year in a row.
Ensured sound cybersecurity.
Worked with government,
the banking industry, business
and labour through participation
and leadership in key industry
bodies.
Value creation
Value preservation
Value erosion
Nedbank Group
Integrated Report
2024
95
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Rewarding for value creation continued
Ciko Thomas Group Managing Executive: Nedbank Retail and Business Banking
Financial performance
Increased HE by 15% and
improved ROE to 17,1%.
Managed credit risk well, with
impairments down by 15% and a
CLR decrease to 158 bps, within
the cluster’s TTC of 130–180 bps.
Experienced expenses growth
above revenue growth, resulting in
an increase in cost-to-income ratio.
Strategy
Increased retail main-banked
clients by 5% to 3,7m and the
cross-sell ratio to 1,99.
Delivered strong digital growth
(Money app clients up by 14% to
2,7m and digitally active retail
clients up 7% to 3,1m).
Realised market share gains in
retail deposits and selected retail
advances categories, such as
vehicle finance and home loans.
Contributed significantly to the
group’s R3bn of cumulative TOM
2.0 benefits through strategic
initiatives such as Project Imagine
and Project Phoenix, resulting in
improved efficiencies.
Executed the acquisition
of Eqstra to strengthen
our positioning in the fleet
management market.
Maintained average bank fee
increases below inflation, and
with the launch of our MiGoals
product suite, received Nedbank’s
favourable ranking amongst peers.
Guaranteed remuneration
(R000)
2024
2023
2022
5 917
6 300
6 640
+6%
+5%
Total STI
(R000)
2024
2023
2022
11 500
11 000
12 000
-4%
+9%
Total LTI at face value
(R000)
2024
2023
2022
11 000
11 500
12 250
+5%
+7%
Ranked #1 South African bank
on NPS among the large South
African banks when surveying all
clients and second highest NPS
among main-banked clients.
Experienced a loss of market
share in commercial deposits and
credit card lending.
ESG delivery
Increased support to more
than 300 000 SMEs with loan
exposures of R25bn.
Positively impacted more than
30 townships and created supplier
procurement opportunities for
more than 400 black-youth-
owned service providers.
Rehabilitated 1,7m clients since
2023, assisted 110K clients to
keep their cars and homes and
assisted 20,9K clients to sell their
assets through our Assisted Sales
programmes.
Increased support to
employees through various
financial education and mental
health awareness programmes
attended by 12K employees.
Anél Bosman Group Managing Executive: Nedbank Corporate and Investment Banking
Financial performance
Increased HE in CIB by 9% and
delivered an ROE of 20,5%.
Increased NIR by 11%, driven by
deal closures and strong growth
in Markets.
Managed credit risk well with
CLR at 14 bps, below its TTC
target range of 15–45 bps.
Maintained disciplined expense
and capital management.
Experienced a 5% decrease
in NII due to margin compression
and slow average loans and
advances growth, although actual
loans and advances growth was
satisfactory.
Strategy
Gained 20 primary clients and
increases in large transactions.
Increased renewable energy
exposures and won significant
renewable energy mandates.
Increased adoption rate by
clients of the Nedbank Business
Hub from 30% to 51%.
Maintained high client
satisfaction at 81%, above the
global benchmark of 80%.
Maintained market-leading
position in Property Finance in SA.
Managed reputational and
credit risk well with a focus
resolution of various clients who
went into business rescue in prior
years.
Guaranteed remuneration
(R000)
2024
2023
2022
5 051
5 325
5 685
+5%
+7%
Total STI
(R000)
2024
2023
2022
17 500
18 500
21 000
+6%
+14%
Total LTI at face value
(R000)
2024
2023
2022
9 000
9 500
10 000
+6%
+5%
Delivered a strong performance
against regulatory compliance, risk
management and internal audit
requirements.
ESG delivery
Grew sustainable development
finance to more than R110bn,
which is 27% of CIB gross banking
loans and advances.
Facilitated sustainable finance
credit facilities for clients to the
value of R17bn.
Recorded R38,5bn in renewable
energy finance drawn exposures.
