| Thu 26 Feb 2009, 7:59 | | NED - Nedbank Group - Audited Condensed Financial Results for the Year Ended |
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NED
NED
NED - Nedbank Group - Audited Condensed Financial Results for the Year Ended
31 December 2008 and dividend declaration
Nedbank Group Limited
Reg No: 1966/010630/06
ISIN: ZAE000004875
JSE share code: NED
NSX share code: NBK
AUDITED CONDENSED FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008
* CAPITAL ADEQUACY STRENGTHENED SIGNIFICANTLY (Tier 1: 8,2% to 9,6%)
* DILUTED HEADLINE EARNINGS PER SHARE DOWN 2,0% to 1 401 cents
* DILUTED EARNINGS PER SHARE UP 7,2% to 1 558 cents
* NET ASSET VALUE PER SHARE INCREASED 13,4% to 8 522 cents
* FINAL DIVIDEND PER SHARE of 310 cents
`Nedbank Group has shown resilience in the face of the challenges posed by the
crisis in global financial markets and the rapid slowdown in the domestic
economy. South African banks and the domestic financial system remain
structurally sound, but high interest rates and the global economic slowdown
impacted earnings. In this operating environment it is pleasing that the group
has strengthened capital ratios significantly and maintained earnings at a
level similar to that of last year. We have continued to grow net asset value,
our liquidity remains sound and the group`s risk management systems are proving
effective in volatile markets. 2009 will undoubtedly be a very tough year for
the local banking sector, but we currently anticipate improved prospects for
growth in the medium term.`
Tom Boardman
BANKING ENVIRONMENT
The South African banking environment is experiencing the effects of a slowing
domestic economic cycle and the secondary effects of the global financial
crisis. In this challenging economic environment public sector infrastructure
spending is expected to continue to provide some support for economic growth in
the year ahead.
Improved inflation statistics allowed for a 50 basis point decrease in interest
rates in December 2008, the first since April 2005. A second cut of 100 basis
points followed in February 2009. These interest rate cuts will provide some
relief for consumers, but are unlikely to stimulate economic growth in the
short term.
The local banking environment faced a number of challenges in 2008:
Pressure on margins as the overall cost of longer-term funding increased. It
was pleasing to note that, throughout the year, rand liquidity remained stable,
with the interbank lending market continuing to operate efficiently. Local
banks have been able to finance new assets in the normal course of business.
Reduced capacity and increased cost of funding in the domestic debt capital
markets.
Rising non-performing loans and lower levels of recoveries, especially in the
retail environment as household finances remained strained and asset prices
came under pressure. This trend intensified in the second half of 2008 and has
been increasingly affecting small and medium-sized businesses, and will
undoubtedly also impact some larger corporates going forward.
Sharply slower retail advances growth, partly offset by reasonable wholesale
advances growth.
The progress made during the recovery programme and over the recent past to
build a sustainable business continues to benefit the group and has resulted in
the following:
Ongoing growth in the retail mass and middle-income segments and corporate
markets.
Solid growth in retail deposits.
Pleasing growth in transactional banking volumes.
Improved margins on new advances through risk-based pricing.
Increased client activity in foreign exchange and interest rate markets.
Intensified focus on improving client service levels.
The Competition Commission inquiry into bank charges resulted in a detailed
report in December 2008. Industry stakeholders have been given an opportunity
by National Treasury to comment on the recommendations contained in the report.
This input will be discussed by National Treasury with the Department of Trade
and Industry, the South African Reserve Bank and the Competition Commission,
and it is anticipated that the final outcome of the banking inquiry process and
the impact on the banking industry will be finalised during 2009. Nedbank
remains committed to an outcome that provides real benefit to consumers
and ensures the ongoing competitiveness and stability of the financial services
industry.
Basel II was successfully implemented on 1 January 2008 and used as a catalyst
to enhance the management of risk and capital across the industry.
REVIEW OF RESULTS
Given the turmoil in the global financial markets and the slower domestic
economy, Nedbank Group is currently adopting a more conservative approach
across its operations. The group intensified its focus on the following:
- Increasing capital levels.
- Growing deposits and liquidity.
- Proactive risk management.
- Selectively growing assets in businesses that are well-positioned to
increase economic profit.
- Continuing to manage for value in those businesses that have lower
economic-profit profiles.
- Managing down positions in riskier lines of business.
At the same time the group continues to invest for the future and is not
seeking to maximise short-term profitability at the expense of longer-term
sustainability at this point in the cycle.
Headline earnings decreased by 2,6% from R5 921 million to R5 765 million.
Basic earnings grew by 6,4% to R6 410 million (2007: R6 025 million).(1)
Diluted headline earnings per share (EPS) decreased by 2,0% from 1 429 cents to
1 401 cents. Diluted EPS grew by 7,2% from 1 454 to 1 558 cents, driven largely
by the R622 million after-tax profit on the sale of Visa shares in the first
half of the year.(1)
The group`s return on average ordinary shareholders` equity (ROE), excluding
goodwill, decreased from 24,8% to 20,1%. ROE dropped from 21,4% to 17,7% for
the year. These declines were caused by slightly lower headline earnings,
mainly as a result of increasing retail impairment levels that reduced the
return on assets, together with higher capital levels as capital adequacy
ratios increased during 2008.
Credit quality deteriorated throughout 2008, with Nedbank Retail`s impairments
worsening significantly, while the wholesale banking portfolios showed a
moderate deterioration in the second half of 2008. Overall impairments have
increased, although the impact on earnings was partially offset by controlled
cost growth. The momentum built from disciplined cost management over the past
few years continued into 2008 and contributed towards the efficiency ratio
improving from 54,9% in 2007 (54,3% excluding Bond Choice) to 51,1% in 2008 and
the `jaws` ratio growing to 7,5% (2007: 6,9%).
