| Thu 26 Feb 2009, 8:00 | | NBKP - Nedbank - Audited condensed financial results for the year ended 31 |
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JSE NBKP
NBKP
NBKP - Nedbank - Audited condensed financial results for the year ended 31
December 2008
Nedbank Limited
Reg No: 1951/000009/06
Incorporated in the Republic of South Africa
JSE share code: NBKP
ISIN: ZAE000043667
AUDITED CONDENSED FINANCIAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2008
OVERVIEW
Nedbank Limited (`Nedbank`) is a wholly owned subsidiary of Nedbank Group
Limited, 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 group results, as presented to
shareholders on 26 February 2009. Further information is provided on the
website www.nedbankgroup.co.za.
BOARD CHANGES
As previously reported, Cedric Savage retired as an independent non-executive
director on 14 May 2008 and Barry Davison resigned as an independent
non-executive director on 2 August 2008. Jim Sutcliffe resigned as a
non-executive director with effect from 9 September 2008 following his
resignation as Chief Executive Officer of Old Mutual plc. On 1 October 2008
Nomavuso Patience Mnxasana was appointed as an independent non-executive
director and Alan Knott-Craig was appointed as an independent non-executive
director with effect from 1 January 2009.
ACCOUNTING POLICIES
Nedbank is a company domiciled in South Africa. The condensed consolidated
financial results of the company at and for the year ended 31 December 2008
comprised the company and its subsidiaries (together referred to as the
`group`) and the group`s interests in associates and jointly controlled
entities.
Nedbank`s principal accounting policies have been applied consistently over the
current and prior financial years, except for the adoption of IFRIC 11: IFRS 2
- Group and Treasury Share Transactions in the current year. The prior year`s
comparative figures have been restated.
Nedbank`s condensed consolidated financial results have been prepared in
accordance with the recognition and measurement criteria of International
Financial Reporting Standards (IFRS), interpretations issued by the
International Financial Reporting Interpretations Committee (IFRIC) and the
presentation and disclosure requirements of International Accounting Standard
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
2008. These assumptions are subject to ongoing review and possible amendments.
AUDITED RESULTS - AUDITORS` OPINION
KPMG Inc and Deloitte & Touche, Nedbank`s independent auditors, have audited
the consolidated annual financial statements of Nedbank Limited from which the
condensed consolidated financial results have been derived, and have expressed
an unmodified audit opinion on the consolidated annual financial statements.
The condensed consolidated financial results comprise the consolidated balance
sheet at 31 December 2008, consolidated income statement, condensed
consolidated statement of changes in equity and condensed consolidated cashflow
statement for the year then ended, and selected explanatory notes. The audit
report is available for inspection at Nedbank`s registered office.
ANNUAL GENERAL MEETING
The Nedbank Limited annual general meeting will be held on Friday, 17 June
2009, in the West Boardroom, Ground Floor, Block A, Nedbank Sandton, 135
Rivonia Road, Sandown, Sandton, at 14:30.
NEDBANK NON-REDEEMABLE NON-CUMULATIVE PREFERENCE SHARES - DECLARATION OF
DIVIDEND NO 12
Notice is hereby given that preference dividend no 12 of 58,26844 cents per
share has been declared for the period from 1 July 2008 to 31 December 2008,
payable on Monday, 30 March 2009, to shareholders of the non-redeemable
non-cumulative preference shares recorded in the books of the company at the
close of business on Friday, 27 March 2009.
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, 20 March 2009
Shares trade ex dividend Monday, 23 March 2009
Record date Friday, 27 March 2009
Payment date Monday, 30 March 2009
Shares may not be dematerialised or rematerialised between Monday, 23 March
2009, and Friday, 27 March 2009, 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 shares will have their
accounts, at their participant or broker, credited on Monday, 30 March 2009.
