|
JSE NBKP
NBKP
Nedbank Limited - Reviewed Financial Results For The Year Ended 31 December 2005
Nedbank Limited Reg No 1951/000009/06
Incorporated in the Republic of South Africa
Share code: NBKP ISIN code: ZAE000043667
Reviewed financial results for the year ended 31 December 2005
Overview
Nedbank is a wholly owned subsidiary of Nedbank Group Limited, which is
listed on the JSE Limited. These 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
consolidated Nedbank financial results is included in the Nedbank Group
Limited group results, as presented to shareholders on 20 February 2006.
Further information is provided on the website: www.nedbankgroup.co.za.
Changes to board of directors
During the year under review the following changes were made to the Nedbank
board:
Bob Head was appointed as a non-executive director (1 January 2005);
Hixonia Nyasulu resigned as an independent non-executive director and
Vice-chairman (26 January 2005);
Phuthuma Nhleko resigned as a non-executive director (21 April 2005);
Lot Ndlovu changed status from an executive director to a non-executive
director (1 May 2005); and Mustaq Enus-Brey, Reuel Khoza and Gloria
Serobe were appointed as non-executive directors (16 August 2005).
Accounting policies
The group"s principal accounting policies have been applied consistently and the
Nedbank Group financial results have been prepared in accordance with IFRS as
adopted by the International Accounting Standards Board (IASB) and
interpretations issued by IFRIC. These standards are subject to ongoing review
and possible amendment and the results may therefore be subject to change at
future reporting dates.
Restatements of 2004 results
The group"s results for the 2004 reporting year were restated to reflect the
requirements of reporting under IFRS. These restated results for 2004 were
disclosed in an announcement on 3 May 2005 and on 4 August 2005 when the
interim results were released.
Further restatements reflected in the accompanying table are as follows:
1. The group changed its treatment of operating leases with fixed escalations
from previously being expensed on a cash basis, to being expensed on a
straight-line basis in terms of circular 7/2005 issued by the South African
Institute of Chartered Accountants on 2 August 2005 and in accordance
with IAS 17 Leases.
2. The IASB issued the fair value option (FVO) amendment to IAS 39
Financial Instruments: Recognition and Measurement (IAS 39) during
June 2005. The FVO amendment defines the criteria under which an
entity is permitted to designate a financial instrument at initial recognition
as being at fair value through profit or loss (FVTPL).
Previously the group fair valued certain assets and liabilities, with the
intention of eliminating any mismatch. These instruments were
designated as held for trading on transition or inception. The FVO
amendment has changed this and the FVTPL designation is now applied.
One or both of the following conditions need to be met to designate a
financial instrument as at FVTPL:
accounting mismatch - this eliminates or significantly reduces a
measurement or recognition inconsistency that would arise from
measuring assets or liabilities or recognising gains or losses on such
assets using a different basis; and/or
Documented risk management or investment strategy - where a group of
financial assets and liabilities is managed and performance is evaluated
on a fair value basis and this is documented and reported internally on this
basis.
In line with Old Mutual plc, Nedbank Group early adopted the FVO
amendment to IAS 39 and has restated its results as of 1 January 2004.
The group has reviewed all previously designated assets and liabilities,
which were classified as held for trading and all assets and liabilities that
do not meet the required criteria have been de-designated. .
Notwithstanding the above, all derivatives are still fair valued as required
by IAS 39.
3. Previously the group did not consolidate its disability fund in the results.
In
the current period, and in terms of IAS 27, the disability fund has been
incorporated and comparative figures have been restated from 1 January
2004.
4. In terms of IAS 1 Presentation of Financial Statements, the group has
chosen to present assets and liabilities on the face of the balance sheet in
order of their liquidity. Therefore deposits, which are mandatory in terms of
the South African Reserve Bank regulations, have been reclassified from
cash and cash equivalents to a separate line on the face of the balance
sheet.
5. Foreign exchange spot trades have been reclassified as either other
assets or other liabilities on the balance sheet, from derivative financial
instruments.
6. In previous periods loans to associates and joint ventures were included in
the carrying value of associate investments and these loans have now
been reclassified on the balance sheet to be included in loans and
advances.
7. Deferred revenue was previously disclosed separately on the balance
sheet and has been reclassified against the individual loans and advances
to which it relates.
Comparative results in the segmental report have been restated to take into
account the improvements in internal profitability measurement and group
restructures. The restatements include the new internal funds transfer pricing
system, the improved activity-justified transfer pricing process and a risk-
weighted capital allocation and charging methodology. The restatements also
take into account that liquid assets and cash reserving costs are no longer held
at the centre, but are charged to the operating segments.