The bank continued to see a steady inflow of client deposits, resulting in
retail deposits growing in line with retail advances. Pressure on short-dated
maturities has been partially alleviated by market expectations of decreasing
interest rates and a strategy of increasing deposit duration, particularly in
the second half of the year. Given the group`s domestic focus and small
foreign-funding requirements (foreign deposits are 1,3% of total group
deposits), the group`s funding and liquidity levels have remained sound with
limited impact from the global financial crisis.
Nedbank Capital
In spite of a tough environment for investment banking Nedbank Capital grew
headline earnings by 7,8% from R1 174 million to R1 266 million and achieved a
return on risk-adjusted capital (RORAC) of 38,1%. The Treasury and Global
Markets Divisions both experienced strong growth. Debt Capital Markets was
adversely affected by fair-value losses on widening credit spreads and profits
in Equity Capital Markets were negatively impacted by reduced volumes and
sharply lower market levels. The adverse market conditions were mitigated by
active management interventions, which reduced risk as markets deteriorated.
Investment Banking showed strong net interest income (NII) growth, but was
impacted by delays in and some cancellations of client project spend as well as
a slowing of term lending in transactions in Africa due to reduced availability
of longer-term foreign funding.
Over the past few years Nedbank Capital has invested in people and the
development of sound risk processes. Information technology and finance
platforms have been improved. This investment, combined with a prudent risk
appetite, has contributed to the cluster`s results and the achievement of a more
balanced earnings profile in extreme market conditions.
Nedbank Corporate
Nedbank Corporate grew headline earnings by 11,1% from R2 632 million to R2 924
million and achieved a RORAC of 28,7%. The banking operations showed robust
growth with core banking headline earnings increasing by 20,1%. Corporate
Banking performed strongly, driven by advances growth, widening credit margins
and higher non-interest revenue (NIR) through gains in primary-banker clients.
The property investment portfolio generated good earnings, but these were down
on the record earnings of 2007. The strong risk management culture enabled the
cluster to manage its credit portfolios well and resulted in a credit loss
ratio of 0,27%, still below expected through-the-cycle levels. Nedbank
Corporate continued to invest in leadership and staff training, resulting in
further gains to the already high staff morale.
Late in the year the bank entered into a strategic business cooperation
agreement with Ecobank, the Pan-African banking group, to provide a `one bank`
client experience across 30 countries in Africa, which creates significant
opportunities for our client base across the continent.
Nedbank Retail
Nedbank Retail`s headline earnings dropped from R1 876 million to R1 002
million, with a RORAC of 10,8%. 2008 has been an extremely challenging year in
retail banking. While the group anticipated that consumers would come under
increased pressure in 2008, the combination of higher interest rates, rising
inflation, pressure on asset prices and lower consumer confidence has proved
more severe than forecast. The unsecured portfolios (cards, overdrafts and
personal loans) have responded well and, while default levels remain high,
credit metrics are stable.
The main pressure on impairments has been in the secured portfolios of home
loans and vehicle finance. Defaults in these portfolios deteriorated
significantly during the year and this, coupled with pressure on asset prices,
caused a large rise in provisioning levels. This trend intensified through the
year-end and, as a result, impairments on these portfolios are expected to
continue to increase into 2009.
In this environment Nedbank Retail improved its efficiency ratio from 63,5% to
61,1%. This improvement arose from ongoing growth in NII, robust NIR growth and
tight cost control.
Nedbank Retail continued to build for the future and made significant progress
in its client service, distribution network and staff morale metrics. Primary
clients grew at 10% and the Bancassurance and Wealth, Small Business Services
and Private Banking Divisions recorded good earnings growth during 2008.
Imperial Bank
Imperial Bank recorded a profit after tax of R362 million, down 24,4% from the
R479 million of the previous year. Nedbank Group`s share of Imperial Bank`s
earnings dropped from R227 million to R166 million. Return on equity
deteriorated to 13,2%, while the efficiency ratio improved from 30,2% to 28,8%.
Loans and advances grew by 26,7% from R35,3 billion to R44,7 billion as Imperial
Bank continued to attract good-quality business. The overall credit loss ratio
deteriorated from 1,28% to 1,71%, with the Motor Finance Division`s credit loss
ratio moving from 1,93% to 2,47%.
NII
NII grew 14,3% to R16 170 million (2007: R14 146 million) on the back of growth
in average interest-earning banking assets of 23,2%.
The group`s net interest margin for the year under review was 3,66%, down from
3,94% in 2007. The positive endowment impact of interest rate increases on
capital and current and savings accounts was offset by the following:
- Liability margin compression reflecting the higher cost of term funding.
- Asset margin compression from a changing asset mix. Asset pricing continues
to be a key focus for improving margins, with higher margins being generated on
new assets.
- The cost of holding additional liquidity buffers deemed prudent in the
current environment.
- Debits relating to the accounting for historic structured-finance
transactions with related credits offset in taxation.
Impairments charge on loans and advances
The credit loss ratio increased from 0,62% in 2007 (1,02% when reported for the
nine months to September 2008) to 1,17% for the full year. The growth in
advances and the increase in the credit loss ratio are reflected in a 122,8%
increase in the impairments charge from R2 164 million to R4 822 million.
Retail credit loss ratios have deteriorated since June 2008 and remain above
expected through-the-cycle levels, largely as a result of continuing increases
in defaulted advances in the Nedbank Retail Home Loan and Vehicle and Asset
Finance Divisions. Wholesale banking credit loss ratios remain below expected
through-the-cycle levels, although the credit loss ratio in Business Banking
increased as expected. The credit quality in the Corporate and Investment
Banking books remains good, but is expected to be impacted by worsening credit
quality in the year ahead resulting in increased credit loss ratios on these
books. Notwithstanding seasonal effects, the unsecured retail portfolio
reflected encouraging signs of improvement in the latter part of 2008.