Concluded R4,5bn term
loan facility to the Trans-
Caledon Tunnel Authority for its
Mokolo-Crocodile River Water
Augmentation Project.
Published our fossil fuels
and power generation glidepath
methodology and disclosed fossil
fuel carbon accounting.
Led the EDGE certification of
the Mall of Africa, making it the
largest retail asset worldwide
to achieve this prestigious
certification.
Received multiple prestigious
industry awards in recognition of
CIB’s expertise and purpose-led
approach.
Maintained a strong governance
and control environment.
Value creation
Value preservation
Value erosion
Nedbank Group
Integrated Report
2024
96
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Rewarding for value creation continued
Iolanda Ruggiero Group Managing Executive: Nedbank Wealth
Dr Terence Sibiya Group Managing Executive: Nedbank Africa Regions
Financial performance
Experienced a 14% decrease
in NAR HE and a decline in ROE to
20,5%.
Experienced SADC operations
HE down by 12% to R582m, excluding
the base effect of Zimbabwe FX gains,
HE was up by 60%.
Experienced ETI HE down by 16%,
mainly due to accounting for the non-
repeat of the prior year reversal for
Ghana, with an ROI of 18,2%.
Strategy
Accelerated digitisation and digital
usage uptake, including an increase
in digitally active clients from 64% to
72% of its total active client base and
a 21% increase in app users.
Increased the total number of
clients by 14% to 396 733.
Achieved a market leader
position in client experience (NPS)
in Mozambique and leading brand
sentiment scores in 3 markets.
Made good progress on
implementing the value unlock
agenda in ETI.
Tangible positive progress in
NAR Control Environment (risk,
governance, compliance)
Implemented cardless and
card-based cash deposits on our
Intelligent Depositor ATMs, including
full cash recycling across 4 countries.
Successfully enabled the
Guaranteed remuneration
(R000)
2024
2023
2022
4 405
4 688
4 937
+6%
+5%
Total STI
(R000)
2024
2023
2022
8 250
11 000
10 500
+33%
-5%
Total LTI at face value
(R000)
2024
2023
2022
8 000
8 400
10 000
+5%
+19%
new functional currency in
Zimbabwe [Zimbabwe Gold
(ZiG)], with minimal impact on
clients.
Made good progress in NAR
technology harmonisation
system convergence.
ESG delivery
Successfully succeeded
Mfundo Nkuhlu as
ETI Nedbank’s Board
representative.
Maintained a good
relationship with all internal and
external stakeholders, including
regulators.
Ensured effectiveness in
governance and compliance,
although some improvement
is required in the control
environment.
Provided support through
a community empowerment
programme that focused
on sustainable agriculture
education in Eswatini.
Continued empowering
women through a
comprehensive technical and
capacity building programme
in Zimbabwe [targeting 100
women-owned businesses and
contributing US$20 000].
Financial performance
Increased HE by 4% and ROE
to 27,6%.
Increased NIR by 12% and
managed risk well with CLR at
-2 bps, below the cluster’s TTC
target range of 20–40 bps.
Increased assets under
management by 6% yoy to
R474bn, facilitated by strong
market conditions in H2 2025.
Saw NII decrease by 1% due to
lower average deposits and loans
and advances.
Strategy
Enhanced channels and client
acquisition strategies resulting
in 44% growth in gross earned
premiums for MyCover suite of
insurance products.
Introduced personalised
insurance offers on Money app,
which resulted in a 40% increase
in insurance digital sales.
Grew the digitally active client
base by over 50%.
Continued investment in
product, channel and service
enablement.
Guaranteed remuneration
(R000)
2024
2023
2022
4 450
4 687
4 938
+5%
+5%
Total STI
(R000)
2024
2023
2022
8 250
8 600
0
+4%
Total LTI at face value
(R000)
2024
2023
2022
8 000
8 400
0
+7%
Successfully executed the
decision to exit the corporate
e-gaming sector internationally.
Nedgroup Investments
remains the third-largest
offshore manager for the eighth
year in a row and is the eighth-
largest South African manager
(Q4 2024 ASISA stats).
