Quarterly Report on Pillar III Capital Adequacy at 31 March 2013 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 2013 Quarterly report in terms of Regulation 43(1)(e)(iii) 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 2013. The group’s capital ratios remain strong, well above the new Basel III minimum regulatory requirements and well within our revised internal Basel III targets communicated to the market with the 31 December 2012 results. The group’s Common Equity Tier 1 ratio improved to 12,2% in March 2013 (December 2012 Basel II.5: 11,4% and December 2012 proforma Basel III: 11,6%) mainly as a result of continuing organic earnings growth in the quarter, offset to a degree by higher risk weighted assets under Basel III. In addition the group's Tier 1 capital adequacy ratio improved to 13,4% (December 2012 Basel II.5: 12,9% and December 2012 proforma Basel III: 13,1%), as did the Total capital adequacy ratio that improved to 15,4% (December 2012 Basel II.5: 14.9% and December 2012 proforma Basel III: 15,1%), after the phase out of 10% of the existing preference share capital and Tier 2 capital in line with the grandfathering rules under Basel III. The following table sets out the available capital as at 31 March 2013: Nedbank Group Limited Nedbank Limited Rm % Rm % Tier 1 Capital 49 839 13,4% 39 436 12,3% Common Equity Tier 1 Capital 45 254 12,2% 34 479 10,8% Share capital and premium 16 883 17 461 Reserves 39 154 23 917 Minority interest: ordinary shareholders 200 Impairments (2 909) (2 953) Goodwill (5 047) (1 410) Excess of expected loss over eligible provisions (1 057) (1 205) Deferred taxation assets (214) Defined benefit pension fund assets (1 332) (1 331) Other regulatory differences and non- qualifying reserves (424) Additional Tier 1 Capital 4 585 1,2% 4 957 1,5% Preference share capital and premium 2 833 3 205 Hybrid debt capital 1 752 1 752 Tier 2 Capital 7 349 2,0% 6 990 2,2% Long-term liabilities 7 276 6 959 General allowance for credit impairment 73 31 Total Capital 57 188 15,4% 46 426 14,5% Minimum required capital and reserve funds per Pillar Pillar Pillar Pillar risk type 1 2a Total 1 2a Total Credit Risk 22 530 4 224 26 754 19 822 3 716 23 538 Equity Risk 1 185 222 1 407 1 017 191 1 208 Market Risk 413 77 490 285 53 338 Operational risk 4 171 782 4 953 3 508 658 4 166 Other 1 480 278 1 758 1 018 191 1 209 Total minimum required capital and reserve funds 29 779 5 583 35 362 25 650 4 809 30 459 Notes: 1. The figures above have not been audited. 2. Available capital includes unappropriated profits and is before the 2012 final dividend paid in April 2013. 3. Minimum required capital and reserve funds have been reported at 9.5%, in terms of Directive 05/2013 issued in terms of section 6(6) 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 03 May 2013. Sandton 6 May 2013 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: 06/05/2013 08:00:00 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.