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NEDBANK LIMITED1 - Reviewed condensed financial results for the six months ended 30 June 2012

Release Date: 01/08/2012 08:01
Code(s): NBKP     PDF:  
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Reviewed condensed financial results for the six months ended 30 June 2012

Nedbank Limited: Reg No 1951/000009/06
Incorporated in the Republic of SA
JSE share code: NBKP
ISIN: ZAE000043667

REVIEWED CONDENSED FINANCIAL RESULTS
FOR THE SIX MONTS ENDED 30 JUNE 2012

OVERVIEW
Nedbank Limited ('Nedbank') is a wholly owned subsidiary of Nedbank Group Limited, which
is listed on JSE Limited. These condensed consolidated interim financial results are published
to provide information to holders of Nedbank's listed non-redeemable non-cumulative
preference shares.

Commentary relating to the Nedbank condensed consolidated interim financial results
is included in the Nedbank Group Limited group results, as presented to shareholders on
1 August 2012. Further information is provided on the website at www.nedbankgroup.co.za.

BOARD AND EXECUTIVE CHANGES DURING THE PERIOD
Professor Brian Figaji retired as independent non-executive director of Nedbank Group and
Nedbank on Friday, 4 May 2012.

Ian Gladman was appointed as non-executive director of Nedbank Group and Nedbank with
effect from 7 June 2012.

Gawie Nienaber retired as Group Company Secretary with effect from 30 June 2012 after
reaching the mandatory retirement age in terms of Nedbank Group's normal retirement
policy.

Thabani Jali was appointed as Group Company Secretary and Jackie Katzin was appointed
as Deputy Group Company Secretary of Nedbank Group and Nedbank with effect from
1 July 2012.

ACCOUNTING POLICIES
Nedbank is a company domiciled in South Africa. The condensed consolidated interim
financial results at and for the six months ended 30 June 2012 comprise the company and its
subsidiaries (the 'group') and the group's interests in associates and jointly controlled entities.
Nedbank's principal accounting policies have been prepared in terms of the International
Financial Reporting Standards (IFRS) of the International Accounting Standards Board
and have been applied consistently over the current and prior financial years. Nedbank's
condensed consolidated interim financial results have been prepared in accordance with
the measurement and recognition criteria of IFRS and presented in accordance with the
disclosures, prescribed by International Accounting Standard (IAS) 34: Interim Financial
Reporting, the South African Statements and Interpretations of Statements of Generally
Accepted Accounting Practice (AC 500 series) issued by the Accounting Practices Board and
the requirements of the Companies Act of SA.

EVENTS AFTER THE REPORTING PERIOD
There are no material events after the reporting period to report on.

REVIEWED RESULTS  AUDITORS' REVIEW REPORT
KPMG Inc and Deloitte & Touche, Nedbank's independent auditors, have reviewed the condensed
consolidated interim financial results of Nedbank and have expressed an unmodified review
conclusion on the condensed consolidated interim financial results. The auditors' review was
conducted in accordance with International Standards of Review Engagements (ISRE 2410):
Review of Interim Financial Information Performed by the Independent Auditor of the Entity.
The condensed consolidated interim financial results comprise the consolidated statement
of financial position at 30 June 2012, consolidated statement of comprehensive income,
condensed consolidated statement of changes in equity, condensed consolidated statement of
cashflows for the six months then ended and selected explanatory notes. The review report is
available for inspection at Nedbank's registered office.

NEDBANK NON-REDEEMABLE NON-CUMULATIVE
PREFERENCE SHARES  DECLARATION OF DIVIDEND NO 19
Notice is hereby given that gross preference dividend no 19 of 37,29507 cents per share has been
declared for the period from 1 January 2012 to 30 June 2012, payable on Monday, 27 August 2012,
to holders of the Nedbank non-redeemable non-cumulative non-participating preference shares
('Nedbank perpetual preference shares') recorded in the books of the company at the close of
business on Friday, 24 August 2012. The dividend has been declared out of income reserves.
The dividend will be subject to a local dividend tax rate of 15% or 5,59426 cents per share, resulting
in a net dividend of 31,70081 cents per share, unless the holders of Nedbank perpetual preference
shares are exempt from paying the dividend tax or are entitled to a reduced rate of dividend tax
in terms of the double-tax agreement. No secondary tax on companies credits were available to
be utilised as part of this declaration. Nedbank's tax reference number is 9250/083/71/5 and the
number of Nedbank perpetual preference shares in issue at the date of declaration is 358 277 491.
In accordance with the provisions of Strate, the electronic settlement and custody system used by
JSE Limited, the relevant dates for the payment of the dividend are as follows:

