Q2 2026 Nedbank Group Ltd Earnings Call
Speaker #2: Good afternoon, and welcome to Nedbank's 2026 interim results presentation. The presentation today will cover an overview of our results, but before turning to some thoughts on the operating environment and the outcomes we're starting to see on the back of strategic decisions we've made over the last 18 months.
Speaker #2: After that, Mfundo, our Chief Operating Officer, will cover the progress we've made on some of our strategic focus areas. And Mark, our CFO, will then unpack our financial results and I'll return at the end to discuss our outlook and our guidance.
Speaker #2: Well, let me start with a few overarching thoughts on the operating environment, the strategic progress we've made, and Mark's comments on our financial performance in the first half of the year.
Speaker #2: The overarching theme of Nedbank's results was one of focused execution and growth. If 2025 was a transformational year for Nedbank's strategy, 2026 is a year of transition and focus on execution and growth.
Speaker #2: On the operating environment, we've got three key messages. Firstly, despite global volatility and uncertainty following developments in the Middle East and pressure on energy prices, we maintain that the South African investment case remains structurally and broadly intact.
Speaker #2: Secondly, corporate balance sheets remain healthy, and the fixed investment cycle still lies ahead of us—something Nedbank remains well-positioned to participate in. Thirdly, from a consumer perspective, credit growth is gradually improving, although consumers have been under renewed pressure from higher inflation since the second quarter of the year.
Speaker #2: The strategic decisions we made in 2025 are now translating into tangible outcomes. With pre-provision operating profit increasing by 8% and by 15% when excluding ETI in the base.
Speaker #2: This growth was supported by strong underlying operational performance and growth momentum across all our clusters. With regards to the NCBA transaction, I'm pleased that our offer to acquire a majority stake has been accepted by NCBA shareholders, securing us a 66% shareholding as we originally targeted.
Speaker #2: The transaction remains on track for completion towards the end of Q3 or early Q4, and supports our ambition to diversify our earnings and expand in attractive East African markets.
Speaker #2: From a financial performance perspective, I was really pleased with DHEB's growth of 2%, which is ahead of market expectations of a decline in earnings in the first half of the year.
Speaker #2: Excluding ETI-based effects, DHEB's growth was very strong at 15%. This half should now represent the low-water mark for group earnings, given the base effects of ETI.
Speaker #2: On the back of this earnings profile and good management of capital, ROE printed 15%, also ahead of expectations. Mark will unpack the drivers of our financial performance in his section a bit later.
Speaker #2: Given our strong balance sheet and a set-one ratio of 12.6%, we ended the period slightly above the top end of our target range, and thus the board declared an interim dividend of 10.52 per share.
Speaker #2: We believe that South Africa's prospects as an attractive investment destination remain structurally and broadly intact, despite global uncertainties and the conflicts in the Middle East.
Speaker #2: There's growing evidence that reform momentum is beginning to translate into operational improvements. ESCOM's electricity availability factor has increased, port processing of bulk commodities has risen nicely off its lows, and rail volumes have increased.
Speaker #2: This progress is further supported by stronger public-private collaboration, continued fiscal discipline, as reflected in a primary budget surplus and an improving debt trajectory both of which are important in reinforcing confidence in South Africa's sovereign outlook.
Speaker #2: Municipalities are also increasingly being held more accountable for their finances, as a result, and following S&P's upgrading South Africa's credit rating to BB with a positive outlook at the end of 2025, Moody's affirmed its rating of the sovereign at BA2 and revised the outlook to positive while Fitch upgraded their rating of the sovereign to BB with a stable outlook.
Speaker #2: The graphs on this slide highlight how financial markets have priced in the progress that's been made, including better government bond yields and CDS spreads, bond purchases, and a stronger RAND.
Speaker #2: More importantly, despite initial negative reactions at the start of the Middle East conflict, as highlighted by the black arrows, many indicators have returned to levels achieved at the start of the year.
Speaker #2: We continue to monitor global developments, given the unpredictability of that situation. In summary, though, financial markets have been reasonably resilient in this crisis period.
Speaker #2: So now turning to the corporate sector, industry-level credit growth was robust, but mostly as the result of a low 2025 base. South African corporates remain well-positioned with conservative balance sheets, and limited signs of overextension.
Speaker #2: This creates capacity for a future investment cycle, provided confidence continues to improve, and infrastructure delivery and policy certainty remain on track. Nedbank's longstanding capital investment schedule indicates a meaningful increase in investment plans that will be led by the private sector.
Speaker #2: This suggests that corporates are beginning to re-engage although the fixed investment cycle has not yet fully materialized, and remains ahead of us. The opportunity is significant, with South Africa's estimated public sector infrastructure investment requirements at 1.1 trillion RAND, including more than 200 billion RAND in energy, 185 billion RAND in water and sanitation, and more than 400 billion RAND in transport and logistics.
Speaker #2: These are areas that Nedbank is well-positioned against, and we will actively participate in. On the consumer side, the picture is mixed. With stress emerging in Q2, household credit growth is gradually improving, off a low base, but still weak at around 5%, given affordability constraints.
Speaker #2: Here we've seen stronger growth in mortgages and vehicle finance, slower growth in areas such as personal loans. While personal disposable income continue to increase into 2026, the health of the consumer was negatively impacted by higher levels of inflation and particularly higher fuel prices.
Speaker #2: On the back of the bold strategic decisions we made and executed in 2025, as shown on the left side of the slide, I'm pleased to report that we have experienced improved underlying growth and sustained momentum, as well as productivity benefits, in the first half of this year across all our business clusters.
Speaker #2: NCRB, leading sector capabilities, and more attractive, diversified pipelines have started to emerge. Gross advances growth improved to 8%, reflecting improved client flows and increased participation in larger transactions, through its revised sector-focused execution model.
Speaker #2: Trade finance revenue increased by 18%, and commission and fees increased by 16%, as a result of stronger deal flow, while early progress in the cluster's focus on transactional deposits resulted in an improvement in our funding mix.
Speaker #2: While the establishment of the new BCB cluster resulted in a planned investment curve, new business momentum and early revenue benefits have started to emerge, advances growth of 6% accelerated when compared to the 2% decline, in the prior year.
Speaker #2: This was supported by double-digit growth in new loan payouts in both the mid-corporate and commercial segments. Commission and fees increased by 14% on the back of improved client activity and ongoing franchise expansion, as well as synergies from the recent acquisitions.
