| Mon 28 Feb 2011, 8:00 | | NBKP - Nedbank Limited - Audited summarised financial results for the year ended |
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JSE NBKP
NBKP
NBKP - Nedbank Limited - Audited summarised financial results for the year ended
31 December 2010
NEDBANK LIMITED
Registration number 1951/000009/06
Incorporated in the Republic of South Africa
JSE share code: NBKP
ISIN: ZAE000043667
AUDITED SUMMARISED FINANCIAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2010
OVERVIEW
Nedbank Limited (`Nedbank`) is a wholly owned subsidiary of Nedbank Group
Limited, which is listed on JSE Limited. These summarised consolidated annual
financial results are published to provide information to holders of Nedbank`s
listed non-redeemable non-cumulative preference shares.
Commentary relating to the Nedbank summarised consolidated annual financial
results is included in the Nedbank Group Limited group results, as presented to
shareholders on 28 February 2011. Further information is provided on the website
www.nedbankgroup.co.za.
BOARD CHANGES DURING THE YEAR
Bob Head and Jabu Moleketi resigned from the board with effect from 19 February
2010 and 1 March 2010 respectively. Tom Boardman was appointed a non-executive
director with effect from 1 March 2010. Joel Netshitenzhe was appointed an
independent non-executive director with effect from 5 August 2010.
ACCOUNTING POLICIES
Nedbank is a company domiciled in South Africa. The summarised consolidated
financial results at and for the year ended 31 December 2010 comprise the
company and its subsidiaries (the `group`) and the group`s interests in
associates and jointly controlled entities.
Nedbank`s principal accounting policies have been prepared in terms of
International Financial Reporting Standards (IFRS) and have been applied
consistently over the current and prior financial years.
Nedbank`s summarised 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 (IAS) 34: Interim Financial Reporting, as well
as the AC 500 standards as issued by the Accounting Practices Board.
In the preparation of these summarised consolidated financial results the group
has applied key assumptions concerning the future and other inherent
uncertainties in recording various assets and liabilities. These assumptions
were applied consistently to both the company and the group financial results
for the year ended 31 December 2010. These assumptions are subject to ongoing
review and possible amendments.
EVENTS AFTER THE REPORTING PERIOD
There are no material events after the reporting period to report on.
AUDITED RESULTS - AUDITORS` OPINION
KPMG Inc and Deloitte & Touche, Nedbank`s independent auditors, have audited the
consolidated annual financial statements of Nedbank from which the summarised
consolidated financial results have been derived, and have expressed an
unmodified audit opinion on the consolidated annual financial statements. The
summarised consolidated financial results comprise the consolidated statement of
financial position at 31 December 2010, consolidated statement of comprehensive
income, condensed consolidated statement of changes in equity and condensed
consolidated statement of cashflows for the year then ended, and selected
explanatory notes. The audit report is available for inspection at Nedbank`s
registered office.
NEDBANK NON-REDEEMABLE NON-CUMULATIVE PREFERENCE
SHARES - DECLARATION OF DIVIDEND NO 16
Notice is hereby given that preference dividend no 16 of 36,20548 cents per
share has been declared for the period from 1 July 2010 to 31 December 2010,
payable on Monday, 28 March 2011, to shareholders of the non-redeemable non-
cumulative preference shares recorded in the books of the company at the close
of business on Friday, 25 March 2011.
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, 1 April 2011
Shares trade ex dividend Monday, 4 April 2011
Record date Friday, 8 April 2011
Payment date Monday, 11 April 2011
Share certificates may not be dematerialised or rematerialised between Monday, 4
April 2011, and Friday, 8 April 2011, both days inclusive.
Where applicable, dividends in respect of certificated shares will be
transferred electronically to shareholders` bank accounts on the 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, 28
March 2011.
For and on behalf of the board
RJ Khoza MWT Brown
Chairman Chief Executive Officer
28 February 2011
Registered office: Nedbank Sandton, 135 Rivonia Road, Sandown, Sandton, 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), MWT Brown* (Chief Executive Officer),
CJW Ball**, TA Boardman, TCP Chikane, GW Dempster* (Chief Operating Officer),
MA Enus-Brey, Prof B de L Figaji, DI Hope (New Zealand), A de VC Knott-Craig,
WE Lucas-Bull, NP Mnxasana, RK Morathi* (Chief Financial Officer),
JK Netshitenzhe, JVF Roberts (British), GT Serobe, MI Wyman (British).