Credit loss ratio (%) 2008 2007
Nedbank Capital 0,06 0,05
Nedbank Corporate 0,27 0,11
Nedbank Retail 2,47 1,26
Imperial Bank 1,71 1,28
Nedbank Group 1,17 0,62
Defaulted advances increased by 74,6% from R9 909 million to R17 301 million
and total impairment provisions increased by 29,3% from R6 078 million to
R7 859 million.
NIR
NIR, excluding Bond Choice`s commission and sundry income from the 2007 base,
grew by 8,7% on a like-for-like basis. Total NIR (including Bond Choice in the
2007 base) increased by 2,7% to R10 729 million (2007: R10 446 million).
Commission and fee income grew by 13,8% on a like-for-like basis (5,1%
including Bond Choice), mainly from volume growth and transactional price
increases. Cheque processing fees continue to decrease with the NetBank
electronic banking system now implemented for all Business Banking clients and
a process of migration initiated for Corporate Banking clients. Cash handling
fees and transactional banking volumes grew strongly due to the growth in
client numbers, reflecting the success of Nedbank`s strategy to increase
delivery channels, improve client service and strengthen brand positioning. The
sale of Bond Choice reduced commission and fee income by R578 million.
Trading income increased by 16,4% from R1 334 million in 2007 to R1 553 million
in 2008, reflecting good trading activity in the foreign exchange and global
market businesses, although equity and debt trading both had a disappointing
year. Adjusting for the loss in the first six months of 2007 in respect of the
Macquarie business alliance, trading income would be at similar levels
year-on-year.
The sharp fall in equity markets resulted in historic unrealised gains in
mark-to-market private-equity positions reducing. In spite of these challenging
markets the group managed to record a positive NIR of R303 million from its
private-equity portfolios on the back of revaluations, realisations and
dividend income.
NIR from private equity (Rm) 2008 2007
Nedbank Capital private equity 127 608
Nedbank Corporate property private equity 176 307
Total NIR from private equity 303 915
Nedbank Retail`s Bancassurance and Wealth Division performed well, considering
the dramatic fall in equity markets, with headline earnings - mainly derived
from NIR - up 28,2% to R441 million for the year. In particular both BoE
Private Clients and the short-term insurance businesses of Nedgroup Insurance
Company and Nedgroup Insurance Brokers recorded strong volume and earnings
growth.
Expenses
Nedbank Group continues to invest in its franchise while maintaining a
disciplined approach to expenses. Despite high inflation and the increased
distribution footprint, expenses continued to be tightly controlled, increasing
by 1,9% to R13 741 million (2007: R13 489 million). On a like-for-like basis,
excluding Bond Choice, expenses increased by 5,4%.
- Staff expenses declined by 0,6%, notwithstanding a 4,0% increase in staff
numbers. Key reasons for this decline were the sale of Bond Choice, lower bonus
provisions and an adjustment of R313 million to account for the growth in the
Nedgroup Pension Fund asset and a change in the pension fund rules in 2007 in
terms of surplus apportionment.
- Marketing costs decreased by 1,1% and include the group`s successful
investment in soccer through the sponsorship of the Nedbank Cup to increase
Nedbank brand awareness.
- Information technology costs grew by 10,0%, largely attributable to
investment in systems development for business-, compliance- and risk-related
projects as well as higher ATM network costs.
- Other expenses include the share-based payments charge in respect of the
group`s black economic empowerment (BEE) transaction, which increased from R147
million to R181 million.
- Cooperation with other Old Mutual Group companies continues to yield
benefits.
Associate income
Associate income decreased from R239 million in 2007 to R154 million. This was
primarily as a result of Nedbank Group`s R65 million share of the profit on the
sale of JSE Limited shares by BoE Private Clients in the prior year as well as
the sale of the group`s interests in Whirlprops and Kimberley Clark during
2007.
Taxation
The taxation charge (excluding taxation on non-trading and capital items)
decreased by 24,8% from R2 336 million in 2007 to R1 757 million. The effective
tax rate decreased from 26,3% in 2007 to 21,6% due largely to the following:
- A reduction in the corporate taxation rate in South Africa from 29% to 28%.
- Accounting for a change in tax legislation impacting investments held in the
private-equity portfolios. The proceeds from disposal of qualifying investments
held for longer than three years are now defined as capital in nature and the
group now accounts for taxation on revaluations of such investments at 14%. In
2008 the taxation charge was reduced by an amount of R153 million (1,9% of the
effective tax rate), reflecting the impact of this change in legislation on
cumulative revaluations of qualifying investments held at 31 December 2007.
- Accounting for historical structured-finance transactions, which reduced the
effective taxation rate by 1,8% (the other side of this entry reduced margin
with no overall effect on earnings).
- An increase in dividend income due largely to higher yields from preference
share investments linked to prime and higher levels of investment in preference
shares issued by clients.
Non-trading and capital items
Income after taxation from non-trading and capital items increased from R104
million in 2007 to R645 million for the year. The main contributions were the
R622 million after-tax profit on the sale of Visa shares and the R15 million
profit on the sale of 33,5% in Bond Choice.
BALANCE SHEET
Capital
Nedbank Group has strengthened capital ratios significantly, with a Tier 1
capital adequacy ratio of 9,6% (December 2007: 8,2% pro forma Basel II) and a
total capital adequacy ratio of 12,4% (December 2007: 11,4% pro forma Basel
II). These ratios are now above the group`s historic target ranges. The core
Tier 1 capital adequacy ratio was 8,2% (December 2007: 7,2% pro forma Basel
II). The group currently holds a surplus of R9,6 billion against its calculated
economic-capital requirements, calibrated to an A- debt rating (including a 10%
buffer), and a surplus of R9,5 billion against its regulatory-capital adequacy
requirements.
Capital adequacy ratios include unappropriated profit at year-end.
