NEDBANK GROUP LIMITED - Nedbank Group Third Quarter 2013 Trading Update

Nedbank Group – Third Quarter 2013 Trading Update

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 GROUP – THIRD QUARTER 2013 TRADING UPDATE
“In a tough and volatile economic environment Nedbank performed solidly in the third quarter. Our
focus on building the franchise continues to underpin non-interest revenue growth and proactive credit
risk management strategies contributed to an improvement in the credit loss ratio.

We continue to make satisfactory progress towards meeting our diluted headline earnings per share
growth target for 2013”.

Mike Brown
Chief Executive

OPERATIONAL PERFORMANCE
Net interest income for the nine months ended 30 September 2013 (“the period”) grew by 8,3% to R15
725m (Q3 2012: R14 523m) with the net interest margin at 3,58% (Q3 2012: 3,52%) remaining stable
since June 2013.

The credit loss ratio at 1,15% (Q3 2012: 1,02%) for the period improved from 1,31% at June 2013.

Non-Interest Revenue (NIR) increased by 14,2% to R14 166m (Q3 2012: R12 403m) reflecting slower
growth in the quarter. Fee and commissions growth was 14,0%, insurance income grew 14,9% and
trading income grew 6,2%. Fair-value adjustments, a volatile contributor to NIR, were a positive
R110m (Q3 2012: Negative R228m) resulting in NIR before fair value adjustments growing by 11,3%.


Total advances grew 9,7% (annualised) to R566bn. Excluding trading advances, banking advances
growth was 8,5%. Deposits increased 9,4% (annualised) to R590bn.


The group’s capital adequacy ratios remain well within its respective internal target ranges with the
common equity tier 1 ratio at 11,6% following the payment of the interim dividend in September 2013.


              Q3 2013                     June 2013                                     Regulatory
                                                                      Internal target
 Basel III    Unappropriated profits      Unappropriated profits                        minimum
                                                                      range
              Including     Excluding     Including    Excluding                        2013

                                                                                                   
 Common
 equity tier 1   11,6%      11,0%          11,8%        11,3%         10,5% – 12,5%     4,5%
 ratio

 Tier 1 ratio    12,9%      12,3%          13,0%        12,5%         11,5% – 13,0%     6,0%


 Total capital
                 14,7%      14,0%          14,8%        14,4%         14,0% – 15,0%     9,5%
 ratio



PROSPECTS
The group’s forecast for gross domestic product (GDP) growth of 2,0% and an average consumer
price index (CPI) of 5,9% for 2013 is reflective of continued pressures in the global and domestic
economy.


The group’s financial guidance to meet its medium-to-long-term diluted headline earning per share
growth target (being, greater than or equal to GDP plus CPI plus 5%) in 2013 remains unchanged.


Shareholders are advised that these forecasts and the figures stated in this trading update have not
been reviewed or reported on by the group’s auditors.

FORWARD-LOOKING STATEMENT
This announcement contains certain forward-looking statements with respect to the financial condition
and results of operations of Nedbank Group and its group companies, which by their nature involve
risk and uncertainty because they relate to events and depend on circumstances that may occur in the
future. Factors that could cause actual results to differ materially from those in the forward-looking
statements include, but are not limited to, global, national and regional economic conditions, levels of
securities markets, interest rates, credit or other risks of lending and investment activities, together
with competitive and regulatory factors.

Sandton
28 October 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




                                                                                                     

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