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NED/NBKP - Nedbank Group/Nedbank Limited - Quarterly report on Basel II capital adequacy 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 BASEL II CAPITAL ADEQUACY 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 2011. The group`s capital ratios remained well above current and anticipated Basel III minimum regulatory requirements, as well as our internal targets. The Group`s Core Tier 1 ratio strengthened to 10.8% as a result of strong profitability in the first quarter, no growth in risk weighted assets assisted by risk optimisation, in particular the adoption of the Internal Model Approach for market trading risk. In addition the group`s Tier 1 capital adequacy ratio remains strong at 12,4% (31 December 10: 11,7%) and total capital adequacy ratio at 15,7% (31 December 2010: 15,0%). The following table sets out the available capital as at 31 March 2011: Nedbank Group Nedbank Limited
Rm % Rm % Tier 1 capital (Primary) 40 085 12,4% 33 911 11,8% Share capital and reserves 45 695 32 904 Minority interest: ordinary shareholders 160 - Minority interest: preference shareholders 3 560 3 560 Hybrid debt capital 1 752 1 752 Impairments (2 531) (2 183) Goodwill (4 958) (1 410) Profit recorded on own subordinated debt ( 68) ( 68) Excess of expected loss over eligible provisions (50%) ( 865) ( 891) Other regulatory differences and non-qualifying reserves (2 660) 247 Tier 2 capital (Secondary) 10 480 3,3% 10 812 3,8% Long-term liabilities 11 000 10 998 Excess of expected loss over eligible provisions (50%) ( 865) ( 891) General allowance for credit impairment 404 375 Other regulatory differences ( 59) 330 Tier 3 capital (Tertiary) - - Total 50 565 15,7% 44 723 15,6% Minimum required capital 31 488 28 050 and reserve funds Notes: 1. The figures above have not been audited. 2. Available capital includes unappropriated profits to the extent that they are not expected to reverse. 3. These numbers do not include the effect of capital floors for the bank, in terms of Directive 1/2009 issued in terms of section 6(6) of the Banks Act, 1990, which will fall away by 31 December 2011. 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 6 May 2011. Sandton 9 May 2011 For further information contact Tier 1 Investor Relations Tel: +27 (0)21 702-3102 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 Date: 09/05/2011 10:53:01 Supplied by www.sharenet.co.za 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.
