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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.
Date: 01/08/2012 08:01:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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