Six-year review

Statistics and ratios

		2007	2006	2005	2004	2003**	2002**
Share statistics
Earnings per share
Headline	cents	1 485	1 110	797	483	19	979
Diluted headline	cents	1 429	1 076	791	482	19	979
Basic	cents	1 511	1 135	966	423	-546	346
Diluted basic	cents	1 454	1 099	958	422	-545	343
Dividends/Distributions
Declared per share	cents	660	493	290	120	240	515
Paid/Capitalised per share	cents	594	394	181	79	515	515
Dividend/Distribution cover	cents	2,25	2,25	2,75	4,00	0,10	1,90
Net asset value per share	cents	7 513	6 363	5 597	4 654	4 240	6 300
Tangible net asset value per share	cents	6 207	5 106	4 351	3 361	2 247	4 012
Shares
Gross number in issue	m	459	451	443	394	275	271
Treasury shares	m	-57	-56	-41	*	*	*
Net number in issue	m	402	395	402	394	275	271
Weighted average number	m	399	400	397	361	293	253
Fully diluted weighted average	m	414	412	400	362	293	254

Share price and related statistics
Nedbank Group traded price
Closing	cents	13 600	13 350	10 000	7 780	6 203	11 110
High	cents	15 810	13 950	10 280	7 999	11 850	15 400
Low	cents	12 325	9 790	6 700	5 240	5 640	9 500
FTSE/JSE Banks Index - closing		35 876	36 121	29 234	22 975	14 153	12 035
FTSE/JSE All-share Index - closing		28 958	24 915	18 097	12 657	10 387	9 277
Market capitalisation	Rbn	62,5	60,2	44,3	30,7	17,1	30,1
Number of shares traded	m	232,2	191,7	168,1	245,8	216,0	143,8
Number traded to weighted
average number of shares	%	58,2	48,0	42,3	68,1	73,7	56,8
Value of shares traded	Rm	31 954	22 219	13 709	15 345	18 003	17 228
Value traded to market capitalisation	%	51,1	36,9	31,0	50,0	105,5	57,2
Price/earnings ratio	historical	9	12	13	16	326	11
Price to book	times	1,8	2,1	1,8	1,7	1,5	1,8
Dividend yield	%	4,9	3,7	2,9	1,5	3,9	4,6
Earnings yield	%	10,9	8,3	8,0	6,2	0,3	8,8
Closing price/Tangible net asset value	times	2,2	2,6	2,3	2,3	2,8	2,8

* Represents amounts less than 1 million.
** Before conversion to IFRS.

JSE share price and indices

		2007	2006	2005	2004	2003**	2002**
Performance ratios
Net interest income to interest-earning
assets***	%	3,94	3,94	3,55	3,18	3,04	2,95
Non-interest revenue to total income	%	42,5	46,3	49,8	53,1	49,0	48,5
Foreign currency translation gains/(losses)
to total income	%		0,02	0,74	(1,84)	(10,61)	(10,52)
Credit loss ratio	%	0,62	0,52	0,49	0,55	1,02	0,63
Efficiency ratio
Including BEE transaction expense	%	54,9	58,2	64,8	71,8	80,2	65,4
Excluding BEE transaction expense	%	54,2	57,5	62,5	71,8	80,2	65,4
Expenses to average assets	%	2,95	3,06	3,24	3,41	3,24	2,46
Effective taxation rate	%	26,3	27,8	23,4	24,2	54,8	5,1
Return on total assets	%	1,30	1,14	0,93	0,54	0,02	0,84
Return on risk-weighted assets	%	1,76	1,60	1,40	0,82	0,03	1,19
Return on ordinary shareholders' equity	%	21,4	18,6	15,5	11,0	0,4	14,9

Assets and related ratios
Advances
Performing advances***	Rm	369 382	306 004	249 318	220 202	208 960	193 414
Impaired advances***	Rm	10 652	7 743	4 304	7 490	8 444	8 001
Gross advances	Rm	380 034	313 747	253 622	227 692	217 404	201 415
Impairment of advances	Rm	(6 078)	(5 184)	(5 214)	(6 684)	(7 308)	(6 553)
Net advances	Rm	373 956	308 563	248 408	221 008	210 096	194 862
Impaired advances to gross advances***	%	2,8	2,5	1,7	3,3	3,9	4,0
Impairment of advances to gross advances	%	1,6	1,7	2,1	2,9	3,4	3,3
Assets
Total assets on balance sheet	Rm	488 856	424 912	352 258	327 840	313 113	324 767
Assets under management	Rm	85 438	86 212	63 925	60 369	102 090	124 343
Total assets administered by the group	Rm	574 294	511 124	416 183	388 209	415 203	449 110

Capital and related ratios
Ordinary shareholders' funds	Rm	30 193	25 116	22 490	18 337	11 647	17 046
Regulatory capital (Basel I)
Tier 1	Rm	27 785	22 932	21 151	17 274	10 593	14 517
Total qualifying capital	Rm	40 893	32 683	29 099	25 663	21 589	22 985
Risk-weighted assets (Basel I)	Rm	336 690	276 914	225 756	212 459	212 850	208 656
Group capital adequacy ratio (Basel I)
Tier 1	%	8,3	8,3	9,4	8,1	5,0	7,0
Total	%	12,2	11,8	12,9	12,1	10,1	11,0