ESG delivery
Asset management business
published its fourth Responsible
Investment Report and its
inaugural Climate Change
Position Statement.
Made good progress and
concluded various risk and
compliance initiatives that
are aligned with a changing
environment.
Value creation
Value preservation
Value erosion
Nedbank Group
Integrated Report
2024
97
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Supplementary
information
Independent assurance, abbreviations, acronyms and reporting criteria.
Nedbank Group
Integrated Report
2024
98
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Independent assurance practitioner’s Limited Assurance Report on selected
sustainability performance information reported Nedbank Group Limited’s
Integrated Report
for the year ended 31 December 2024
To the directors
of Nedbank
Group Limited
We have undertaken a limited
assurance engagement on selected
sustainability performance
information (the “subject matter”),
as described below, and presented
in the Nedbank Group Limited
(“Nedbank”) Integrated Report for
the year ended 31 December 2024
(the “Integrated Report”). This
engagement was conducted
by a multidisciplinary team
with experience in assurance,
sustainability performance and
carbon emissions.
Limited assurance
conclusion
Based on the procedures we have
performed and the evidence we
have obtained (and subject to
the inherent limitations outlined
elsewhere in this report), nothing
has come to our attention that
causes us to believe that the
selected sustainability performance
information as set out in the Subject
Matter paragraph below, for the year
ended 31 December 2024, is not
prepared, in all material respects,
in accordance with management’s
measurement and reporting criteria.
Subject matter
We have been engaged to provide
a limited assurance conclusion
in our report on the following
selected sustainability performance
information identified and selected
by Nedbank’s management as
requiring independent external
assurance:
No
Selected sustainability performance information
Unit of Measurement
Reporting Boundary
Location
disclosed in the
Integrated
Report
(page number)
Location of
description
of Nedbank’s
Criteria in the
Integrated
Report
(page number)
Environmental Key Performance Indicators
1
Number of Equator Principle Deals that had their first
draw down within the financial year
Number
CIB (Investment Banking and Client Coverage)
90
102
2
All CIB credit risk reviews and new applications
included the screening of high risk clients and EP
relevant deals via the Social and Environmental
Management System (SEMS)
Number
Nedbank CIB (Investment Banking and Client Coverage)
90
102
3
Total Carbon Footprint (tCO2e)
tCO2e
Scope 1: Nedbank Limited (South African operations) and all campus buildings.
Scope 2: Campus buildings; non-Campus buildings and non-South African bank offices and/or outlets.
Scope 3:
1. Nedbank Ltd (South African operations) limited to paper, travel claims, staff commuting, car hire and
flights; and
2. Impact of our service providers’ carbon footprint for cloud computing, cash-in-transit, and courier
service providers
70 and 90
102
4
Thermal coal funding – Limit
Percentage
Nedbank Group
102
102
5
Thermal coal funding – Drawn Exposure
Percentage
Nedbank Group
102
102
6
Upstream oil funding – Limit
Percentage
Nedbank Group
102
102
7
Upstream oil funding – Drawn Exposure
Percentage
Nedbank Group
102
102
8
Upstream gas funding – Limit
Percentage
Nedbank Group
102
102
9
Upstream gas funding – Drawn Exposure
Percentage
Nedbank Group
102
102
10
Non-renewable power funding – Limit
Percentage
Nedbank Group
102
102
11
Non-renewable power funding – Drawn Exposure
Percentage
Nedbank Group
102
102
12
Renewable energy funding – Limit
Percentage
Nedbank Group
102
102
13
Renewable energy funding – Drawn Exposure
Percentage
Nedbank Group
102
102
14
Total water consumed
Kilolitres
Nedbank Campus buildings
64
102
15
Waste sent to landfill
Tonnes
Nedbank Campus buildings
64
102
16
Waste recycled
Tonnes
Nedbank Campus buildings
64
102
Economic: Clients and Banking Key Performance Indictors
17
Net promoter score (NPS)
Number
Client promotion of Nedbank for Retail and Business Banking, Wealth and CIB
58
102
18
Number of main-banked clients
Number
Retail
70
102
19
Primary client wins
Number
CIB
70
102
20
Percentage of digitally active retail clients
Percentage
Retail and Business Banking
69
102
21
Digital sales (% of total sales)
Percentage
Retail and Business Banking
69
102
22
Nedbank Africa Regions number of clients
Number
Nedbank Africa Regions
60
102
23
Banking Ombudsman cases in favour of Nedbank
Number
Nedbank Group
89
102
IT key performance indicators
24
System availability uptime score
Percentage
Nedbank Group
69
102
Human resources key performance indicators
25
Staff attrition rate
Percentage
South African Nedbank staff turnover percentage
89
102
Sustainable Development Finance
26
Sustainable Development Finance
Monetary value (ZAR)
CIB Retail & Business Banking Nedbank Africa Regions
70
102
Nedbank Group
Integrated Report
2024
99
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Independent assurance practitioner’s Limited Assurance Report on selected sustainability performance information reported
Nedbank Group Limited’s Integrated Report continued
»
Nedbank as an input to the expert’s work; and
• We also performed such other procedures as we
considered necessary in the circumstances.