Speaker #2: For example, Ikoka point-of-sale devices are now sold in Nedbank branches, and Equestra Fleet cards are now issued by Nedbank. In PPB, we are accelerating growth and unlocking efficiencies as the focus on improving the cluster's ROE-intensifiers.
Speaker #2: Advanced growth momentum of 6% continued, as new loan payouts in home loans and cards increased by double digits, resulting in market share gains, while MFC retained its market-leading position as payouts increased by 9%.
Speaker #2: Very importantly, we also continue to gain retail deposit market share, now for two consecutive years. Payments and digital ecosystem scaled further, as value-added services revenue grew strongly.
Speaker #2: PPB's focus on insurance growth saw marked cover premium revenue increase by 23%, and insurance revenue increased by 21%. Productivity initiatives, such as right-sizing headcount on the back of the reorganization, supported cost optimization.
Speaker #2: This resulted in expense growth printing at only 3%, contributing to the 1% improvement in the cost-to-income ratio, now to below 60%, with much more opportunities to lead this year.
Speaker #2: In our SADIC, strategic execution supported revenue growth and operational efficiency, which led to the cluster's ROE increasing by 3% to 10%. Advances grew by 21%, while NIR increased by 12%.
Speaker #2: Efficiency initiatives included a business rights housing program that reduced headcount by 9%. Capital optimization continued throughout, with the repatriation of excess capital to the group.
Speaker #2: In January this year, we announced our intention to acquire effective control of NCBA Group, one of East Africa's leading financial services group, which aligns with our strategy to grow and diversify in East Africa through a controlling stake in a leading tier-one bank with a scalable regional platform, complementary strengths, and exciting growth prospects.
Speaker #2: In July, Nedbank's offer was accepted by NCBA shareholders, and as a result, we've achieved our targeted 66% shareholding subject to confirmations at all conditions have been met.
Speaker #2: The transaction will result in the issue of around 43.6 million new Nedbank ordinary shares to participating NCBA shareholders, and a cash payment of around 23 billion shillings, or 3 billion RAND, subject to final settlements.
Speaker #2: Post-implementation of the transaction, NCBA shareholders will hold a shareholding of just over 8% in Nedbank on the JSE, while NCBA will continue to be listed on the Nairobi Securities Exchange.
Speaker #2: Regulatory approvals required for the offer have been obtained from various regulators and authorities, and outstanding approvals are progressing in accordance with their timelines, and are expected to be received towards the end of the third quarter, or early in the fourth quarter of 2026.
Speaker #2: After 22 years of dedicated service to Nedbank, Mfundo has decided to retire and will step down as COO at the end of the year having reached the age of 60.
Speaker #2: Mfundo has made a significant and lasting contribution to Nedbank, and we're all deeply grateful. For his leadership, wisdom, and insight. Throughout his career, with Nedbank, Mfundo has brought deep banking expertise, strategic acumen, a steadfast commitment to clients, our people, and the continent.
Speaker #2: He's been instrumental in shaping and executing the group's strategy, strengthening operational excellence, and helping Nedbank navigate the significant periods of change with clarity and resolve.
Speaker #2: I'm personally incredibly grateful for the support, guidance, and mentorship Mfundo gave me as I settled into the CEO role over the last two years. His generosity, experience, and perspective made a meaningful difference to me during important transitions.
Speaker #2: Succession's been well planned here, and with the recent announcements of our Chief Technology Officer starting next month, Mfundo will be with us till the end of December, no doubt, driving execution focus day to day.
Speaker #2: So for the last time, let me hand over to Mfundo to reflect on the progress we've made, on our strategic value unlocks.
Speaker #1: Thank you, Jason. And good afternoon, everyone. It is a bittersweet moment but time catches up with us all. Nedbank has provided me with an enriching growth experience.
Speaker #1: And fantastic relationships. I will miss you all. Our investment in technology has moved beyond enablement to become a genuine driver of business value at Nedbank.
Speaker #1: Platform modernization has translated directly into faster client onboarding, improved digital adoption, enhanced client experiences, and measurable gains in operational efficiency. Investment in data and AI capabilities is beginning to show returns, and I will cover this shortly.
Speaker #1: On the retail side of the group, digital metrics in PPB continue to improve, as evidenced by strong growth in digitally active clients and app users.
Speaker #1: Higher levels of app logins, and digital sales that increased to 76% of all sales. The progress we have made has supported client satisfaction metrics, with Nedbank ranking number two among the large SA banks on NPS, and the value of the Nedbank brand increasing by 16% in 2026 to R24 billion.
Speaker #1: Ranking eighth among all South African companies. Our touristic businesses also showed steady progress, as the use of the Nedbank Business Hub by clients continues to increase.
Speaker #1: Adoption rates in PCB and CIB increased to 77% and 56%, respectively, driven by higher levels of self-service and the delivery of enhanced digital features.
Speaker #1: Highlighting the opportunity ahead of us, from a client experience perspective—in PCB, we continue to lead the industry in the mid-corporate segment, with a client satisfaction score of 92.
Speaker #1: While client satisfaction in CIB increased to 82%, improving from the prior year and now consistently above the global benchmark of 80%. Following from the early phase of experimentation, with individual AI use cases, our focus on hyper automation and AI has progressed to be domain focused, to scale execution, and increase impact.
Speaker #1: On this slide, we provide early proof points of hyper automation as well as AI in practice and its impact on priority domains. AI-driven next steps next best action capabilities in PPB's digital and frontline channels have enhanced our ability to cross-serve.
Speaker #1: Sales linked to the next best offer efforts increased from 5% to 13% of sales. Contributing to the improved cross-sell ratio in PPB of 2.04 times.
Speaker #1: In CIB, automation has assisted origination processes, with improvements evident in faster turnaround times, better client servicing, and more effective origination. In PCB, an AI-powered intelligence platform helps bankers unlock growth opportunities, manage risk proactively, and deepen client relationships by creating a 360-degree view of more than 25,000 clients.
Speaker #1: Key outcomes include a 3.5% increase in NPS and meaningful time savings per engagement. AI is also enhancing productivity and one example as shown on the slide is our conversational AI digital assistant, NB, that handles more than 370,000 chats per month.
Speaker #1: Resolving almost 80% of all client queries without human intervention. Lastly, we have also leveraged AI in our fraud processes. Reducing the time to create fraud cases by 95% and registering fraud cases much faster.
Speaker #1: Looking ahead, technology will remain central to how we create value, not as a cost center to be managed, but as a capability that differentiates us in a competitive digitizing financial services market.