Last day to trade (cum dividend)                                            Friday, 17 August 2012
Shares commence trading (ex dividend) on                                    Monday, 20 August 2012
Record date                                                                 Friday, 24 August 2012
Payment date                                                                Monday, 27 August 2012

Share certificates may not be dematerialised or rematerialised between Monday,
20 August 2012, and Friday, 24 August 2012, both days inclusive.
Where applicable, dividends in respect of certificated shares will be transferred electronically
to shareholders' bank accounts on the payment date. In the absence of specific mandates
dividend cheques will be posted to shareholders. Shareholders who have dematerialised
their share certificates will have their accounts, at their participant or broker, credited on
Monday, 27 August 2012.

For and on behalf of the board

RJ Khoza                                        MWT Brown
Chairman                                        Chief Executive

1 August 2012

Registered office: Nedbank Sandton, 135 Rivonia Road, Sandown, Sandton, 2196.
PO Box 1144, Johannesburg, 2000.

Transfer secretaries: Computershare Investor Services (Pty) Limited, 70 Marshall Street,
Johannesburg, 2001. PO Box 61051, Marshalltown, 2107.

Directors: Dr RJ Khoza (Chairman), MWT Brown* (Chief Executive), TA Boardman,
TCP Chikane, GW Dempster* (Chief Operating Officer), MA Enus-Brey,
ID Gladman (British), DI Hope (New Zealand), WE Lucas-Bull, PM Makwana,
NP Mnxasana, RK Morathi* (Chief Financial Officer), JK Netshitenzhe,
JVF Roberts (British), GT Serobe, MI Wyman** (British).
* Executive ** Senior independent non-executive director

Company Secretary: TSB Jali

Sponsors: Investec Bank Limited, Nedbank Capital

Nedbank Limited: Reg No 1951/000009/06
Incorporated in the Republic of SA
JSE share code: NBKP
ISIN: ZAE000043667

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                                              Reviewed     Reviewed    Audited
for the period ended                                             30 Jun      30 Jun     31 Dec
Rm                                                                2012         2011       2011
Interest and similar income                                     21 520       20 218     41 417
Interest expense and similar charges                            12 298       11 868     24 119
Net interest income                                              9 222        8 350     17 298
Impairments charge on loans and advances                         2 741        2 784      5 321
Income from lending activities                                   6 481        5 566     11 977
Non-interest revenue                                             6 764        5 810     12 555
Operating income                                                13 245       11 376     24 532
Total operating expenses                                         8 962        7 981     16 955
 Operating expenses                                             8 930        7 933     16 876
 Black economic empowerment (BEE)
  transaction expenses                                              32           48         79
Indirect taxation                                                  197          216        413
Profit from operations before non-trading and capital items      4 086        3 179      7 164
Non-trading and capital items                                        4          (32)       (48)
 Net loss on sale of subsidiaries, investments,
  and property and equipment                                        (1)
 Net impairment of investments, property and
  equipment, and capitalised development costs                       5          (32)       (48)

Profit from operations before direct taxation                    4 090        3 147      7 116
Total direct taxation                                            1 090          763      1 610
 Direct taxation                                                1 089         763       1 610
 Taxation on non-trading and capital items                          1

Profit for the period                                            3 000        2 384      5 506
Other comprehensive income net of taxation                          60           61        267
 Exchange differences on translating foreign operations            11          10          48
 Fair-value adjustments on available-for-sale assets               60          51         (27)
 Gains on property revaluations                                   (11)                    246

Total comprehensive income for the period                        3 060        2 445      5 773
Profit attributable to: 
Ordinary and preference equity holders                           2 990        2 373      5 483
Non-controlling interest  ordinary shareholders                    10           11         23
Profit for the period                                            3 000        2 384      5 506
Total comprehensive income attributable to:
Ordinary and preference equity holders                           3 051        2 433      5 750
Non-controlling interest  ordinary shareholders                     9           12         23
Total comprehensive income for the period                        3 060        2 445      5 773

