Nedbank finalizes ETI sale, foresees significant EPS drop

Nedbank Group announced the successful conclusion of the disposal of its 21.2% shareholding in Ecobank Transnational Incorporated (ETI) on December 17, 2025. The sale to Bosquet Investments Limited was for a purchase consideration of $100m. This disposal marks a strategic reset for Nedbank, focusing on SADC and East Africa regions where it owns and controls businesses.

As a result of the disposal, IFRS accounting standards require the recycling of approximately a net R7bn loss, previously recognized via other comprehensive income (OCI), to profit or loss in the current reporting period. This will lead to a decrease in basic earnings per share (EPS) for the 12 months ending December 31, 2025 (FY25), of at least 20%, reducing it to at least 2,888 cents from 3,610 cents reported in FY24.

The recycling of these foreign exchange losses and fair value adjustments will not impact headline earnings per share (HEPS), diluted HEPS, or net asset value (NAV) per share, as they are specifically excluded from headline earnings calculations. Nedbank Group's previous guidance of flat to low single-digit underlying diluted HEPS growth and an ROE of 15% or higher for FY25, excluding the R600m Transnet settlement, remains unaffected.