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JSE NBKP
NBKP
NBKP - Nedbank - Reviewed preliminary financial results for the year ended 31
December 2007
Nedbank Limited
Reg No 1951/000009/06
Incorporated in the Republic of South Africa
JSE share code: NBKP
ISIN: ZAE000043667
REVIEWED PRELIMINARY FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007
Overview
Nedbank is a wholly owned subsidiary of Nedbank Group Limited, which is listed
on JSE Limited. These consolidated financial results are published to provide
information to holders of Nedbank`s listed non-redeemable non-cumulative
preference shares.
Commentary relating to the consolidated Nedbank financial results is included
in the Nedbank Group Limited group results, as presented to shareholders on 27
February 2008. Further information is provided on the website
www.nedbankgroup.co.za.
Board changes during the year
Nick Dennis resigned as an independent non-executive director (31 December
2007) and Rosie Harris was appointed as a non-executive director (10 December
2007). Subsequent to the year-end Barry Davison announced his decision to
resign as a director effective 2 August 2008 and Cedric Savage will retire
effective 14 May 2008. Chris Ball, an independent non-executive director since
2002, was appointed as senior independent non-executive director (16 February
2007).
Accounting policies
Nedbank Limited (the `company`) is a company domiciled in South Africa. The
preliminary reviewed financial results of the company at and for the year ended
31 December 2007 comprise the company and its subsidiaries (together referred
to as the `group`) and the group`s interests in associates and jointly
controlled entities.
Nedbank Limited`s principal accounting policies have been applied consistently
over the current and prior financial years. During the year the group has
implemented international financial reporting standard (IFRS) 7 Financial
Instruments: Disclosure and international accounting standard (IAS) 1
Presentation of Financial Instruments: Capital Disclosures (amendment). IFRS 7
replaces the disclosure requirements in terms of IAS 32 in respect of financial
instruments and the disclosure requirements in terms of IAS 30 in respect of
banks. The implementation of IFRS 7 has not affected the group`s current or
prior annual results.
Nedbank Limited`s reviewed financial results have been prepared in accordance
with the recognition and measurement criteria of IFRS, interpretations issued
by the International Financial Reporting Interpretations Committee (IFRIC), and
the presentation and disclosure requirements of IAS 34: Interim Financial
Reporting.
In the preparation of these financial results the group has applied key
assumptions concerning the future and other indeterminate sources in recording
various assets and liabilities. These assumptions were applied consistently to
both the company and group financial statements for the year ended 31 December
2006. These assumptions are subject to ongoing review and possible amendments.
Subsequent events
As of the date of this announcement there are no post-balance-sheet events to
report.
Reviewed results - auditors` opinion
KPMG Inc and Deloitte & Touche, the group`s independent auditors, have reviewed
the preliminary financial statements that comprise the consolidated balance
sheet at 31 December 2007, consolidated income statement, condensed
consolidated statement of changes in equity and condensed consolidated cashflow
statement for the year then ended, and selected explanatory notes, and have
expressed an unmodified review conclusion on the preliminary financial
statements. The review report is available for inspection at the company`s
registered office.
Nedbank non-redeemable non-cumulative preference shares-declaration of
dividend no 10
Notice is hereby given that preference dividend no 10 of 51,55479 cents per
share has been declared for the period from 1 July 2007 to 31 December 2007,
payable on Monday, 31 March 2008, to shareholders of the non-redeemable non-
cumulative preference shares recorded in the books of the company at the close
of business on Friday, 28 March 2008.
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 Wednesday, 19 March 2008
Shares trade ex dividend Thursday, 20 March 2008
Record date Friday, 28 March 2008
Payment date Monday, 31 March 2008
Share certificates may not be dematerialised or rematerialised between
Thursday, 20 March 2008, and Friday, 28 March 2008, both days inclusive.
Where applicable, dividends in respect of certificated shares will be
transferred electronically to shareholders` bank accounts on 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 March 2008.
