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Nedbank GroupJSE:NED Stock Report

Market Cap







17 Oct, 2021


Company Financials +
NED fundamental analysis
Snowflake Score
Future Growth4/6
Past Performance2/6
Financial Health4/6

NED Overview

Nedbank Group Limited, together with its subsidiaries, provides various wholesale and retail banking services in South Africa and internationally.

Nedbank Group Competitors

Standard Bank Group



Capitec Bank Holdings



Absa Group



JPMorgan Chase



Price History & Performance

Summary of all time highs, changes and price drops for Nedbank Group
Historical stock prices
Current Share PriceR174.87
52 Week HighR94.63
52 Week LowR189.66
1 Month Change3.98%
3 Month Change10.53%
1 Year Change81.95%
3 Year Change-25.74%
5 Year Change-18.52%
Change since IPO1,020.97%

Recent News & Updates

Shareholder Returns

NEDZA BanksZA Market

Return vs Industry: NED exceeded the ZA Banks industry which returned 49.6% over the past year.

Return vs Market: NED exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is NED's price volatile compared to industry and market?
NED volatility
NED Beta1.3
Industry Beta0.91
Market Beta1

Stable Share Price: NED is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NED's weekly volatility (4%) has been stable over the past year.

About the Company

183127,561Mike Thomas Brown

Nedbank Group Limited, together with its subsidiaries, provides various wholesale and retail banking services in South Africa and internationally. It offers personal banking solutions, including savings deposits and investment accounts; home and personal loans, student loans, vehicle finance products, private wealth finance solutions, overdrafts, and credit cards; and investment plans and services, financial and estate planning services, and wills and trust services, as well as professional banking, wealth management, non-resident and embassy banking, insurance, stock broking, and foreign exchange services. The company also provides business banking services, such as business accounts; call, fixed, and flexi deposits; loans and structured solutions; property, asset, and vehicle finance products; value added services; card and cash solutions; treasury solutions; cash management, electronic banking, and merchant payment and support services; life, asset, income and credit protection, funeral, business cover, liability cover, revenue cover, and owners’ insurance products; asset management services; and commodities, equities, fixed income, and structured credit products.

Nedbank Group Fundamentals Summary

How do Nedbank Group's earnings and revenue compare to its market cap?
NED fundamental statistics
Market CapR84.88b
Earnings (TTM)R7.41b
Revenue (TTM)R45.84b


P/E Ratio


P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NED income statement (TTM)
Cost of RevenueR0
Gross ProfitR45.84b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date


Earnings per share (EPS)15.26
Gross Margin100.00%
Net Profit Margin16.16%
Debt/Equity Ratio102.9%

How did NED perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio


Is Nedbank Group undervalued compared to its fair value and its price relative to the market?


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: NED (ZAR174.87) is trading above our estimate of fair value (ZAR92.52)

Significantly Below Fair Value: NED is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: NED is poor value based on its PE Ratio (11.5x) compared to the ZA Banks industry average (10.6x).

PE vs Market: NED is poor value based on its PE Ratio (11.5x) compared to the ZA market (11.2x).

Price to Earnings Growth Ratio

PEG Ratio: NED is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: NED's PB Ratio (0.9x) is in line with the ZA Banks industry average.

Future Growth

How is Nedbank Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NED's forecast earnings growth (22.7% per year) is above the savings rate (8.8%).

Earnings vs Market: NED's earnings (22.7% per year) are forecast to grow faster than the ZA market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NED's revenue (8.9% per year) is forecast to grow faster than the ZA market (6.1% per year).

High Growth Revenue: NED's revenue (8.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NED's Return on Equity is forecast to be low in 3 years time (13.2%).

Past Performance

How has Nedbank Group performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NED has a high level of non-cash earnings.

Growing Profit Margin: NED's current net profit margins (16.2%) are higher than last year (14.9%).

Past Earnings Growth Analysis

Earnings Trend: NED's earnings have declined by 9.8% per year over the past 5 years.

Accelerating Growth: NED's earnings growth over the past year (13.8%) exceeds its 5-year average (-9.8% per year).

Earnings vs Industry: NED earnings growth over the past year (13.8%) underperformed the Banks industry 24.9%.

Return on Equity

High ROE: NED's Return on Equity (7.9%) is considered low.

Financial Health

How is Nedbank Group's financial position? (This company is analysed differently as a bank or financial institution)

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: NED's Assets to Equity ratio (11.1x) is moderate.

Allowance for Bad Loans: NED has a low allowance for bad loans (64%).

Low Risk Liabilities: 85% of NED's liabilities are made up of primarily low risk sources of funding.

Loan Level: NED has an appropriate level of Loans to Assets ratio (69%).

Low Risk Deposits: NED's Loans to Deposits ratio (88%) is appropriate.

Level of Bad Loans: NED has a high level of bad loans (4.7%).


What is Nedbank Group current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NED's dividend (4.95%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: NED's dividend (4.95%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).

Stability and Growth of Payments

Stable Dividend: NED's dividend payments have been volatile in the past 10 years.

Growing Dividend: NED's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.3%), NED's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: NED's dividends in 3 years are forecast to be covered by earnings (52% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Mike Thomas Brown (54 yo)





Mr. Michael William Thomas Brown, also known as Mike, BCom, Dip Acc, CA (SA), AMP, serves as the Chief Executive and Executive Director of Nedbank Corporate. Mr. Brown has been the Chief Executive Officer...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD2.95M) is above average for companies of similar size in the ZA market ($USD1.71M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: NED's management team is seasoned and experienced (6.8 years average tenure).

Board Members

Experienced Board: NED's board of directors are considered experienced (4.8 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Nedbank Group Limited's employee growth, exchange listings and data sources

Key Information

  • Name: Nedbank Group Limited
  • Ticker: NED
  • Exchange: JSE
  • Founded: 1831
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R84.877b
  • Shares outstanding: 485.37m
  • Website:

Number of Employees


  • Nedbank Group Limited
  • Nedbank 135 Rivonia Campus
  • 135 Rivonia Road
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:05
End of Day Share Price2021/10/15 00:00
Annual Earnings2020/12/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.