Capital adequacy ratios increased due to the issue of the first hybrid Tier 1
capital instruments in South Africa amounting to R1,75 billion, the profits
made on the disposal of Visa shares, the retention of earnings and a strong
focus on the optimisation of risk-weighted assets, enabled by enhancing data
quality and much more selective asset growth using our economic-profit-based
`managing for value` philosophy. This resulted in risk-weighted asset growth of
6% being below overall balance sheet growth of 16%.
The group`s leverage ratio (total assets to ordinary shareholders` equity) at
16,2 times is also conservative by international standards and in line with the
local peer group.
In response to the global financial crisis the group increased its levels of
surplus capital, extended its target regulatory-capital ranges and introduced a
target capital adequacy range for core Tier 1 capital. In the current
environment the group`s objective is to be at or at about the top end of these
new targets in the medium term.
2008 Revised
ratio range
Core Tier 1 ratio 8,2% 7,5% to 9,0%
Tier 1 ratio 9,6% 8,5% to 10,0%
Total capital ratio 12,4% 11,5% to 13,0%
Previous Regulatory
range minimum
Core Tier 1 ratio n/a 5,25%
Tier 1 ratio 8,0% to 9,0% 7,00%
Total capital ratio 11,0% to 12,0% 9,75%.
Shareholders are advised that the capital note above has not been reviewed or
reported on by the group`s auditors.
Risk appetite
The appropriate level of capital for a bank is a function of its strategy,
individual risk appetite and risk profile. This aligns with one of the key
objectives of Basel II, which is to differentiate capital requirements and
capital buffers above the regulatory minimum to reflect the unique risk profile
on a bank-by-bank basis, rather than following the `one size fits all` approach
that Basel I engendered.
Nedbank has cultivated and embedded a prudent and conservative risk appetite,
primarily focused on the basics of banking in southern Africa. This is
illustrated by reference to the following:
? No direct exposure to US subprime credit assets nor associated credit
derivative transactions.
? Conservative credit underwriting practices, which have culminated in a
high-quality, well-collateralised wholesale book and further tightening of
credit criteria in our retail book since 2007 in anticipation of the economic
downturn and resulting from the introduction of the National Credit Act.
? Reasonable credit concentration risk levels in relation to the South African
market.
? Counterparty credit risk being restricted to non-complex, vanilla banking
transactions.
? A strong, well-diversified funding deposit base (including a strong retail
deposit franchise) and limited offshore funding.
? Low securitisation risk exposure compared with global banks.
? Low leverage ratio compared with global banks.
? Higher ratio of risk-weighted assets to total assets than that of peers,
indicative of our appropriately conservative measurement of risk.
? Low level of assets and liabilities exposed to the volatility of
International Financial Reporting Standards (IFRS) fair-value accounting.
? Small market trading risk in relation to total bank operations.
? Low interest rate risk in the banking book.
? Low equity (investment) risk exposure.
? Successful completion of the non-core asset disposal strategy in 2007.
? Low foreign currency translation risk and an optimal offshore-capital
structure.
? Well-diversified earnings streams across our full commercial banking
activities.
? Well-diversified subordinated-debt profile, with no maturities of existing
Tier 2 regulatory capital until 2010.
? Comprehensive stress and scenario testing to confirm the adequacy of our
capital ratios and accompanying capital buffers.
Against this background, the group believes that capital levels (both
regulatory capital and internal capital assessment based on economic capital)
and provisioning for credit impairments are appropriate and conservative, and
that the group and its subsidiaries are appropriately capitalised relative to
our business activities, strategy, risk appetite, risk profile and the external
environment in which we operate. Additionally, the group is currently not
holding excess capital for acquisitions.
Total assets
Total assets increased by 16,0% to R567 billion (2007: R489 billion). Growth in
average interest-earning banking assets slowed to 23,2% (2007 growth: 29,0%).
Advances
Advances increased by 16,1%, reflecting ongoing growth in Nedbank Corporate but
slower growth from Nedbank Retail and a drop in advances in Nedbank Capital.
Nedbank Capital`s client loan book grew strongly, but this growth was more than
offset by a reduction in advances in the trading portfolio. Imperial Bank
showed strong growth through most of the year. Details of advances growth by
division are as follows:
Rm 2008 2007 Increase (%)
Nedbank Corporate 191 543 153 718 24,6
Nedbank Capital 47 686 51 233 (6,9)
Nedbank Retail 150 107 133 492 12,4
Imperial Bank 44 734 35 320 26,7
Other 163 193 (15,5)
Total 434 233 373 956 16,1
Deposits
Overall deposits increased by 21,4% from R385 billion to R467 billion at
December 2008, with higher interest rates increasing demand for savings and
investment products.
Despite strong growth in retail funding, deposit growth was still largely
concentrated in the wholesale market. Management has remained focused on
optimising the funding mix and profile of the group through utilising alternate
funding sources, concentrating especially on the retail and business banking
deposit bases, while pricing competitively for term deposits.
Nedbank`s liquidity remains sound. The impact of the global financial crisis on
South African markets has, to date, been largely limited to an increased cost
of international funding as a result of the reduction in international
liquidity. This decreased the bank`s ability to access such funding and has led
to an increase in the cost of - and decrease in appetite for - capital market
debt. Given Nedbank`s domestic focus, international funding has traditionally
not been a large portion of the group`s funding base, while the increase in the
pricing of capital market debt has increased the cost of rolling over conduit
paper and new subordinated-debt issues, with volumes issued in this market also
being lower.
During 2008 Nedbank successfully issued hybrid debt, raising R1,75 billion. In
addition, the following programmes were undertaken to diversify the funding
base, raise further foreign funding and lengthen the bank`s existing funding
profile:
- Issuing of foreign syndicated club loans of $165 million and Euro 165
million.(1)
- Registering of a $2 billion European medium-term note (EMTN) programme.(1)
- Obtaining a $100 million credit line from African Development Bank.(1)
- Focusing on the retail deposit base through competitive products and
- pricing.(1)
RATINGS
In December 2008 Moody`s Investors Service affirmed Nedbank Limited`s national
scale short-term deposit rating of Prime- 1.za and long-term deposit rating of
Aa 1.za.