Employee statistics and ratios
Number of employees		26 522	24 034	22 188	21 103	24 205	25 240
Revenue per employee	R	845 638	788 383	712 502	664 692	466 102	415 769
Expenses per employee	R	508 597	494 549	496 530	518 362	427 350	288 590
Headline earnings per employee	R	223 249	184 530	142 735	82 595	2 222	111 486

*** 2006 restated.

Balance sheet

at 31 December


Rm	2007	2006	2005	2004	2003*	2002*
Assets
Cash and cash equivalents	10 344	12 267	11 142	4 630	12 227	16 607
Other short-term securities	25 793	25 756	17 014	16 310	10 610	14 987
Derivative financial instruments	9 047	15 273	16 176	27 276	28 496	50 786
Government and other securities	29 637	22 196	22 658	26 224	21 333	14 647
Loans and advances	373 956	308 563	248 408	221 008	210 096	194 862
Other assets	9 313	12 468	11 601	7 101	7 463	5 684
Clients' indebtedness for acceptances	2 251	2 577	1 291	1 509	835	1 120
Current taxation receivable	59	161	134	196	256	421
Investment securities	8 318	7 155	6 875	6 561	8 940	13 320
Non-current assets held for sale	31	490	385	48
Investments in associate companies and
joint ventures	978	907	657	1 019	1 627	1 504
Deferred taxation asset	25	120	680	1 258	3 074	1 788
Investment property	171	158	163	174
Property and equipment	3 929	3 377	3 095	2 828	2 684	2 854
Long-term employee benefit assets	1 393	1 444	1 225	1 183
Computer software and capitalised development costs	1 349	1 266	1 320	1 419	1 710	1 730
Mandatory reserve deposits with central bank	8 364	7 039	5 747	5 420
Goodwill	3 898	3 695	3 687	3 676	3 762	4 457
Total assets	488 856	424 912	352 258	327 840	313 113	324 767

Equity and liabilities
Ordinary share capital	402	395	402	394	275	271
Ordinary share premium	10 721	9 727	10 465	9 892	4 801	4 536
Reserves	19 070	14 994	11 623	8 051	6 571	12 239
Total equity attributable to equity holders of
the parent	30 193	25 116	22 490	18 337	11 647	17 046
Minority shareholders' equity attributable to:
- ordinary shareholders	1 511	1 202	1 049	680	652	503
- preference shareholders	3 421	3 070	2 770	2 770	2 802	1 987
Total equity	35 125	29 388	26 309	21 787	15 101	19 536
Derivative financial instruments	11 432	12 904	17 055	27 781	28 206	50 233
Amounts owed to depositors	384 541	324 685	261 311	250 747	238 404	228 209
Other liabilities	34 225	37 847	32 357	13 153	12 454	8 317
Liabilities under acceptances	2 251	2 577	1 291	1 509	835	1 120
Current taxation liabilities	337	434	466	193	144	183
Other liabilities held for sale		417
Deferred taxation liabilities	1 616	1 649	959	1 143	2 731	1 710
Long-term employee benefit liabilities	1 157	1 215	1 071	1 109
Investment contract liabilities	5 846	5 278	4 166	3 109	5 152	7 891
Long-term debt instruments	12 326	8 518	7 273	7 309	10 086	7 568
Total liabilities	453 731	395 524	325 949	306 053	298 012	305 231
Total equity and liabilities	488 856	424 912	352 258	327 840	313 113	324 767
Guarantees on behalf of clients	20 579	15 250	11 064	10 770	12 403	12 403

* Before conversion to IFRS.

Income statement

for the year ended 31 December


Rm	2007	2006	2005	2004	2003*	2002*
Interest and similar income	42 001	28 521	23 234	22 789	28 141	23 607
Interest expense and similar charges	27 855	17 558	14 705	15 644	21 333	17 652
Net interest income	14 146	10 963	8 529	7 145	6 808	5 955
Impairments charge on loans and advances	2 164	1 483	1 189	1 217	2 063	1 067
Income from lending activities	11 982	9 480	7 340	5 928	4 745	4 888
Non-interest revenue	10 446	9 468	8 469	8 099	6 537	5 606
Operating income	22 428	18 948	15 809	14 027	11 282	10 494
Total operating expenses	13 489	11 886	11 017	10 939	10 344	7 559
Operating expenses	13 341	11 740	10 469	10 314	9 950	7 366
Merger and recovery programme expenses			155	625	394	193
BEE transaction expenses	148	146	393
Indirect taxation	305	345	223	470	359	275
Profit from operations before non-trading
and capital items	8 634	6 717	4 569	2 618	579	2 660
Non-trading and capital items	111	124	701	-254	(1 655)	(1 601)
Profit from operations	8 745	6 841	5 270	2 364	(1 076)	1 059
Share of profit of associates and joint ventures	239	153	167	147	132	162
Profit before direct taxation	8 984	6 994	5 437	2 511	(944)	1 221
Direct taxation	2 343	1 933	1 140	629	390	143
Profit for the year	6 641	5 061	4 297	1 882	(1 334)	1 078
Profit attributable to:
Equity holders of the parent	6 025	4 533	3 836	1 528	(1 600)	875
Minority interest - ordinary shareholders	344	309	233	125	133	203
Minority interest - preference shareholders	272	219	228	229	133
	6 641	5 061	4 297	1 882	(1 334)	1 078
Headline earnings	5 921	4 435	3 167	1 743	55	2 476&n