Quarterly Report on Pillar III Capital Adequacy at 31 March 2014 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 2014 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 three month period to 31 March 2014, issued on 13 May 2014, and the additional capital adequacy information given below should be read in conjunction with the trading update. The following table sets out the available capital as at 31 March 2014: Nedbank Group Nedbank Limited Including unappropriated profits Rm % Rm % Tier 1 Capital 55 091 13,5% 40 727 11,7% Common Equity Tier 1 Capital 50 894 12,5% 36 477 10,5% Share capital and premium 17 272 17 461 Reserves 45 294 27 165 Minority interest: Ordinary shareholders 239 0 Goodwill (5 131) (1 410) Excess of expected loss over eligible provisions (1 683) (1 725) Defined benefit pension fund assets (1 848) (1 848) Other regulatory differences and (3 249) (3 166) non- qualifying reserves Additional Tier 1 Capital 4 197 1,0% 4 250 1,2% Preference share capital and premium 3 561 3 561 Hybrid debt capital 1 752 1 752 Grandfathering and other regulatory adjustments (1 116) (1 063) Tier 2 Capital 5 769 1,4% 5 709 1,6% Long-term liabilities 7 232 7 232 General allowance for credit impairment 83 23 Grandfathering and other adjustments (1 546) (1 546) Total Capital 60 860 14,9% 46 436 13,3% Excluding unappropriated profits Tier 1 Capital 49 504 12,1% 36 166 10,4% Common Equity Tier 1 Capital 45 307 11,1% 31 916 9,2% Total Capital 55 272 13,5% 41 875 12,0% Nedbank Group Nedbank Limited Minimum required capital and Pillar Pillar Pillar Pillar reserve funds per risk type 1 2a Total 1 2a Total Minimum ratios 8,0% 2,0% 10,0% 8,0% 2,0% 10,0% Credit Risk 24 963 6 241 31 204 21 926 5 481 27 407 Equity Risk 1 449 362 1 811 1 106 276 1 382 Market Risk 516 129 645 396 99 495 Operational risk 4 064 1 016 5 080 3 429 858 4 287 Other 1 693 423 2 116 984 246 1 230 Total Minimum required capital and reserve funds 32 685 8 171 40 856 27 841 6 960 34 801 Notes: 1. Minimum required capital and reserve funds have been reported at 10,0%, in terms of Directive 05/2011 issued in terms of section 6(4) of the Banks Act, 1990. 2. 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 13 May 2014. Sandton 14 May 2014 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: 14/05/2014 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.