* Executive
** Senior independent non-executive director
Company Secretary: GS Nienaber
Sponsors: Investec Bank Limited, Nedbank Capital
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December
Rm 2010 2009
Interest and similar income 43 421 49 332
Interest expense and similar charges 27 556 33 795
Net interest income 15 865 15 537
Impairments charge on loans and advances 6 360 6 659
Income from lending activities 9 505 8 878
Non-interest revenue 10 741 10 338
Operating income 20 246 19 216
Total operating expenses 14 983 13 792
- Operating expenses 14 838 13 674
- Black economic empowerment (BEE) transaction expenses 145 118
Indirect taxation 387 402
Profit from operations before non-trading and capital items 4 876 5 022
Non-trading and capital items (103) (32)
- Net loss on sale of subsidiaries, investments, and
property and equipment (17) (22)
- Net impairment of investments, property and equipment, and
capitalised development costs (86) (10)
Profit from operations 4 773 4 990
Share of losses of associates and joint ventures (1)
Profit before direct taxation 4 773 4 989
Total direct taxation 983 960
- Direct taxation 985 959
- Taxation on non-trading and capital items (2) 1
Profit for the year 3 790 4 029
Other comprehensive income net of taxation 118 264
- Exchange differences on translating foreign operations (15) 32
- Fair-value adjustments on available-for-sale assets (31) 146
- Gains on property revaluations 164 86
Total comprehensive income for the year 3 908 4 293
Profit attributable to:
Equity holders of the parent 3 737 3 790
Non-controlling interest - ordinary shareholders 53 224
Non-controlling interest - preference shareholders 15
Profit for the year 3 790 4 029
Total comprehensive income attributable to:
Equity holders of the parent 3 855 4 054
Non-controlling interest - ordinary shareholders 53 224
Non-controlling interest - preference shareholders 15
Total comprehensive income for the year 3 908 4 293
HEADLINE EARNINGS RECONCILIATION
for the year ended 31 December
2010 2009
Net of Net of
Rm Gross taxation Gross taxation
Profit attributable to equity
holders of the parent 3 737 3 790
Less: Non-trading and capital items (103) (101) (32) (33)
- Net loss on sale of subsidiaries,
investments, and property and
equipment (17) (15) (22) (23)
- Net impairment of investments,
property and equipment, and
capitalised development costs (86) (86) (10) (10)
Headline earnings 3 838 3 823
CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS
for the year ended 31 December
Rm 2010 2009
Cash generated by operations 13 329 13 703
Change in funds for operating activities (11 705) (14 018)
Net cash from/(utilised by) operating activities before
taxation 1 624 (315)
Taxation paid (1 592) (1 977)
Cashflows from/(utilised by) operating activities 32 (2 292)
Cashflows utilised by investing activities (3 508) (1 734)
Cashflows from financing activities 4 753 3 587
Net increase/(decrease) in cash and cash equivalents 1 277 (439)
Cash and cash equivalents at the beginning of the year * 17 260 17 699
Cash and cash equivalents at the end of the year * 18 537 17 260
* Including mandatory reserve deposits with central banks.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 31 December
Rm 2010 2009
ASSETS
Cash and cash equivalents 7 469 6 823
Other short-term securities 21 955 14 408
Derivative financial instruments 14 077 12 871
Government and other securities 31 667 35 754
Loans and advances 469 527 444 403
Other assets 3 613 3 917
Clients` indebtedness for acceptances 1 920 2 025
Current taxation receivable 440 580
Investment securities 2 999 3 012
Non-current assets held for sale 5 12
Investments in associate companies and joint ventures 933 922
Deferred taxation asset 48 36
Investment property 82 102
Property and equipment 5 394 4 754
Long-term employee benefit assets 1 965 1 783
Mandatory reserve deposits with central banks 11 068 10 437
Intangible assets 3 328 3 151
Total assets 576 490 544 990
EQUITY AND LIABILITIES
Ordinary share capital 27 27
Ordinary share premium 14 422 14 422
Reserves 20 281 18 174
Total equity attributable to equity holders of the parent 34 730 32 623
Preference share capital and premium 3 560 3 483
Non-controlling interest attributable to:
- Ordinary shareholders 110 1 796
- Preference shareholders 91
Total equity 38 400 37 993
Derivative financial instruments 11 930 10 799
Amounts owed to depositors 489 118 465 899
Provisions and other liabilities 6 179 5 218
Liabilities under acceptances 1 920 2 025
Current taxation liabilities 76 162
Deferred taxation liabilities 1 358 1 514
Long-term employee benefit liabilities 1 408 1 298
Long-term debt instruments 26 101 20 082
Total liabilities 538 090 506 997
Total equity and liabilities 576 490 544 990
Guarantees on behalf of clients 29 185 27 827
CONDENSED SEGMENTAL REPORTING
for the year ended 31 December Total assets
2010 2009
Rm
Nedbank Capital 215 189 198 260
Nedbank Corporate 170 274 157 741
Total for Nedbank Retail and
Nedbank Business Banking 273 219 266 216
- Nedbank Retail 193 394 185 971
- Nedbank Business Banking 79 825 80 245
Nedbank Wealth 33 920 33 909
Shared Services 6 791 7 686
Central Management 37 322 35 782
Eliminations (127 997) (128 891)
Total per Nedbank Group 608 718 570 703
Fellow-subsidiary adjustments (32 228) (25 713)
Total 576 490 544 990
Operating income
2010 2009
Rm
Nedbank Capital 2 930 3 355
Nedbank Corporate 4 565 4 475
Total for Nedbank Retail and
Nedbank Business Banking 13 644 11 914
- Nedbank Retail 10 082 8 180
- Nedbank Business Banking 3 562 3 734
Nedbank Wealth 2 338 1 858
Shared Services 244 201
Central Management (5) (148)
Eliminations (81) (77)
Total per Nedbank Group 23 635 21 578
Fellow-subsidiary adjustments (3 389) (2 362)
Total 20 246 19 216
Headline earnings
2010 2009
Rm
Nedbank Capital 1 202 1 452
Nedbank Corporate 1 496 1 722
Total for Nedbank Retail and
Nedbank Business Banking 1 585 1 094
- Nedbank Retail 760 (27)
- Nedbank Business Banking 825 1 121
Nedbank Wealth 592 502
Shared Services 255 111
Central Management (230) (604)
Eliminations
Total per Nedbank Group 4 900 4 277
Fellow-subsidiary adjustments (1 062) (454)
Total 3 838 3 823
The comparative results for the segmental reporting for the year ended 31
December 2009 have been restated in line with the group`s implementation of a
revised economic capital allocation methodology and as a result of the Imperial
Bank Limited integration. The restatement has no effect on the group results and
ratios, and only changes segment results and ratios.
