Wrap Text
Condensed Consolidated Interim Financial Results for the six months ended 30 June 2015
Nedbank Limited
Reg No 1951/000009/06
Incorporated in the Republic of South Africa
JSE share code: NBKP
ISIN: ZAE000043667
Condensed consolidated interim financial results for the six months
ended 30 June 2015
Overview
Nedbank Limited ('Nedbank') is a wholly owned subsidiary of Nedbank Group Limited ('Nedbank Group'), which is listed on JSE Limited. These
condensed consolidated financial results are published to provide information to holders of Nedbank's listed non-redeemable non-cumulative preference
shares.
Commentary relating to the Nedbank condensed consolidated financial results is included in the Nedbank Group Limited ('Nedbank Group') results, as
presented to shareholders on 4 August 2015. Further information is provided on the website at nedbankgroup.co.za.
Board appointments
With effect from 1 May 2015, Vassi Naidoo was appointed Non-executive Director of Nedbank Group and Nedbank, and Chairman of Nedbank Group
and Nedbank from 11 May 2015.
The following board directors retired at the annual general meeting on 11 May 2015, either having served on the board as a non-executive for nine years
or having retired from executive service:
- Dr Reuel Khoza, Non-executive Chairman.
- Mustaq Enus-Brey, Non-executive Director.
- Gloria Serobe, Non-executive Director.
- Graham Dempster, Executive Director.
Executive appointments
Iolanda Ruggiero was appointed Managing Executive of Nedbank Wealth and joined our Group Executive Committee with effect from 1 May 2015.
Accounting policies
Nedbank Limited is a company domiciled in SA. These condensed consolidated interim financial results of the group at and for the six months ended
30 June 2015 comprise the company and its subsidiaries ('the group') and the group's interests in associate companies and joint arrangements.
The financial results contained in the Securities Exchange News Service (SENS) announcement have been prepared in accordance with International
Financial Reporting Standard (IAS) 34: Interim Financial Reporting, excluding paragraph 16A(j) as permitted by the JSE listings requirements; the South
African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by the Financial Reporting Standards Council and the requirements of the Companies Act of South Africa. A full analysis of
the results for the six months, which includes full IAS 34 disclosures, is available from the company's registered office upon request.
The accounting policies applied in the preparation of the condensed consolidated interim financial statements are in terms of International Financial
Reporting Standards and are consistent with the accounting policies applied in the preparation of the previous annual financial statements.
The condensed consolidated interim financial results have been prepared under the supervision of Raisibe Morathi, the Chief Financial Officer.
Events after the reporting period
There are no material events after the reporting period to report on.
Reviewed results – auditors' conclusion
While these condensed consolidated interim financial results are neither audited nor reviewed, KPMG Inc and Deloitte & Touche, Nedbank's independent
auditors, have reviewed and expressed an unmodified review conclusion on the condensed consolidated interim financial statements of Nedbank, from
which the financial results contained in the SENS announcement have been extracted.
The auditors' review report does not necessarily report on all of the information contained in this announcement as it excludes information pursuant to
paragraph 16A(j) as permitted by the JSE listings requirements and includes additional commentary. Shareholders are therefore advised that in order to
obtain a full understanding of the nature of the auditors' engagement they should obtain a copy of the auditors' report together with the accompanying
financial information from Nedbank Group's registered office.
The directors take full responsibility for the preparation of the condensed consolidated interim financial results and for correctly extracting the financial
information from those underlying reviewed condensed consolidated interim financial results for inclusion in this SENS announcement.
Forward-looking statements
This announcement contains certain forward-looking statements with respect to the financial condition and results of operations of Nedbank and its
companies that, by their nature, involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in
the future. Factors that could cause actual results to differ materially from those in the forward-looking statements include global, national and regional
economic conditions; levels of securities markets; interest rates; credit or other risks of lending and investment activities; as well as competitive and
regulatory factors. By consequence, all forward-looking statements have not been reviewed or reported on by the group's auditors.
Nedbank non-redeemable non-cumulative preference shares – declaration of
dividend no 25
Notice is hereby given that a gross preference dividend for dividend no 25 of 38,22487 cents per share has been declared for the period from
1 January 2015 to 30 June 2015, payable on Monday, 31 August 2015, 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, 28 August 2015. The dividend has been declared out of
income reserves.