HEADLINE EARNINGS RECONCILIATION
                                                             Reviewed            Reviewed            Audited
for the period ended                                           30 Jun              30 Jun             31 Dec
                                                                 2012                2011               2011
                                                               Net of              Net of             Net of
Rm                                                 Gross     taxation   Gross    taxation   Gross   taxation
Profit attributable to ordinary and preference
equity holders                                                 2 990               2 373              5 483
Less: Non-trading and capital items                    4           3     (32)        (32)    (48)       (48)
 Net loss on sale of subsidiaries, investments,
  and property and equipment                          (1)         (2)
 Net impairment of investments, property and
  equipment, and capitalised development costs        5            5     (32)        (32)    (48)       (48)

Headline earnings attributable to ordinary
and preference equity holders                                  2 987               2 405              5 531

CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
for the period ended                                                      Reviewed        Reviewed         Audited
Rm                                                                      30 Jun 2012    30 Jun 2011     31 Dec 2011

Cash generated by operations                                                  8 057          7 076          14 800
Change in funds for operating activities                                     (5 996)        (2 864)         (7 171)
Net cash from operating activities before taxation                            2 061          4 212           7 629
Taxation paid                                                                (1 865)          (747)         (2 949)
Cashflows (utilised by)/from operating activities                               196           3 465          4 680
Cashflows utilised by investing activities                                     (742)         (1 340)        (1 873)
Cashflows (utilised by)/from financing activities                              (427)          1 369          2 032
Effects of exchange rate changes on opening cash and cash equivalents 
(excluding foreign borrowings)                                                    *               *              *
Net (decrease)/increase in cash and cash equivalents                           (973)          3 494          4 839
Cash and cash equivalents at the beginning of the period**                   23 376          18 537         18 537
Cash and cash equivalents at the end of the period**                         22 403          22 031         23 376
* Represents amounts less than R1m. 
** Including mandatory reserve deposits with central banks.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
                                                                 Reviewed    Reviewed   Audited
at                                                                  30 Jun     30 Jun    31 Dec
Rm                                                                   2012        2011      2011

Assets
Cash and cash equivalents                                          10 038      10 436     11 514
Other short-term securities                                        35 974      25 003     31 715
Derivative financial instruments                                   15 792       8 309     14 314
Government and other securities                                    26 473      35 903     29 991
Loans and advances                                                506 713     466 074    490 176
Other assets                                                        5 290       3 928      3 989
Clients' indebtedness for acceptances                               2 504       2 721      2 931
Current taxation receivable                                           940         590        629
Investment securities                                               3 722       3 299      3 549
Non-current assets held for sale                                       22           8          8
Investments in associate companies and joint ventures                 596       1 126        565
Deferred taxation asset                                                39          40         66
Investment property                                                   488          81        488
Property and equipment                                              6 037       5 620      6 082
Long-term employee benefit assets                                   2 092       2 022      2 027
Mandatory reserve deposits with central banks                      12 365      11 595     11 862
Intangible assets                                                   3 678       3 365      3 634
Total assets                                                      632 763     580 120    613 540
Equity and liabilities
Ordinary share capital                                                 27          27         27
Ordinary share premium                                             17 422      14 422     14 422
Reserves                                                           24 089      21 981     24 856
Total equity attributable to equity holders of the parent          41 538      36 430     39 305
Preference share capital and premium                                3 561       3 560      3 561
Non-controlling interest attributable to ordinary shareholders        123         102        121
Total equity                                                       45 222      40 092     42 987
Derivative financial instruments                                   15 250       8 800     13 791
Amounts owed to depositors                                        527 740     491 011    513 609
Provisions and other liabilities                                    9 734       6 372      8 286
Liabilities under acceptances                                       2 504       2 721      2 931
Current taxation liabilities                                           28          50         27
Deferred taxation liabilities                                         693       1 434        997
Long-term employee benefit liabilities                              1 538       1 452      1 473
Long-term debt instruments                                         30 054      28 188     29 439
Total liabilities                                                 587 541     540 028    570 553
Total equity and liabilities                                      632 763     580 120    613 540