Nedbank Group received a rating upgrade from Fitch Ratings in November 2007,
which was reaffirmed in July 2008. In November 2008 Fitch maintained the
ratings, but changed the outlook for a number of the local banks on the back of
a rating outlook adjustment for South Africa, including changing the outlook
for Nedbank Group for its international sovereign rating from stable to
negative. No adjustment was made to Nedbank Group`s local ratings or outlooks
and the Fitch Ratings national short-term rating remains F1+ (zaf).
Nedbank Limited also registered an EMTN programme during December 2008. This
programme was separately rated by both Moody`s and Fitch. Moody`s has assigned
an A2 foreign currency rating together with a positive outlook to both senior
and subordinated notes. Fitch has assigned BBB+ and BBB foreign currency
ratings to long- term senior and subordinated debt.
IMPERIAL BANK
A new shareholder agreement has been concluded by Nedbank and Imperial Holdings
that will come into effect on 1 January 2011 when the current agreement ends.
TRANSFORMATION
During the year Nedbank Group exceeded its internal Financial Sector Charter
(FSC) scorecard and Department of Trade and Industry (dti) codes of good
practice targets. The bank submitted a score of 99,07 for ratification by the
FSC Council (2007: 97,50) out of a potential 100 points as measured by the FSC,
and has now been verified as a level-three BEE contributor (2007: level four)
against the dti codes scorecard. Transformation remains a key strategic
differentiator and the group continues to seek opportunities to realise its
vision of becoming a truly southern African group.
GROUP FOCUS
Nedbank Group strategy remains unchanged. However, in the current financial
environment the group has increased its focus on capital, liquidity and risk
management. The group is currently taking a more conservative stance rather
than seeking to maximise short-term profitability, and continues to focus on
maximising the longer-term profit potential of the group.
In line with the ongoing strategic focus the group continues to focus on the
following:
? Growing its share of economic profit and managing for value through
- a continued focus on liability growth and our strong depositor franchise,
- a focus on high-quality, appropriately risk-priced loans,
- selective asset growth,
- retaining focus on operational capacity in southern Africa while leveraging
the Ecobank alliance to provide geographical reach into the rest of Africa,
- ongoing building of the Business Banking franchise, which now forms a
separate business cluster,
- growing the group`s Transactional Banking franchise, both wholesale and
retail,
- cross-selling into our existing client base, and
- remaining agile and alert to opportunities that will arise in the current
environment.
? Becoming more client-driven by delivering worldclass service on an ongoing
basis. This includes using innovation to increase service capabilities and
distribution network for clients.
? Managing risk as an enabler by
- proactively managing capital and liquidity,
- pricing appropriately for risk,
- continually monitoring and refining credit
and risk parameters as appropriate, and
- an ongoing focus on collections.
Enhancing productivity and efficiency, execution and ongoing smart cost
management.
Maintaining a unique culture to retain staff and ensuring that we make
appropriate and fair decisions, treat clients fairly, embrace the community,
take accountability for our actions and care for others in the way we do
business.
Continuing to accelerate transformation and become a truly southern African
group.
Continuing to lead as a corporate citizen in our efforts to ensure we are a
green and caring bank, thereby building a sustainable business that is relevant
in South Africa.
OUTLOOK, TARGETS AND PROSPECTS
The domestic economy is expected to continue slowing in 2009, with gross
domestic product (GDP) growth currently forecast by the group at 0,4%. The
global financial crisis and resultant recessionary conditions will place more
pressure on an already slowing domestic economy. Weaker international trade,
lower commodity prices and continued volatility on major financial markets are
expected to restrict corporate activity. Consumer finances are likely to remain
strained as a result of continued pressure on disposable income, falling asset
prices, increasing unemployment and the weaker rand. Lower economic activity is
also placing increasing strain on corporates.
Further interest rate cuts are anticipated during the course of 2009. The
benefits of these would be expected to impact positively on the South African
banking environment only in 12 to 18 months` time. In the short term the
decrease in interest rates will have a negative endowment effect on banking
interest margins, while impairments are likely to continue to deteriorate. The
reversal of the higher impairment trend typically takes longer to be reflected
in earnings.
Nedbank Group`s performance in 2009 is likely to reflect the following:
- Advances growth in the upper single digits. Retail advances growth is
expected to continue slowing, with reasonable growth in wholesale advances,
albeit at a slower rate than in 2008.
- Margin compression, on the 2008 margin, of around 10 to 15 basis points.
Improvements as the margin benefits from higher asset pricing will be offset by
the endowment turning negative as interest rates decrease and by continued
market pressure on retail funding volumes.
- The group credit loss ratio is likely to increase, although it is currently
targeted to remain below 1,30%.
- NIR growth for the year in mid single digits, with
- modest transactional banking fee increases,
- a slowing of transactional volumes, and
- continuing market pressures, which will not be conducive to private-equity
gains.
- Expense growth for the year in upper single digits.
- A continued strengthening of capital adequacy ratios and an ongoing focus
on funding and liquidity.
- Further enhancements of the business in line with the manage-for-value
strategy.
In the light of progress made by the group and taking into account the current
economic environment and the group`s interest rate expectations, the group has
revised its medium- to long-term financial targets and set short-term
objectives for the 2009 financial year. The economic environment remains
uncertain and this, together with heightened market volatility, ongoing global
uncertainty and the potential for an extended global recession, increases
forecast risk. This short-term outlook for 2009 is management`s current best
estimates for the year ahead and assumes a reduction of 227 basis points in the
average prime rate.
