Wrap Text
Audited summarised financial results for the year ended 31 December 2012
Nedbank Limited: Reg No 1951/000009/06
Incorporated in the Republic of South Africa
JSE share code: NBKP
ISIN: ZAE000043667
Audited summarised financial results for the year ended 31 December 2012
Overview
Nedbank Limited ('Nedbank') is a wholly owned subsidiary of Nedbank Group Limited, which
is listed on JSE Limited. These summarised consolidated annual financial results are published
to provide information to holders of Nedbank's listed non-redeemable non-cumulative preference shares.
Commentary relating to the Nedbank summarised consolidated annual financial results is
included in the Nedbank Group Limited group results, as presented to shareholders on 25 February 2013.
Further information is provided on the website at www.nedbankgroup.co.za.
Board and executive changes during the period
The group advised earlier in the year that Alan Knott-Craig resigned as independent non-executive
director of Nedbank Group and Nedbank Limited with effect from 24 February 2012.
Professor Brian de Lacy Figaji retired as independent non-executive director of the Nedbank Group and
Nedbank Limited board with effect from 4 May 2012.
Ian David Gladman was appointed as non-executive director of Nedbank Group and Nedbank Limited with
effect from 7 June 2012.
Wendy Lucas-Bull resigned as independent non-executive director of Nedbank Group and Nedbank Limited
with effect from 5 November 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 to succeed 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 summarised consolidated financial results at and
for the year ended 31 December 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 International Financial Reporting
Standards (IFRS) of the International Accounting Standards Board and have been applied consistently
over the current and prior financial years, except for clients' indebtedness for acceptances and
liabilities for acceptances that have been reclassified to loans and advances and amounts owed to
depositors respectively in order to achieve improved comparability with the majority of the group's
South African banking peers. These items were previously separately disclosed in the group's statement
of financial position.
Nedbank's summarised consolidated annual financial results have been prepared in accordance with the
recognition and measurement criteria of IFRS, interpretations issued by the International Financial
Reporting Interpretations Committee (IFRIC) and the presentation and disclosure requirements of
International Accounting Standard (IAS) 34: Interim Financial Reporting and the Financial Reporting
Guide as issued by the Accounting Practices Committee, the JSE Listing Requirements and the requirements
of the Companies Act of South Africa.
In the preparation of these summarised consolidated annual financial results the group has applied key
assumptions concerning the future and other indeterminate sources in recording various assets and liabilities.
The assumptions applied in the group financial results for the year ended 31 December 2012 were consistent
with those applied during the 2011 financial year. These assumptions are subject to ongoing review and
possible amendments. The financial results have been prepared under the supervision of Raisibe Morathi,
the group's Chief Financial Officer.
Events after the reporting period
There are no material events after the reporting period to report on.
Audited results auditors' opinion
KPMG Inc and Deloitte & Touche, Nedbank's independent auditors, have audited the consolidated annual
financial statements of Nedbank Limited from which the summarised consolidated financial results have
been derived, and have expressed an unmodified audit opinion on the consolidated annual financial statements.
The summarised consolidated annual financial results comprise the consolidated statement of financial position
at 31 December 2012, consolidated statement of comprehensive income, condensed consolidated statement of
changes in equity, condensed consolidated statement of cashflows for the year then ended and selected
explanatory notes. The audit report is available for inspection at Nedbank's registered office.
Nedbank non-redeemable non-cumulative preference shares declaration of dividend no 20
Notice is hereby given that preference dividend no 20 of 35,82649 cents per share has been declared for
the period from 1 July 2012 to 31 December 2012, payable on Monday, 25 March 2013, to shareholders of the
Nedbank non-redeemable non-cumulative preference shares recognised in the accounting records of the
company at the close of business on Friday, 22 March 2013. The dividend has been declared out of income reserves.
The dividend will be subject to a dividend withholding tax rate of 15% (applicable in South Africa), which will
result in a net dividend to those shareholders who are not exempt from paying dividend tax of 30,45252 cents
per share. No secondary tax on companies (STC) credits were available to be utilised as part of this declaration.
Nedbank Limited's tax reference number is 9250/083/71/5 and the number of 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 Thursday, 14 March 2013
Shares trade ex dividend Friday, 15 March 2013
Record date Friday, 22 March 2013
Payment date Monday, 25 March 2013
Share certificates may not be dematerialised or rematerialised between Friday, 15 March 2013, and
Friday, 22 March 2013, both days inclusive.