Speaker #1: We're also making good progress in building stronger client franchises and enhancing client primacy, which is central to growing revenues. Total group clients increased by 4% to 8 million, supported by increases across PPB, PCB, and NAR.
Speaker #1: Cross-sell penetration in PPB improved further. Main bank clients grew by 2% to 3.9 million. And Greenbacks, our loyalty and rewards program, increased its client base by 13% to 2.2 million.
Speaker #1: This growth in Greenbacks clients was supported by enhancements such as our partnership with retailers, which, for example, enables customers to earn up to 30% or R1,500 back each month when shopping at Checkers.
Speaker #1: We plan to strengthen this proposition further by adding 60/60 later this year. We also continue to improve the experience in our travel offering, with plans to add car hire and accommodation to the existing benefit of up to 80% off flights.
Speaker #1: In PCB, cross-sell penetration increased to 4.75. The number of point-of-sale devices in market ramped up to more than 160,000. On the back of the ICOCA acquisition.
Speaker #1: And for AMEX card users, 20% more merchants now accept our cards on their devices. From a lending and deposit-taking perspective, we had mixed outcomes in growing key segments and products.
Speaker #1: In wholesale lending, web banking loans grew by 8% in CIB and 6% in PCB. Term loan market share increased by almost 1% since December.
Speaker #1: While we remain selective in commercial property, where we have a leading position, overall core corporate loan market share increased to 19.4%. The positive outcomes were driven by various strategic initiatives and the conversion of existing pipelines.
Speaker #1: CIB participated in diversified larger ticket transactions, while growth in PCB was supported by deep sector expertise, growth in SDG-linked finance, and the rollout of pre-approved overdraft and revolving credit facilities.
Speaker #1: In retail lending, we increased market share in home loans and cards. While retaining a leading position in vehicle finance. In secured lending, we continued to benefit from our differentiated strategies and partnerships.
Speaker #1: In personal loans, we kept our cautious stance and implemented various actions to arrest market share losses, including enhancing our fulfillment processes and the launch of new innovative products.
Speaker #1: As shown in our booklet slide, loan growth was also supported by sustainable development finance, which increased to 213 billion RAND, representing around 21% of gross loans and advances.
Speaker #1: A key highlight was the 80% increase in financing of clean water and sanitation, while the renewable finance exposures increased to 50 billion RAND. From a deposit perspective, while we gained retail deposit market share, transactional deposits remain a key strategic priority in which to find traction.
Speaker #1: I now hand over for the last time to Mike, to take us through the review of the group's financial performance.
Speaker #2: Thank you, Mfundu. And good afternoon. Our financial performance for Halfpoint 2026 was slightly better than we had expected, and ahead of market consensus that expected a decline in earnings.
Speaker #2: Headline earnings were flat, with DHEP's growth slightly faster at 2%, due to the share buybacks we concluded in 2025. ROE was also slightly stronger than expected in the half, albeit slightly softer versus the prior period at 15%, reflecting the impact of the sale of ETI.
Speaker #2: Importantly, the ROE did not drop below 15%. Excluding ETI, that was included for the last time in our first half 2025, HE increased by 12%, DHEPs increased by 15%, and ROE improved strongly from an adjusted 13.6% in the prior period.
Speaker #2: Other ratios also improved on the back of strong underlying business performances, including the cost-to-income ratio, which improved to 56.2%, and pre-provisioning operating growth, which increased by 8%, reflecting the early benefits of strong revenue growth and productivity initiatives.
Speaker #2: The only slightly disappointing feature of our results was the credit loss ratio that increased to 95 basis points, which I will unpack shortly. From a bank perspective, gross banking advances pleasingly grew by 7%, with banking deposits growing at similar levels.
Speaker #2: Net asset value per share, at almost R255, increased by 4% year-on-year, while our CET1 ratio ended the period above the top end of the target range.
Speaker #2: As Jason noted, the interim dividend for 2026 was 10 RAND, 52 per share, at a payout ratio of 57%. Unpacking the numbers, headline earnings remained flat, supported by improved NII growth of 4%, strong NII growth of 10%, and disciplined expense management that grew at 3%.
Speaker #2: by the sale of ETI and a 26% increase in the impairment charge. Reflecting on balance sheet growth, advances growth was more broad-based, underpinned by 10% growth in term loans and overdrafts, and 6 to 9% growth across commercial loans and vehicle finance.
Speaker #2: The growth in term loans reflects the outcome of strategic actions we have taken in both CRB and BCB, as Jason and Mfundu referred to earlier, while our secured retail lending products continue to benefit from our differentiated strategies and partnerships.
Speaker #2: Modest personal loans reflect our cautious stance, while credit card growth has started to improve in line with our plans. Within the growth numbers, the strong year-to-date annualized growth—as shown next to the black arrows—is evident across commercial mortgages, term loans, credit cards, and overdrafts.
Speaker #2: Banking book deposits growth of 7%, as shown on the far right, was underpinned by an 11% increase in franchise call and term deposits, a 6% increase in other deposits, as clients extended tenure in response to Nedbank's competitive term offerings, and NCDs that increased off a low base.
Speaker #2: Turning our focus to the income statement, net interest income increased by 4%, as actual gross banking advances growth of 7% was offset by margin compression.
Speaker #2: The 7% advances growth was supported by 8% growth in CRB gross advances, 6% growth in BCB, and 6% growth in PPB. The 12 basis point decline in margin to 375 basis points was primarily driven by a 21 basis point endowment impact, due to capital and transactional deposit balances growing slower than average interest earning banking assets, and from lower average interest rates.
Speaker #2: Active balance sheet management, including the endowment hedge we have put in place so far, supported margins by 2 basis points. To date, we have implemented approximately 40% of our endowment hedge.
Speaker #2: This has reduced our sensitivity from around 17 basis points back in 2022 to 7 basis points when expressed on average interest-earning banking assets.
Speaker #2: The impact of asset and liability mix and pricing changes was much smaller than in prior periods, as pricing pressures have eased and the difference in growth between low- and high-margin assets has narrowed.
Speaker #2: Non-interest revenue growth was strong at 10%, driven primarily by strong growth in commission and fees and insurance income. Commission and fees increased by 11%, driven by a 16% increase in CRB given improved client activity and fee generation, a 14% increase in BCB given good growth in the client segments and card, and the first-time contribution from Equoka, a 7% increase in PPB on the back of strong growth in value-added services, client gains, and high levels of cross-sell, and a 13% growth in our NAR set-up region given strong client activity.