2009 outlook Medium- to long-term targets
ROE (excl goodwill) > 15,0% 5% above monthly weighted average
cost of ordinary shareholders`
equity
Efficiency ratio < 53,0% < 50,0%
Growth in diluted Approximately At least CPIX + GDP growth + 5%
headline EPS 10% down
Impairment charge < 1,30% Between 0,55% and 0,85% of
average advances
Basel II core Tier 1 Towards the top
capital adequacy ratio end of the range 7,5% to 9,0%
Basel II Tier 1 capital Towards the top
adequacy ratio end of the range 8,5% to 10,0%
Basel II total capital Towards the top
adequacy ratio end of the range 11,5% to 13,0%
Economic capital A- (including Capitalised to 99,9% confidence
10% buffer) interval on economic-capital
basis (target debt rating A-
including 10% buffer)
Dividend cover policy 2,25 to 2,75 times 2,25 to 2,75 times
Based on the above, the current outlook for headline earnings in 2009 is
approximately 10% lower than the headline earnings for the 2008 financial year
and the outlook for basic earnings and diluted earnings per share is
approximately 20% lower, as the group does not anticipate a capital profit
similar to the profit on the sale of Visa shares in 2008.
Shareholders are advised that these forecasts, objectives and targets have not
been reviewed or reported on by the group`s auditors.
CHANGES TO THE GROUP EXECUTIVE COMMITTEE
Nedbank Group`s Head of Group Technology, Len de Villiers, resigned from the
group with effect from 31 July 2008 and Fred Swanepoel was appointed to the
Group Executive Committee (Group Exco) as Chief Information Officer and Head of
Group Technology with effect from 1 November 2008. The Business Banking
Division within Nedbank Corporate became a standalone business cluster on
1 January 2009 and the Managing Executive of Business Banking, Ingrid Johnson,
joined the Group Exco. In addition, Mfundo Nkuhlu has been appointed Deputy
Managing Executive of the Nedbank Corporate business cluster and a member of
the Group Exco, while retaining his current responsibilities as Managing
Executive of Corporate Banking.
CHIEF EXECUTIVE SUCCESSION
As previously communicated to stakeholders, Chief Executive Tom Boardman will
be retiring from the group in February 2010. The process of identifying a
successor is continuing and the board expects to make an appointment within the
first half of this year. This will allow sufficient time for a smooth transition
in the office of the Chief Executive.
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 (1)
Nedbank Group Limited 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 Group`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 and the
early adoption of IFRS 8. The prior year`s comparative figures have been
restated.
Nedbank Group`s condensed consolidated 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
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.
SUBSEQUENT EVENTS
As of the date of this announcement there are no post-balance-sheet events to
report.
AUDITED RESULTS - AUDITORS` OPINION
KPMG Inc and Deloitte & Touche, Nedbank Group`s independent auditors, have
audited the consolidated annual financial statements of Nedbank Group 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 Group`s registered office. The selected
explanatory notes are marked with(1).
FORWARD-LOOKING STATEMENT
This announcement contains certain forward-looking statements with respect to
the financial condition and results of operations of Nedbank Group and its
group companies, which 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, 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; as
well as competitive and regulatory factors. By consequence, all forward-looking
statements have not been audited.
ANNUAL GENERAL MEETING
The Nedbank Group annual general meeting will be held on Thursday, 14 May 2009,
in the auditorium, Retail Place West, Nedbank Sandton, 135 Rivonia Road,
Sandown, at 09:00.
CAPITALISATION AWARD WITH A CASH DIVIDEND ALTERNATIVE(1)
Notice is hereby given that the directors of the company have resolved to issue
fully paid ordinary shares in the company as a capitalisation award to ordinary
shareholders. Ordinary shareholders will be entitled, in respect of all or part
of their shareholding, to elect to receive new fully paid ordinary shares,
which will be issued only to those ordinary shareholders who elect in respect
of all or part of their shareholding, on or before 12:00 on Thursday, 9 April
2009, to receive the capitalisation award shares. Shareholders not electing to
receive new fully paid ordinary shares in respect of all or part of their
shareholding will be entitled to receive a cash dividend alternative of 310
cents per ordinary share (the cash dividend alternative).
In accordance with the provisions of STRATE, the electronic settlement and
custody system used by JSE Limited, the relevant dates for the capitalisation
award election and the cash dividend alternative are as follows:
2009
Last day to trade to participate in the capitalisation
award or the cash dividend alternative Thursday, 2 April
Shares trade ex the capitalisation award election and the
cash dividend alternative on Friday, 3 April
Listing of the maximum number of new ordinary shares that
may be taken up in terms of the capitalisation award on Friday, 3 April
Last day to elect to receive capitalisation award shares
(by 12:00), failing which the cash dividend alternative will
be received Thursday, 9 April
Record date to participate in the capitalisation award
or receive the cash dividend alternative Thursday, 9 April
Payment of the cash dividend alternative to shareholders
who have not elected to participate in the capitalisation
award or have participated in the capitalisation award
in respect of only part of their shareholding on Tuesday, 14 April
New shares issued and posted or participant or broker
accounts credited regarding the shares to be issued to
shareholders participating in the capitalisation award
in respect of all or part of their shareholding on Tuesday, 14 April
The maximum number of new shares listed in terms of the
capitalisation award, adjusted to reflect the actual
number of shares issued in terms of the capitalisation
award on or about Friday, 17 April
Shares may not be dematerialised or rematerialised between Friday, 3 April
2009, and Thursday, 9 April 2009, both days inclusive.
The above dates and times are subject to change. Any changes will be published
on the Securities Exchange News Service (SENS) and in the press.
The number of capitalisation shares to which shareholders are entitled will be
determined in the ratio that 310 cents per ordinary share bears to the 30-day
volume-weighted average price for the company`s share, to be determined no
later than Wednesday, 25 March 2009. Details of the ratio will be published on
SENS no later than Thursday, 26 March 2009, at 11:00 and in the financial press
the following business day. Trading in the STRATE environment does not permit
fractions and fractional entitlements. Accordingly, where a shareholder`s
entitlement to new ordinary shares calculated in accordance with the above
formula gives rise to a fraction of a new ordinary share, such fraction will be
rounded up to the nearest whole number, where the fraction is greater than or
equal to 0,5, and rounded down to the nearest whole number, where the fraction
is smaller than 0,5.