Reviewed results - auditors" opinion
The company"s auditors, KPMG Inc and Deloitte & Touche, have reviewed these
results and the review opinion is available for inspection at the company"s
registered office.
Nedbank non-redeemable non-cumulative preference
shares - declaration of dividend no 6
Notice is here by given that preference dividend no 6 of 39,69863 cents per
share has been declared for the period from 1 July 2005 to 31 December 2005
payable on Monday, 20 March 2006, to shareholders of the non-redeemable
non-cumulative preference shares recorded in the books of the company at the
close of business on Friday, 17 March 2006.
In accordance with the provisions of STRATE, the electronic settlement and
custody system used by the JSE Limited, the relevant dates for the payment
of the dividend are as follows:
Last day to trade cum dividend Friday, 10 March 2006
Shares trade ex dividend Monday, 13 March 2006
Record date Friday, 17 March 2006
Payment date Monday, 20 March 2006
Share certificates may not be dematerialised or rematerialised between
Monday, 13 March 2006, and Friday, 17 March 2006, 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 share certificates
will have their accounts, at their CSDP or broker, credited on Monday, 20
March 2006.
For and on behalf of the board
WAM Clewlow TA Boardman
Chairman Chief Executive
20 February 2006
Registered office : Nedbank Sandton, 135 Rivonia Road, Sandown, 2196;
PO Box 1144, Johannesburg , 2000
Transfer secretaries : Computershare Investor Services 2004 (Pty) Ltd,
70 Marshall Street, Johannesburg , 2001; PO Box 61051, Marshalltown, 2107
Directors : WAM Clewlow (Chairman), Prof MM Katz (Vice-chairman),
ML Ndlovu (Vice - chairman), TA Boardman* (Chief Executive),C JW Ball,
MWT Brow n * , RG Cottrell, BE Davison, N Dennis (British), MA Enus-Brey,
Prof B de L Figaji, RM Head (British), Dr RJ Khoza, JB Magwaza, ME Mkwanazi,
JVF Roberts (British), CML Savage, GT Serobe, JH Sutcliffe (British)
* Executive
Company Secretary: GS Nienaber
Sponsors: Investec Bank Limited, Nedbank Capital
Nedbank Limited Reg No 1951/000009/06
Incorporated in the Republic of South Africa
Share code: NBKP ISIN code: ZAE000043667
Income statement
for the year ended 31 December
2005 2004
Rm Restated
Interest and similar income 23 683 22 252
Interest expense and similar charges 14 987 15 498
Net interest income 8 696 6 754
Impairment losses on loans and advances 987 1 358
Income from lending activities 7 709 5 396
Non-interest revenue 7 385 7 380
Foreign currency translation gains/(losses) 139 (434)
Operating income 15 233 12 342
Total expenses 10 564 10 438
Operating expenses 10 265 9 813
Merger and recovery programme expenses 121 625
BEE transaction expenses 178
Indirect taxes 213 459
Profit from operations before non-trading and
capital items 4 456 1 445
Non-trading and capital items 833 (86)
Impairment of goodwill (1) (4)
Profit on sale of subsidiaries, investments and
property and equipment 934 31
Net impairment of investments, property and
equipment and capitalised development costs (100) (113)
Profit from operations 5 289 1 359
Share of profits of associates and joint ventures 67 121
Profit before direct taxation 5 356 1 480
Direct taxation 898 377
Taxation on non-trading and capital items 37 (39)
Profit for the year 4 421 1 142
Attributable to:
Profit attributable to equity holders of the parent 4 228 1 025
Profit attributable to minority interest ordinary
shareholders 193 117
Profit for the year 4 421 1 142
Earnings reconciliation
Rm 2005 2004
Restated
Profit attributable to equity holders of the parent 4 228 1 025
Non-trading and capital items 796 (47)
Impairment of goodwill (1) (4)
Profit on sale of subsidiaries, investments and
property and equipment 934 31
Net impairment of investments, property and
equipment and capitalised development costs (100) (113)
Taxation on above items (37) 39
Headline earnings 3 432 1 072
Balance sheet
at 31 December
2005 2004
Rm Restated
Assets
Cash and cash equivalents 11 112 4 163
Other short-term securities 9 496 13 426
Derivative financial instruments 11 281 23 886
Government and other securities 22 505 26 035
Loans and advances 249 969 230 609
Other assets 5 088 5 512
Customers" indebtedness for acceptances 1 248 1 509
Current taxation receivable 119 182
Investment securities 2 419 2 614
Non-current assets held for sale 66 48
Investments in associate companies and joint ventures 397 437
Deferred taxation asset 626 1 220
