Programme Highlights Richard Laubscher Financial review Stuart Morris Operational review Derek Muller Conclusion Richard Laubscher

Highlights Richard Laubscher Chief Executive

Highlights Headline eps up 2% to 630c Core eps up 17% to 645c South African profits up 21% to R1,3bn International profits up 8% to R277m Market share growth from 15,7% to 18,3% over 5 years

Highlights (continued) Margin down 17% (over 5 years) Credit extension: advances up 14% Flight to quality: domestic deposit growth 21% Microlending: credit-based lending approach Only genuine empowerment bank in Peoples Bank

Six-year interim review HEPS (cents per share) NAV (cents per share) Share Price ROE (%) ROA (%) Margin (%) NIR (%) Expense/Income ,50 19,9 1,40 4,05 41,7 61, ,00 20,9 1,70 3,05 48,5 53,4 5 year CAGR % 18,8 16,6 3,1

Strategy + International Gerrard Private Bank (Wealth Management Model) SwissCard Asian Trade Finance New Initiatives Bancassurance Capital One JD Group Pick ’n Pay Imperial Bank Old Mutual Bank ORGANIC (Market share) 18,3% 15,7% BoE (Market share) 23,3% 18,3% Synergies

Financial Review Stuart Morris Group Financial Director

Key messages Ongoing disclosure and transparency Sustained core earnings growth Core businesses performing well

Disclosure & transparency Speed of reporting Materiality thresholds Banking Council initiative Options – fully diluted earnings AC 133 – financial instruments

Nedcor accounting issues Translation gains/(losses) –Foreign entities – directly to reserves –Integrated operations – through income statement –“Normalised” –“Exceptional” –New exposure draft Reversal of general risk provision Computer development costs Didata mark-to-market

Rand depreciation R/USD

Income statement: core earnings six months ended 30 June % change 2002 Rm 2001 Rm – (8)(8)92100 (153) (82) Net interest income Non-interest revenue Total income Provisions Net income Expenses Net operating income Taxation Net income after taxation Associate income Minorities Core earnings

Core earnings to headline earnings % change June 2002 Rm June 2001 Rm (436) – Core earnings Translation gains/(losses) General risk provision Headline earnings Dec 2001 Rm (400) 3 794

Net interest income Rm%

Non-interest revenue 2001 Rm Commission and fees1 520 Securities and exchange trading 373 Translation (losses)/gains Other Total % change 2002 Rm (436) (2) % mix (19)

Provisions charged against income Rm%

Non-performing loans Expected recoveries Expected losses Provisions (coverage) Adequacy of provisions – Gross coverage (%) – Net coverage (%) June 2002 Rm % adv , , , ,0 June 2001 Rm % adv , , , ,4 Dec 2001 Rm % adv , , , ,3

Expenses Rm%

Total costs R714m (Dec 2001: R881m) Capitalised in terms of AC129 Projects approved per business case: –new products and services –client functionality –cost efficiencies Represents >100 projects including: Credit cardCredit risk CRM & CISTreasury risk Branch efficiencyInsurance Computer development costs

Taxation Rm%

Return on equity Rm%

Return on assets Rm %

Headline & core earnings Rm C

Operational review Derek Muller Managing Director: Business Divisions

June 2001 Rm (30) By operation South Africa Retail banking Nedbank Peoples Bank Commercial banking Nedbank Imperial Bank * Cape of Good Hope Bank Corporate and Investment banking Nedbank Nedcor Investment Bank * T & O investments Internal funding and group operations % change (21) 2121 June 2002 Rm (42) Segmental analysis

June 2001 Rm % change June 2002 Rm Segmental analysis (continued) International (including Africa) Nedcor Bank Gerrard Private Bank Nedcor Investment Bank * Core (excluding translation gains) Translation gains and exceptional items Statutory (including translation gains) By geography South Africa Rest of Africa Rest of the world Core (excluding translation gains) Translation gains and exceptional items Statutory (including translation gains) 3 13 (24) (121) 3 21 (22) (121) (36) (36)

Nedbank Retail (6% of core earnings) Major increase in bottom line Core expense growth of 2% before new ventures Mortgage arrears down 41% over 18 months Product growth rates: –Home loans 13% –Asset-based finance 28% –Card volumes 19%

Peoples Bank (8% of core earnings) Net income after tax up 28% Total advances of R7,2bn Conservative dynamic provisioning policy applied to microlending book

Nedbank Commercial (22% of core earnings) Net income after tax up 19% to R340m Margin improvement Deposits growth of 17% to R19,3bn Expense growth 3%

Cape of Good Hope Bank (3% of core earnings) Net income after tax up 16% to R50m Advances growth of 29% Efficiency ratio of 41%

Nedbank Corporate (30% of core earnings) Net income after tax up 10% to R470m Advances up 21% Margin pressure offset by volume-driven non-interest revenue growth Expenses growth of 18% – $-based costs and risk systems expenditure

International (17% of core earnings) International earnings up 8% to R277m London up 4%. Hong Kong down Singapore rapidly reaching breakeven Good performance by Gerrard Private Bank Nedbank Africa up 3% Swisscard set-up costs of R4,5m

Conclusion Richard Laubscher Chief Executive

BoE update EPS effect –Pro forma HEPS growth of 10% – excluding potential synergies –Pro forma NAV growth of 7% Work to date –Strong endorsement from shareholders –Capital structure optimised, gearing now in line with competitors –Management, operating and board structures announced –Izak Botha heading up integration with senior management team –International consultants reviewing integration plans –Client information and retention programme launched –Staff communications underway

BoE update (continued) Integration drivers –8 Banking licenses to be reduced –Integration of: statutory entities into 4 operating clusters shared services systems and infrastructure risk management –Cost of Capital and performance measurement to be consistently introduced across group –Non-core and underperforming assets to be restructured or disposed of

Conclusion Historic core competency –Optimise business –Extract costs Two year focus: –Integrate and optimise BoE –Restructure and optimise Nedcor (NIB & COGHB) Additive –Strong core performance and new initiatives

Questions

Income statement analysis 6 months ended 30 June Alliances R’ (40 884) (9 591) (31 293) Net interest income Non-interest revenue Total income Provisions Net income Expenses Net operating income Taxation Net income after taxation 2001 R’ (46 572) (9 254) (37 318) 2002

New banking initiatives 184 Peoples Bank branches clients R181m advances book Margin 5,1% Advances up 41% to R6,4bn Cost-to-income 34% microloans R1 030m advances book (40% secured) Arrears 20% Present in 215 stores 250 Go Bankers recruited Cash back launched

Old Mutual Bancassurance –Personal financial planning Net profit up 510% to R12,7m –OMBS regulatory approval outstanding –Group schemes policies sold Gerrard Private Bank contributed R24m