Where applicable, dividends in respect of certificated shares will be transferred electronically to
shareholders' bank accounts on 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, 25 March 2013.
For and on behalf of the board
RJ Khoza MWT Brown
Chairman Chief Executive
25 February 2013
Registered office: Nedbank Sandton, 135 Rivonia Road, Sandown, 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),
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 South Africa
JSE share code: NBKP
ISIN: ZAE000043667
AUDITED SUMMARISED FINANCIAL RESULTS
NEDBANK LIMITED
31 DECEMBER 2012
Contents
Consolidated statement of comprehensive income and headline earnings reconciliation 1
Consolidated statement of financial position 2
Condensed consolidated statement of changes in equity 3
Condensed consolidated statement of cashflows 4
Condensed segmental reporting 5
Condensed geographical segmental reporting 6
Consolidated statement of comprehensive income
for the year ended
Audited Audited
31 December 31 December
Rm 2012 2011
Interest and similar income 42,900 41,417
Interest expense and similar charges 24,102 24,119
Net interest income 18,798 17,298
Impairments charge on loans and advances 5,239 5,321
Income from lending activities 13,559 11,977
Non-interest revenue 14,151 12,555
Operating income 27,710 24,532
Total operating expenses 18,565 16,955
- Operating expenses 18,503 16,876
- Black economic empowerment (BEE) transaction expenses 62 79
Indirect taxation 460 413
Profit from operations before non-trading and capital items 8,685 7,164
Non-trading and capital items (48) (48)
- Net profit on sale of subsidiaries, investments, and property and equipment 3
- Net impairment of investments, property and equipment, and capitalised development costs (51) (48)
Fair-value adjustments of investment properties (1)
Profit from operations before direct taxation 8,636 7,116
Total direct taxation 2,169 1,610
- Direct taxation 2,168 1,610
- Taxation on non-trading and capital items 1
- Taxation on revaluation of investment properties *
Profit for the year 6,467 5,506
Other comprehensive income net of taxation 113 267
- Exchange differences on translating foreign operations 35 48
- Fair-value adjustments on available-for-sale assets 39 (27)
- Gains on property revaluations 39 246
Total comprehensive income for the year 6,580 5,773
Profit attributable to:
Ordinary and preference equity holders 6,438 5,483
Non-controlling interest - ordinary shareholders 29 23
Profit for the year 6,467 5,506
Total comprehensive income attributable to:
Ordinary and preference equity holders 6,551 5,750
Non-controlling interest - ordinary shareholders 29 23
Total comprehensive income for the year 6,580 5,773
* Represents amounts less than R1m.
Headline earnings reconciliation
for the year ended Audited Audited
31 December 31 December
2012 2011
Rm Gross Net of taxation Gross Net of taxation
Profit attributable to ordinary and preference equity holders 6,438 5,483
Less: Non-headline earnings items (49) (50) (48) (48)
- Net profit on sale of subsidiaries, investments, and property and equipment 3 2
- Net impairment of investments, property and equipment, and capitalised development costs (51) (51) (48) (48)
- Fair-value adjustments of investment properties (1) (1)
Headline earnings attributable to ordinary and preference equity holders 6,488 5,531
Consolidated statement of financial position
at Audited Audited
31 December 31 December
Rm 2012 2011
ASSETS
Cash and cash equivalents 12,587 11,514
Other short-term securities 37,575 31,715
Derivative financial instruments 14,660 14,314
Government and other securities 26,194 29,991
Loans and advances 520,116 493,107
Other assets 4,528 3,989
Current taxation receivable 241 629
Investment securities 3,196 3,549
Non-current assets held for sale 508 8
Investments in associate companies and joint ventures 665 565
Deferred taxation assets 222 66
Investment property 84 488
Property and equipment 6,171 6,082
Long-term employee benefit assets 2,153 2,027
Mandatory reserve deposits with central banks 12,641 11,862
Intangible assets 3,830 3,634
Total assets 645,371 613,540
EQUITY AND LIABILITIES