The dividend will be subject to a dividend withholding tax rate of 15% (applicable in SA), resulting in a net dividend of 32,49114 cents per share to those
shareholders who are not exempt from paying dividend tax. Nedbank'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) Friday, 21 August 2015
Shares commence trading (ex dividend) Monday, 24 August 2015
Record date (date shareholders recorded in books) Friday, 28 August 2015
Payment date Monday, 31 August 2015
Share certificates may not be dematerialised or rematerialised between Monday, 24 August 2015, and Friday, 28 August 2015, both days inclusive.
Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders' bank accounts on the 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, 31 August 2015.
For and on behalf of the board
Vassi Naidoo Mike Brown
Chairman Chief Executive
4 August 2015
Registered office: Nedbank 135 Rivonia Campus, 135 Rivonia Road, Sandown, Sandton, 2196; PO Box 1144, Johannesburg, 2000.
Transfer secretaries: Computershare Investor Services (Pty) Limited, 70 Marshall Street, Johannesburg, 2001; PO Box 61051, Marshalltown, 2107.
Directors:
V Naidoo (Chairman), MWT Brown* (Chief Executive), DKT Adomakoh (Ghanaian), TA Boardman, BA Dames, ID Gladman (British), PB Hanratty
(Irish), PM Makwana, Dr MA Matooane, NP Mnxasana, RK Morathi* (Chief Financial Officer), JK Netshitenzhe, MC Nkuhlu* (Chief Operating Officer),
JVF Roberts (British), 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
Condensed consolidated statement of comprehensive income
for the period ended
30 June 30 June 31 December
2015 2014 2014
Change (Reviewed) (Reviewed) (Audited)
% Rm Rm Rm
Interest and similar income 10,6 26 613 24 069 50 075
Interest expense and similar charges 16,9 15 632 13 371 28 322
Net interest income 2,6 10 981 10 698 21 753
Impairments charge on loans and advances (3,8) 2 226 2 314 4 478
Income from lending activities 4,4 8 755 8 384 17 275
Non-interest revenue 9,8 8 387 7 639 16 196
Operating income 7,0 17 142 16 023 33 471
Total operating expenses 7,6 11 345 10 546 22 031
Indirect taxation 12,1 277 247 522
Profit from operations before non-trading and capital items 5,5 5 520 5 230 10 918
Non-trading and capital items < (100) 3 (8) (96)
Net profit on sale of subsidiaries, investments, and property and equipment 3
Net impairment of investments, property and equipment, and capitalised
development costs (8) (96)
Profit from operations 5,8 5 523 5 222 10 822
Share of profits of associate companies and joint arrangements (45,5) 6 11 12
Profit from operations before direct taxation 5,7 5 529 5 233 10 834
Total direct taxation 12,6 1 487 1 321 2 786
Direct taxation 1 487 1 323 2 803
Taxation on non-trading and capital items (2) (17)
Profit for the period 3,3 4 042 3 912 8 048
Other comprehensive income net of taxation < (100) 73 (111) 126
Items that may subsequently be reclassified to profit or loss
Exchange differences on translating foreign operations (15) 13 14
Fair-value adjustments on available-for-sale assets (2) (117) (113)
Items that may not subsequently be reclassified to profit or loss
Gains on property revaluations (7) 163
Remeasurements on long-term employee benefit assets 90 62
Total comprehensive income for the period 8,3 4 115 3 801 8 174
Profit attributable to:
– Ordinary and preference equity holders 3,4 4 024 3 893 7 998
– Non-controlling interest – ordinary shareholders 18 19 50
Profit for the period 3,3 4 042 3 912 8 048
Total comprehensive income attributable to:
– Ordinary and preference equity holders 8,5 4 097 3 777 8 123
– Non-controlling interest – ordinary shareholders (25,0) 18 24 51
Total comprehensive income for the period 8,3 4 115 3 801 8 174
Headline earnings reconciliation
for the period ended
30 June 30 June 31 December
30 June 2015 30 June 2014 31 December 2014
2015 (Reviewed) 2014 (Reviewed) 2014 (Audited)
Change (Reviewed) Rm (Reviewed) Rm (Audited) Rm
% Rm Net of Rm Net of Rm Net of
Gross taxation Gross taxation Gross taxation
Profit attributable to ordinary and
preference equity holders 3,4 4 024 3 893 7998
Less: Non-headline earnings items 3 3 (8) (6) (96) (79)
Net profit on sale of subsidiaries,
investments, and property and equipment 3 3
Net impairment of investments, property
and equipment, and capitalised
development costs (8) (6) (96) (79)
