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Nedbank – Financial Services Company

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Nedbank (JSE: NED) is a financial services company in South Africa offering wholesale and retail banking, insurance, and asset management. Nedbank Limited is a wholly-owned subsidiary of the Nedbank Group.

About Nedbank

The bank was established in 1888 in Amsterdam as Nederlandsche Bank en Credietvereeniging voor Zuid-Afrika (“Dutch Bank and Credit Union for South Africa”). The bank opened an office on Church Street in Pretoria, South Africa, in the same year. The company was renamed as Nederlandsche Bank voor Zuid-Afrika (“Dutch Bank for South Africa”). The bank expanded in 1906 and opened an office in London.

Nedbank’s main market is South Africa. Nedbank also operates in six other African countries (SADC) through subsidiaries and banks in Eswatini, Lesotho, Malawi, Mozambique, Namibia, Zimbabwe, Angola and Kenya. Outside Africa, Nedbank has offices providing international financial services to African clients in Guernsey, Jersey, the Isle of Man, the United Kingdom, and the United Arab Emirates.

The new Nedcor Group was founded in 2003. On January 1, 2003, Nedcor, BoE, Nedcor Investment Bank, and Cape of Good Hope Bank merged into a single legal entity. The Nedcor Group was renamed as Nedbank Group in May 2005. As part of the controlled company in 2018. On October 15, 2018, Old Mutual reduced its stake in Nedbank Group to 19.9% as part of the managed separation.

The Nedbank Group is a holding company for all subsidiaries, associates, and subsidiaries of Nedbank. Nedbank is listed on the JSE share code NED and the Namibian stock exchange under the share code NBK.


Image Source: Игорь Головнёв –

Nedbank IPO

Nedbank Group joined JSE’s main board for the banking sector under the symbol (JSE: Ned) on October 10, 2003. The company raised more capital in the next phase on January 1, 2005. The company looks to expand further in the markets of Africa and Europe.

The following institutes own the Nedbank Group:

  • Old Mutual Life Insurance Company (SA)
  • Crown Fund Manager (SA)
  • GIC Asset Management (Singapore)
  • State Investment Company (SA)
  • BlackRock (USA)
  • Avangard Group (USA)
  • Nedbank Group (SA) capital regime
  • Allan Gray Investment Management (USA)
  • Lazard Asset Management (USA)
  • Dimension Fund Advisor (USA)
  • Pension Fund for Civil Servants (SA)
  • Sanlam Investment Management (SA)
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Nedbank Investments

Nedbank has four main business units. The company is constantly investing in its business units to expand further.

Nedbank Corporate and Investment Banking

Nedbank offers its corporate and investment banking customers a comprehensive package of wholesale banking solutions, complemented by a focus on customer relationships. It may include:

  • Investment banking and business credit
  • Treasury and global markets
  • Financing of commercial real estate
  • Deposits-taking
  • Operational banking for institutional and corporate customers with a turnover of more than 750 million rands per year

The strength of Nedbank’s products lies in the financing of commercial real estate, business processes, consulting, and financing of renewable energies.

The Nedbank is also particularly recognized for its dedicated approach to investment banking in the following areas:

  • Public sector
  • Mining and resources
  • Infrastructure too
  • Telecommunications

Nedbank Business and Retail Banking

Nedbank’s business and retail banking is suitable for customers and companies with an annual turnover of fewer than 750 million Rands. The company has more than 500 points of sale and 4,000 ATMs. Its full range of services, including:

  • Transaction banking
  • Card solutions
  • Loan solutions
  • Accept deposits
  • Risk management
  • Series of investment products
  • Business card acquisition services
  • Ecosystems
  • Platform solutions

Nedbank offers differentiated and efficient CVP for various customer segments, including Unlocked Me, MoniMoney, the Home Purchase Toolkit, the Karri School Payments App, SimplyBiz, and the API Marketplace.

It gives attractive offers to customers in all segments, especially in strong positions – car loans through MFC (36%), card purchases, and retail customer deposits (17%).

Nedbank Wealth

Nedbank Wealth’s high net worth clients are offered various banking and capital management solutions through offices in South Africa, the United Kingdom, the Isle of Man, Jersey, Guernsey, and the United Arab Emirates.

In addition, Nedbank Wealth develops the insurance, capital management, and asset management offering based on its unique class model. The company currently manages more than R330 billion with a life embedded value of R3.2 billion.

Nedbank Africa regions

Nedbank provides banking and related services in the Nedbank Africa regions to private clients, small and medium-sized enterprises, corporations, and large corporations.

The Nedbank Africa Region subsidiaries have more than 100 offices and 200 ATMs, which together provide all banking services, including transactions, loans, deposit products, and cards, as well as selected capital management options. Bancassurance is offered in certain markets.

Nedbank’s Business Strategy

The core of Nedbank’s business strategy is to acquire growth through productivity and risk management.

Growth – The company focuses on increasing the proportion of transaction relationships and related deposits across the business to ensure a market-leading experience that helps attract new customers and a greater share of the cash of existing customers.

Productivity – To increase productivity and improve operational efficiency, Nedbank builds on its current efforts to focus and accelerate sales and improve intermediate, secondary, and support functions using proprietary technology platforms.

Risk and Capital Management – Its world-class risk management competencies ensure that the company balances risk and returns and does better. Especially credit is the greatest risk for the company, and after Covid-19, the income factor has largely changed. As a result, depreciation increased by 114% and was the largest headwind to the headline earnings.

Nedbank Stock Analysis

JSE: NED has a market capitalization of R2.81 billion. NED has not been significantly more volatile than the rest of the ZA stocks over the past three months and averaged -/+ 4% per week. Weekly volatility in the NED (4%) has been stable over the past year.

NED is behind the ZA Banks industry, which delivered a return of 56.1% last year. NED outperformed the ZA market, returning 27.6% last year.

The stock price of the company has been witnessing an uptrend since the third week of December 2020. The share price has not breached the December low of  ZAR 118,26 and rallied to the ZAR 155,00 mark.

Bottom line

The merger of different entities to form the NedBank Group proved a useful decision for expansion and growth. The primary listing of NedBank on JSE offered an opportunity to common investors to buy the shares of such a stable company. The growth potential for the company remains high.

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