1. Financial Results
for the year ended 31 December 2002

2. Programme Year in review Financial review Strategic review Prospects
Richard Laubscher
Financial review
Stuart Morris
Strategic review
Derek Muller & Tom Boardman
Prospects

3. Year in review
Richard Laubscher

4. The year in context Macro issues
Microlending malaise
Small bank crisis
Industry consolidation
International bank departures
Rising inflation and interest rates
Strengthening Rand
Community Reinvestment Act and Financial Charter mooted
Mortgage originators and integrators
A challenging year

5. Strategic initiatives
Acquisition of BoE
Acquisition of NIB minorities
Integration of banking subsidiaries
New operating structures developed
Enhanced capital structure
Wealth Management rationalisation
Old Mutual Bank JV refined
Acquisition of Planet Finance
Created a stronger group

6. Strategic scorecard Acquisitions BoE  Imperial 
Gerrard Private Bank 
FBC Fidelity 
ENF 
Didata 
Alliances
Old Mutual Bank/Bancassurance 
Pick ’n Pay Go Banking 
JD/Capital One microlending market 
Amex/Capital One 
Outsourcing 

7. Year in review Core earnings up from R3,1bn to R3,4bn
Core eps up 4% to 1 330c
Organic growth in interest-earning assets +17% boosted to +31% by BoE
Topline revenue growth
Organic: NII +12% NIR +15%
Acquired: NII + 8% NIR +22%
Expense growth
Organic: +13% Acquired: +22%
R266m net contribution from BoE
Net profit of R520m offset by funding cost of R254m
Provisions – SME & Microlending
Gerrard Private Bank contributed 1% to organic expense growth

8. Segmental performances
% ch
2002
2001
Nedbank Retail
+87
353
189
Nedbank Commercial
-56
256
579
Nedbank Corporate -8
866
945
Nedbank International
-30
112
161
Peoples Bank
+53
299
195
NIB
+22
760
625
Cape of Good Hope Bank
+26
120 95
T&O Strategic Investments
-171
(32) 45
Group Operations
+24
238
192
Retail : small base. Total contribution R318m
Commercial: Once-off write offs R310m net
Corporate: R50m transfer cost swing on Custodial
Over R100m due to rate hikes
International: Stronger Rand and ???
Peoples Bank: Exceptional provisions R21m NET offset by debit deferred tax R185m

9. Acquisitions and alliances’ performance
% ch
2002
2001
BoE (net of funding)
265
Imperial Bank
+94 72 37
Gerrard Private Bank
+83 56 30
Bancassurance initiatives
+72
110 64
JD/Capital One
-213
(47)
(15)
Pick ’n Pay Go Banking
-44
(39)
(27)
Amex/Capital One
(25) 2

10. Merger and integration
Group restructure triggered by:
BoE purchase for R7,7bn
NIB minorities buyout
Synergy estimates of R905m per annum by 2005
Regulatory approvals for merger finalised
R9,2bn new capital raised, enhancing capital structure
Ordinary capital R3,2bn
Subordinated debt R4bn
Preference shares R2bn

11. Merger and integration Early successes
Legal Day One successful
Key decisions on product offering made
Future technology architecture agreed
Healthy funding flow back into BoE
NBS deposits 103%; Probanker 100%; Business Banking book 107%; BoE assets 115%; no large depositor concentration issues
Client and staff retention good
Initial staff survey very positive
Nine sets of terms & conditions and nine payrolls into one from 1 April 2003
Employee Development & Deployment Centre up and running
Over employee positions finalised
Operational merger going to plan

12. Major merger milestones
2003
2004
2005
Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Legal Day One
Migration planning
Wealth Management LDO
Product offering decision
Treasury integration
Capital markets integration
Systems architecture design
Payroll integration
CoGH integration into Nedbank retail
Credit Life integration
BoE Business Bank customer migration
PEP Bank integration into Peoples Bank
Cashbank integration into Peoples Bank
Consumer credit reorganisation
Peoples Bank branding developed
Private Wealth completion
CIS (unit trusts) integration
International rationalisation
Peoples Bank platform upgrades
NBS integration into Peoples Bank
Property & Asset Finance integration
Business Banking integration
1 Jan 2003
V.1
Final

13. Financial review
Stuart Morris

14. Disclosure BoE and NIB separately disclosed
BoE pre-acquisition adjustments
Pro forma segmental in Annual Report
AC133 effective 1 January 2003

15. Income statement: core earnings year ended 31 December
% ch % ch* Rm Rm* Rm
Net interest income
Non-interest revenue
Total income
Provisions
Net income
Expenses
Net operating income +7 –
Taxation
Net income after taxation
Associate income
Minorities (333 (333 (164
Core earnings +9 –
Core eps ) ) )
*Excluding BoE