Speaker #2: Trading income grew by 5%, driven by strong equities trading outcomes, which grew partially offset by lower foreign exchange and fixed income trading. Insurance income pleasingly increased by 20% on the back of improved claims experiences in our non-life portfolio, and strong premium growth in the mic cover suite benefiting from the organizational restructure.
Speaker #2: Turning to impairments, the group's impairment charge increased by 26% to 4.8 billion RAND, following two years of decline. The increase was driven by a 13% increase in PPB impairments, while BCB impairments increased off a low base, and CRB had a similar impairment recovery in comparison to the prior period.
Speaker #2: At a cluster level, CRB reported a recovery of 5 million rand and a credit loss ratio of zero, primarily the result of disciplined risk management and a high-quality portfolio.
Speaker #2: Impairments in BCB increased to 191 million RAND, inclusive of a once-off impairment on a large single client exposure. Despite this, its credit loss ratio of 40 basis points ended the period at the bottom of its through-the-cycle target range of 40 to 70 basis points.
Speaker #2: Excluding the single client credit loss, the core performance of the book remains healthy. PPB's impairments increased to 4.4 billion RAND, and its credit loss ratio increased to 205 basis points above its through-the-cycle target range of 130 to 190 basis points, and higher than our previous expectations.
Speaker #2: At the start of the year, we guarded for the credit loss ratio to end the year around mid-70s, with seasonality in the first half, implying a credit loss ratio of just above mid-80s, followed by an expected improvement in the second half.
Speaker #2: The half-on 2026 credit loss ratio of 95 basis points is therefore higher than we had expected, and is a result of higher PPB impairments.
Speaker #2: The increase in PPB's credit loss ratio was driven by higher credit losses in home loans and card, both coming off a low 25 base, while the personal loans credit loss ratio remains elevated, although down year on year.
Speaker #2: Pleasingly, the credit loss ratio in vehicle finance continues to trend down. The increase in PPB impairments was largely the result of book growth, and the impact of model adjustments taking into account a deterioration in forward-looking macroeconomic assumptions to build high levels of coverage.
Speaker #2: Revised macroeconomic assumptions include lower levels of GDP growth, higher interest rates than we had expected at the start of the year, and higher levels of inflation, particularly as a result of higher fuel prices.
Speaker #2: In addition, impairments increased as a result of higher arrears in stage two, and higher client defaults within stage three, particularly in home loans and cards.
Speaker #2: Pleasingly, front-book origination across all products in PPB continued to improve, as evident in better average bureau scores, giving us comfort that growth since 2023 has been of a higher quality.
Speaker #2: In addition, various actions have been taken across the PPB portfolio to continue to enhance our collection efforts, including investing in our collection capacity and the use of technology to improve collections going forward.
Speaker #2: These actions will support a better second-half credit experience. Reflecting on staging, at a group level, stage one loans increased by 12% year on year, given stronger front-book growth, and inflows from stage two and stage three as stage two and stage three loans reduced by 10% and 6% respectively, with coverage in stage two increasing to 7.9% and in stage three increasing to 41.8%.
Speaker #2: As a result, we have updated our credit loss ratio guidance for the full year to the mid-80s, supported by an expected improvement in the second half of the year.
Speaker #2: Shifting our focus to costs, expense growth was excellent at only 3%, reflecting good cost control and the benefits from various productivity initiatives. A 5% increase in salaries and wages was driven by average annual salary increases of 4%, offset to some extent by higher additional staff costs due to lower project recoveries associated with reduced RT project capitalization costs, and lower pension fund benefits.
Speaker #2: Variable pay incentives were flat aligned to HE growth. All other costs were also well managed as we continue to benefit from optimization initiatives and the cost discipline across computer, processing, communication, travel, and accommodation costs.
Speaker #2: Expense growth was also well managed across all clusters at 3%, with the exception of BCB, where expenses grew at 6.5% when excluding ECCO Re, given the continued investment in digital capabilities and higher costs associated with establishing a standalone cluster.
Speaker #2: Moving to capital, the movement in our set one ratio since December reflects strong capital generation, the payment of the 25 full-year dividend, the impact of directive two relating to the exclusion of post-acquisition insurance entity reserves from qualifying capital, and a less than 2% increase in RWA since December.
Speaker #2: At 12.6%, our set one ratio remains strong, ending the period above the top end of our target range of 11 to 12.5%, with sufficient capital to support growth and the NCBA acquisition while paying dividends within our board-approved payout range.
Speaker #2: I will close with a summary of the financial performances of our clusters. CRB produced strong headline earnings growth of 11% and delivered an impressive ROE of 23.7%.
Speaker #2: Earnings growth and returns were supported by NII and NIR growth, which exceeded expenses that only grew by 3%. The increase in NII was underpinned by strong advances growth and higher credit margins. The increase in NIR was driven by strong commission and fee growth, as well as an increase in trading income. Equity investment income, which includes associated income, grew by a very strong 51%.
Speaker #2: The cluster reported a credit loss ratio of zero, compared to minus 15 basis points reported in the prior period, on the back of higher recoveries.
Speaker #2: Headline earnings in our Business and Commercial Banking business increased marginally and delivered an ROE of almost 19%. NII increased by 5%, given stronger advances growth, and its margin declined only slightly, despite lower endowment on the back of lower average interest rates.
Speaker #2: NIR increased by a strong 15%, including the acquisition of Ecorca. Underlying NIR growth was also strong, driven by card acceptances and commercial issuing volumes, and good growth in the client segments, particularly in commercial and mid-corp.
Speaker #2: Expenses increased by 11%, but by only 6.5% when excluding Ecorca. Headline earnings in our personal and private banking business increased by 5%, delivering an ROE of 11.8%.
Speaker #2: Growth was driven by a 5% increase in NII, given ongoing momentum and advances growth, and NIR was up 7% on the back of strong growth in value-added services, digital-related revenues, and insurance income.
Speaker #2: Expenses were well managed and increased by only 3%, reflecting discipline discretionary spend and the benefits from optimization programs and efficiency gains from enhanced digital capabilities.
Speaker #2: Given the sale of ETI in 2025, we have moved its 2025 contribution to the Center, and as a result, Nedbank Africa Regions now only reflect the performance of our static operations.
Speaker #2: Headline earnings for the cluster increased by 39%, albeit off a low base, delivering an improved ROE of almost 10%. Earnings were mainly driven by good revenue growth, a sound credit performance, and expenses that increased by only 3% on the back of cost optimization efforts.
Speaker #2: Thank you. I'll now hand back to Jason.