For and on behalf of the board
RJ Khoza TA Boardman
Chairman Chief Executive
27 February 2008
Registered office: Nedbank Sandton, 135 Rivonia Road, Sandown, 2196
PO Box 1144,Johannesburg, 2000
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited, 70
Marshall Street, Johannesburg, 2001,PO Box 61051, Marshalltown, 2107
Directors: Dr RJ Khoza (Chairman), Prof MM Katz (Vice-chairman), ML Ndlovu
(Vice-chairman), TA Boardman* (Chief Executive), CJW Ball**, MWT Brown*
(Chief Financial Officer), TCP Chikane, BE Davison, MA Enus-Brey,
Prof B de L Figaji, R Harris (British), RM Head (British), JB Magwaza,
ME Mkwanazi, CML Savage, GT Serobe, JH Sutcliffe (British)
* Executive **Senior independent non-executive director
Company Secretary: GS Nienaber
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 code: ZAE000043667
Consolidated income statement
for the year ended 31 December Reviewed Audited
Rm 2007 2006
Interest and similar income 40 185 27 089
Interest expense and similar charges 26 631 16 600
Net interest income 13 554 10 489
Impairment charge on loans and advances 2 115 1 465
Income from lending activities 11 439 9 024
Non-interest revenue 9 725 8 566
Operating income 21 164 17 590
Total expenses 12 927 11 725
Operating expenses 12 792 11 581
BEE transaction expenses 135 144
Indirect taxation 298 334
Profit from operations before non-trading and capital
items 7 939 5 531
Non-trading and capital items 25 183
Impairment of goodwill (1)
Profit on sale of subsidiaries, investments and
property and equipment 27 242
Net impairment of investments, property and equipment
and capitalised development costs (2) (58)
Profit from operations 7 964 5 714
Share of profits of associates and joint ventures 54 68
Profit before direct taxation 8 018 5 782
Total direct taxation 2 139 1 669
Direct taxation 2 139 1 645
Taxation on non-trading and capital items 24
Profit for the year 5 879 4 113
Attributable to:
Profit attributable to equity holders of the parent 5 568 3 870
Profit attributable to minority interest - ordinary
shareholders 298 243
Profit attributable to minority interest - preference
shareholders 13
Profit for the year 5 879 4 113
Earnings reconciliation
for the year ended 31 December Reviewed Audited
2007 2006
Rm Gross Net Gross Net
Profit attributable to equity holders
of the parent 5 568 3 870
Less: non-trading and capital items 25 25 183 159
Impairment of goodwill (1) (1)
Profit on sale of subsidiaries,
investments and property and equipment 27 27 242 204
Net impairment of investments, property
and equipment and capitalised development
costs (2) (2) (58) (44)
Headline earnings 5 543 3 711
Consolidated balance sheet
at 31 December Reviewed Audited
Rm 2007 2006
Assets
Cash and cash equivalents 9 545 11 165
Other short-term securities 11 775 13 855
Derivative financial instruments 9 924 10 314
Government and other securities 29 271 22 031
Loans and advances 373 185 319 180
Other assets 4 920 5 120
Clients` indebtedness for acceptances 2 236 2 544
Current taxation receivable 29 138
Investment securities 2 739 2 385
Non-current assets held for sale 41
Investments in associate companies and joint ventures 735 690
Deferred taxation asset 65 48
Investment property 75 66
Property and equipment 3 757 3 323
Long-term employee benefit assets 1 305 1 357
Computer software and capitalised development costs 1 323 1 236
Mandatory reserve deposits with central bank 8 351 7 026
Goodwill 1 392 1 369
Total assets 460 627 401 888
Equity and liabilities
Ordinary share capital 27 27
Ordinary share premium 14 422 14 422
Reserves 13 340 9 583
Total equity attributable to equity holders of the
parent 27 789 24 032
Preference share capital and premium 3 122 2 770
Minority shareholders` equity attributable to
- ordinary shareholders 1 307 955
- preference shareholders 300 300
Total equity 32 518 28 057
Derivative financial instruments 10 336 11 549
Amounts owed to depositors 389 290 339 164
Other liabilities 11 033 9 098
Liabilities under acceptances 2 236 2 544
Current taxation liabilities 275 338
Deferred taxation liabilities 1 470 1 410
Long-term employee benefit liabilities 1 145 1 210
Long-term debt instruments 12 324 8 518
Total liabilities 428 109 373 831
Total equity and liabilities 460 627 401 888
Guarantees on behalf of clients 20 564 15 235
Condensed consolidated statement of changes in equity
Total Minority
equity Preference shareholders`
attributable share equity
to equity capital attributable to
holders of and preference
Rm the parent premium shareholders
Balance at 31 December 2005 20 712 2 770 -
Dividends paid to ordinary
shareholders (668)
Dividends paid to
preference shareholders (219)
Shares issued/(repurchased)
by subsidiary 300
Total income and expense
for the year 4 207 - -
Profit for the year 3 870
Net income recognised
directly in equity 337 - -
Foreign currency
translation reserve movement 88
Available-for-sale reserve
movement 58
Property revaluation
reserve movement 75
Share-based payments