We believe that the evidence obtained is sufficient
and appropriate to provide a basis for our limited assurance
conclusion.
Other Matters
No assurance procedures were performed on the prior
years Integrated Report. The information relating to prior
reporting periods has not been subject to our assurance
procedures.
Restriction of Liability
Our report, including our conclusions, has been prepared
solely for the Board of Directors of Nedbank in accordance
with the agreement between us and for no other purpose.
We permit this report to be published in Nedbank’s
Integrated Report to assist the Directors in responding
to their governance responsibilities by obtaining an
independent assurance report in connection with the
selected sustainability performance information.
To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Board
of Directors of Nedbank for our work or for our report and
the conclusion contained therein. We agree to publication
of our assurance report within Nedbank’s Integrated
Report provided it is clearly understood by recipients
or readers of the Report and that we accept no duty of
care to them whatsoever in respect of our independent
assurance report.
Maintenance and integrity of Nedbank website is the
responsibility of Nedbank management. Our procedures
did not involve consideration of these matters and,
accordingly we accept no responsibility for any changes to
either the selected sustainability performance information
as reported, or our independent assurance report that may
occur subsequent to the initial date of publication of the
Report on Nedbank’s website.
The selected sustainability performance information
prepared and presented in accordance with management’s
criteria are marked with the symbol LA (“Limited
Assurance”) to indicate that we have provided limited
assurance over the selected sustainability performance
information.
Other than as described in the preceding paragraphs, which
sets out the scope of our engagement, we did not perform
assurance procedures on the remaining information
included in the Integrated Report, and accordingly, we
do not express a conclusion on this information.
Nedbank’s responsibilities
The Directors of Nedbank are responsible for the
selection, preparation, and presentation of the selected
sustainability performance information in accordance
with management’s measurement and reporting criteria
as set out in in the table above. These responsibilities
include the identification of stakeholders and stakeholder
requirements, key issues, commitments with respect to
sustainability performance and design, implementation and
maintenance of internal control and maintaining adequate
records and making estimates that are relevant to the
preparation of the Integrated Report and any references
or statements of compliance with reporting frameworks
applied, such that it is free from material misstatement,
whether due to fraud or error.
The Directors of Nedbank are responsible for, in relation
to application of the reporting standards used in the
preparation of the Integrated Report, this report being
prepared in accordance with the reporting principles as per
those standards.
The Directors are also responsible for determining the
appropriateness of the measurement and reporting criteria
in view of the intended users of the selected sustainability
performance information and for ensuring that those
criteria are publicly available to the Integrated Reports users.
Inherent limitations
Where Nedbank’s reporting of the selected sustainability
performance information relies on factors derived by
independent third parties, our assurance work has not
included examination of the derivation of those factors and
other third-party information.
The scope of work was limited to the selected sustainability
performance information disclosed in the Integrated Report
and did not include coverage of data sets or information
unrelated to the selected information, nor did it include
information reported outside of Nedbank’s Integrated
Report, information relating to prior periods or comparisons
against historical data.
