For the year ended Dec. 31, Nedbank's headline earnings per share, a profit measure, was at 2,886 South African cents, up from 2,410 cents posted in the prior year.

South African banks, some of the biggest on the continent, had a good run last year on the back of increasing interest rates and a rebound in economic activity as COVID-19 waned.

But with the current power supply crisis in the country, inefficient rail and port infrastructure and high unemployment, lenders are concerned about future growth.

Nedbank said it expected the economic environment in the country to remain challenging, particularly given the high levels of electricity shortages.

It declared a dividend of 866 cents for the year and announced a 5 billion rand ($274.28 million) capital optimisation initiative.

($1 = 18.2297 rand)

(Reporting by Promit Mukherjee; Editing by Muralikumar Anantharaman)