Jason Quinn-led Nedbank settles $34.8 million dispute

Nedbank, South Africa’s financial services group led by banker Jason Quinn, has agreed to pay Transnet R600 million ($34.8 million) in a confidential settlement, ending a year-long legal dispute over interest-rate swaps. The settlement, which carries no admission of liability, reflects the two companies’ effort to avoid prolonged court proceedings while preserving their long-standing business relationship.

National interest guides $157 million resolution

The case had been brought by Transnet and the Special Investigating Unit (SIU), which sought to recover funds the logistics company said it “unduly paid” to Nedbank during 2015 and 2016 swap transactions. Authorities claimed the bank earned more than R2.7 billion ($157.6 million) from the deals. Nedbank denied any wrongdoing, saying its sales margin was market-based and that its actual gain was below R43 million ($2.5 million).

The transactions were arranged with advice from Regiments Capital, a firm linked to the Gupta family, who were accused of using their ties to former president Jacob Zuma to influence state contracts. A judicial inquiry into state capture raised concerns that the swaps could have been corrupt. Nedbank maintained it was unaware of any alleged collusion between Regiments and Transnet officials. Both sides described the settlement as serving the national interest, allowing them to continue supporting infrastructure investment and economic growth.

Nedbank eyes Southern, East Africa markets

Under Quinn’s leadership since May 2024, Nedbank has pursued regional expansion, strengthening operations across Southern Africa. The bank operates through subsidiaries in Eswatini, Lesotho, Malawi, Mozambique, Namibia and Zimbabwe, while maintaining a strategic presence in Angola and Kenya. Quinn has emphasized a focused growth approach in Southern and East Africa, aiming to balance stability with selective market opportunities.

Nedbank’s headline earnings for the six months ending June 30, 2025, were R8.4 billion ($467.65 million), up 6 percent from R7.9 billion ($439.77 million) the year before. Revenue also rose 4 percent to R36.4 billion ($2 billion). The bank has lowered its 2025 guidance, saying that diluted headline earnings per share will grow in the low single digits and that the return on equity will be around 15 percent, thus reflecting cautious optimism amid economic headwinds.