16. Income statements year ended 31 December
2002 Rm
NIB
BoE*
contribution
BoE*
Funding
BoE*
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
365
426
(363)
789
1 173
1 096 -
1 096
1 538
1 522
(363)
1 885 30 66 - 66
1 508
1 456
(363)
1 819
515
1 194 -
1 194
993
262
(363)
625
(150) 10
(109)
119
843
252
254
506 9 14 - 14 92 - - -
760
266
254
520
* July – December 2002
Handout only

17. Core earnings to headline earnings
Dec Dec %
change Rm Rm
Core earnings
Translation gains/(losses) (
General risk provision 400 (400
Merger costs (170 –
Headline earnings
Headline eps ) ) )

18. Rand appreciation 99 00 01 02

19. Headline earnings to attributable income
Dec
2002 Rm
Dec
2001 Rm
Headline earnings
2 585
3 789
Didata revaluation
(1 080)
(3 298)
Goodwill
(501)
(273)
Other impairments
(177)
(34)
Merger costs
(35) –
Taxation
192
(171)
Attributable income
984 13
Attributable eps
389 5

20. Goodwill and capital writedowns
Rm Rm
Goodwill
BoE 214 –
The Internet Solution – 131
IQ Business Group
Other T&O investments
MBCA (Zimbabwe) 36 –
Other goodwill
Impairments
Investment sold 58 –
Total
Handout only

21. Net interest income Rm %
+19,6%
+11,3%
+11,1%
+8,6%
+10.4%

22. Non-interest revenue Rm %
+37,1%
+29,0%
+23,1%
+23,0%
+8,6%

23. Analysis of provisions by activity%
change Rm Rm
Retail Banking
Peoples Bank
Commercial (
Imperial Bank
Cape of Good Hope Bank (
Corporate (
NIB (
Other (
Microlending
SME Book
BoE 66 – ) ) ) ) )

24. SME ringfenced collection book
Trading
Start statement Now
Rm Rm Rm
Carrying value
Estimated collections (220 (64 (42
Planned provisioning
2002 – normal – additional – – – – ) ) )

25. Non-performing loans Dec 2002 June 2002 Dec 2001 % % %
% % %
Rm adv Rm adv Rm adv
Non-performing loans , , ,4
Expected recoveries , , ,2
Expected losses , , ,2
Provisions (coverage) , , ,3
Adequacy of provisions
– Gross coverage (%)
– Net coverage (%)

26. Capitalised development costs
Opening balance
Development expenditure
Commissioned (772 (148
Closing balance
Software amortisation ) )

27. Capital adequacy 2002 2001 Rbn %* Rbn %* Tier 1 14,5 7,0 14,1 8,6
Rbn %* Rbn %*
Tier 1 14,5 7,0 14,1 8,6
– Ordinary capital & reserves 12,5 6,0 14,1 8,6
– Preference capital 2,0 1,0 – –
Tier 2 8,5 4,0 4,6 2,8
– Callable notes 6,0 2,6 2,0 1,2
– Other 2,5 1,4 2,6 1,6
Total 23,0 11,0 18,7 11,4
*Percentage of risk-weighted assets

28. BoE acquisition Rbn Purchase consideration 7,7
Adjusted net asset value
4,9
Goodwill
2,8

29. BoE pre-acquisition adjustments Post-taxRm
Net asset value – 31 March
Headline earnings April – June
Exceptional items (173
Net asset value – 30 June
Fair value adjustments (899
Accounting policy alignments (170
Adjusted net asset value as at 30 June ) ) )
Handout only

30. Embedded value Rm 2002 Shareholders’ net assets 566
Value of in-force business 59
Embedded value 625
Value of 15 months’ new business 1
Embedded value earnings as a % of opening embedded value* (4,7%)
*Embedded value earnings negative due to change in assumptions
Handout only

31. Indicative new segmental
Earnings Assets
Nedbank Corporate 71% 70%
Corporate Banking 23% 15%
Commercial Banking 19% 11%
Property Finance 8% 14%
International 6% 9%
Imperial Bank 3% 4%
Treasury 3% 12%
Other 9% 5%
Retail 8% 20%
Wealth Management 6% 5%
Retail Banking 2% 15%
Peoples Bank 4% 3%
Capital & Group Services 17% 7%

32. Strategic review
Derek Muller

33. Nedbank Corporate
We are an integrated corporate and investment bank offering a full range of services (advisory, debt, equity, and transactional banking) to large and mid size corporates, based on strong enduring relationships, driven by innovative solutions and leading edge technology

34. Nedbank Corporate Corporate Banking Business Banking
No. of clients :
Market share : ± 22%
Corporate
Banking
R250m turnover
Business
Banking
No. of clients :
Market share : ± 24%
R5m turnover

35. Nedbank Corporate

36. Nedbank Corporate Assets No. of (Rm) people
Corporate Banking
Business Banking
Corporate Finance – 30
ENF – 200
Capital markets
Property & Asset Finance
International & Africa
Treasury
Total

