Nedbank Secures R13.9 Billion Stake In Kenya’s NCBA As East African Growth Outpaces South African Economy

Nedbank pivots to East Africa with a R13.9 billion NCBA acquisition, targeting 5% regional growth as South African margins face pressure.

By: AXL Media

Published: Mar 5, 2026, 6:24 AM EST

Source: The information in this article was sourced from BusinessTech

Capitalizing On East African Momentum

Nedbank is moving forward with a major acquisition in the East African banking sector, securing a majority stake in NCBA Group PLC. The deal, valued at approximately R13.9 billion, will be structured with 80% funded through new Nedbank shares and 20% in cash. NCBA is a tier-1 financial institution managing roughly R85 billion (KES 665 billion) in assets and serving over 60 million customers across Kenya, Tanzania, Uganda, and Rwanda. Nedbank CFO Mike Davis noted that the opportunity to acquire such a high-calibre bank was a "slight surprise" but aligns perfectly with the group's strategy to capture market growth far exceeding the 1.5% projected for South Africa this year.

Synergies In Infrastructure And Technology

The acquisition is designed to be a two-way exchange of expertise. Nedbank plans to integrate its Corporate and Investment Banking (CIB) knowledge, particularly in large-scale infrastructure finance, into the NCBA framework. Conversely, Nedbank’s South African operations expect to learn from NCBA’s advanced technological and digital banking capabilities, which already include successful mobile platforms in Ghana and the Ivory Coast. Under the terms of the agreement, the existing NCBA management team will remain in place to lead the subsidiary, maintaining operational continuity and local market expertise.

Navigating Financial Headwinds And The ETI Exit

The announcement comes on the heels of Nedbank’s 2025 financial results, which were significantly impacted by the divestment from West African-based Ecobank Transnational Incorporated (ETI). The group reported a 53% decline in basic earnings per share to 1,681 cents, primarily due to IFRS accounting requirements that mandated the recognition of cumulative foreign exchange and fair value losses from the ETI sale. Despite these accounting-driven declines, Nedbank’s headline earnings rose by 2% to R17.2 billion, supported by a lower credit loss ratio and a strong balance sheet that allowed for a final dividend of 1,104 cents per share.