| Mon 9 May 2011, 10:53 | | NED/NBKP - Nedbank Group/Nedbank Limited - Quarterly report on Basel II |
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NED NBKP
NED NBKP
NED/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
("Nedbank Limited" or "the bank")
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) ("the Regulation").
Certain of the information required to be disclosed in terms of the Regulation
is included in Nedbank Group`s trading update for the three month period to 31
March 2011.
The group`s capital ratios remained well above current and anticipated Basel
III minimum regulatory requirements, as well as our internal targets. The
Group`s Core Tier 1 ratio strengthened to 10.8% as a result of strong
profitability in the first quarter, no growth in risk weighted assets assisted
by risk optimisation, in particular the adoption of the Internal Model
Approach for market trading risk.
In addition the group`s Tier 1 capital adequacy ratio remains strong at 12,4%
(31 December 10: 11,7%) and total capital adequacy ratio at 15,7% (31 December
2010: 15,0%).
The following table sets out the available capital as at 31 March 2011:
Nedbank Group Nedbank Limited
Rm % Rm %
Tier 1 capital (Primary) 40 085 12,4% 33 911 11,8%
Share capital and reserves 45 695 32 904
Minority interest:
ordinary shareholders 160 -
Minority interest:
preference shareholders 3 560 3 560
Hybrid debt capital 1 752 1 752
Impairments (2 531) (2 183)
Goodwill (4 958) (1 410)
Profit recorded on own
subordinated debt ( 68) ( 68)
Excess of expected loss over
eligible provisions (50%) ( 865) ( 891)
Other regulatory differences
and non-qualifying reserves (2 660) 247
Tier 2 capital (Secondary) 10 480 3,3% 10 812 3,8%
Long-term liabilities 11 000 10 998
Excess of expected loss over
eligible provisions (50%) ( 865) ( 891)
General allowance for
credit impairment 404 375
Other regulatory differences ( 59) 330
Tier 3 capital (Tertiary) - -
Total 50 565 15,7% 44 723 15,6%
Minimum required capital 31 488 28 050
and reserve funds
Notes:
1. The figures above have not been audited.
2. Available capital includes unappropriated profits to the
extent that they are not expected to reverse.
3. These numbers do not include the effect of capital floors
for the bank, in terms of Directive 1/2009 issued in terms
of section 6(6) of the Banks Act, 1990, which will fall
away by 31 December 2011.
4. Regulation requires details of any risk exposure or other
item that is subject to rapid or material change. These are
detailed in the trading update released on 6 May 2011.
Sandton
9 May 2011
For further information contact
Tier 1 Investor Relations
Tel: +27 (0)21 702-3102
Sponsors to Nedbank Group in South Africa:
Merrill Lynch South Africa (Pty) Limited
Nedbank Capital
Sponsor to Nedbank Group in Namibia:
Old Mutual Investment Services (Namibia) (Pty) Ltd
Sponsors to Nedbank Limited in South Africa:
Nedbank Capital
Investec Bank Limited
Date: 09/05/2011 10:53:01 Produced by the JSE SENS Department.
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