…as digital strategy drives growth
Leemisa Thuseho
NEDBANK Lesotho says it remains on a positive growth trajectory in line with the wider Nedbank Group, with management expressing confidence that the local operation will deliver improved financial performance at year-end despite challenging economic conditions.
Although Lesotho is not required to publish interim financial results, Nedbank Lesotho Managing Director, Nkau Matete, said the local operation continues to perform in line with the group’s strong first-half results.
“While Lesotho is not required to do interim reporting, I can assure you that we are certainly not moving in the opposite direction. When we announce our results at the end of the year, they are expected to reflect the same positive growth trajectory as the Nedbank Group,” Mr Matete said.
He said one of the strongest areas of performance had been non-interest revenue, which grew by about 15 percent during the first half of the year as the bank pursued its strategy of increasing transactional income.
“Our bank has traditionally been heavily dependent on interest income. However, global uncertainty, fuel prices and the wars taking place around the world present challenges to interest income. It therefore makes sense for us to diversify and grow other sources of income.
“We are already seeing double-digit growth in non-interest revenue, and we expect to report improved returns on equity compared to last year. A great deal of work is being done to improve those key performance indicators,” he said.
Nedbank Group Managing Executive for Africa Regions, Dr Terence Sibiya, said the group also expects a stronger second half across its African operations despite foreign currency shortages and heightened sovereign debt risks.
He said growing non-interest revenue through greater adoption of digital banking platforms remained a key priority for both the Africa Regions business and Nedbank Lesotho.
“We are seeing our clients interacting with us more and more through the digital platforms that we offer. As a result, we will continue investing in our technology journey,” Dr Sibiya said.
The positive outlook follows strong interim results by Nedbank Group for the six months ended 30 June 2026, with headline earnings rising to M8.4 billion, supported by higher net interest income, growth in non-interest revenue and disciplined cost management.
Nedbank Group Chief Executive, Jason Quinn, said strategic decisions implemented in 2025—including organisational restructuring, the integration of Eqstra, the acquisition of iKhokha, the sale of the bank’s stake in Ecobank Transnational Incorporated (ETI), and the planned acquisition of a majority stake in Kenya’s NCBA—were beginning to deliver tangible results.
Headline earnings per share increased by 15 percent, excluding the ETI base effect, while return on equity remained strong at 15 percent. The group also declared an interim dividend of 1 052 cents per share.
Growth was recorded across all major business units, with Corporate and Investment Banking increasing advances by eight percent, Business and Commercial Banking by six percent, and Personal and Private Banking also recording six percent growth.
The retail client base expanded to 7.6 million customers, while digitally active retail clients increased to 3.5 million.
The group’s continued investment in digital banking and artificial intelligence has also delivered significant benefits, with its Intelligent Hyper Automation strategy generating annualised gains of more than R375 million through improved productivity, enhanced customer experience, stronger fraud prevention and greater operational efficiency.
It expects the momentum achieved during the first half of the year to continue through the remainder of 2026, supported by continued investment in technology, client growth and income diversification across the group’s African operations.