Provides comprehensive investment banking solutions to institutional and corporate clients.

Has offices in South Africa and London and a representative office in Angola.

The cluster comprises:

• Investment Banking.
• Global Markets.
• Treasury.

• Managed the financial crisis well.
• Lending and investment criteria and cost management remained prudent.
• Portfolio effect of multiple businesses maintained through the crisis.
• Implemented Wallstreet system.

• Deal flow slowed and more active origination required.
• Retention of income-generating professionals.
• High impairment levels on shareholder loans in private equity portfolio.

• Expectation of some local economic recovery.
• Expectation of easing volatility in markets.
• Focus on clients and client relationship management.
• Greater focus on selected sectors.

Provides full-service corporate banking to large corporates with an annual turnover in excess of R400 million, including commercial, industrial, retail and residential property finance solutions, and Nedbank Africa, comprising operations servicing both retail and corporate market segments in Lesotho, Malawi, Namibia, Swaziland and Zimbabwe.

The cluster comprises:

• Corporate Banking;
• Transactional Banking;
• Property Finance;
• Nedbank Africa;
• Nedbank Investor Services; and
• Corporate Shared Services.

• Business showed resilience by achieving good results with improvement in the core financial metrics.
• Managing for value and selective lending principles were adopted by all client-facing businesses within the extremely challenging business environment.
• Impairments were well managed in a difficult environment.
• Grew non-interest revenue (NIR) through gaining 20 large primary clients.
• Commenced with client migration onto the enhanced electronic transactional banking platform.
• Successfully effected management and leadership team transition.
• Enhanced traction on public sector business.
• Successfully achieved all Financial Sector Charter objectives with particular focus on affordable housing.
• Integrated Imperial Bank Property Finance Division into Nedbank.

• Unique and challenging 2010 business environment spawned by the global financial and economic crisis.
• Local recessionary environment impacting negatively on client business activities.

• Continued challenging environment with modest advances growth.
• Continued pressure on property-related returns.
• Slowing government infrastructure programme rollout driven by lower revenue collection and high deficit levels.
• Full rollout of transactional banking platforms to Corporate client base.

Provides commercial banking
solutions to small- to medium
-sized businesses with an annual turnover of between R7,5 million and R400 million.

The cluster comprises:

• Four geographically decentralised clientfacing business units.
• A strategic business unit, including Specialised Finance, Debtor Management and Client Value Propositions
• Specialist services, including Investment Management, Transactional Banking Sales, Finance and Business Intelligence/Client Value Management.

• Established risk management practices ensured credit loss ratio was maintained within target range for six successive years, despite tough economic environment
• R1,1 billion in capital freed up as a result of good risk practices leading to model and data refinements
• Step change introduced in new client acquisition and cross-sell, given central oversight and regional focus on execution
• Client-centric, relationship-based approach became a differentiator
• Client management capabilities rated highest ever globally for fully business-to-business company
• Retained high staff satisfaction levels and saw further improvement in strong organisational culture
• Talent academy launched to build annual pipeline of sales and credit staff
• Internal campaigns launched to create greater service awareness and ownership.

• Economic recovery remaining slower than expected
• Companies remaining cautious with respect to expansions
• Number of liquidations indicating there is still significant stress in the system
• Earnings cyclicality due to high current account liability balances
• Significant endowment-related interest rate risk.

• Fragile economic recovery impacting on client demand, and 35-year low interest rates keeping 2011 earnings under pressure
• Continued focus on acquisition of primarybanked clients, building on the momentum created in 2010
• Cross-sell of card acquiring and servicing of business owner and employees on an integrated basis
• Enhancing central client analytics and client relationship management capabilities to drive sales force effectiveness
• Building a culture of innovation
• Enhanced collaboration.

Serves the financial needs of individuals and small businesses with up to R7,5 million in annual turnover. Provides transactional, card, lending and investment products and services. The Nedbank Retail Cluster also services merchants and large corporates in respect of card-acquiring services.

The cluster comprises:

• Secured Lending, including mortgages and motor finance
• Retail Relationship Banking, which combines private banking and small-business services and offers products in a client-centric value proposition
• Consumer Banking, which consists of channels, personal loans, deposits, transactional banking, client value management and mass tailored offerings based on client insights
• Card Issuing and Acquiring.

• Continued to focus on becoming a bank for all in South Africa
• Rebuilt and strengthened the Retail executive team
• Integrated Imperial Bank in a business-led, people-centred way (market share continued to increase to make Nedbank second largest in retail motor finance)
• Successfully launched M-PESA, a mobile money offering, in partnership with Vodacom
• Strong collections focus continued to address the impairment challenges in home loans
• Good outperformance experienced from personal loans and card through the cycle
• Inculcated strategic risk management practices to optimise returns in the medium term within desired target risk appetite.

• Continued high consumer indebtedness and slow property market
• Debt counselling process still an industry concern despite improvements
• Rebuilding the client base, and being relevant through their life stages will take many years given past strategic choices
• Poor risk, mispriced 07/08 vintages influencing future home loan impairments (>50%).

• Consumer indebtedness remaining high and economic recovery fragile, causing defaulted clients to take longer to cure
• Impairments remaining well above the preferred risk appetite and proposed new target ranges taking time to deliver
• Continuing emphasis on risk management improvement, with collections requiring a client view
• Cohesive execution of the 12 step change initiatives underpinning the new Retail strategy for a sustainable turnaround.

Comprises three divisions, namely Insurance, Asset Management and Wealth Management, with offices in South Africa and London and on the Isle of Man, Jersey and Guernsey.

The cluster comprises:

• Insurance includes short-term insurance, life insurance and insurance broking
• Asset Management offers a range of local and international ‘best of breed’ unit trusts, private client asset management and multimanagement solutions
• Wealth Management includes private banking and fiduciary services locally and internationally as well as stockbroking and financial planning.

• Reorganised the structure of Nedbank Wealth to achieve greater client centricity
• Recorded strong NIR growth and contribution to the group
• Launched 360life underwritten life insurance supported by a wellness programme called become
• Strong growth experienced in annual premium equivalent and value of new business
• Expanded the insurance product range
• Invested in technology and innovation
• Integrated four segmented asset management operations
• Delivered strong growth in local assets under management and improved flows from the launch of Best of Breed internationally
• Reached alignment between BoE Private Clients and Fairbairn Private Bank in the process of building a single high-net-worth wealth management business
• BoE Philanthropy team shortlisted for the STEP awards held in the United Kingdom
• Fairbairn Private Bank maintained its independent credit rating at A3/P-2
• Advice-based sales grew strongly – up 13,9% on 2009
  in Financial Planning
• Integrated the International Trust operations
• Launched the Qualifying Recognised Overseas Pension Fund offering in Trust International.

• Impact of the new home loans strategy on insurance income
• Negative interest income effects of prolonged low UK and SA interest rates
• Strengthening of the SA rand
• Lower stockbroking volumes
• Restructuring of the international asset management operation away from hedge fund of funds to long-only best of breed
• Impact of UK austerity measures.

Cluster performance will remain subject to exchange rate volatility, interest rate and stock market movements as well as credit extension within the retail sector.

Prospects for 2011 include:

• Reduction in home loans on the back of the new home loans strategy, which could impact on short-term insurance earnings
• Decreasing policy lapse rates
• Improving affordability as financial pressure on consumers eases
• Normalised stockbroking volumes and moderate growth on JSE Limited
• Negative impact of UK austerity programme
• Prolonged low interest rates in both SA and the UK continuing to impact earnings negatively.