NEDBANK LIMITED1 - Quarterly Report on Pillar III Capital Adquacy at 30 September 2012

Quarterly Report on Pillar III Capital Adquacy at 30 September 2012

   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 30
   SEPTEMBER 2012

   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 nine month period to 30 September 2012.

   The group’s capital ratios remained well above current Basel
   II and forthcoming Basel III minimum regulatory requirements,
   as well as our internal Basel II targets.

   The group’s Core Tier 1 ratio improved to 10,7% in September
   2012 (June 2012: 10,6%) as a result of good organic earnings
   growth and some RWA optimisation in the quarter, partly offset
   by the distribution of the interim dividend in September 2012.

   In addition the group's Tier 1 ratio improved to 12,2% (June
   2012: 12,1%) and Total capital ratio remained strong at 14,3%
   (June 2012: 14,4%), following the redemption of the NED10
   R500m tier 2 subordinated note that was called and not
   replaced in August 2012.

   The following table sets out the available capital as at 30
   September 2012:

                       Nedbank Group             Nedbank Limited
                       Rm          %               Rm       %
Total Tier 1
capital               43 702     12.2%            38 588   12.4%

Core Tier 1 capital   38 389     10.7%             33 275   10.7%
 Share capital and
 premium              16 392                       17 461
 Reserves             35 066                       21 186
 Minority
 interest:
  ordinary
 shareholders            197                            0
 Impairments          (3 145)                      (2 745)
 Goodwill             (5 014)                      (1 410)
 Excess of
 expected loss
 over eligible
 provisions (50%)       (766)                        (818)
 Other regulatory
 differences and
 non- qualifying      (4 341)                        (399)
 reserves

Non-core Tier 1
capital                 5 313      1.5%              5 313      1.7%
 Preference share
 capital and
 premium                3 561                        3 561
 Hybrid debt
 capital                1 752                        1 752

Tier 2 capital          7 652      2.1%              8 034      2.6%
 Long-term
 liabilities            8 354                        8 352
 Excess of
 expected loss
 over eligible
 provisions (50%)       (766)                        (818)
 General allowance
 for credit
 impairment                83                           41
 Other regulatory
 differences              (19)                         459

Total capital           51 354     14.3%            46 622      14.9%

Minimum required
capital and reserve   Pillar     Pillar             Pillar     Pillar
funds per risk type      1         2a       Total      1         2a      Total
Credit Risk            21 361     4 005    25 366    19 065     3 575    22 640
Equity Risk             1 206       226     1 432     1 036       194     1 230
Market Risk               513        96       609       371        69      440
Operational risk        4 186       785     4 971     3 417       641     4 058
Other                   1 432       269     1 701     1 100       206     1 306
Total minimum
required capital
and reserve funds      28 698     5 381    34 079    24 989      4 685    29 674
Notes:
1. The figures above have not been audited.
2. Available capital includes unappropriated profits that are
   not expected to reverse.
3. Minimum required capital and reserve funds have been
   reported at 9.5%, in terms of Directive 05/2011 issued in
   terms of section 6(4) of the Banks Act, 1990.
4. 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 29 October 2012.

Sandton
29 October 2012

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

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

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

Date: 29/10/2012 08:01:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.