NEDBANK GROUP LIMITED - Pillar III Quarterly Report on Capital Adequacy at 30 September 2014

Pillar III Quarterly Report on Capital Adequacy at 30 September 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")


PILLAR III QUARTERLY REPORT ON CAPITAL ADEQUACY AT 30 SEPTEMBER
2014
In terms of Regulation 43(1)(e)(ii) of the Banks Act 94 of 1990 (as amended) (“the
Regulation”), the group is required to disclose information on its capital adequacy
ratios on a quarterly basis. This is in accordance with Pillar III of the Basel Accord.


Certain of the information required to be disclosed in terms of the Regulation is
included in Nedbank Group's Third Quarter 2014 Trading Update.


The group remains well capitalised with capital ratios exceeding Basel III minimum
regulatory requirements and within internal Basel III targets. Following the payment
of the interim dividend in September 2014, the common equity tier 1 ratio was at
11,9% (Q3 2013: 11,6%), the tier 1 capital ratio at 12,8% (Q3 2013: 12,9%) and total
capital ratio at 14,6% (Q3 2013: 14,7%).


The following table sets out the available capital as at 30 September 2014:



                                                                                                1
                                         Nedbank Group      Nedbank Limited

Including unappropriated profits         Rm         %        Rm        %
Tier 1 Capital                           55 484     12,8%   43 005     11,9%


Common Equity Tier 1 Capital             51 330     11,9%   38 755     10,7%
       Share capital and premium         17 329             17 461
       Reserves                          45 843             29 750
       Minority interest:
                 ordinary shareholders      277                  0
       Goodwill                          (5 271)            (1 410)
       Excess of expected loss over
       eligible provisions               (1 615)            (1 639)
       Defined benefit pension fund
       assets                            (1 868)            (1 868)
       Other regulatory differences      (3 365)            (3 539)
       and non-qualifying reserves


Additional Tier 1 Capital                  4 154    0,9%      4 250     1,2%
       Preference share capital and
       premium                             3 561              3 561
       Hybrid debt capital                 1 752              1 752
       Grandfathering and other
       adjustments                       ( 1 159)           ( 1 063)


Tier 2 Capital                             7 820    1,8%      7 743     2,1%
       Long-term liabilities               9 269              9 269
       General allowance for credit
       impairment                             97                  20
       Grandfathering and other
       adjustments                       (1 546)            (1 546)


Total Capital                            63 304     14,6%   50 748     14,0%




                                                                                                2
Excluding unappropriated profits
Tier 1 Capital                                  50 766         11,7%       38 626        10,7%
Common Equity Tier 1 Capital                    46 612         10,8%       34 376         9,5%
Total Capital                                   58 586         13,5%       46 369        12,8%



                                   Nedbank Group                      Nedbank Limited
Minimum required
capital and reserve
funds per risk type         Pillar 1   Pillar 2a     Total      Pillar 1   Pillar 2a    Total


Minimum ratios                 8,0%        2,0%      10,0%        8,0%         2,0%      10,0%


Credit Risk                   26 051      6 513      32 564      22 716       5 679     28 395
Equity Risk                    1 385        345       1 730       1 099         275      1 374
Market Risk                      571        143         714         417         105        522
Operational risk               4 223      1 056       5 279       3 562         890      4 452
Other                          2 372        593       2 965       1 150         287      1 437
Total Minimum
required capital and
reserve funds                 34 602       8 650      43 252     28 944       7 236     36 180

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 27 October 2014.


Sandton
28 October 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


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