JOHANNESBURG - Nedbank is warning of a sharp drop in basic earnings for its 2025 financial year, following the sale of its long-held stake in West Africa's Ecobank.
The bank sold its interest in Ecobank last year as part of a broader move to reduce its exposure in the region
It says ongoing regulatory uncertainty and rising capital requirements made holding the stake too risky.
The bank says the sale will negatively affect its basic earnings.
The sale requires cumulative foreign-exchange and valuation losses to be recognised in profit or loss this year.
Until now, these losses were recorded separately and did not affect earnings directly.
With the full-year results due next week, the bank is expecting a fall in basic earnings per share and a slight dip in its return on equity.