Speaker #1: Thanks very much, Mark, and Infundo. So, let's start this section by looking at our latest macroeconomic forecasts. At the start of the year, we expected banking conditions to improve in the coming years, and while this remains our position, South Africa's GDP has been adjusted downwards to between 1.3% and 1.9% on the back of global developments.
Speaker #1: Inflation sparked in the second quarter on the back of higher fuel prices, and will now average around 4% in 2026, resolution of the Middle East crisis would support lower levels of inflation into 2027 and beyond.
Speaker #1: As a result of higher inflation expectations and the SOB's 25 basis point increase in May, we were surprised that rates were not increased by a further 25 basis points in July.
Speaker #1: However, we still expect a 25 basis point increase in September this year, followed by a prolonged period of stability and potential rate cuts emerging later in 2027.
Speaker #1: Credit extension is forecast to remain relatively robust at around 6 to 7%, although slightly lower than what we expected at the start of the year.
Speaker #1: Although very difficult to forecast due to geopolitics, the RAND held up much better in this crisis than many expected, and now forecast to average just above 16 RAND to the dollar in the coming years.
Speaker #1: Turning now to our guidance for 2026, which on balance hasn't changed much. We expect NII growth to be slightly above mid-single digits, an upward revision from previous guidance of around mid-single digits.
Speaker #1: This will be underpinned by stronger advances growth and the endowment benefit from higher interest rates in the second half of the year. We've demonstrated good momentum at interims on NIR, which we expect to continue given the underlying momentum across our business.
Speaker #1: Ratio is expected to be around the mid-80 basis points, above the midpoint of our through-the-cycle target range, and this is an upward revision from our previous guidance of mid-70s.
Speaker #1: In the second half of 2026, we expect impairments in CRB to normalize off its low half 126 base, while the PPB CLR, which was above its target range in the first half of 2026, is expected to improve.
Speaker #1: Expense growth is expected to remain below mid-single digits, as our focus on cost management and productivity continues. On capital, following the acquisition of NCBA, we expect to operate within our board-approved target range and dividends subject to board approval, declared within our target range of 1.75 to 2.25 times cover.
Speaker #1: At our 2025 year-end presentation, I shared with you our commitment to accelerate growth and unlock value as we propose our medium-term targets. Today, I'm pleased to say we have delivered on that commitment in the first half of this year.
Speaker #1: Strategic progress in 2026 and beyond will continue to come from strong underlying business momentum and productivity gains, and you've seen that underpinned throughout our presentation today.
Speaker #1: The negatives we predicted in 2026 remain, these include whole impairments, normalizing off a low base, and no further earnings contribution from ETI. Additionally, PPB impairments were higher than expected in the first half, and are receiving significant management attention.
Speaker #1: The focus for 2026 remains on delivering a ROE above 15% and improving our cost-to-income ratio, which was already evident in the six-month numbers. In the medium term, we still expect to see a more constructive macroeconomic environment.
Speaker #1: We remain well positioned to capitalize on large energy and infrastructure finance opportunities, while we continue to diversify across products, sectors, and geographies. We expect the health of the consumer to improve on the back of lower interest rates and inflation from 2027, although both were higher than we expected in 2026.
Speaker #1: Our transform initiatives continue to scale, and the contributions from insurance, payments, other growth factors, ongoing market share gains, and lending deposits productivity gains unlocking synergies from ECOC and Equestra were all evident in our first six months results.
Speaker #1: While we've not accounted for the synergies and growth prospects from NCBA in our guidance yet, we clearly see more upside here over the medium to long term.
Speaker #1: From a capital perspective, we remain committed to be flexible in the management of capital, and being good stewards of capital. Overall, these initiatives along with underlying momentum underpin our confidence in progressing delivery against our medium-term targets of an ROE of 17% and a cost-income ratio of 54%.
Speaker #1: Thank you very much. We'll now take your questions. All right, super. Look, we've got a number of questions coming through the online portal, but let's rather just first check in with the moderator on Cora's call.
Speaker #1: If you could lead us through any questions on the bars.
Speaker #2: Of course. Just a reminder: if you would like to ask a question, please press star, then one, now. The first question we have comes from Harry Botha of Bank of America.
Speaker #2: Please go ahead.
Speaker #3: Hi, good afternoon Jason and team. Two questions, please. I think the first one is just how we should think about the shape of the 2027 income statement, and towards 2028, in terms of your 17% ROE ambition.
Speaker #3: I imagine it requires higher revenue growth, and I’d probably like to get some color on where that comes from. And then, the second question, just around the net interest income guidance—you've given us the segmental guidance, which is very helpful.
Speaker #3: Could you possibly provide us some cut into sort of where the above mid-single digit growth comes from, if CRB is low to mid-single digits, BCB is slightly faster than five, and PPB is around mid-single digits?
Speaker #3: Thank you.
Speaker #1: Super. Thanks, Harry. That's great. On our let's call it more medium-term guidance that you ask for a little bit more detail on. Of course, by the end of this year, we will have closed out the year and we'll refresh all of that.
Speaker #1: But you heard today, you know, a lot of momentum on various lines of our P&L, whether it's advances or deposits led on the balance sheet, margin stability, good NII momentum, you know, NIR coming through pretty strongly across our franchise.
Speaker #1: You know, cost control, productivity gains, and the like. And then, of course, continued focus on capital management. So I wouldn't suggest there's anything other than just continued momentum against a very clear strategy.
Speaker #1: On the second part, I'm going to ask Mark to come in a little bit. I think you were I just it was a net interest income or non-interest revenue.
Speaker #1: I think we can answer both, if you'd like. Clearly, with respect to, you know, non-interest.
Speaker #3: Net interest income.
Speaker #1: Net interest income. Fine. So NII, yeah, Harry, you can see in all our businesses some pretty good lending momentum, and deposits coming through a bit stronger.
Speaker #1: If I break out our different products in PPB, you know, defending that leading market share in autos remains important to us. You know, we're pretty busy from a strategy perspective in mortgages, and building out relationships with mortgage originators gives us a great pipeline.
Speaker #1: I think two years ago, I said to you guys we'd probably see some growth from cars round about now, and that's coming through. Personal loans probably remain challenging for us, given the environment we're in.
Speaker #1: Looking at BCB, I think it's fair to say, you know, half one last year, you had loans down 2%, now up 6%. So, you know, you can see the kind of underlying momentum starting to build there.
