SENS-AI
NED Compliance Filing Neutral

NEDBANK GROUP LIMITED - Pillar 3 Capital Adequacy, Leverage and Liquidity Disclosures at 31 December 2025

Nedbank Group Limited
Full analysis

What this filing means

Nedbank released its annual Pillar 3 report showing capital and liquidity ratios that exceed regulatory targets despite a slight year-on-year softening in CET1 and LCR metrics.

Nedbank shared a regular update on its 'safety net' (capital and liquidity). While the bank has slightly less extra cash than last year, it still has significantly more than the rules require, meaning it remains in a very healthy financial position.

Bull case

  • CET1 capital adequacy ratio of 12.9% remains comfortably above the board-approved target range of 11.0% to 12.0%.
  • Net Stable Funding Ratio (NSFR) improved slightly to 116.3% from 116.0%, indicating stable long-term funding.
  • Liquidity Coverage Ratio (LCR) of 131.5% remains well above regulatory minimums despite a year-on-year decrease.
  • Stock maintains strong technical momentum, trading significantly above its 50-day (R275.28) and 200-day (R248.91) moving averages.

Bear case

  • The Pillar 3 disclosures are explicitly unaudited and have not been reviewed by external auditors.
  • CET1 ratio saw a 40 basis point decline from 13.3% in 2024 to 12.9% in 2025.
  • Liquidity Coverage Ratio (LCR) declined from 135.2% to 131.5%, signaling a reduction in short-term liquidity buffers.
  • The 3.17% share price decline on high volume (161% of average) suggests aggressive profit-taking following a 16% monthly rally.
View original SENS announcement

AI-generated summary by SENS-AI, based on the original JSE SENS filing.

SENS-AI conclusion

Nedbank's Pillar 3 disclosure confirms the bank is well-capitalized with a CET1 ratio of 12.9%, surpassing its 11-12% target range, though metrics have softened slightly from 2024 levels. As a routine regulatory filing following the recent annual results, this is a continuation event that provides technical confirmation rather than new strategic direction. Signal-to-Price Note: The price is down 3.17% despite healthy capital metrics, which is a classic 'Sell the Fact' move as the market locks in gains following a 16.11% 30-day rally. Investor Takeaway: This is a routine compliance filing confirming balance sheet strength; the intraday price weakness is a liquidity-driven correction of overbought conditions rather than a fundamental red flag.

Routine regulatory confirmation. Maintain positions; use high-volume weakness as a potential entry point given the attractive 7.0x forward P/E and 6.9% yield.

Decision framework

Current stance: Neutral

Key drivers

  • CET1 capital adequacy ratio of 12.9% remains comfortably above the board-approved target range of 11.0% to 12.0%.
  • Net Stable Funding Ratio (NSFR) improved slightly to 116.3% from 116.0%, indicating stable long-term funding.
  • Liquidity Coverage Ratio (LCR) of 131.5% remains well above regulatory minimums despite a year-on-year decrease.

Key risks

  • The Pillar 3 disclosures are explicitly unaudited and have not been reviewed by external auditors.
  • CET1 ratio saw a 40 basis point decline from 13.3% in 2024 to 12.9% in 2025.
  • Liquidity Coverage Ratio (LCR) declined from 135.2% to 131.5%, signaling a reduction in short-term liquidity buffers.

What would change the view

  • Guidance and cash-flow quality both improve materially from current baseline.
  • Subsequent filings remove current uncertainty and confirm durable execution.
  • Market structure/positioning shifts enough to support a directional thesis.

Evidence from the filing

  • Robust capital adequacy above target range

    “At 31 December 2025, Nedbank Group reported a CET1 capital adequacy ratio, including unappropriated profits of 12.9% (Dec 2024: 13.3%) above the top end of the 2025 board-approved target range of 11.0% to 12.0%”

  • Healthy liquidity and funding profile

    “a Liquidity Coverage Ratio of 131.5% (Dec 2024: 135.2%) and a Net Stable Funding Ratio of 116.3% (Dec 2024: 116.0%).”

  • Regulatory compliance with SARB directives

    “These disclosures are made in accordance with the South African Reserve Bank (SARB) Directive 10 of 2025 on matters related to the Pillar 3 disclosure requirements framework issued in terms of section 6(6) of the Banks Act, 94 of 1990.”

  • Lack of independent audit or review

    “The disclosures have not been audited nor reviewed by the group's joint external auditors.”

  • Decline in CET1 and LCR ratios

    “At 31 December 2025, Nedbank Group reported a CET1 capital adequacy ratio, including unappropriated profits of 12.9% (Dec 2024: 13.3%) ... a Liquidity Coverage Ratio of 131.5% (Dec 2024: 135.2%)”
Category
Compliance Filing
Published
Mar 3, 2026

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