The group achieved 90% or more on six of the nine focus areas listed in its employment equity targets.

The African senior and middle management targets were not achieved in 2010, while Imperial Bank continued to impact negatively on the overall levels within the junior management category.

A major challenge is the establishment of a robust talent pipeline for senior management and executive-level transformation and the appointment of Africans at middle and senior management levels.

The rising cost of attracting and retaining talent within designated groups remains a challenge to the achievement of transformation targets.

The following market share changes occurred for key products:

• Home loans declined from 17% to 16,7% in line with the group’s portfolio tilt strategy that emphasises areas with strong economic profit;
• Vehicle and asset finance,including MFC, increased from 29,1% to 31,8%; and
• Nedbank personal loans decreased slightly from 14,4% to 14,2%, while maintaining the second largest market share of the big four banks.

Share of the deposit market was a strong 22% at year-end.

Nedbank Retail was able to attract some 96 000 new primary clients, 7,4% more than in the previous year, with a total client base of 4,5 million (during 2010 the group underwent a review of the active client base and excluded accounts that have been dormant for long periods from the overall client base).

The number of Mzansi clients increased by 27% to 1 017 million after restating the base for the closure of dormant Mzansi accounts.

In partnership with Vodacom, Nedbank launched the M-PESA mobile banking solution in South Africa. M-PESA is an affordable and easy-to-use entry-level offering that is a complementary product to Mzansi.

Nedbank Wealth achieved a significant earnings increase pursuant to good growth from the Insurance Division, excellent asset management performance and progress against the strategy implemented after the former Old Mutual joint venture buyout.

• Warranty, topup, tyre and rim in MFC (short term)
• Credit guarantee in Nedbank Namibia (short term)
• Fully underwritten product 360life and the wellness programme become (life)
• Credit life sales into MFC clients (life)

• Best of Breed international

• Best of Breed Asset Management International
• International Trust: Qualifying Recognised Overseas Pension Schemes

• Fairbairn Private Bank received the award of Best International Bank and Wealth Manager at the International Fund and Product Awards 2010 for the offshore financial services industry.
• Nedgroup Investments was:
  – placed second in the PlexCrown Survey;
  – won the Morningstar Best Large Fund House Award;
  – placed second in the Raging Bull Awards for Best Domestic Management Company;
     and
  – received individual recognition for a number of funds.

Maintained the largest property finance market share among banks in South Africa, while maintaining a high-quality portfolio.

• Global Trade Review Best Deal award for FirstCape Vineyards.
• Euromoney Project Finance Deal of the Year award for Bakwena in the Transport and Public-private Partnership category.
• Three Dealmakers awards,including second place in mergers and acquisitions activity (Investment Advisers and Sponsors categories).
• Fourth-ranked mining project financelead arranger in the world in Ernst &Young Mining Eye Report.
• Debt origination team ranked third in the SA Corporate Bond Underwriter League tables.

Client satisfaction statistics are improving significantly and client loyalty is at an all-time high.

People metrics improved significantly, despite the challenging financial and economic circumstances.

Nedbank Retail grew its number of primary clients by some 96 000, which is 7,4% more than in 2009.

Nedbank Business Banking net primary-banked client acquisition improved 35% year-on-year.

During 2010, Nedbank Retail once again improved its client management capability, by achieving a CMAT™ score of 49 which is within the top decile of the CMAT™ business database comprising over 760 companies worldwide.

Nedbank Retail also showed a material improvement on its key client experience scores as measured in an independent banking industry study.

Good progress was made in Nedbank Corporate in improving most scores in the 2010 StarTrack Client Survey. Ranked first in five of the seven most important aspects of client needs.

In 2010 significant investment was made to expand the group’s distribution footprint with
an additional 409 ATMs, 17 branches, 13 Personal Loans branches and 70 kiosks as well
as 69 outlets in retailers.

The business retained its share of public sector liabilities and exceeded the targets for non-interest revenue (NIR) and asset growth.

Various banking initiatives were implemented that align with the vision of providing clients with a one-bank experience across the African continent. This included the enabling of Ecobank regional cards on Nedbank ATMs in South Africa.

Revenue is being generated as a result of an effective client engagement approach supported by streamlined operational processing.

Client activity in sub-Saharan Africa increased significantly during 2010 and is reflected in the increased pipeline, transactional revenue and account openings that have been recorded across the business clusters.

Maintained a strong risk culture underpinned by sound risk governance and endorsed by the Enterprisewide Risk Management Framework.

Received approval of the Advanced Management Approach for operational risk and Internal Measurement Approach for market risk by the South African Reserve Bank.

Bolstered scarce resources to manage quantitative risks (credit, operational and market risk) with new skilled appointments.

Instituted new controls to coordinate risk management of credit and market risks.

Managed risk (and opportunity) to ensure Nedbank Group’s preparedness for the FIFA 2010 World Cup.

Maintained sound regulatory relationships and received good feedback from regulators and government stakeholders. Particular emphasis placed on strengthening the relationship between the board and Executive Committee.

Managed the group within its risk appetite.

Actively participated in the finalisation of section 136(2) of the new Companies Act.

Group Forensics and Risk Services remained worldclass, with significant reductions in robberies and ATM bombings. Improved physical security and bolstering of forensic skills.

Capital adequacy ratios maintained above their target ranges.

The health and equity of the brand continued to show strong and consistent improvement
in all key brand metrics as measured in externally sourced brand-tracking studies.

Mass market advertising and group sponsorships played the most visible and impactful role
in supporting the group’s brand building goals. In its third year the Nedbank Cup soccer
knockout tournament once again had notable impact and made an important contribution
to improving brand saliency and positively influencing market perceptions. The Cup final
was a sellout and attracted the largest TV audience in the history of the event.

The Nedbank Golf Challenge celebrated its 30th anniversary, with very positive media,
public and client reaction.

Nedbank Group’s positioning as the green bank and leader in environmental care was
significantly enhanced and projected during the year by a number of high-profile and
high-impact initiatives. A major highlight was the achievement of carbon-neutral status
in August.

The World Wide Fund for Nature Nedbank Green Trust marked the 20th anniversary of its
partnership with Nedbank Group. Over R100 million has been invested in climate change
and many conservation projects.

• SouthAfrican Carbon Disclosure Leadership Index: 2010 – recognised as a leader in the Performance category and placed third in the Disclosure category.
• Dow JonesWorld Sustainability Index (one of 23 banks worldwide and three SA companies).
• JSE Social Responsibility Index.
• Ranked in the top third on the Global 1000 Sustainable Performance Leaders Index (third-highest SA company).
• Green building 4-star rating for the second phase of the group’s headoffice.

• Emerging Markets Sustainable Bank of theYear for Middle East andAfrica: 2007, 2008 and 2010.
• 2009 Sustainability Report was rated as excellent in the Ernst &Young Excellence in Sustainability Reporting Awards.
• Climate Change LeadershipAwards:Winner Corporate Services Sector.
• Runner-up in the‘Best Employee Community Involvement Programme in the Mail & Guardian 2010 Invest in the Future and the Southern Africa Trust Awards.

• growth of 23,3% in clients registered with the programme; and
• year-on-year growth of 13,8% in donations to the affinity partners.