CONDENSED GEOGRAPHICAL SEGMENTAL REPORTING
for the year ended 31 December
Operating income
Rm 2010 2009
South Africa 21 578 19 867
- Business operations 21 578 19 867
- BEE transaction expenses
- Profit attributable to non-controlling interest -
preference shareholders
Rest of Africa 1 034 860
Rest of world - business operations 1 023 851
Total per Nedbank Group 23 635 21 578
Fellow-subsidiary adjustments (3 389) (2 362)
Total 20 246 19 216
Headline earnings
Rm 2010 2009
South Africa 4 162 3 800
- Business operations 4 574 4 260
- BEE transaction expenses (146) (116)
- Profit attributable to non-controlling interest -
preference shareholders (266) (344)
Rest of Africa 232 213
Rest of world - business operations 506 264
Total per Nedbank Group 4 900 4 277
Fellow-subsidiary adjustments (1 062) (454)
Total 3 838 3 823
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Non-controlling
Total equity interest
attributable to Preference attributable to
equity holders share capital ordinary
Rm of the parent and premium shareholders
Balance at 31 December 2008 31 376 3 122 1 644
Issues of shares net of expenses 361
Ordinary non-controlling
shareholders` share of
preference dividend (15)
Dividend to ordinary
shareholders (2 070) (5)
Dividend to preference
shareholders (335)
Total comprehensive
income for the year 4 054 224
Net expense recognised
directly in equity (402) - (52)
- Share-based payment
reserve movement (399)
- Regulatory risk
reserve provision (3)
- Buyout of non-controlling
interests (52)
- Preference shares held
by group entities
Balance at 31 December 2009 32 623 3 483 1 796
Issues of shares net of expenses 91
Preference share
cumulative dividend (14)
Preference share dividend (270)
Dividend to ordinary shareholders (996) (7)
Dilution of shareholding
in subsidiary (13) 13
Total comprehensive
income for the year 3 855 53
Net expense recognised directly
in equity (469) - (1 745)
- Share-based payment
reserve movement (358)
- Regulatory risk reserve provision (2)
- Buyout of non-controlling
interests (108) (1 745)
- Other movements (1)
Balance at 31 December 2010 34 730 3 560 110
Non-controlling
interest
attributable to
preference
Rm shareholders Total equity
Balance at 31 December 2008 300 36 442
Issues of shares net of expenses 361
Ordinary non-controlling shareholders` share
of preference dividend 15 -
Dividend to ordinary shareholders (2 075)
Dividend to preference shareholders (30) (365)
Total comprehensive income for the year 15 4 293
Net expense recognised directly in equity (209) (663)
- Share-based payment reserve movement (399)
- Regulatory risk reserve provision (3)
- Buyout of non-controlling interests (52)
- Preference shares held by group entities (209) (209)
Balance at 31 December 2009 91 37 993
Issues of shares net of expenses 91
Preference share cumulative dividend (14)
Preference share dividend (270)
Dividend to ordinary shareholders (1 003)
Dilution of shareholding in subsidiary -
Total comprehensive income for the year 3 908
Net expense recognised directly in equity (91) (2 305)
- Share-based payment reserve movement (358)
- Regulatory risk reserve provision (2)
- Buyout of non-controlling interests (91) (1 944)
- Other movements (1)
Balance at 31 December 2010 - 38 400
THESE RESULTS AND ADDITIONAL INFORMATION ARE AVAILABLE AT
WWW.NEDBANKGROUP.CO.ZA.
Date: 28/02/2011 08:00:01 Produced by the JSE SENS Department.
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