For and on behalf of the board
Dr RJ Khoza TA Boardman
Chairman Chief Executive
25 February 2009
CONSOLIDATED INCOME STATEMENT
for the year ended
December December
Rm 2008 2007
Interest and similar income 55 154 40 185
Interest expense and similar charges 39 874 26 631
Net interest income 15 280 13 554
Impairments charge on loans and advances 4 755 2 115
Income from lending activities 10 525 11 439
Non-interest revenue 9 877 9 725
Operating income 20 402 21 164
Total operating expenses 12 671 12 768
Operating expenses* 12 484 12 633
BEE transaction expenses 187 135
Indirect taxation 356 298
Profit from operations before non-trading and capital
items 7 375 8 098
Non-trading and capital items 745 25
Net profit on sale of subsidiaries, investments, and
property and equipment 756 27
Net impairment of investments, property and
equipment, and capitalised development costs (11) (2)
Profit from operations 8 120 8 123
Share of profits of associates and joint ventures 9 54
Profit before direct taxation 8 129 8 177
Total direct taxation 1 791 2 185
Direct taxation* 1 683 2 185
Taxation on non-trading and capital items 108
Profit for the year 6 338 5 992
Profit attributable to:
Equity holders of the parent* 6 106 5 681
Minority interest - ordinary shareholders 217 298
Minority interest - preference shareholders 15 13
Profit for the year 6 338 5 992
* 2007 restated for adoption of IFRIC 11; refer to note below.
HEADLINE EARNINGS RECONCILIATION
December 2008
Net of
Rm Gross taxation
Profit attributable to equity holders of the parent 6 106
Less: non-trading and capital items 745 637
Net profit on sale of subsidiaries, investments,
and property and equipment 756 648
Net impairment of investments, property and
equipment, and capitalised development costs (11) (11)
Headline earnings 5 469
December 2007
Net of
Rm Gross taxation
Profit attributable to equity holders of the parent 5 681
Less: non-trading and capital items 25 25
Net profit on sale of subsidiaries, investments,
and property and equipment 27 27
Net impairment of investments, property and
equipment, and capitalised development costs (2) (2)
Headline earnings 5 656
CONSOLIDATED BALANCE SHEET
at December December
2008 2007
Rm
Assets
Cash and cash equivalents 7 638 9 545
Other short-term securities 10 411 11 775
Derivative financial instruments 23 114 9 924
Government and other securities 41 834 29 271
Loans and advances 433 422 373 185
Other assets 4 731 4 920
Clients` indebtedness for acceptances 2 998 2 236
Current taxation receivable 314 29
Investment securities 2 743 2 739
Non-current assets held for sale 10
Investments in associate companies and joint ventures 913 735
Deferred taxation asset 71 65
Investment property 104 75
Property and equipment 4 124 3 757
Long-term employee benefit assets 1 667 1 305
Computer software and capitalised development costs 1 587 1 323
Mandatory reserve deposits with central banks 10 061 8 351
Goodwill 1 390 1 392
Total assets 547 132 460 627
Equity and liabilities
Ordinary share capital 27 27
Ordinary share premium 14 422 14 422
Reserves* 16 927 13 954
Total equity attributable to equity holders of the
parent 31 376 28 403
Preference share capital and premium 3 122 3 122
Minority shareholders` equity attributable to:
- ordinary shareholders 1 644 1 307
- preference shareholders 300 300
Total equity 36 442 33 132
Derivative financial instruments 23 077 10 336
Amounts owed to depositors 461 084 389 290
Provisions and other liabilities* 6 145 10 419
Liabilities under acceptances 2 998 2 236
Current taxation liabilities 117 275
