Nedbank Mozambique closed the first half of 2026 with a solvency ratio of 30.83%, more than double the regulatory minimum of 12%, demonstrating solid capacity to meet its financial obligations. The bank maintained robust capitalisation and liquidity levels and recorded positive growth in its loan portfolio, despite an environment marked by foreign-exchange scarcity, limited economic activity, and international instability, according to a statement sent to Diário Económico.
According to regulatory and financial indicators for June, the Tier 1 capital ratio — which measures the bank's highest-quality capital — stood at 31.28%, while the leverage ratio, which relates capital to assets, reached 17.91%. The indicators reflect the strength of the institution's financial position during the period.
Return on equity (ROE) reached 15.52% at the end of the semester, while return on assets (ROA) stood at 2.92%. The net interest margin was recorded at 11.88%.
Although it did not disclose net profit for the period, nor absolute figures for assets, deposits, or loans, Nedbank Mozambique indicated that its loan portfolio recorded positive growth. The institution stated that it maintained a prudent approach to lending and risk management.
On asset quality, the non-performing loan (NPL) ratio stood at 3.20%, while impairment coverage of those loans — reserves set aside to absorb potential losses — reached 83.76%. Loans overdue by less than 90 days represented 7.88% of the total portfolio.
Nedbank Mozambique explained that it strengthened impairment coverage and maintained liquidity and balance sheet oversight through its Asset and Liability Committee (ALCO). The institution added that it sustained a resilient performance in the face of foreign-currency shortages and the effects of international conflicts.
On operational efficiency, the cost-to-income ratio — which measures the proportion of income absorbed by costs — stood at 48.31%, while the operating cost ratio reached 52.71%. The bank also highlighted the upgrade of its core technology infrastructure and the reinforcement of cybersecurity mechanisms.
Beyond financial performance, Nedbank Mozambique highlighted the strengthening of conduct measures and client protection initiatives, as well as continued investment in staff training and development. Initiatives promoted during the first half included the Leadership Academy and team-building sessions designed to reinforce strategic alignment, integration, and collaboration across teams.
At the consolidated level, the Nedbank Group recorded headline earnings of 8.4 billion rand (US$490 million) in the first half of 2026, remaining broadly stable compared with the same period a year earlier. Excluding the impact of its previously held stake in Ecobank Transnational Incorporated, headline earnings grew 12%, while diluted earnings per share increased 15%.
The group declared an interim dividend of 1,052 cents per share, equivalent to approximately US$0.61, up 2% on the same period of the prior year. The consolidated loan portfolio grew 7% to 1.01 trillion rand (US$58.6 billion), while deposits rose equally by 7% to 1.25 trillion rand (US$72.5 billion).
"The bold decisions we made to become more client-centred, drive growth, and diversify revenue streams have started to deliver benefits," said Jason Quinn, Group Chief Executive of Nedbank.
Quinn also highlighted the group's organisational restructuring, the integration of Eqstra, the acquisition of iKhokha, the sale of its stake in Ecobank Transnational Incorporated, and the progress of the process to acquire an approximately 66% stake in Kenyan banking group NCBA.
According to Nedbank Group, the offer made to acquire NCBA was accepted by shareholders representing 79.9% of the issued share capital, enabling the bank to secure the intended stake. The completion of the transaction remains subject to the necessary regulatory approvals.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/08/04/economia/banca/nedbank-mocambique-fecha-primeiro-semestre-com-racio-de-solvabilidade-de-3083/