Investment property 87 119
Property and equipment 3 039 2 767
Post-employment assets 1 225 1 184
Computer software and capitalised development costs 1 281 1 375
Mandatory deposits with central bank 5 206 5 419
Goodwill 563 549
Total assets 325 727 321 054
Shareholders" equity and liabilities
Ordinary share capital 27 27
Ordinary share premium 14 422 13 94
Reserves 6 263 2 578
Total equity attributable to ordinary shareholders 20 712 16 550
Preference share capital and premium 2 770 2 770
Minority shareholders" equity attributable to
- ordinary shareholders 872 558
- preference shareholders 245
Total equity 24 354 20 123
Derivative financial instruments 14 844 25 979
Amounts owed to depositors 270 610 258 801
Other liabilities 5 224 5 158
Liabilities under acceptances 1 248 1 509
Current taxation liabilities 333 119
Deferred taxation liabilities 774 954
Post-employment liabilities 1 067 1 103
Long-term debt instruments 7 273 7 308
Total liabilities 301 373 300 931
Total shareholders" equity and liabilities 325 727 321 054
Guarantees on behalf of customers excluded from assets 11 064 10 770
Statement of changes in shareholders" equity
Minority
attributable
Ordinary Preference to preference
shareholders" shareholders" shareholders"
Rm equity equity equity
Balance at 31 December
2003 in
accordance with SA GAAP 12 438 2 802 122
Net effect of adopting
IFRS (239)
Restated balance as at 31
December 2003 12 199 2 802 122
Net income recognised
directly in equity (201) 123
Revaluation of
owner-occupied property 17
Foreign currency
translation reserve
movement (186)
Available for sale
reserve movement 446
Capital contribution to
holding company (437)
Other movements (41) 123
Profit for the year 1 025
Dividends to ordinary
shareholders (135)
Dividend paid to
preference shareholders (229) (32)
Issue of shares net of
expenses 3 891
Balance at 31 December
2004 16 550 2 770 245
Net income recognised
directly in equity 207 (245)
Foreign currency
translation reserve
movement 64
Share-based payments
reserve 28
Available for sale
reserve movement (42)
Revaluation of property 153
Redemption of preference
shares (245)
Capitalisation of minority
Other movements 4
Profit for the year 4 228
Dividends to ordinary
shareholders (524)
Dividend paid to
preference shareholders (228)
Issue of shares net of
expenses 479
Balance at 31 December
2005 20 712 2 770 -
Minority
attributable
to ordinary
shareholders" Total
Rm equity equity
Balance at 31 December 2003 in
accordance with SA GAAP 686 16 048
Net effect of adopting IFRS (30) (269)
Restated balance as at 31 December 2003 656 15 779
Net income recognised directly in equity (205) (283)
Revaluation of owner-occupied property 17
Foreign currency translation reserve movement (186)
Available for sale reserve movement 446
Capital contribution to holding company (437)
Other movements (205) (123)
Profit for the year 117 1 142
Dividends to ordinary shareholders (10) (145)
Dividend paid to preference shareholders (261)
Issue of shares net of expenses 3 891
Balance at 31 December 2004 558 20 123
Net income recognised directly in equity 122 84
Foreign currency translation reserve movement 64
Share-based payments reserve 28
Available for sale reserve movement (42)
Revaluation of property 153
Redemption of preference shares (245)
Capitalisation of minority 107 107
Other movements 15 19
Profit for the year 193 4 421
Dividends to ordinary shareholders (1) (525)
Dividend paid to preference shareholders (228)
Issue of shares net of expenses 479
Balance at 31 December 2005 872 24 354
Cash flow statement
for the year ended 31 December
2005 2004
Rm Restated
Cash generated by operations 6 993 4 696
Change in funds for operating activities 1 166 (8 009)
Taxation paid (813) (611)
Cash flows (utilised in)/from investment activities (302) 1 074
Cash flows (utilised in)/from financing activities (308) 716
Net increase/(decrease) in cash and cash equivalents 6 736 (2 134)
Cash and cash equivalents at beginning of year 9 582 11 716
Cash and cash equivalents, including mandatory deposits
with central bank 16 318 9 582
Geographical segmental analysis
for the year ended 31 December
2005 2004 2005 2004
Restated Restated
Operating Operating Headline Headline
Rm income income earnings earnings
South Africa 14 834 12 847 2 884 1 507
Business operations 14 708 13 127 3 406 2 441
BEE transaction costs (334)
Merger and recovery
programme expenses (86) (425)
Foreign currency
translation losses 126 (280) 126 (280)