Speaker #1: And then in CRB, clearly, you know, we've diversified. So, we clearly still have a huge focus on infrastructure as a segment, but looking across that—whether it's logistics or resources—we have pretty strong conviction around our pipelines there and pipeline conversion.
Speaker #1: At some point also, Harry, I think we'll see renewable energy kind of start to come back onto the table. And then if you just look at NAR, although smaller, or NAR static, you know, pretty, pretty good growth coming out in Namibia and some prospects in Mozambique.
Speaker #1: So, pretty broad-based across our different franchises.
Speaker #4: Yeah, just to add—I mean, Harry, one of the reasons we gave you guys, on the advances slide, both effectively average advances growth as well as year-to-date advances growth.
Speaker #4: So it would be annualized off the back of 1st of Jan through to effectively the six-month period, June. You'll see that in a number of portfolios, the year-to-date growth is stronger than effectively the average over the year.
Speaker #4: So that annuity will run rate into the second half, by way of example. CRB's average advances growth was 3% in the period. Their actual growth was 8%.
Speaker #4: So you'll get the annualization thereof into the second half. And second, as Jason's indicated, you know, we saw a reasonably slow Q2. We think we'll see—so we saw a good first quarter, slow Q2—we think we'll see momentum build in the half, or effectively the second half.
Speaker #4: 2025. And then, of course, when we originally gave guidance, we were actually expecting two 25-basis-point rate cuts. We've had a rate hike, and we were expecting a further hike in, effectively, September, which obviously has a small positive endowment impact.
Speaker #1: Yeah, super. Thanks, Mark. Any other questions from Cora's call?
Speaker #2: The next question we have comes from Simon Malath of Citibank. Please go ahead.
Speaker #3: Hi. Thanks very much. I just have two questions. First on the guidance. I see on slide what slide is it? 49. Looking for faster DHIPS growth, 2H26.
Speaker #3: Can you just confirm that that's 2H DHIPS versus 2H25 DHIPS growth? Or are you looking for year 26 DHIPS growth to be faster than what was posted in the first half?
Speaker #3: That's my first question. And the second question is just on the very good cost control—well done. How confident are you that you can sustain that level of cost control management going forward? And what are the key drivers?
Speaker #1: Yeah. Thank you very much, Simon. I'll take the second question first, which deals with our conviction around productivity in our company. Clearly, Simon, you've seen our fuller guidance is very much in line with what we've printed in the first half.
Speaker #1: Just from a strategic perspective though, much of our productivity gains comes from the organizational restructure we did a year ago. So that's run rate-type opportunity.
Speaker #1: I'll also say, just granted salary increases in the first quarter. Therefore, that's in the run rate also for the rest of this year. There's also loads we're doing to continue to improve productivity.
Speaker #1: I think, as Pundo mentioned, you know, some efforts with respect to AI and technology and other enablers. But there are other parts where we're like, we have been investing in.
Speaker #1: You saw a huge investment curve in business and commercial banking, where our costs were up—let's call it our investments were up—and clearly, that's starting to get into the base now.
Speaker #1: And then we should see revenue and other productivity benefits come through that business. So a combination of investing for growth into the future and harvesting from some of the decisions and actions we've taken over the last couple of years.
Speaker #1: Mark, I don't have the page number.
Speaker #4: No, DH growth is correct. Yes, we are expecting DH growth to be faster the second half. Yeah, that is correct on page 48.
Speaker #1: Thank you. Yeah, Simon, so clearly, you know, a fair first half was just. Yeah?
Speaker #4: So effectively, DH growth.
Speaker #3: The second half on, yeah.
Speaker #4: Second half will be stronger, and it will result in full year being stronger than effectively the 2% we reported in the first half. So yes and yes.
Speaker #3: Very much. Yes.
Speaker #1: Thanks, Simon.
Speaker #3: Thank you so much.
Speaker #2: Thank you. We have a follow-up question from Harry Water. Please go ahead.
Speaker #3: Thanks very much. Just to clarify on the CRB, an interest income guidance, the loads in mid-single digits growth versus for 26 versus 4% in the first half.
Speaker #3: I guess, what headwinds do you see in that outlook?
Speaker #1: Yeah, if there was a headwind, you know, to be more in our clients and their activities than in our possibility to support them. So although we've got pretty good pipelines, like I mentioned, there's always some risk of conversion of pipeline.
Speaker #1: But I do think that the CRB team has done an amazing job, as I mentioned earlier, Harry, to diversify us a little bit away from our core strength, which has always been infrastructure and commercial property, and structured lending, into some other corporate-type lending activities.
Speaker #1: But yeah, the only headwind I could probably foresee would be outside of our hands. I think we've got a really good pipeline.
Speaker #2: Thank you. At this stage, there are no further questions on the conference call, so.
Speaker #1: Fantastic, thanks very much. So, folks, I'm going to then go to the online portal. I'll read out the questions, just in case anyone hasn't got sight of them.
Speaker #1: And then I'll just distribute the answers to them between the three of us here on the stage. So the first one's from Baron from JPMorgan.
Speaker #1: He's got two questions there. You've got expense growth below mid-single digits. What specific cost actions give you confidence you can deliver this whilst still investing for growth?
Speaker #1: You know, Baron, I think that kind of came up already in Harry's questioning. You know, there's, like I said, a hell of a lot we've done with respect to the strategy of the company to improve its productivity.
Speaker #1: Reset—some of the operating model work is all behind us. We're harvesting the benefits from that. I'd also suggest that the underlying cost growth is well in our hands.
Speaker #1: And I'd obviously that we've got strong conviction on that line of our guidance. Second part, please comment on how the BCB earnings performance would have been when excluding the one-offs in the large single client impairments and first-time inclusion of ICOCA.
Speaker #1: So, I'll answer a bit of that from a strategy perspective, and then maybe Mark, if I need help, I'm sure you'll come in on some of the numbers.
Speaker #1: So clearly, you know, ICOCA is a big strategic play for us that has medium to long-term opportunity. From memory, we made about $160 million of revenue, and costs of ICOCA in that first half.
Speaker #1: And then if you added all that up and said, what, if you took the single client impairment out, I think our headline earnings growth would have been closer to about 8%.
Speaker #1: Just looking at Mark, yeah, that feels about right. So, as you mentioned, a pretty good underlying performance—even if you look at NIR. And I’m just looking at Andy—NIR, you know, I think it’s 15% with ICOCA in.
Speaker #1: It was 9%, if you didn't include ICOCA. So you can see an underlying, high single-digit kind of outcome, with good momentum behind it in the underlying business.