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                                                                Non-controlling
                                              Total equity                             interest
                                           attributable to       Preference     attributable to
                                            equity holders    share capital            ordinary
Rm                                           of the parent     and premium         shareholders     Total equity
Balance at 31 December 2010                        34 730            3 560                  110         38 400
Preference share dividend                            (143)                                                (143)
Dividend to ordinary shareholders                    (575)                                   (9)          (584)
Dilution of non-controlling interests                  11                                   (11)             
Total comprehensive income for the period           2 433                                    12          2 445
Share-based payment reserve movement                  (26)                                                 (26)
Regulatory risk reserve provision                       2                                                    2
Other movements                                        (2)                                                  (2)
Balance at 30 June 2011                            36 430            3 560                  102         40 092
Preference share dividend                            (138)                                                (138)
Dividend to ordinary shareholders                    (450)                                    1           (449)
Total comprehensive income for the period           3 317                                    11          3 328
Share-based payment reserve movement                  137                                                  137
Regulatory risk reserve provision                      (1)                                                  (1)
Acquisition of subsidiary                                                1                    7              8
Other movements                                        10                                                  10
Balance at 31 December 2011                        39 305            3 561                  121         42 987
Shares issued                                       3 000                                                3 000
Preference share dividend                            (142)                                                (142)
Dividend to ordinary shareholders                  (3 900)                                   (7)        (3 907)
Total comprehensive income for the period           3 051                                     9          3 060
Share-based payment reserve movement                  221                                                  221
Regulatory risk reserve provision                       2                                                    2
Other movements                                         1                                                    1
Balance at 30 June 2012                            41 538            3 561                  123         45 222

CONDENSED GEOGRAPHICAL SEGMENTAL REPORTING
                                                                       Operating income                Headline earnings
for the period ended                                             Reviewed Reviewed     Audited  Reviewed   Reviewed       Audited
                                                                    30 Jun  30 Jun      31 Dec    30 Jun     30 Jun        31 Dec
Rm                                                                   2012     2011        2011      2012       2011          2011
SA                                                                 14 217   12 095      26 228     3 171      2 519         5 695
 Business operations                                              14 217   12 095      26 228     3 354      2 706         6 162
 BEE transaction expenses                                                                           (41)       (44)         (186)
 Profit attributable to non-controlling interest  preference 
  shareholders                                                                                      (142)      (143)         (281)
Rest of Africa                                                        584      503       1 101       124         95           246
Rest of world  business operations                                   404      432         786       173        158           243
Total per Nedbank Group                                            15 205   13 030      28 115     3 468      2 772         6 184
Fellow-subsidiary adjustments                                      (1 960)  (1 654)     (3 583)     (481)      (367)         (653)
Total                                                              13 245   11 376      24 532     2 987      2 405         5 531

CONDENSED SEGMENTAL REPORTING
                                                                   Total assets                                 Operating income                                 Headline earnings
for the period ended                                  Reviewed       Reviewed         Audited      Reviewed             Reviewed        Audited      Reviewed             Reviewed        Audited
Rm                                                  30 Jun 2012   30 Jun 2011     31 Dec 2011    30 Jun 2012         30 Jun 2011    31 Dec 2011    30 Jun 2012         30 Jun 2011    31 Dec 2011

Nedbank Capital                                        157 065        120 673        149 789          1 844               1 368           3 091            683                 546          1 228
Nedbank Corporate                                      168 733        156 272        167 074          2 143               1 887           3 865            864                 753          1 571
Total Nedbank Retail and Nedbank Business Banking      283 495        271 768        279 323          9 129               8 029          17 102          1 627               1 324          2 957
 Nedbank Retail                                       193 889        185 755        190 398          7 062               6 063          13 107          1 194                 863          2 091
 Nedbank Business Banking                              89 606         86 013         88 925          2 067               1 966           3 995            433                 461            866
Nedbank Wealth                                          40 953         34 645         37 759          1 468               1 257           2 690            356                 288            654
Shared Services                                          7 083          7 252          7 315             (4)                 77             259             10                 (14)             3
Central Management                                     146 953        160 633        153 282            650                 432           1 150            (72)               (125)          (229)
Eliminations                                          (134 261)      (141 368)      (146 415)           (25)                (20)            (42)
Total per Nedbank Group                                670 021        609 875        648 127         15 205              13 030          28 115          3 468               2 772          6 184
Fellow-subsidiary adjustments                          (37 258)       (29 755)       (34 587)        (1 960)             (1 654)         (3 583)          (481)               (367)          (653)
Total                                                  632 763        580 120        613 540         13 245              11 376          24 532          2 987               2 405          5 531

The segmental results for the periods ended 30 June 2011 and 31 December 2011 have been restated for the following adjustments: (a) enhancements to the allocation of economic capital; (b) the reallocation of negotiable certificates of deposit from Nedbank Capital to the centre;
and (c) transferring the Rest of Africa Cluster from Nedbank Corporate to Central Management. These restatements have no effect on the group results and ratios, and only affect the segment results and related ratios.

THESE RESULTS AND ADDITIONAL INFORMATION ARE AVAILABLE AT
WWW.NEDBANKGROUP.CO.ZA.



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