Profit attributable to
minority interest
preference shareholders (228) (229)
Rest of Africa 512 304 135 45
Rest of World 603 876 148 191
Business operations 603 876 182 211
Merger and recovery
programme expenses (34) (20)
Total per Nedbank Group 15 949 14 027 3 167 1 743
Fellow-subsidiary
adjustments (716) (1 685) 265 (671)
Total 15 233 12 342 3 432 1 072
Segmental analysis - by operation
for the year ended 31 December
2005 2004 2005
Restated
Total Total Operating
Rm assets assets income
Nedbank Corporate 138 271 123 013 6 223
Nedbank Capital 117 502 110 010 2 442
Nedbank Retail 96 272 80 823 7 208
Imperial Bank 21 832 16 720 737
Shared Services 9 165 8 113 306
Central Management 14 264 20 528 (920)
Eliminations (45 048) (31 367) (47)
Total per Nedbank Group 352 258 327 840 15 949
Fellow-subsidiary adjustments (26 531) (6 786) (716)
Total 325 727 321 054 15 233
2004 2005 2004
Restated Restated
Operating Headline Headline
Rm income earnings earnings
Nedbank Corporate 5 845 1 984 1 775
Nedbank Capital 2 454 1 017 863
Nedbank Retail 6 686 938 564
Imperial Bank 482 144 71
Shared Services 523 (35) (147)
Central Management (1 694) (881) (1 383)
Eliminations (269)
Total per Nedbank Group 14 027 3 167 1 743
Fellow-subsidiary adjustments (1 685) 265 (671)
Total 12 342 3 432 1 072
Income statement restatements
for the year ended 31 December 2004
IAS 17 IAS 39 IAS 19
Notes 1 2 3
Affected Fair value
Line through
Items Reported Operating profit Disability
-Rm IFRS* leases and loss fund Restated
Non-
interest
revenue 7 374 6 7 380
Total
expenses 10 439 8 (9) 10 438
Profit
before
direct
taxation 1 473 (8) 6 9 (1 480)
Direct
taxation 374 (2) 2 3 377
Profit
for the
year 1 138 (6) 4 6 1 142
*Refer SENS announcement 4 August 2005.
Balance sheet restatements
at 31 December 2004
IAS 17 IAS 39 IAS 19
Notes 1 2 3
Affected Fair value
line items Operating through profit Disability
-Rm Reported IFRS* leases and loss fund
Cash and
cash
equivalents 9 582
Derivative
financial
instruments 24 170
Loans and
advances 230 876 (115)
Other assets 5 227 1
Current
taxation
receivable 177 5
Investment
securities 2 618
Investments
in associate
companies
and joint
ventures 507
Deferred
taxation
asset 1 154 35 31
Post-employment
assets 992 192
Mandatory
deposits
with central
bank
Reserves as
previously
reported 2 698 (81) (82) 43
- Additional
adjustments
on 1 January
2004 (75) (86) 37
- Adjustment
for the year
ended 31
December
2004 (6) 4 6
Profit
attributable
to minority
ordinary
shareholders 559 (1)
Derivative
financial
instruments 26 253
Amounts owed
to
depositors 258 798 3
Other
liabilities 4 735 118
Deferred
taxation
liabilities 936 18
Post-employment
liabilities 972 131
Deferred
revenue 257
Reclassifications
4 5 6
Mandatory
deposits with Loans and
Rm regulators Derivatives investments
Cash and cash equivalents (5 419)
Derivative financial
instruments (284)
Loans and advances 74
Other assets 284
Current taxation receivable
Investment securities (4)
Investments in associate
companies and joint ventures (70)
Deferred taxation asset
Post-employment assets
Mandatory deposits with
central bank 5 419
Reserves as previously
reported
- Additional adjustments on 1
January 2004
- Adjustment for the year
ended 31 December 2004
Profit attributable to
minority ordinary
shareholders
Derivative financial
instruments (274)
Amounts owed to depositors
Other liabilities 274
Deferred taxation liabilities
Post-employment liabilities
Deferred revenue
Reclassifications
7
Deferred
Rm revenue Restated
Cash and cash equivalents 4 163
Derivative financial instruments 23 886
Loans and advances (226) 230 609
Other assets 5 512
Current taxation receivable 182
Investment securities 2 614
Investments in associate companies and joint ventures 437
Deferred taxation asset 1 220
Post-employment assets 1 184
Mandatory deposits with central bank 5 419
Reserves as previously reported 2 578
- Additional adjustments on 1 January 2004
- Adjustment for the year ended 31 December 2004
Profit attributable to minority ordinary shareholders 558
Derivative financial instruments 25 979
Amounts owed to depositors 258 801
Other liabilities 31 5 158
Deferred taxation liabilities 954
Post-employment liabilities 1 103
Deferred revenue (257) -
*Refer SENS announcement 4 August 2005.
These results and additional information are available on our website :
www.ned-bankgroup.co.za
Date: 20/02/2006 08:01:16 AM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
