| Thu 29 May 2008, 9:37 | | NED/NBK/NBKP - Nedbank Group/Nedbank Limited - Quarterly report on Basel II |
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NED NBKP
NED NBKP
NED/NBK/NBKP - Nedbank Group/Nedbank Limited - Quarterly report on Basel II
Capital Adequacy
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
QUARTERLY REPORT ON BASEL II CAPITAL ADEQUACY
Quarterly Report in terms of Regulation 43(1)(e)(ii) of the Banks Act 94 of 1990
(as amended).
In terms of the amendments to the Banks Act which give effect to the changes in
banking legislation under Basel II, registered banks are obliged to report
additional information on a quarterly basis. Most of this information was
included in Nedbank Group`s trading update for the first quarter of 2008 which
was issued on 7 May 2008 and the additional capital adequacy information given
below should be read in conjunction with that trading statement.
The profit from non-trading and capital items, together with headline earnings,
increased the group`s Tier 1 capital ratios. The group`s Tier 1 capital adequacy
ratio improved from 8,0% in December 2007 to 8,2% in March 2008 and the total
capital adequacy from 11,2% to 11,4%.
The following table sets out the available capital as at 31 March 2008:
Nedbank Group Nedbank Limited
Rm % Rm %
Tier 1 capital (Primary) 27 351 8,2 21 861 7,8
Share capital and
reserves 30 983 26 543
Minority interest:
ordinary shareholders 1 525 -
Minority interest:
preference
shareholders 3 421 3 122
Impairments (182) (3 376)
Goodwill (3 952) (1 126)
Unappropriated profits (323) (1 356)
Excess of expected
loss over eligible
provisions (50%) (835) (835)
Other regulatory
differences and non-
qualifying reserves (3 286) (1 112)
Tier 2 capital
(Secondary) 10 261 3,1 9 271 3,3
Long-term liabilities 10 877 9 811
Excess of expected
loss over eligible
provisions (50%) (835) (835)
General allowance for
credit impairment 123 -
Other regulatory
differences 95 295
Tier 3 capital (Tertiary) 300 0,1 300 0,1
Total 37 911 11,4 31 431 11,2
In addition, the regulations require details of any risk exposure or other item
that is subject to rapid or material change. In this respect we refer back to
the trading statement referred to above where it was stated:
"The further interest rate rise in April, together with the effects of
electricity outages and the continued increases in the cost of basic
commodities, including fuel and food, will increase pressure on clients`
disposable income, which will further compound levels of credit stress,
particularly in the retail advances portfolios. Further interest rate increases,
should they occur, will add to consumer and business credit stress. These
pressures on the economy, together with heightened market volatility, have
increased forecast risk. Factors that could cause actual results to differ
materially from those in the forward-looking statements include, but are not
limited to, global, national and regional economic conditions, levels of
securities markets, interest rates, credit or other risks of lending and
investment activities, together with competitive and regulatory factors."
Sandton
29 May 2008
For further information contact
Tier 1 Investor Relations
Tel: +27 (0)21 702-3102
Sponsors to Nedbank Group:
Merrill Lynch South Africa (Pty) Limited
Nedbank Capital
Sponsors to Nedbank Limited:
Nedbank Capital
Investec Bank Limited
Date: 29/05/2008 09:37:02 Produced by the JSE SENS Department.
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