Nedbank Group says it needed to pay the R600-billion settlement to state-owned entity Transnet, as the financial services institution wants to play a big role in the rebuilding of the country’s transport and logistics sector.
The explanation, which gives deeper insight into how the lender arrived at the decision, was provided by Nedbank Group’ s chief operating officer, Mfundo Nkuhlu, after the financial services firm announced its annual financial results this week.
Previously, Nedbank and Transnet had stated that the commercial settlement of their ongoing litigation was made without admission of liability and in the interests of avoiding lengthy and costly litigation and damage to their ongoing relationship.
Nkuhlu told Sunday World it would allow Nedbank an opportunity to continue lending in the transport and logistics sector, which is largely driven by Transnet.
“Our view is that if we look at the rotation risk associated with an overhang of this matter, the time and effort for management, the board and lawyers to seek to resolve this.
“In one sense you can’t sue each other and go to court, and then on the other hand extend credit. So, we had to think about that scenario, and we do know that in order to unlock the growth of the economy, we have to address some of these structural reforms. [Significant] progress has been made with respect to energy supply.
“The focus increasingly now is on transport and logistics, and that is where Transnet comes in. As a serious financial institution we have to think not just of our immediate concerns but also of our role in the economy, more importantly, and these were the considerations that would have informed the decision we arrived at,” said Nkuhlu.
The significant Transnet settlement made a dent in the operating expenses, resulting in growth of 7%.
Nkuhlu explained that the underlying expense growth was actually 5%. “And then we have had to absorb the R600-million Transnet settlement.”
According to the Special Investigating Unit (SIU), the controversial interest swap transactions featured in the report of the Judicial Commission of Inquiry into allegations of State Capture, Corruption, and Fraud in the Public Sector, were related to a larger scheme designed to misappropriate and divert public funds from Transnet for the benefit of entities linked to the Gupta family.
Meanwhile, the financial services firm’s financial results, though showing lower earnings compared to the previous period, painted a picture of a bank that is in transition, especially with the business acquisitions it is making in East Africa and locally as well as a partnership in crypto.
The firm developed a voracious appetite as seen when it gobbled up local fintech firm Ikhokha for R1.65-billion, while disposing of its 21% shareholding in Ecobank Transnational Incorporated for R1.8-billion in August.
Exiting the West African-based Ecobank had particularly been a costly exercise when considering that Nedbank had bought the stake from the Togo-based lender, operating in over 30 sub-Saharan African countries, for R5.6-billion in 2014.
In January the green bank looked towards East Africa when it signalled its intention to acquire NCBA Group, one of the leading financial services firms in the region.
If the acquisition is successful, Nedbank, which has submitted an offer to acquire a 66% stake in the Kenya-based lender, will expand its operation to Uganda, Tanzania, Rwanda and Ivory Coast.
As if the acquisition were not enough, the lender last month concluded the acquisition fleet of management firm Eqstra of R1.45-billion.
The bank was optimistic about the acquisition of Ikhokha and Eqstra, this week saying there were “initial signs of success, including accelerated loan payouts in H2 2025 and stronger pipelines for 2026”.
Nedbank also announced a strategic partnership with Crypto.com.
“The collaboration positions Nedbank as a leading gateway for secure, regulated blockchain finance on the continent driving transparency and efficiency of cross-border transactions, signalling a significant shift in the region’s financial landscape.”
Founded in Singapore, Cyrpto.com has been operating since 2026.
Nebank said the partnership will enable clients to seamlessly access digital dollar liquidity for trade, remittance, and treasury operations.