Speaker #1: Just from a strategy perspective on ICOCA, Baron, you know, I think a lot of the opportunities obviously still ahead of us. We're only in early phase of reaping benefits from that investment.
Speaker #1: But some things we've got right thus far. You can get all those devices in our Nedbank branches now. But ahead of us still, we've got now $160,000 devices out there.
Speaker #1: That's up by about 55,000. The nice thing is they're all in areas where we weren't big. So there's no cannibalization of the opportunity. So that's clearly a benefit to Nedbank over time.
Speaker #1: And what's also, to be fair, still ahead of us is commercializing lending opportunities into those businesses, utilizing the device and the great data on it.
Speaker #1: I think that covers that, yeah? Andy, good, yeah. Charles, Charles Russell from SBG. First question, can you provide some color on the difference between earlier guidance and the more positive results today?
Speaker #1: What surprised you versus previous expectations? Well, let's do them one by one, because there are a number of them. It's probably easier to do it that way.
Speaker #1: I'll answer a bit of that. Mark may come in as well. You know, Charles, I think you probably know NII a little bit better.
Speaker #1: NIR a little bit better. So, let's say revenue is a little bit better. Costs—we knew we had a great plan, and our guidance there is intact.
Speaker #1: So, we probably upgraded our guidance a bit on NII. You asked why we haven't upgraded guidance further on NIR. I think it's premature to do that.
Speaker #1: Although we've got conviction on both of those lines. And then, similarly, we increased guidance on the credit loss ratio for all of the right reasons.
Speaker #1: So, you know, if anything, I think our bottom line guidance remains intact, probably with a slight underlying beat in the first half. Mark, is that fair?
Speaker #3: Yeah, I would suggest probably on the GOI side, a percent up. As Jason's indicated, probably expenses maybe half a percent down—half a percent, or 50 basis points better than we had expected.
Speaker #3: Credit loss ratio, I would suggest, is 10 basis points worse than we had expected. You put those numbers together, hence the slight beat. Thank you, spot on.
Speaker #1: Yeah. And pretty good conviction then for the full year, hey? Charles, your second question there. Can you give some more detail on your $2 billion portfolio overlays versus underlying book performance to date?
Speaker #1: Mark, do you want to take that?
Speaker #3: Yeah, yeah. So as you know, for the purposes of, in a perfect world, you wouldn't have overlays. Your models would fairly reflect the deterioration or improvement in your various books.
Speaker #3: But obviously what happens in real data, real life, is obviously we run a series of regrounds twice, two points during the year. And the effect of those regrounds is to update actual data, and utilize actual data ineffectively modeled outcomes to the extent that that hasn't yet translated through the model.
Speaker #3: We do a manual overlay through, effectively, the $2 billion round. What we also do, effectively, in provisioning under IFRS is we obviously need to take into account, from a forward-looking perspective, what's happening to the macroeconomic environment.
Speaker #3: And we do that through the FLA. So, you know, overlays are a function of, effectively, what hasn't yet made its way through a modeled outcome in order to get the impairment charge correct.
Speaker #1: Thanks, Mark. Then there's a second part—or third part, sorry—how sustainable is your 3% growth in IT function costs? Look, certainly from my perspective, strategically we've made tremendous technology investments at Nedbank over the last number of years.
Speaker #1: And we will continue to do that. And, Points, I'd like you to come in a little bit on that one, just to give some conviction.
Speaker #1: But certainly, I feel comfortable with where we are investing.
Speaker #3: It's exactly the point you're making, Jason, that on the back of the capitalized cost in our managed evolution IT investment program, we can now see lower levels of amortization of that charge as we go forward.
Speaker #3: That's one element. The second element is that, in our forward budgeting and projection plans, we anticipate cash flow spend of the order of magnitude of $2 billion per annum.
Speaker #3: And so if you take a combination of those, it should be able to be sustained at about mid-single-digit levels. And so yes, the reference point is 3%.
Speaker #3: But if you have some headroom, you can sustain this at a mid-single-digit level over time.
Speaker #1: Yeah. And then, of course, even if that's a little bit higher, if we find opportunities to invest, that'll all have a really good business case against them.
Speaker #1: With benefits over time, and then the underlying cost growth should fund any of those lines. Thanks, Charles. Okay, Ross Cricker from InvestIQ. Number one, what has driven the challenging late-stage book performance in PPB unsecured?
Speaker #1: And is there a risk that this deteriorates further in half, giving an increasing real wage pressure? Probably we’ll take that between Mark and me.
Speaker #1: I think the most challenging vintages across PPB were written in 2022, 2023, sort of period, after which we saw, you know, the real acceleration in interest rate rises.
Speaker #1: So those vintages remain the ones that mill around stage two and three. For it to get—can you hear me? For it to get worse from here, you know, Ross, we've obviously got a set of macro assumptions, which we were very transparent about today.
Speaker #1: Which includes pretty persistent inflation for the rest of the year, and an interest rate hike coming up. Of course, if it was anything different from that, we'd have to update guidance.
Speaker #1: But I'd remind you that's unsecured lending for us is a relatively small portfolio. Number two, in BCB medium-term targets, offer double-digit compound annual growth in loans.
Speaker #1: What are the drivers for this? Does it imply market share gains or growth into new markets, or both? Well, it's clearly both, Ross. You know, we expect to take share, in fact, from others in that area.
Speaker #1: But also to continue the great momentum that we've started in that business over the last year. Number three, please comment on the drivers of the 2% computer processing expense growth, and what run rate this is likely to look like in the medium term.
Speaker #1: Ross, I believe that is the same as Charles’s question, and I believe we’ve covered it. We can no doubt go into that in more detail when we meet with all of you individually.
Speaker #1: But I believe we've covered it for today. And then we've got James Stark. I'll read it all. It's quite a long commentary. Congratulations on the pleasing operational momentum.
Speaker #1: Please comment on the NIM or the NIM outlook from here. Following on Mark's NIM slide showing that 11 basis points lift 400 basis points in rates.
Speaker #1: So, can we fold that out into a few basis points lift for half to '26, based on time-weighted rate moves? I would suggest that sounds reasonable, Mark.
Speaker #3: Yeah, I mean, there's a small pickup as a result, James, of the rates moving up as opposed to down. And as you know, we previously were modeling guiding with 50 as a cut.
Speaker #3: Now, potentially this 50, and to your point, weighting that through May and September. We'll be able to quite easily run the endowment impact of 100 basis points, yeah.