Our assurance report does not extend to any disclosures or
assertions relating to management’s future performance
plans, forward-looking statements or strategies disclosed
in the Integrated Report.
Our Independence and Quality
Management
We have complied with the independence and other
ethical requirements of the Code of Professional Conduct
for Registered Auditors issued by the Independent
Regulatory Board for Auditors (IRBA Code), which is
founded on fundamental principles of integrity, objectivity,
professional competence, and due care, confidentiality,
and professional behaviour. The IRBA Code is consistent
with the corresponding sections of the International Ethics
Standards Board for Accountants’ International Code of
Ethics for Professional Accountants (including International
Independence Standards).
EY also applies International Standard on Quality
Management 1, Quality Management for Firms that
Perform Audits or Reviews of Financial Statements, or
Other Assurance or Related Services engagements, which
requires that we design, implement and operate a system
of quality management including policies or procedures
regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory
requirements.
Our responsibilities
Our responsibility is to express a limited assurance
conclusion on the selected sustainability performance
information as set out in the Subject Matter paragraph,
based on the procedures we have performed and the
evidence we have obtained.
We conducted our assurance engagement in accordance
with the International Standard on Assurance Engagements
(ISAE) 3000 (Revised), Assurance Engagements other than
Audits or Reviews of Historical Financial Information, and,
in respect of the greenhouse gas emissions, in accordance
with ISAE 3410, Assurance Engagements on Greenhouse
Gas Statements, issued by the International Auditing and
Assurance Standards Board. Those Standards require
that we plan and perform our engagement to obtain the
appropriate level of assurance about whether the selected
sustainability performance information is free from material
misstatement.
The procedures performed in a limited assurance
engagement vary in nature and timing and are less in extent
than for a reasonable assurance engagement. As a result,
the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that
would have been obtained had we performed a reasonable
assurance engagement.
Summary of work performed
Limited assurance
A limited assurance engagement undertaken in
accordance with ISAE 3000 (Revised) and ISAE 3410
involves assessing the suitability in the circumstances of
Nedbank’s use of its measurement and reporting criteria
as the basis of preparation for the selected sustainability
performance information, assessing the risks of material
misstatement of the selected sustainability performance
information whether due to fraud or error, responding to
the assessed risks as necessary in the circumstances,
and evaluating the overall presentation of the selected
sustainability performance information. A limited assurance
engagement is substantially less in scope than a reasonable
assurance engagement in relation to both risk assessment
procedures, including an understanding of internal control,
and the procedures performed in response to the assessed
risks. The procedures we performed were based on our
professional judgement. A limited assurance engagement
consists of making enquiries, primarily of persons
responsible for preparing the sustainability performance
information subject matter and related information and
applying analytical and other appropriate procedures.
For the selected sustainability performance
information, we:
• Performed analytical procedures to evaluate the
reasonability of the reported performance results;
• Obtained explanations from management in response to
our analytical procedures and assessing the reasonability
in the context of our understanding of the business;
• Performed tests of detail on the selected performance
information, on a selective basis, as part of assessing
whether (i) the data has been appropriately measured,
recorded, collated, and reported; and (ii) activities set
out by management are appropriately evidenced and
reported;
• Confirmation with internal or external parties;
• Performed procedures to:
»
Evaluate the competence, capabilities, and objectivity
of external service providers acting as management’s
experts;
»
Obtain an understanding of the work of the
management expert;
»
Evaluate the appropriateness of the management
expert’s work as evidence, including assessing the
data provided by
Ernst & Young Inc.