A circular relating to the capitalisation award and the cash dividend
alternative will be posted to shareholders on or about Monday, 16 March 2009.
Note:
Dematerialised shareholders are required to notify their duly appointed
participant or broker of their election in terms of the capitalisation award in
the manner and at the time stipulated in the agreement governing the
relationship between shareholders and their participant or broker.
For and on behalf of the board
Dr RJ Khoza TA Boardman
Chairman Chief Executive
25 February 2009
FINANCIAL HIGHLIGHTS
at December December
2008 2007
Statistics
Number of shares listed m 468,9 459,3
Number of shares in issue, excluding
shares held by group entities m 409,7 401,9
Weighted average number of shares m 405,4 398,7
Diluted weighted average number of
shares m 411,5 414,4
Headline earnings per share cents 1 422 1 485
Diluted headline earnings per share cents 1 401 1 429
Ordinary dividends declared per share cents 620 660
- Interim cents 310 310
- Final cents 310 350
Dividend paid per share cents 660 594
Dividend cover times 2,29 2,25
Net asset value per share cents 8 522 7 513
Tangible net asset value per share cents 7 179 6 207
Closing share price cents 9 550 13 600
Price/earnings ratio historical 7 9
Market capitalisation Rbn 44,8 62,5
Number of employees 27 570 26 522
Key ratios (%)
Return on ordinary shareholders`
equity (ROE) 17,7 21,4
Return on total assets (ROA) 1,09 1,30
Net interest income to average
interest-earning banking assets 3,66 3,94
Non-interest revenue to total income 39,9 42,5
Credit loss ratio 1,17 0,62
Efficiency ratio 51,1 54,9
Effective taxation rate 21,6 26,3
Group capital adequacy ratios: Basel
II (including unappropriated profits)
- Core Tier I 8,2 7,2
- Tier 1 9,6 8,2
- Total 12,4 11,4
Balance sheet statistics (Rm)
Total equity attributable to equity
holders of the parent 34 913 30 193
Total equity 40 073 35 125
Amounts owed to depositors 466 890 384 541
Loans and advances 434 233 373 956
Gross 442 092 380 034
Impairment of loans and advances (7 859) (6 078)
Total assets 567 023 488 856
CONSOLIDATED INCOME STATEMENT
for the year ended December December
Rm 2008 2007
Interest and similar income 57 986 42 001
Interest expense and similar charges 41 816 27 855
Net interest income 16 170 14 146
Impairments charge on loans and
advances 4 822 2 164
Income from lending activities 11 348 11 982
Non-interest revenue 10 729 10 446
Operating income 22 077 22 428
Total operating expenses 13 741 13 489
Operating expenses 13 547 13 341
BEE transaction expenses 194 148
Indirect taxation 374 305
Profit from operations before
non-trading and capital items 7 962 8 634
Non-trading and capital items 756 111
Net profit on sale of subsidiaries,
investments, and property and
equipment 767 118
Net impairment of investments,
property and equipment, and
capitalised development costs (11) (7)
Profit from operations 8 718 8 745
Share of profits of associates and
joint ventures 154 239
Profit before direct taxation 8 872 8 984
Total direct taxation 1 868 2 343
Direct taxation 1 757 2 336
Taxation on non-trading and capital
items 111 7
Profit for the year 7 004 6 641
Profit attributable to:
Equity holders of the parent 6 410 6 025
Minority interest - ordinary
shareholders 257 344
Minority interest - preference
shareholders 337 272
Profit for the year 7 004 6 641
Basic earnings per share cents 1 581 1 511
Diluted earnings per share cents 1 558 1 454
Dividend declared per share cents 620 660
Dividend paid per share cents 660 594
HEADLINE EARNINGS RECONCILIATION
December 2008
Net of
Rm Gross taxation
Profit attributable to equity holders of the parent 6 410
Less: non-trading and capital items 756 645
Net profit on sale of subsidiaries, investments, and
property and equipment 767 656
Net impairment of investments, property and
equipment, and capitalised development costs (11) (11)
Headline earnings 5 765
December 2007
Net of
Rm Gross taxation
Profit attributable to equity holders of the parent 6 025
Less: non-trading and capital items 111 104
Net profit on sale of subsidiaries, investments, and
property and equipment 118 111
Net impairment of investments, property and
equipment, and capitalised development costs (7) (7)
Headline earnings 5 921
CONSOLIDATED BALANCE SHEET
at
December December
Rm 2008 2007
Assets
Cash and cash equivalents 8 609 10 344
Other short-term securities 18 589 25 793
Derivative financial instruments 22 321 9 047
Government and other securities 42 138 29 637
Loans and advances 434 233 373 956
Other assets 6 084 9 313
Clients` indebtedness for acceptances 3 024 2 251
Current taxation receivable 346 59
Investment securities 8 455 8 318
Non-current assets held for sale 10 31
Investments in associate companies and joint ventures 1 167 978
Deferred taxation asset 200 25
Investment property 213 171
Property and equipment 4 327 3 929
Long-term employee benefit assets 1 741 1 393
Computer software and capitalised development costs 1 607 1 349
Mandatory reserve deposits with central bank 10 065 8 364
Goodwill 3 894 3 898
Total assets 567 023 488 856
Equity and liabilities
Ordinary share capital 410 402
Ordinary share premium 11 370 10 721
Reserves 23 133 19 070
Total equity attributable to equity holders of the
parent 34 913 30 193
Minority shareholders` equity attributable to
- ordinary shareholders 1 881 1 511
- preference shareholders 3 279 3 421
Total equity 40 073 35 125
Derivative financial instruments 23 737 11 432
Amounts owed to depositors 466 890 384 541
Provisions and other liabilities 9 829 34 225
Liabilities under acceptances 3 024 2 251
Current taxation liabilities 235 337
Deferred taxation liabilities 2 100 1 616
Long-term employee benefit liabilities 1 231 1 157
Investment contract liabilities 5 843 5 846
Long-term debt instruments 14 061 12 326
Total liabilities 526 950 453 731