Deferred taxation liabilities 1 982 1 470
Long-term employee benefit liabilities 1 227 1 145
Long-term debt instruments 14 060 12 324
Total liabilities 510 690 427 495
Total equity and liabilities 547 132 460 627
Guarantees on behalf of clients 25 154 20 564
* 2007 restated for adoption of IFRIC 11; refer to note below.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Minority
Total equity shareholders`
attributable equity
to equity Preference attributable
holders of share capital to ordinary
the parent and premium shareholders
Rm
Balance at 31 December 2006 24 032 2 770 955
Net effect of adopting
IFRIC 11* 537
Restated balance at 31
December 2006 24 569 2 770 955
Ordinary minority
shareholders` share of
preference dividends paid (13)
Dividends to ordinary
shareholders (1 948) (21)
Dividends to preference
shareholders (259) (9)
Issues of shares net of
expenses 361
Shares issued by subsidiary 150
Total income and expense
for the year 6 041 - 236
Profit for the year* 5 681 298
Net income recognised
directly in equity 360 - (62)
Foreign currency
translation reserve
movement 4
Available-for-sale reserve
movement (74)
Property revaluation
reserve movement 354
Share-based payment
reserve movement* 79
Disposal of subsidiaries (54)
Buyout of minorities (23)
Other movements* (3) 15
Restated balance at 31
December 2007 28 403 3 122 1 307
Ordinary minority
shareholders` share of
preference dividends paid (15)
Dividends to ordinary
shareholders (2 294) (67)
Dividends to preference
shareholders (333)
Shares issued by subsidiary 225
Total income and expense
for the year 5 600 - 194
Profit for the year 6 106 217
Net income recognised
directly in equity (506) - (23)
Foreign currency
translation reserve
movement (24)
Available-for-sale reserve
movement (278) 6
Property revaluation
reserve movement 78
Share-based payment
reserve movement (288)
Regulatory risk reserve
provision 7
Disposal of subsidiaries (29)
Other movements (1)
Balance at 31 December 2008 31 376 3 122 1 644
Minority
shareholders`
equity
attributable
to preference
shareholders Total equity
Rm
Balance at 31 December 2006 300 28 057
Net effect of adopting IFRIC 11* 537
Restated balance at 31 December 2006 300 28 594
Ordinary minority shareholders` share of
preference dividends paid 13 -
Dividends to ordinary shareholders (1 969)
Dividends to preference shareholders (26) (294)
Issues of shares net of expenses 361
Shares issued by subsidiary 150
Total income and expense for the year 13 6 290
Profit for the year* 13 5 992
Net income recognised directly in equity - 298
Foreign currency translation reserve movement 4
Available-for-sale reserve movement (74)
Property revaluation reserve movement 354
Share-based payment reserve movement* 79
Disposal of subsidiaries (54)
Buyout of minorities (23)
Other movements* 12
Restated balance at 31 December 2007 300 33 132
Ordinary minority shareholders` share of
preference dividends paid 15 -
Dividends to ordinary shareholders (2 361)
Dividends to preference shareholders (30) (363)
Shares issued by subsidiary 225
Total income and expense for the year 15 5 809
Profit for the year 15 6 338
Net income recognised directly in equity - (529)
Foreign currency translation reserve movement (24)
Available-for-sale reserve movement (272)
Property revaluation reserve movement 78
Share-based payment reserve movement (288)
Regulatory risk reserve provision 7
Disposal of subsidiaries (29)
Other movements (1)
Balance at 31 December 2008 300 36 442
* Restated for adoption of IFRIC 11; refer to note below.
