Group Interim Results Presentation 31 March 2002

Contents of presentation Background and environment Interim results Nedcor offer

Environment Turmoil in the banking sector - liquidity - microlending Volatility in the Rand Interest rate increases Consolidation in the banking sector

Turmoil in the Banking Sector A number of banks have failed and this has precipitated a flight by depositors to the large banks 01-Feb-99 NRB placed under curatorship 25-Oct-99 Both TFS and FBC Fidelity placed under curatorship 01-Mar-00 PSG acquires TBB after threat of curatorship 28-Jun-01 Regal placed under curatorship 09-Feb-02 Saambou placed under curatorship 15-Jan-02 Unifer shares suspended 22-Apr-02 Nedcor offer to BoE shareholders BANKS INDEX 14-Mar-02 SARB guarantees BoE depositors 6/8-Mar-02 Brait and Corpcapital return banking licences

Conflicting Demands from Different Stakeholders Higher growth Optimal banking model High ROE Optimal capital structure Lower risk or higher rates Require surplus capital Critical mass Equity investorsDepositors There is an increasing conflict for banks between the demands of depositors versus equity investors Can this be resolved ?

Sequence of Events Restructuring of the business & funding profile in past two years Initial discussion on sale of NBS Home Loan book Bad debt problems at Unifer Saambou curatorship Liquidity issues regarding NBS/BoE SARB announcement & guarantee of BoE depositors Sale of NBS Home Loan book Nedcor offer

What BoE’s focus has been Unbundling non-core businesses Returning excess capital - unbundling - special dividend - buy-backs Deploying excess capital through acquisitions Disposing of underperforming assets Objective to increase ROE

Group Results % Change March 2002 March 2001 Headline earnings (R’m) (4) Dividend per share (cents) Margin (%) Cost to income ratio (%) Non-interest income:total income (%) Assets under management (R’m) Weighted average no. of shares (‘m) n/a Headline EPS (cents) Fully diluted headline EPS (cents) Return on equity (%)

Why the Interim Results are Flat Higher provisions in retail divisions Lower margins - liquidity pressure - competitive pressure Lower asset growth - retail division - environment Home loan business continued operating losses prior to sale

Segmental Contribution Corporate Banking63% Investment Management20% Retail Banking 1% Capital & Investments16% Headline Earnings R’m Cost to Income % ROE % Corporate Banking Investment Management Retail Banking Capital & Investments Retail division turnaround taking longer than expected

Cost Containment R’m March 2002 March 2001 % Change Cost to income ratio Adjustment for acquisitions (210) Cost to income ratio impacted by share buy-backs and new businesses acquired % 53.9% Operating expenses

Conservative Provisioning Levels of provisions increased to reflect changed environment March 2002 September 2001 ANALYSIS OF ASSET QUALITY AND PROVISIONS FOR DOUBTFUL DEBTS % of Gross R'm Advances R'm Advances Gross advances Non-performing advances Non-performing loans Properties in possession Total doubtful debts provisions Specific provisions and interest in suspense General provisions Bad debt charge to the income statement

Income Drivers Margin / advances Other income Overheads / advances Bad debts / advances Sub total 1 – tax rate Advances / total assets ROA GEARING ROE 3.6% 9.2% 17.7% % 72.8% 2.2% 53.9% 36.3% -1.5% % % multiply = = bad debts / margin cost / income less March 2002 ROE improving although still below target of 20% 4.2% 8.4% 16.2% % 69.6% 2.6% 51.7% 23.8% -1.1% % % multiply = = bad debts / margin cost / income less March 2001

NBS Home Loan Division Capital ItemsR’m Direct deal costs Staff retrenchments/redundant systems Provision for future costs Includes provisions for retrenchments, closure costs and future realisation of residual assets Loss on sale of book 53

Summary Balance Sheet March 2002 September 2001 R'm ASSETS Investments Advances Other assets EQUITY AND LIABILITIES Capital and reserves Interest-bearing borrowings Life funds liabilities Deposits and other accounts Other liabilities Movements since year end: NBS Home Loan book sold (R m) Cashbank book purchased R422 m Organic growth R2 105 m Includes home loan debtor of R6 808 m Movements since year end: Net share buybacks (R529 m) Headline earnings R551 m Exceptional items (R365 m) Dividends paid (R272 m) Balance sheet expected to reduce as proceeds from home loan sale are received

Bank Capital Adequacy Capital adequacy within target range for the Bank Group still has excess capital Capital adequacy within target range for the Bank Group still has excess capital March % 1.1% 11.3% % 2.3% 8.9% September 2001 Tier 1 - Primary Tier 2 - Secondary Risk weighted assets (R’m)

Gross Advances Sale of home loan book Advances growth in focus areas Sale of home loan book Advances growth in focus areas R’m March 2002 September 2001 % Change Mortgage advances - Commercial Residential properties - Residential developments Corporate loans Instalment credit agreements Interbank Properties in possession Other advances (66) (26) (38)

Deposits R'm Interbank funding Demand deposits Savings deposits Fixed and notice deposits NCD’s issued Foreign funding Loans received under repurchase agreement Foreign loan syndication Domestic bond issue Other funding liabilities Total deposits March 2002 September 2001

Deposits (continued) % of total R'm Wholesale funding 67% % Retail funding 33% % BoE Private Bank BoE Bank Business Division BoE Corporate NBS Savings & Investments Total deposits March 2002 September 2001 % of total Change in funding profile is putting pressure on the Group

Corporate Banking Services BoE Merchant Bank - strong earnings - good deal flow BoE Corporate - good earnings - private equity realisation - managing old NBS commercial loans BoE Bank Business Division - improvements in business are continuing BoE Treasury - difficult trading due to volatility - good results in circumstances 25% earnings growth and 25% ROE 63%

Significant growth prospects off a low base Investment Management Business 20% Strong offshore earnings Good results from new acquisitions Net inflows of assets Integration progressing well

Off Balance Sheet Assets Under Management R’bn

Integration should lead to a medium term improvement in earnings Retail Banking Services Tough trading conditions NBS Home Loan sale Review of provisions and processes in Credcor Integration starting 1%

Nedcor Offer Rationale for deal: A set of strong businesses that are hampered by current liquidity pressure, potential damage to brand and uncertainty about the future Changed environment for smaller banks Global trend of consolidation Provide a measure of certainty for staff and clients Reduce risk for shareholders Certainty, security and opportunity

Thank You

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