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NED/NBKP - Nedbank Group Limited / Nedbank Limited - Quarterly report on Pillar

Release Date: 04/05/2012 08:05
Code(s): NED NBKP
Wrap Text

NED/NBKP - Nedbank Group Limited / Nedbank Limited - Quarterly report on Pillar III capital adequacy at 31 March 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 31 MARCH 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 three month period to 31 March 2012. The Group`s capital ratios remained well above current Basel II and anticipated Basel III minimum regulatory requirements, as well as our internal targets. The group implemented Basel II.5 capital criteria, most notably the 6% scaling factor for credit RWA, with effect from 1 January 2012. In line with the pro- forma ratio disclosed to the market, the 2011 year-end core tier 1 ratio decreased to 10,5% (December 2011: 11,0%). Strong organic earnings and continued RWA optimisation during the first quarter resulted in the core tier 1 ratio strengthening to 10,7% at 31 March 2012. In addition, the Group`s Tier 1 capital adequacy ratio declined to 12,2% (31 December 2011: 12,6%) and Total capital adequacy ratio to 14,6% (31 December 2011: 15,3%), as a result of the reasons discussed above. The Group`s Total capital adequacy ratio was also impacted with the redemption of the R650 million, NED7 Tier 2 subordinated note that was called and not replaced in February 2012, as a result of the Group`s strong Total capital position. The following table sets out the available capital as at 31 March 2012: Nedbank Group Nedbank Limited Rm % Rm %
Primary Capital 43 650 12,2 37 783 12,1 Core Primary Capital 38 337 10,7 32 470 10,4
Share capital and premium 16 415 15 461 Reserves 34 331 21 981
Minority interest: ordinary shareholders 185 -
Impairments (3 018) (2 679) Goodwill (4 990) (1 410)
Excess of expected loss over ( 539) ( 622) eligible provisions (50%) Other regulatory differences (4 047) ( 261)
and non-qualifying reserves Non-core Primary Capital 5 313 1,5 5 313 1,7 Preference share capital and 3 561 3 561 Premium Hybrid debt capital 1 752 1 752
Secondary Capital 8 646 2,4 9 062 2,9 Long-term liabilities 8 853 8 850
Excess of expected loss over ( 539) ( 622) eligible provisions (50%) General allowance for credit 399 364 impairment Other regulatory differences ( 67) 470 Tier 3 capital (Tertiary) - -
Total 52 296 14,6 46 845 15,1 Nedbank Group Nedbank Limited Minimum required Pillar Pillar Total Pillar Pillar Total capital and 1 2a 1 2a reserve funds per risk type Credit Risk 21 627 4 055 25 682 19 338 3 626 22 964 Equity Risk 1 271 238 1 509 1 158 217 1 375 Market Risk 505 95 600 366 69 435 Operational Risk 3 700 694 4 394 3 085 579 3 664 Other 1 531 287 1 818 948 178 1 126 Total minimum 28 634 5 369 34 003 24 895 4 669 29 564 required capital and reserve funds Notes: 1. The figures above have not been audited. 2. Available capital includes unappropriated profits of R3,7bn in Nedbank Group and R2,8bn in Nedbank Limited. 3. 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 4 May 2012. Sandton 4 May 2012 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: 04/05/2012 08:05:01 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.

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