Associate Partner – Mohsin Yahya Nana
Registered Auditor
Chartered Accountant (SA)
15 April 2025
102 Rivonia Road, Sandton Johannesburg
South Africa
Nedbank Group
Integrated Report
2024
100
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Abbreviations and acronyms
ACI African, Coloured and Indian
AGM annual general meeting
AI artificial intelligence
AIEBA average interest-earning banking assets
AIRB Advanced Internal Ratings-based
AML anti-money-laundering
API application programme interface
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
CET1 common equity tier 1
CIB Corporate and Investment Banking
CLR credit loss ratio
COE cost of equity
CPI consumer price index
CPT corporate performance targets
CRMF Climate Risk Management Framework
CSI corporate social investment
CVP client value proposition
DHEPS diluted headline earnings per share
ED executive director
EE employment equity
ELB entry-level banking
ESG environmental, social and governance
ETI Ecobank Transnational Incorporated
FATF Financial Action Task Force
FIC Financial Intelligence Centre
FSC Financial Sector Code
FSCA Financial Sector Conduct Authority
FVOCI Fair value through other comprehensive income
FVTPL Fair value through profit or loss
GDP gross domestic product
GLAA gross loans and advances
group Nedbank Group Limited
GVA gross value added
HE headline earnings
HEPS headline earnings per share
HQLA high-quality liquid asset(s)
IAS International Accounting Standard(s)
ICAAP Internal Capital Adequacy Assessment Process
ICT information and communication technology
IFRS International Financial Reporting Standard(s)
ILAAP Internal Liquidity Adequacy Assessment Process
JSE JSE Limited
LCR liquidity coverage ratio
LTI long-term incentive
m million
MAFR mandatory audit firm rotation
ME Managed Evolution
MFC Motor Finance Corporation (vehicle finance lending division of
Nedbank)
MW megawatt
NAR Nedbank Africa Regions
NII net interest income
NIM net interest margin
NIR non-interest revenue
NPS Net Promoter Score
NSFR net stable funding ratio
PA Prudential Authority
PAYU Pay-as-you-use
PO prescribed officer
R rand
RBB Retail and Business Banking
Rbn South African rands expressed in billions
REIPPPP Renewable Energy Independent Power Producer
Procurement Programme
Rm South African rands expressed in millions
RMIPPPP The Risk Mitigation Independent Power Producer
Procurement Programme
ROA return on total assets
ROE return on equity
RRB Retail and Relationship Banking
RWA risk-weighted assets
SA South Africa
SA-csi The South African Customer Satisfaction Index
SADC Southern African Development Community
SAICA South African Institute of Chartered Accountants
SARB South African Reserve Bank
SDF sustainable development finance
SDGs Sustainable Development Goals
SEMS Social and Environmental Management System
SME small and medium enterprises
SMME small, medium and macroenterprises
SPT strategic portfolio tilt
SSA sub-Sahara Africa
STI short-term incentive
TCFD Task Force on Climate-related Financial Disclosures
TOM Target Operating Model
TTC through the cycle
UK United Kingdom
US United States
YES Youth Employment Service
yoy year on year
ZAR South African rand (currency code)
Nedbank Group
Integrated Report
2024
101
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
Reporting criteria
Banking ombud cases
in favour of Nedbank
The number of cases found in favour of Nedbank compared to the total number
of cases submitted to the banking ombud/National Financial Ombud Scheme
and were assessed as being within the banking ombud/National Financial
Ombud Scheme jurisdiction.
Digital sales
(% of total sales)
Sales concluded through digital channels expressed as a percentage of new
sales.
Gross loans and advances
(GLAA)
The carrying value of banking book loans and advances before impairment
allowance. GLAA excludes trading book loans and advances.
Nedbank Africa Regions
number of clients
The total number of clients within the subsidiaries forming part of the Nedbank
Africa Regions Cluster.
Net Promoter Score (NPS)
The percentage of promoters less the percentage of detractors.
Non-renewable
power funding
The ratio of non-renewable power funding, as defined in our Energy Policy,
compared to Nedbank Group’s total gross loans and advances.
Number of Equator
Principle Deals that had
their first drawdown within
the financial year
Number of Equator Principle deals within Nedbank CIB’s Investment Banking
and Coverage business units that had their first drawdown within the financial
year.
Number of
main-banked clients
Number of clients who achieved a minimum deposit or a number of quality
transactions on average per month over 3 months.
Percentage of digitally
active retail clients
The number of retail clients who has used a digital channel over the past 90
days compared to the number of total retail clients.
Primary client wins
Clients within the Corporate and Investment Banking Cluster who moved their
primary banking to Nedbank during the year under review.