Ordinary share capital 27 27
Ordinary share premium 17,422 14,422
Reserves 26,463 24,856
Total equity attributable to equity holders of the parent 43,912 39,305
Preference share capital and premium 3,561 3,561
Non-controlling interest attributable to ordinary shareholders 142 121
Total equity 47,615 42,987
Derivative financial instruments 13,475 13,791
Amounts owed to depositors 542,671 516,540
Provisions and other liabilities 9,273 8,286
Current taxation liabilities 67 27
Other liabilities held fior sale 36
Deferred taxation liabilities 355 997
Long-term employee benefit liabilities 1,584 1,473
Long-term debt instruments 30,295 29,439
Total liabilities 597,756 570,553
Total equity and liabilities 645,371 613,540
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 (281) (281)
Dividend to ordinary shareholders (1,025) (8) (1,033)
Dilution of non-controlling interests 11 (11) -
Total comprehensive income for the year 5,750 23 5,773
Share-based payment reserve movement 111 111
Regulatory risk reserve provision 1 1
Acquisition of subsidiary 1 7 8
Other movements 8 8
Balance at 31 December 2011 39,305 3,561 121 42,987
Shares issued 3,000 3,000
Preference share dividend (293) (293)
Dividend to ordinary shareholders (5,100) (8) (5,108)
Dividend in respect of BEE transaction (6) (6)
Total comprehensive income for the year 6,551 29 6,580
Share-based payment reserve movement 451 451
Regulatory risk reserve provision 2 2
Other movements 2 2
Balance at 31 December 2012 43,912 3,561 142 47,615
Condensed consolidated statement of cashflows
for the year ended
Audited Audited
31 December 31 December
Rm 2012 2011
Cash generated by operations 16,521 14,800
Change in funds for operating activities (7,984) (7,171)
Net cash from operating activities before taxation 8,537 7,629
Taxation paid (3,108) (2,949)
Cashflows from operating activities 5,429 4,680
Cashflows utilised by investing activities (2,034) (1,873)
Cashflows (utilised by)/from financing activities (1,543) 2,032
Effects of exchange rate changes on opening cash and cash equivalents (excluding foreign borrowings) * *
Net increase in cash and cash equivalents 1,852 4,839
Cash and cash equivalents at the beginning of the year ** 23,376 18,537
Cash and cash equivalents at the end of the year ** 25,228 23,376
* represents amounts less than R1m.
** including mandatory reserve deposits with central banks.
Condensed segmental reporting
for the year ended Audited Audited Audited Audited Audited Audited
31 December 31 December 31 December 31 December 31 December 31 December
2012 2011 2012 2011 2012 2011
Rm Total assets Operating income Headline earnings
Nedbank Capital 142,286 149,789 4,044 3,091 1,428 1,228
Nedbank Corporate 175,073 167,074 4,410 3,865 1,817 1,571
Total Nedbank Retail and Nedbank Business Banking 290,198 279,323 18,989 17,102 3,496 2,957
Nedbank Retail 198,072 190,398 14,693 13,107 2,552 2,091
Nedbank Business Banking 92,126 88,925 4,296 3,995 944 866
Nedbank Wealth 42,270 37,759 2,993 2,690 716 654
Shared Services 6,594 7,315 20 259 36 3
Central Management, including Rest of Africa 26,558 6,867 1,349 1,108 17 (229)
Total per Nedbank Group 682,979 648,127 31,805 28,115 7,510 6,184
Fellow-subsidiary adjustments (37,608) (34,587) (4,095) (3,583) (1,022) (653)
Total 645,371 613,540 27,710 24,532 6,488 5,531
The segmental results for the year ended 31 December 2011 has 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.
Condensed geographical segmental reporting
for the year ended
Audited Audited Audited Audited
31 December 31 December 31 December 31 December
2012 2011 2012 2011
Rm Operating income Headline earnings
SA 29,748 26,228 6,906 5,695
- Business operations 29,748 26,228 7,267 6,162
- BEE transaction expenses (68) (186)
- Profit attributable to non-controlling interest - preference shareholders (293) (281)
Rest of Africa 1,259 1,101 290 246
Rest of world - business operations 798 786 314 243
Total per Nedbank Group 31,805 28,115 7,510 6,184
Fellow-subsidiary adjustments (4,095) (3,583) (1,022) (653)
Total 27,710 24,532 6,488 5,531
Date: 25/02/2013 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.
Sharenet Sites 