reserve movement 134
Other movements (18)
Balance at 31 December 2006 24 032 2 770 300
Ordinary minority
shareholders` share of
preference dividends paid 13
Dividends paid to ordinary
shareholders (1 948)
Dividends paid to
preference shareholders (259) (9) (26)
Issues of shares net of
expenses 1 361
Shares issued by subsidiary
Total income and expense
for the year 5 963 - 13
Profit for the year 5 568 13
Net income recognised
directly in equity 395 - -
Foreign currency
translation reserve
movement 4
Available-for-sale reserve
movement (74)
Property revaluation
reserve movement 354
Share-based payments
reserve movement 115
Disposal of subsidiaries
Buyout of minorities
Other movements (4)
Balance at 31 December 2007 27 789 3 122 300
Minority
shareholders`
equity
attributable to
ordinary Total
Rm shareholders equity
Balance at 31 December 2005 872 24 354
Dividends paid to ordinary shareholders (10) (678)
Dividends paid to preference shareholders (219)
Shares issued/(repurchased) by subsidiary (150) 150
Total income and expense for the year 243 4 450
Profit for the year 243 4 113
Net income recognised directly in equity - 337
Foreign currency translation reserve movement 88
Available-for-sale reserve movement 58
Property revaluation reserve movement 75
Share-based payments reserve movement 134
Other movements (18)
Balance at 31 December 2006 955 28 057
Ordinary minority shareholders` share of
preference dividends paid (13) -
Dividends paid to ordinary shareholders (21) (1 969)
Dividends paid to preference shareholders (294)
Issues of shares net of expenses 362
Shares issued by subsidiary 150 150
Total income and expense for the year 236 6 212
Profit for the year 298 5 879
Net income recognised directly in equity (62) 333
Foreign currency translation reserve movement 4
Available-for-sale reserve movement (74)
Property revaluation reserve movement 354
Share-based payments reserve movement 115
Disposal of subsidiaries (54) (54)
Buyout of minorities (23) (23)
Other movements 15 11
Balance at 31 December 2007 1 307 32 518
Condensed consolidated cashflow statement
for the year ended 31 December Reviewed Audited
Rm 2 007 2006
Cash generated by operations 11 723 8 114
Change in funds for operating activities (10 401) (5 267)
Net cash generated from operating activities before
taxation 1 322 2 847
Taxation paid (2 126) (752)
Cashflows (uitilised by)/from operating activities (804) 2 095
Cashflows utilised by investing activities (1 418) (730)
Cashflows from financing activities 1 927 508
Net (decrease)/increase in cash and cash equivalents (295) 1 873
Cash and cash equivalents at the beginning of the year* 18 191 16 318
Cash and cash equivalents at the end of the year* 17 896 18 191
* Including mandatory reserve deposits with central bank.
Condensed geographical segmental reporting
for the year ended 31 December
Reviewed Audited
2007 2006
Operating Operating
Rm income income
South Africa 21 024 17 616
Business operations 21 024 17 616
BEE transaction expenses
Profit attributable to minority interest
-preference shareholders
Rest of Africa 669 657
Business operations 669 657
BEE transaction expenses
Rest of world - business operations 735 675
Total per Nedbank Group 22 428 18 948
Fellow-subsidiary adjustments (1 264) (1 358)
Total 21 164 17 590
Reviewed Audited
2007 2006
Headline Headline
Rm earnings earnings
South Africa 5 623 4 176
Business operations 6 039 4 516
BEE transaction expenses (144) (121)
Profit attributable to minority interest
- preference shareholders (272) (219)
Rest of Africa 116 76
Business operations 119 99
BEE transaction expenses (3) (23)
Rest of world - business operations 182 183
Total per Nedbank Group 5 921 4 435
Fellow-subsidiary adjustments (378) (724)
Total 5 543 3 711
Condensed operational segmental reporting
for the year ended 31 December
Reviewed Audited Reviewed Audited
2007 2006 2007 2006
Rbn Rbn Rm Rm
Total Total Operating Operating
assets assets income income
Nedbank Corporate* 213 175 8 858 7 596
Nedbank Capital 144 138 2 803 2 605
Nedbank Retail 154 125 10 221 8 591
Imperial Bank 38 30 1 207 932
Shared Services* 7 8 113 286
Central Management* 19 13 (527) (859)
Eliminations (86) (64) (247) (203)
Total per Nedbank Group 489 425 22 428 18 948
Fellow-subsidiary
adjustments (28) (23) (1 264) (1 358)
Total 461 402 21 164 17 590
Reviewed Audited
2007 2006
Rm Rm
Headline Headline
earnings earnings
Nedbank Corporate* 3 063 2 515
Nedbank Capital 1 272 1 145
Nedbank Retail 2 008 1 463
Imperial Bank 227 193
Shared Services* (12) (138)
Central Management* (637) (743)
Eliminations
Total per Nedbank Group 5 921 4 435
Fellow-subsidiary adjustments (378) (724)
Total 5 543 3 711
* Segmental reporting comparative results have been restated for improved
profitability measurement.
These results and additional information
are available on www.nedbankgroup.co.za.
Date: 27/02/2008 08:05:02 Produced by the JSE SENS Department.
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