NEDBANK GROUP LIMITED - Quarterly Report on Pillar III Capital Adequacy at 31 March 2014

Quarterly Report on Pillar III Capital Adequacy at 31 March 2014

NEDBANK GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1966/010630/06
JSE share code: NED
NSX share code: NBK
ISIN: ZAE000004875
("Nedbank Group" or "the group")

NEDBANK LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1951/000009/06
JSE share code: NBKP
ISIN: ZAE000043667
("Nedbank Limited" or "the bank")

QUARTERLY REPORT ON PILLAR III CAPITAL ADEQUACY AT 31 MARCH 2014

Quarterly Report in terms of Regulation 43(1)(e)(ii) of the Banks Act 94 of
1990 (as amended) (“the Regulation”). Certain of the information required
to be disclosed in terms of the Regulation is included in Nedbank Group's
trading update for the three month period to 31 March 2014, issued on 13
May 2014, and the additional capital adequacy information given below
should be read in conjunction with the trading update.

The following table sets out the available capital as at 31 March 2014:

                                       Nedbank Group      Nedbank Limited
Including unappropriated profits           Rm       %         Rm        %
Tier 1 Capital                         55 091   13,5%      40 727    11,7%

Common Equity Tier 1 Capital           50 894   12,5%      36 477    10,5%
  Share capital and premium            17 272              17 461
  Reserves                             45 294              27 165
  Minority interest:
  Ordinary shareholders                   239                   0
  Goodwill                            (5 131)             (1 410)
  Excess of expected loss over
  eligible provisions                 (1 683)             (1 725)
  Defined benefit pension fund
assets                                (1 848)             (1 848)
  Other regulatory differences and    (3 249)             (3 166)
  non- qualifying reserves

Additional Tier 1 Capital               4 197     1,0%      4 250     1,2%
  Preference share capital and
  premium                               3 561               3 561
  Hybrid debt capital                   1 752               1 752
  Grandfathering and other
regulatory
  adjustments                         (1 116)             (1 063)

Tier 2 Capital                          5 769     1,4%      5 709     1,6%
  Long-term liabilities                 7 232               7 232
  General allowance for credit
  impairment                               83                  23
  Grandfathering and other
  adjustments                         (1 546)             (1 546)
Total Capital                          60 860     14,9%    46 436    13,3%

Excluding unappropriated profits
Tier 1 Capital                         49 504     12,1%    36 166    10,4%
Common Equity Tier 1 Capital           45 307     11,1%    31 916     9,2%
Total Capital                          55 272     13,5%    41 875    12,0%


                                     Nedbank Group               Nedbank Limited
Minimum required capital and   Pillar     Pillar              Pillar   Pillar
reserve funds per risk type      1          2a      Total        1       2a      Total

Minimum ratios                     8,0%     2,0%     10,0%      8,0%     2,0%    10,0%

Credit Risk                    24 963      6 241    31 204    21 926    5 481   27 407
Equity Risk                     1 449        362     1 811     1 106      276    1 382
Market Risk                       516        129       645       396       99      495
Operational risk                4 064      1 016     5 080     3 429      858    4 287
Other                           1 693        423     2 116       984      246    1 230
Total Minimum required
capital and reserve funds      32 685      8 171    40 856    27 841    6 960   34 801

Notes:
1. Minimum required capital and reserve funds have been reported at 10,0%,
    in terms of Directive 05/2011 issued in terms of section 6(4) of the
    Banks Act, 1990.
2. Regulation requires details of any risk exposure or other item that is
    subject to rapid or material change. These are detailed in the trading
    update released on 13 May 2014.

Sandton
14 May 2014

Sponsors to Nedbank Group in South Africa:
Merrill Lynch South Africa (Pty) Limited
Nedbank Capital

Sponsor to Nedbank Group in Namibia:
Old Mutual Investment Services (Namibia) (Pty) Ltd

Sponsors to Nedbank Limited in South Africa:
Nedbank Capital
Investec Bank Limited

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