Renewable energy funding
The ratio of renewable energy funding, as defined in our Energy Policy,
compared to Nedbank Group’s total gross loans and advances.
SEMS deals reviewed
All Nedbank Corporate and Investment Banking Investment Banking and
Coverage business units credit risk reviews and applications included in the
screening of high-risk clients and Equator Principles-relevant deals via the
Social and Environmental Management System.
Staff attrition rate
The number of permanent employees leaving the employment of Nedbank
compared to the total number of permanent employees.
Sustainable development
finance
Funding provided which meets the criteria specified in the Nedbank Sustainable
Development Financing Inclusion Criteria as published on group.nedbank.co.za.
System availability uptime
score
Total number of hours that systems were available compared to the total
number of hours during which systems could have been available.
Thermal coal funding
The ratio of thermal coal funding, as defined in our Energy Policy, compared to
Nedbank Group’s total gross loans and advances.
Total carbon footprint
Total of the scope 1, 2 and 3 emissions:
Scope 1 emissions arising from campus buildings and Nedbank Limited’s South
African operations.
Scope 2 emissions arising from campus buildings, non-campus buildings and non-
South African bank offices and outlets.
Scope 3 emissions arising from Nedbank Limited’s South African operations
includes paper, travel claims, employee commuting, car hire and flights. In addition,
scope 3 upstream emissions include cloud computing, digital platforms, courier,
cash in transit and distributed workforce.
Total water consumed
The total water consumed, measured in kilolitres, at Nedbank campus buildings,
excluding water consumed by third-party tenants at our campus sites.
Upstream oil and
gas funding
The ratio of upstream oil and gas funding, as defined in our Energy Policy,
compared to Nedbank Group’s total gross loans and advances.
Waste recycled
The total waste, measured in tonnes, from Nedbank campus buildings sent for
recycling.
Waste sent to landfill
The total waste, measured in tonnes, from Nedbank campus buildings sent to
landfill.
Additional climate-related disclosures
% of GLAA
Rm
December
2024
December
2023
ytd
change
December
2024
December
2023
Thermal coal funding
Limit
2 153
2 296
(143)
0,2
0,3
LA1
Drawn exposure
920
1 233
(313)
0,1
0,1
LA1
Upstream oil funding
Limit
18 881
18 902
(21)
2,0
2,1
LA1
Drawn exposure
12 244
12 479
(235)
1,3
1,4
LA1
Upstream gas funding
Limit
6 575
4 632
1 943
0,7
0,5
LA1
Drawn exposure
2 233
1 525
708
0,2
0,2
LA1
Non-renewable
power funding
Limit
7 132
8 093
1 943
0,8
0,9
LA1
Drawn exposure
3 258
4 049
708
0,3
0,5
LA1
Renewable energy funding
Limit
56 749
45 557
11 192
6,0
5,1
LA1
Drawn exposure
39 513
29 853
9 660
4,2
3,4
LA1
External limited assurance on selected sustainability information – refer to pages 99 and 100 for the independent assurance
practitioner’s Limited Assurance Report on selected key performance indicators.
LA1
Nedbank Group
Integrated Report
2024
102
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
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, 2 Gwen Lane, Sandown, Sandton, 2196
(from 13 March 2023)
PO Box 4844, Marshalltown, 2000, SA
Namibia
Transfer Secretaries Proprietary Limited
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
For more information contact
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
For more information please contact Nedbank Group
Investor Relations at NedGroupIR@Nedbank.co.za.
Company Secretary:
J Katzin
Sponsors in SA:
Nedbank Corporate and Investment
Banking, a division of Nedbank Limited
Sponsor in Namibia
Old Mutual Investment Services (Namibia) (Proprietary) Limited
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 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 these statements.
The risks and uncertainties inherent in the forward-looking
statements contained in this document include 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 on these statements,
including loss of earnings, profits, or consequential loss
or damage.
Nedbank Group
Integrated Report
2024
103
Integrated
reporting
An overview of
Nedbank Group
Ensuring value creation
through good governance
Sustainable value creation
through strategy
Delivering, measuring and
rewarding value creation
Supplementary
information
group.nedbank.co.za
104