| Fri 7 May 2004, 9:11 | | RESULTS OF ANNUAL GENERAL MEETING |
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NEDCOR LIMITED - RESULTS OF ANNUAL GENERAL MEETING
NEDCOR LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1966/010630/06
Share Code: NED
ISIN Code: ZAE000004875
("Nedcor", "the company" or "the group")
1. RESULTS OF ANNUAL GENERAL MEETING
Results of Annual General Meeting ("AGM")
Shareholders are advised that, at the AGM of Nedcor held on Thursday, 6 May
2004, all the resolutions, with the exception of resolution 5 were passed
by an overwhelming majority of shareholders. Resolution 5, which was not
passed, related to Mr Jan Kruger nominating himself for election as a
Nedcor director in terms of article 18.3 of the company"s articles of
association
The special resolution for Nedcor to repurchase its shares will be
submitted for registration at the Registrar of Companies in due course.
2. Update
At the AGM, the directors of Nedcor commented on a number of issues
relating to business progress and these are covered below. Nedcor will be
issuing a trading update on Thursday 13 May post the closure of the rights
offer.
2.1 Overview
Nedcor"s performance for the first quarter of 2004 has been in line
with the board and management"s expectations. The strategic recovery
plan implemented early in 2004 to restore the business to a
sustainable growth path has now been properly scoped and is starting
to yield benefits. The plan includes a project to aggressively reduce
expenses and this is progressing well. The group will communicate
detailed plans of the cost reduction programme at the time of
releasing its interim results in August.
2.2 Capital adequacy
The capital adequacy position, prior to receiving the proceeds of the
rights issue, has improved slightly since the end of 2003 and post the
rights issue the group is on track to meet its tier 1 capital ratio
objective of 7.5% by year-end.
The rights issue will close today, Friday 7 May, and the results will
be announced on Monday, 10 May.
2.3 Review of non-core assets
Nedcor has initiated a project to critically review its non-core
assets and accelerate their realisation. The group has identified a
number of assets for disposal this year and plans are progressing
well. Subsequent to the year-end, agreement has been reached to sell
Chiswell Associates Limited, BoE Life International and the
development land owned by Century City.
2.4 Foreign Capital
There has been no major impact of foreign currency translation gains
or losses in the first quarter. As indicated in the annual report,
Nedcor"s foreign capital is still in excess of the amount required for
its offshore operations. In this regard R630 million of foreign
capital was repatriated in April 2004 from the redemption of the
preference shares of one of the foreign entities. Further capital will
be repatriated during the year from the proceeds of the sales of
offshore businesses, as well as the repatriation of reserves that have
accumulated in offshore subsidiaries.
2.5 Peoples Bank
Agreement has been reached with the minority shareholders for Nedcor
to buy their shares. Planning for the Peoples Bank / NBS integration
into Nedbank is progressing well, and detailed action plans are being
submitted to the regulator. The migration is scheduled to be completed
during the first half of 2005.
3. Appointments
The group is pleased to announce the appointment of Philip Wessels as Chief
Risk Officer with immediate effect. Mr Wessels (46), was previously
Divisional Director of Nedbank Corporate, a former executive director of
BoE Limited and prior to that, a financial services partner at Deloitte and
Touche. He will be appointed to the Group Executive Committee.
The selection process for the appointment of the Chief Financial Officer is
progressing well and an announcement is expected by the end of May.
As indicated in the announcement of the 2003 financial results in February
this year, Chris Liebenberg is retiring as chairman of Nedcor and Warren
Clewlow has been appointed as his successor with effect from 6 May 2004.
The board also confirmed the appointments of Lot Ndlovu, executive
director, and Hixonia Nyasulu, independent non-executive director, as
additional vice chairpersons of Nedcor.
For further information contact
Tier 1 Investor Relations
Tel + 27 (0) 21 702 3102
Sandton
7 May 2004
Sponsors to Nedcor
Nedbank Capital
Merrill Lynch South Africa (Pty) Limited
Deutsche Securities (SA) (Pty) Limited
Date: 07/05/2004 09:09:21 AM Produced by the JSE SENS Department