Headline earnings attributable to
ordinary and preference equity holders 3,1 4 021 3 899 8 077
Condensed consolidated statement of financial position
at
30 June 30 June 31 December
Annualised 2015 2014 2014
change (Reviewed) (Reviewed) (Audited)
% Rm Rm Rm
Assets
Cash and cash equivalents > 100 24 451 11 098 10 757
Other short-term securities (5,3) 54 835 41 939 56 322
Derivative financial instruments (9,4) 14 911 13 419 15 644
Government and other securities 78,7 37 296 30 004 26 828
Loans and advances 9,6 632 016 590 227 603 329
Other assets (71,2) 3 490 6 429 5 393
Current taxation assets 90,6 342 156 236
Investment securities (60,2) 1 662 2 734 2 369
Non-current assets held for sale (37,8) 13 12 16
Investments in private-equity associates, associate companies and joint
arrangements 19,9 1 272 1 182 1 158
Deferred taxation assets 4,9 169 80 165
Property and equipment (7,0) 7 201 6 787 7 459
Long-term employee benefit assets 6,9 4 560 4 074 4 409
Mandatory reserve deposits with central banks 6,2 15 302 13 886 14 843
Intangible assets 8,3 4 702 4 297 4 516
Total assets 13,1 802 222 726 324 753 444
Equity and liabilities
Ordinary share capital 7,5 28 27 27
Ordinary share premium 12,8 18 532 17 422 17 422
Reserves 0,4 34 862 31 100 34 787
Total equity attributable to equity holders of the parent 4,6 53 422 48 549 52 236
Preference share capital and premium 3 561 3 561 3 561
Non-controlling interest attributable to ordinary shareholders 9,9 192 156 183
Total equity 4,3 57 175 52 266 55 980
Derivative financial instruments (5,8) 15 032 14 757 15 479
Amounts owed to depositors 12,0 672 521 612 487 634 623
Provisions and other liabilities 10,5 8 843 7 606 8 404
Current taxation liabilities > 100 132 35
Deferred taxation liabilities 12,6 305 298 287
Long-term employee benefit liabilities (0,9) 2 988 2 794 3 002
Long-term debt instruments 54,3 45 226 36 116 35 634
Total liabilities 13,8 745 047 674 058 697 464
Total equity and liabilities 13,1 802 222 726 324 753 444
Condensed consolidated statement of changes in equity
Non-controlling
Total equity interest
attributable to Preference attributable to
equity holders share capital ordinary
of the parent and premium shareholders Total equity
Rm Rm Rm Rm
Audited balance at 31 December 2013 47 973 3 561 141 51 675
Preference share dividend (158) (158)
Dividend to ordinary shareholders (2 600) (2 600)
Total comprehensive income for the period 3 777 24 3 801
Share-based payment reserve movement (450) (450)
Disposal of subsidiary (9) (9)
Regulatory risk reserve provision 5 5
Other movements 2 2
Reviewed balance at 30 June 2014 48 549 3 561 156 52 266
Preference share dividend (165) (165)
Dividend to ordinary shareholders (800) (800)
Total comprehensive income for the period 4 346 27 4 373
Share-based payment reserve movement 305 305
Regulatory risk reserve provision 2 2
Other movements (1) (1)
Audited balance at 31 December 2014 52 236 3 561 183 55 980
Preference share dividend (178) (178)
Dividend to ordinary shareholders (3 200) (9) (3 209)
Issues of shares net of expenses 1 111 1 111
Total comprehensive income for the period 4 097 18 4 115
Share-based payment reserve movement (629) (629)
Regulatory risk reserve provision (15) (15)
Reviewed balance at 30 June 2015 53 422 3 561 192 57 175
Condensed consolidated statement of cashflows
for the period ended
30 June 30 June 31 December
2015 2014 2014
eviewed) (Reviewed) (Audited)
Rm Rm Rm
Cash generated by operations 9 341 8 942 18 386
Change in funds for operating activities (587) (12 207) (16 624)
Net cash from/(utilised by) operating activities before taxation 8 754 (3 265) 1 762
Taxation paid (1 791) (1 504) (3 463)
Cashflows from/(utilised by) operating activities 6 963 (4 769) (1 701)
Cashflows utilised by investing activities (125) (1 006) (2 011)
Cashflows from/(utilised by) financing activities 7 326 93 (1 354)
Effects of exchange rate changes on opening cash and cash equivalents (excluding foreign
borrowings) (11) (1) (1)
Net increase/(decrease) in cash and cash equivalents 14 153 (5 682) (5 066)
Cash and cash equivalents at the beginning of the period(2) 25 600 30 666 30 666
Cash and cash equivalents at the end of the period(2) 39 753 24 984 25 600
(1) Represents amounts less than R1m
(2) Including mandatory reserve deposits with central banks.