CONDENSED OPERATIONAL SEGMENTAL REPORTING
for the year ended
December December December
2008 2007 2008
Total Total Operating
Rm assets assets income
Nedbank Corporate 223 126 208 387 8 005
Nedbank Capital 188 706 143 419 2 684
Nedbank Retail 170 963 154 144 9 413
Imperial Bank 48 768 38 195 1 120
Shared Services 6 373 6 683 2
Central Management 41 665 20 580 929
Eliminations (112 578) (82 552) (76)
Total per
Nedbank Group 567 023 488 856 22 077
Fellow subsidiary adjustments (19 891) (28 229) (1 675)
Total 547 132 460 627 20 402
December December December
2007 2008 2007
Operating Headline Headline
Rm income earnings earnings
Nedbank Corporate 8 215 2 924 2 632
Nedbank Capital 2 655 1 266 1 174
Nedbank Retail 10 024 1 002 1 876
Imperial Bank 1 207 166 227
Shared Services 162 (32) (15)
Central Management 412 439 27
Eliminations (247)
Total per
Nedbank Group 22 428 5 765 5 921
Fellow subsidiary
adjustments (1 264) (296) (265)
Total 21 164 5 469 5 656
CONDENSED GEOGRAPHICAL SEGMENTAL REPORTING
for the year ended
December December December December
2008 2007 2008 2007
Operating Operating Headline Headline
income income earnings earnings
Rm
South Africa 20 504 21 024 5 408 5 623
Business operations 20 504 21 024 5 932 6 039
BEE transaction expenses (187) (144)
Profit attributable to
minority interest
- preference shareholders (337) (272)
Rest of Africa 764 669 182 116
Rest of world - business
operations 809 735 175 182
Total per Nedbank Group 22 077 22 428 5 765 5 921
Fellow subsidiary
adjustments (1 675) (1 264) (296) (265)
Total 20 402 21 164 5 469 5 656
Segmental comparatives have been restated in line with the group`s
implementation of economic-value-based management. From 2008 economic profit
(EP) replaces ROE as the primary internal financial performance measure in the
group. EP is a best-practice measure since it incentivises an appropriate
balance between return and growth, and better aligns with shareholder value
creation.
CONDENSED CONSOLIDATED CASHFLOW STATEMENT
for the year ended December December
Rm 2008 2007
Cash generated by operations* 13 867 11 882
Change in funds for operating activities* (9 842) (10 560)
Net cash generated by operating activities before
taxation 4 025 1 322
Taxation paid (2 087) (2 126)
Cashflows from/(utilised by) operating activities 1 938 (804)
Cashflows utilised by investing activities (1 214) (1 418)
Cashflows (utilised by)/from financing activities (921) 1 927
Net decrease in cash and cash equivalents (197) (295)
Cash and cash equivalents at the beginning of the
year** 17 896 18 191
Cash and cash equivalents at the end of the year** 17 699 17 896
* 2007 restated for adoption of IFRIC 11; refer to note below.
** Including mandatory reserve deposits with central banks.
ADOPTION OF IFRIC 11: IFRS 2 - GROUP AND TREASURY SHARE TRANSACTIONS
IFRIC 11 is an interpretation of IFRS 2 - Share-based Payment and requires
that, where the parent grants rights to its equity instruments to employees of
its subsidiary and the share-based payment arrangement is accounted for as
equity-settled in the consolidated financial statements of the parent, it
should be treated as equity-settled at the subsidiary level. Rights to Nedbank
Group Limited shares under three share-based payment arrangements were
historically treated as cash-settled in the Nedbank Limited financial
statements and as equity-settled in the Nedbank Group Limited consolidated
financial statements. The adoption of IFRIC 11 has required that the Nedbank
Limited financial statements for prior years be restated. The resultant effects
can be summarised as follows:
December December
2007 2006
Rm
Balance sheet
Increase in share-based payment reserve 352 259
Increase in retained income 262 278
Decrease in share-based payment liability (614) (537)
Income statement
Decrease in share-based payment expense (159)
Increase in direct taxation 46
Effect after taxation (113) -
Registered office: Nedbank Sandton, 135 Rivonia Road, Sandown, 2196
PO Box 1144, Johannesburg, 2000
Transfer secretaries: Computershare Investor Services (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,
MA Enus-Brey, Prof B de L Figaji, R Harris (British),
RM Head (British), A de V C Knott-Craig, JB Magwaza, ME Mkwanazi,
NP Mnxasana, GT Serobe
* Executive **Senior independent non-executive director
Company Secretary: GS Nienaber
Reg No: 1951/000009/06
Incorporated in the Republic of South Africa
JSE share code: NBKP
ISIN: ZAE000043667
Sponsors: Investec Bank Limited, Nedbank Capital
Date: 26/02/2009 08:00:06 Produced by the JSE SENS Department.
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