Quarterly Report on Pillar III Capital Adequacy at 30 September 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 30 SEPTEMBER 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 nine month period to 30 September 2012. The group’s capital ratios remained well above current Basel II and forthcoming Basel III minimum regulatory requirements, as well as our internal Basel II targets. The group’s Core Tier 1 ratio improved to 10,7% in September 2012 (June 2012: 10,6%) as a result of good organic earnings growth and some RWA optimisation in the quarter, partly offset by the distribution of the interim dividend in September 2012. In addition the group's Tier 1 ratio improved to 12,2% (June 2012: 12,1%) and Total capital ratio remained strong at 14,3% (June 2012: 14,4%), following the redemption of the NED10 R500m tier 2 subordinated note that was called and not replaced in August 2012. The following table sets out the available capital as at 30 September 2012: Nedbank Group Nedbank Limited Rm % Rm % Total Tier 1 capital 43 702 12.2% 38 588 12.4% Core Tier 1 capital 38 389 10.7% 33 275 10.7% Share capital and premium 16 392 17 461 Reserves 35 066 21 186 Minority interest: ordinary shareholders 197 0 Impairments (3 145) (2 745) Goodwill (5 014) (1 410) Excess of expected loss over eligible provisions (50%) (766) (818) Other regulatory differences and non- qualifying (4 341) (399) reserves Non-core Tier 1 capital 5 313 1.5% 5 313 1.7% Preference share capital and premium 3 561 3 561 Hybrid debt capital 1 752 1 752 Tier 2 capital 7 652 2.1% 8 034 2.6% Long-term liabilities 8 354 8 352 Excess of expected loss over eligible provisions (50%) (766) (818) General allowance for credit impairment 83 41 Other regulatory differences (19) 459 Total capital 51 354 14.3% 46 622 14.9% Minimum required capital and reserve Pillar Pillar Pillar Pillar funds per risk type 1 2a Total 1 2a Total Credit Risk 21 361 4 005 25 366 19 065 3 575 22 640 Equity Risk 1 206 226 1 432 1 036 194 1 230 Market Risk 513 96 609 371 69 440 Operational risk 4 186 785 4 971 3 417 641 4 058 Other 1 432 269 1 701 1 100 206 1 306 Total minimum required capital and reserve funds 28 698 5 381 34 079 24 989 4 685 29 674 Notes: 1. The figures above have not been audited. 2. Available capital includes unappropriated profits that are not expected to reverse. 3. Minimum required capital and reserve funds have been reported at 9.5%, in terms of Directive 05/2011 issued in terms of section 6(4) 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 29 October 2012. Sandton 29 October 2012 Sponsors to Nedbank Group in South Africa: Merrill Lynch South Africa (Pty) Limited Nedbank Capital Sponsors to Nedbank Limited in South Africa: Nedbank Capital Investec Bank Limited Sponsor to Nedbank Group in Namibia: Old Mutual Investment Services (Namibia) (Pty) Ltd Date: 29/10/2012 08:01:00 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.