Condensed segmental reporting
for the period ended
Total assets Total liabilities Operating income/(losses) Headline earnings/(losses)
30 June 30 June 31 December 30 June 30 June 31 December 30 June 30 June 31 December 30 June 30 June 31 December
2015 2014 2014 2015 2014 2014 2015 2014 2014 2015 2014 2014
(Reviewed) (Reviewed) (Audited) (Reviewed) (Reviewed) (Audited) (Reviewed) (Reviewed) (Audited) (Reviewed) (Reviewed) (Audited)
Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm
Nedbank Corporate and
Investment Banking 422 890 391 953 381 241 401 042 374 969 363 744 5 793 5 231 10 875 2 485 2 212 4 727
Nedbank Retail and
Business Banking 329 174 311 923 323 840 302 131 285 264 296 275 11 369 10 420 21 975 2 132 1 831 4 031
Nedbank Wealth 61 458 55 521 57 609 58 767 52 758 54 779 1 997 1 863 3 986 519 464 1 042
Rest of Africa 29 250 21 710 27 428 24 722 18 811 23 879 668 718 1 631 344 64 357
Centre 23 852 2 685 19 195 7 388 (15 088) (275) (9) 178 300 (157) 28 (277)
Total for Nedbank Group 866 624 783 792 809 313 794 050 716 714 738 402 19 818 18 410 38 767 5 323 4 599 9 880
Fellow-subsidiary
adjustments (64 402) (57 468) (55 869) (49 003) (42 656) (40 938) (2 676) (2 387) (5 296) (1 302) (700) (1 803)
Total 802 222 726 324 753 444 745 047 674 058 697 464 17 142 16 023 33 471 4 021 3 899 8 077
During the period the Nedbank Corporate and Nedbank Capital Clusters were aggregated to form the Nedbank Corporate and Investment Banking
Cluster. Similarly, the Nedbank Retail and Nedbank Business Banking Clusters were aggregated to form the Nedbank Retail and Business Banking Cluster.
The comparative segment information previously presented for Nedbank Corporate, Nedbank Capital, Nedbank Retail, and Nedbank Business Banking
has been represented based on the new aggregated clusters, ie Nedbank Corporate and Investment Banking and Nedbank Retail and Business Banking.
Contingent liabilities and commitments
Contingent liabilities and undrawn facilities
30 June 2015 30 June 2014 31 December 2014
(Reviewed) (Reviewed) (Audited)
Rm Rm Rm
Guarantees on behalf of clients 24 647 36 094 22 807
Letters of credit and discounting transactions 3 276 3 357 3 248
Irrevocable unutilised facilities and other 108 207 97 055 102 968
136 130 136 506 129 023
The group, in the ordinary course of business, enters into transactions that expose it to tax, legal and business risks. Provisions are made for known
liabilities that are expected to materialise. Possible obligations and known liabilities where no reliable estimate can be made or it is considered improbable
that an outflow would result are reported as contingent liabilities. This is in accordance with IAS 37: Provisions, Contingent Liabilities and Contingent
Assets.
There are a number of legal or potential claims against Nedbank Ltd and its subsidiary companies, the outcome of which cannot be foreseen at present.
Commitments
Capital expenditure approved by directors
30 June 2015 30 June 2014 31 December 2014
(Reviewed) (Reviewed) (Audited)
Rm Rm Rm
Contracted 1 596 210 1 292
Not yet contracted 1 238 1 352 1 278
2 834 1 562 2 570
Funds to meet capital expenditure commitments will be provided from group resources. In addition, capital expenditure is incurred in the normal
course of business throughout the year.
Sponsors: Investec Bank Limited, Nedbank Capital
Date: 04/08/2015 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.