Speaker #1: And James, as you’ve commented, you know, the time-weighted part is important. If the rate change was very late in the year, it wouldn’t make much difference in this year.
Speaker #1: At the moment, we've got a 25 basis point hike in September in our outlook. And then on NIR, impressive fee and commission growth, plus 11%.
Speaker #1: How durable is this growth momentum into 26 or second half 26 into 27? I think we've covered some of that already from the previous questions, James.
Speaker #1: But clearly, you know, we've maintained our guidance of high single-digit in NIR for the full year. Please comment on the outlook for associate income into 2H26.
Speaker #1: Okay, let's do that before we go to effective tax rates. Yeah, Mark, I think that obviously, we know you know, James, ETI is out, so that's all we had in half one was an investment or private equity portfolio investment in CRB, which is busy being realized.
Speaker #1: And I don't think we'll provide more guidance on that line at this point.
Speaker #3: No, but it's probably, you know, it was a I mean, it was an attractive deal. We have a number of additional associates we booked through the associate income largely in CRB.
Speaker #3: And to Jason's point, I would suggest to model that at probably half one levels.
Speaker #1: Thanks. Thanks, Mark. I think that sounds reasonable. And then on effective tax rates, we'd be run rating the half one 26 trends into two half on effective tax rate, Mark?
Speaker #3: Yeah, I would suggest, James, it's probably you could model similar levels, but take into account what I've just said around associate income.
Speaker #1: Yeah. I think that's fair, yeah.
Speaker #3: Yeah.
Speaker #1: Yeah, there was no other one off there, so I think that sounds about right. Okay, booklet mentions the resignation of the group's strategy officer, disbanding of the group's strategy cluster, please expand on considerations arriving in the decision to reallocate responsibilities to the relevant enterprise owners.
Speaker #1: James, look here, Nedbank, we've got a very federal model where strategies and their formulations largely reside in our businesses. We had a small function in the center that coordinated some of that work.
Speaker #1: And basically, we can do that with a little bit in my office and a little bit in Mark's office going forward. A lot of our strategy heavy-lifting is kind of behind us.
Speaker #1: We're very much in the execution phase. James, you're busy here. You've got another whole host of questions. We'll keep going. We are seeing you tomorrow, so we probably have some more there.
Speaker #1: Okay, so we’ll move on now to PPB. Please expand on the path for PPB ROE improving from the current 11.8% towards 18% in the medium term.
Speaker #1: It feels like it's back ended towards year three or four. Look, James, I think that is a it is a journey. I would suggest that revenue momentum is picking up.
Speaker #1: You've heard what we've said about loans across key products like cards, mortgages, and autos. Over time, you'd expect us to do more in personal loans.
Speaker #1: And we always said that would be back ended. I'd also suggest that areas like non-interest revenue with insurance, James, you know, picking up 20% over the last year since the organizational restructure give us a lot more tailwind.
Speaker #1: And as you know, that's at a very high ROE. Lot still to do on the productivity. You know, I think hugely pleased with the very low cost growth, but there's more efficiency to extract.
Speaker #1: From a business that's got a 60% cost income ratio. So I think you'll see, yeah, continued progress. The only part that may be more back ended may be our strategies into unsecured when the market is more receptive to such an approach.
Speaker #3: Maybe, James, I can just add to that. Just, James, probably the best way to think of PPB, if we get we run that business in the middle end, in the middle of its target credit loss ratio, together with Jason's just explained around momentum building in GOI and the expense discipline demonstrated by that business, I think you'll find that we can get to 18% sooner than your 3 to 4 year target.
Speaker #3: But again, that's what we got to demonstrate to market. We run this business at 160.
Speaker #1: Yeah, I think sorry, Mark, that's a great point. Loan loss would be part of that. James, another one. Oh, no, sorry, I've covered you up on that one.
Speaker #1: The next one is also from James, actually, on the re-grounding. What were the biggest areas of change specifically? Can you comment on expected versus realized collateral values for autos and home loans?
Speaker #1: On the re-grounds, I think we've covered the macro update. So we've certainly brought in a set of assumptions that have interest rates up, inflation up, and growth down.
Speaker #1: Clearly, that builds coverage. And then, if you look within the Stage 2 and 3, like I mentioned, you've got a portfolio there that was originated in '22, '23, that is experiencing a little bit more distress in the second wave of distress, given that second quarter inflation going up.
Speaker #1: And And in fact, real experienced inflation transmitted very swiftly to the consumer base. I'm not particularly concerned about collateral values in autos and home loans.
Speaker #1: That certainly wasn't a factor. They actually improved in the period. They improved in the period. So that should cover that off. Thanks, James. And then we've got Jared.
Speaker #1: Houston from All Weather. Please explain the positive CRB equity investment portfolio income, i.e., the 364 million rand share of associate income under CRB. Jared, I think we covered that just now.
Speaker #1: Clearly, from a strategy perspective, you know, our Corporate Investment Bank has a private equity portfolio. It's obviously got a pipeline of investments coming in, and then a realization period that often sits around the seven- to nine-year mark.
Speaker #1: And this was literally one of the ones that reached a realization or a liquidity point. And that's where it got booked. Given its accounting.
Speaker #1: So, definitely part of the strategy and a pretty strong, robust portfolio of private equity investments that we were very proud of. Thank you, Jared. Then, Chris—Chris Stewart, from 91.
Speaker #1: Are there any factors outside endowment that you would call out for net interest margins in half two 26? I don't think so. Mark, I think with a mix of factors.
Speaker #3: It's a mix. Anything would be a mix, Jason. Yeah, so to the extent that we grew, obviously, 8% book growth and CRB, and within that, very diversified lending away from potentially renewable energy, for example.
Speaker #3: We speak about the front book in terms of investment or infrastructure opportunities ahead of us. So it would depend on the mix within CRB as to what pipeline converts.
Speaker #3: And secondly, obviously, we've spoken about 6% growth in PBB, 6% growth in BCB, 8% growth in effectively CRB, depending on what shape that looks like in the second half.
Speaker #3: There might be mix between businesses. But other than mix, it's endowment.
Speaker #1: Yeah, yeah, I'm happy with that. All right, folks, I'm going to refresh one more time, but I'm not seeing anything come through. And look, we are seeing many of you, or almost all of you, Southside tomorrow in Johannesburg and on Teams.
Speaker #1: Then through, you know, Cape Town on Friday. And then in London and New York next week. So we're looking forward to seeing all of you in person.
Speaker #1: But we thank you for your attendance today, and we thank you for your questions. We offer the management team. Thank you very much.
