| Thu 25 Oct 2007, 8:00 | | NED - Nedbank Group - Old Mutual Bank to be integr |
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NED
NED
NED - Nedbank Group - Old Mutual Bank to be integrated into Nedbank
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")
OLD MUTUAL BANK TO BE INTEGRATED INTO NEDBANK
Old Mutual (South Africa) Limited ("Old Mutual SA") and Old Mutual Finance
(collectively "Old Mutual") and Nedbank Group have announced that Nedbank
Limited ("Nedbank") will acquire Old Mutual`s 50% interest in Old Mutual Bank,
which operates as a division of Nedbank.
The Old Mutual Bank brand will fall away over time and Old Mutual Bank will in
future trade as "Nedbank".
Old Mutual Bank has been managed as a 50/50 joint venture arrangement between
Old Mutual and Nedbank since 2003. The joint venture was set up to focus on
assurefinance, providing banking products and services such as home loans,
vehicle finance, credit cards, transaction accounts, investments and savings
deposits to clients of Old Mutual SA. In addition to its network of 46 branches,
Old Mutual Bank has offered banking products to Old Mutual SA clients through
intermediary and broker channels.
This joint venture arrangement will be replaced by a broader group strategy
whereby Nedbank acquires Old Mutual`s share of the joint venture but continues
to offer intermediary and broker-friendly products through its own branch
network. This will enable some branch rationalisation and a broader distribution
network for these products. Nedbank will pay Old Mutual R140 million to effect
the transaction.
The companies in the greater Old Mutual group in South Africa will also pilot a
"Green Zone" concept where Old Mutual, Nedbank and Mutual & Federal will service
clients in a common branch area initially in 20 sites across South Africa.
Should the pilot group retail co-operation concept be successful, further Green
Zones will be rolled out.
The integration will enable the group to realise significant cost savings due to
the elimination of overlapping branches and infrastructure, enlarge its branch
footprint under the Nedbank brand and build on success that Old Mutual Bank
enjoyed as a result of the support of Old Mutual SA`s intermediary sales
channel.
Old Mutual Bank currently has client deposits of R10,7 billion and advances of
R10,5 billion. The advances are predominantly made up of mortgage loans to Old
Mutual clients.
For further information please contact:
Rob Shuter, MD Nedbank Retail, phone +27 (0)11 294 1331
Mike Harper, MD Retail Affluent Segment, Old Mutual SA, phone +27 (0)11 217 1352
Don Bowden, Nedbank Investor Relations, phone +27 (0)21 702 3102
Sandton
25 October 2007
Sponsors
Merrill Lynch South Africa (Pty) Limited
Nedbank Capital
Date: 25/10/2007 08:00:03 Produced by the JSE SENS Department.
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