Total equity and liabilities 567 023 488 856
Guarantees on behalf of clients 25 226 20 579
CONDENSED CONSOLIDATED CASHFLOW STATEMENT
for the year ended
December December
Rm 2008 2007
Cash generated by operations 14 557 12 453
Change in funds for operating activities (10 674) (10 691)
Net cash generated by operating activities before
taxation 3 883 1 762
Taxation paid (2 233) (2 419)
Cashflows from/(utilised by) operating activities 1 650 (657)
Cashflows utilised by investing activities (999) (2 063)
Cashflows (utilised by)/from financing activities (685) 2 122
Net decrease in cash and cash equivalents (34) (598)
Cash and cash equivalents at the beginning of the
year* 18 708 19 306
Cash and cash equivalents at the end of the year* 18 674 18 708
* Including mandatory reserve deposits with central banks.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Minority
shareholders`
Total equity equity
attributable to attributable
equity holders to ordinary
Rm of the parent shareholders
Balance at 31 December 2006 25 116 1 202
Ordinary minority shareholders` share of
preference dividends paid (13)
Dividends to shareholders (2 402) (41)
Issues of shares net of expenses 1 168
Shares acquired by group entities (167)
Shares issued by subsidiary 150
Total income and expense for the year 6 478 213
Profit for the year 6 025 344
Net income recognised directly in equity 453 (131)
Release of reserves previously not
available (219)
Foreign currency translation reserve
movement (3) (41)
Available-for-sale reserve movement (38)
Property revaluation reserve movement 374
Share-based payment reserve movement 329
Acquisition of subsidiaries 3
Disposal of subsidiaries (81)
Buyout of minorities (21)
Other movements 7 12
Balance at 31 December 2007 30 193 1 511
Ordinary minority shareholders` share of
preference dividends paid (4)
Dividends to shareholders (2 736) (81)
Issues of shares net of expenses 997 225
Shares issued/delisted by BEE trusts 318
Shares acquired/cancelled by BEE trusts (658)
Total income and expense for the year 6 799 230
Profit for the year 6 410 257
Net income recognised directly in equity 389 (27)
Release of reserves previously not
available (61)
Foreign currency translation reserve
movement 248 (6)
Available-for-sale reserve movement (77) 6
Property revaluation reserve movement 84
Share-based payment reserve movement 188
Regulatory risk reserve provision 7
Disposal of subsidiaries (29)
Preference shares held by group entities
Other movements 2
Balance at 31 December 2008 34 913 1 881
Minority
shareholders`
equity
attributable
to preference Total
Rm shareholders equity
Balance at 31 December 2006 3 070 29 388
Ordinary minority shareholders` share of
preference dividends paid 13 -
Dividends to shareholders (295) (2 738)
Issues of shares net of expenses 361 1 529
Shares acquired by group entities (167)
Shares issued by subsidiary 150
Total income and expense for the year 272 6 963
Profit for the year 272 6 641
Net income recognised directly in equity - 322
Release of reserves previously not available (219)
Foreign currency translation reserve movement (44)
Available-for-sale reserve movement (38)
Property revaluation reserve movement 374
Share-based payment reserve movement 329
Acquisition of subsidiaries 3
Disposal of subsidiaries (81)
Buyout of minorities (21)
Other movements 19
Balance at 31 December 2007 3 421 35 125
Ordinary minority shareholders` share of
preference dividends paid 4 -
Dividends to shareholders (341) (3 158)
Issues of shares net of expenses 1 222
Shares issued/delisted by BEE trusts 318
Shares acquired/cancelled by BEE trusts (658)
Total income and expense for the year 195 7 224
Profit for the year 337 7 004
Net income recognised directly in equity (142) 220
Release of reserves previously not available (61)
Foreign currency translation reserve
movement 242
Available-for-sale reserve movement (71)
Property revaluation reserve movement 84
Share-based payment reserve movement 188
Regulatory risk reserve provision 7
Disposal of subsidiaries (29)
Preference shares held by group entities (142) (142)
Other movements 2
Balance at 31 December 2008 3 279 40 073
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 567 023 488 856 22 077
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 22 428 5 765 5 921
CONDENSED GEOGRAPHICAL SEGMENTAL REPORTING
for the year ended
December December December December
2008 2007 2008 2007
Operating Operating Headline Headline
Rm income income earnings earnings
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 22 077 22 428 5 765 5 921
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.
Registered office: Nedbank Group Limited, Nedbank Sandton
135 Rivonia Road, Sandown, 2196; PO Box 1144, Johannesburg, 2000
Transfer secretaries in South Africa:
Computershare Investor Services (Pty) Limited,
70 Marshall Street, Johannesburg, 2001, South Africa
PO Box 61051, Marshalltown, 2107, South Africa
Transfer secretaries in Namibia:
Transfer Secretaries (Pty) Limited
Shop 8, Kaiserkrone Centre, Post Street Mall, Windhoek, Namibia
PO Box 2401, Windhoek, Namibia
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
Sponsors in South Africa:
Merrill Lynch South Africa (Pty) Limited, Nedbank Capital
Sponsor in Namibia:
Old Mutual Investment Services (Namibia) (Pty) Limited
This announcement is available on the group`s website -
www.nedbankgroup.co.za - together with the following additional information:
Detailed financial information in HTML and PDF formats.
Financial results presentation to analysts.
Link to a webcast of the presentation to analysts.
For further information kindly contact Nedbank Group Investor Relations by
email at nedbankgroupir@nedbank.co.za.
Date: 26/02/2009 07:59:56 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
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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.
