NEDBANK GROUP LIMITED - Quarterly Report on Pillar III Capital Adequacy at 31 March 2013

Quarterly Report on Pillar III Capital Adequacy at 31 March 2013

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 2013

Quarterly report in terms of Regulation 43(1)(e)(iii) 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 2013.

The group’s capital ratios remain strong, well above the new Basel III
minimum regulatory requirements and well within our revised internal Basel
III targets communicated to the market with the 31 December 2012 results.

The group’s Common Equity Tier 1 ratio improved to 12,2% in March 2013
(December 2012 Basel II.5: 11,4% and December 2012 proforma Basel III:
11,6%) mainly as a result of continuing organic earnings growth in the
quarter, offset to a degree by higher risk weighted assets under Basel III.

In addition the group's Tier 1 capital adequacy ratio improved to 13,4%
(December 2012 Basel II.5: 12,9% and December 2012 proforma Basel III:
13,1%), as did the Total capital adequacy ratio that improved to 15,4%
(December 2012 Basel II.5: 14.9% and December 2012 proforma Basel III:
15,1%), after the phase out of 10% of the existing preference share capital
and Tier 2 capital in line with the grandfathering rules under Basel III.

The following table sets out the available capital as at 31 March 2013:

                             Nedbank Group Limited       Nedbank Limited
                                Rm           %              Rm       %
Tier 1 Capital                 49 839      13,4%          39 436   12,3%

Common Equity Tier 1
Capital                        45 254      12,2%          34 479   10,8%
  Share capital and
  premium                      16 883                     17 461
  Reserves                     39 154                     23 917
  Minority interest:
   ordinary shareholders          200
  Impairments                  (2 909)                    (2 953)
  Goodwill                     (5 047)                    (1 410)
  Excess of expected loss
  over eligible
  provisions                   (1 057)                    (1 205)
  Deferred taxation
  assets                         (214)
  Defined benefit pension
  fund assets                  (1 332)                    (1 331)
  Other regulatory
  differences and non-
  qualifying reserves            (424)

Additional Tier 1 Capital        4 585       1,2%          4 957      1,5%
  Preference share
  capital and premium            2 833                     3 205
  Hybrid debt capital            1 752                     1 752

Tier 2 Capital                   7 349       2,0%          6 990      2,2%
  Long-term liabilities          7 276                     6 959
  General allowance for
  credit impairment                 73                        31

Total Capital                   57 188      15,4%         46 426     14,5%

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

Credit Risk                     22 530    4 224   26 754    19 822     3 716    23 538
Equity Risk                      1 185      222    1 407     1 017       191     1 208
Market Risk                        413       77      490       285        53       338
Operational risk                 4 171      782    4 953     3 508       658     4 166
Other                            1 480      278    1 758     1 018       191     1 209
Total minimum required
capital and reserve funds       29 779    5 583   35 362    25 650     4 809    30 459


Notes:
1. The figures above have not been audited.
2. Available capital includes unappropriated profits and is before the 2012 final
   dividend paid in April 2013.
3. Minimum required capital and reserve funds have been reported at 9.5%, in terms
   of Directive 05/2013 issued in terms of section 6(6) 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 03 May 2013.

Sandton
6 May 2013

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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