37. Nedbank Corporate Quality asset growth of 12% RoE 21%
Excellent credit management with low levels of specific provisions for the year
Strong growth in black empowerment transactions
Global trade achieved significant market share gains
Nedbank Investor Services ranked the premier custody services provider
Handout only

38. Nedbank Treasury Successful integration of treasury rooms
Integrated six back offices into central processing area
Foreign currency trading profit up 33% on prior year
Total trading profit up 16% on prior year
Handout only

39. Nedbank Commercial
Asset growth of 11% to R16bn Star performer was instalment credit (+18%)
Client deposits up 27% to R25bn
NIR growth of 12% to R767m. Exceptional performance in electronic banking and global trade
Handout only

40. Nedbank International
African subsidiaries NPAT up 54%
African associates down 29% (MBCA; HSBC Equator; SBM)
Hong Kong NPAT down 26%
London NPAT down 17%
Focus on trade finance & private banking
Handout only

41. Nedbank Corporate Strategic objectives 2003
Create a common culture
Build on our intellectual capital/ advisory capacity
Build on our very strong corporate relationships
Maximise our regional strengths
Deeper penetration of the mid-market
Greater focus on public sector
Commitment to growth in Africa and offshore
Total commitment to black economic empowerment

42. Nedbank Corporate Integration update
Treasury consolidation completed 1 February 2003
Systems selected
No funding difficulties
No clients lost
Lost very few senior people
Change management: roadshows/workshops

43. Some recent deals Southern Sun/Tsogo Sun – funding
Cell C – funding & swaps
African Legend/Caltex – advisor
Resilient Properties – listing
Harmony/African Vanguard – advisor
Sandton Towers – property structure
Sasol Service Stations – funding
Telkom IPO – legal advisor
ICC/World Cup – legal advisor

44. Synergy estimates Handout only 18 43 - 12 62 135 Capital Markets
Business Banking
Corporate Banking
Finance & International
Treasury
Total
Property & Asset Finance 62
Handout only

45. Strategic review (continued)
Tom Boardman

46. Nedbank Retail & Wealth Management

47. View of the market BoE Nedbank Retail Nedbank Corporate
Top 300 listed corporates,
government, institutions
High net worth
Medium size listed,
unlisted, professionals
Nedbank Retail
Nedbank Corporate
Middle income
Old Mutual Bank
Owner managed
Pick ‘n Pay Go Banking
Peoples Bank
Informal sector
Mass market
Businesses
Individuals

48. SA Retail market Nedbank Private Banking 13 000 clients BoE
Income > R p.a.
Assets > R3 million
Nedbank Personal Banking
clients
Income > R p.a.
Nedbank Retail
clients
Income > R36 000p.a.
Income-based
classification
Asset-based
classification

49. Nedbank (Retail) – highlights
Strategy development started in 2000, focusing on 3 main issues:
Create appropriate working environment
Build sustainable competitive advantage
Fix poor performance
Detailed 5-year plan, ahead of plan at end 2002

50. Nedbank (Retail) Financial highlights
Retail Division has delivered outstanding results for 2002:
Client assets +11%
NII +18%
NIR +13%
Expenses +12%
NIAT +87%

51. Nedbank Retail Integration update
Moved product teams to a new “shared service” Product Division
Moved Unit Trust Company to Wealth Management
Move of Wealth Management from Nedbank Private Bank to Wealth Management – in progress
Move of Cape of Good Hope Bank branches, staff and retail clients into Retail Division – well on track
Integration of Manager Direct into Nedbank Retail
Financial performance – Core costs well contained (+6.9% on 2001)
Process culture – Roll out of process culture according to plan
M&R Integration – Sales/Service model agreed; All managerial positions (1550) advertised; complete structure of approx in place by December
Digitisation – Aggressive delivery on technology related projects (82 delivered vs 71 in 2001; value commissioned R772m)
CAMSII (1mill cards)
Alpha cost savings (R400m since 1999)
NetBank (SMS security for payments, digital cheque images)
International – European initiative in progress
Handout only

52. Pick ’n Pay Go Banking Phase 3 commenced July 2002
236 Go Bankers in 14 Hypermarkets and 113 Supermarkets
In-store card delivery
Exclusive discounts
accounts / new applications per week
Financial performance – Core costs well contained (+6.9% on 2001)
Process culture – Roll out of process culture according to plan
M&R Integration – Sales/Service model agreed; All managerial positions (1550) advertised; complete structure of approx in place by December
Digitisation – Aggressive delivery on technology related projects (82 delivered vs 71 in 2001; value commissioned R772m)
CAMSII (1mill cards)
Alpha cost savings (R400m since 1999)
NetBank (SMS security for payments, digital cheque images)
International – European initiative in progress

53. Old Mutual Bank Division of Nedbank Ltd – 50/50 JV
Leverage dominant Old Mutual brand
Banking products, systems and processes supplied by Nedcor
Sales, marketing and channel management supplied by Old Mutual
Financial performance – Core costs well contained (+6.9% on 2001)
Process culture – Roll out of process culture according to plan
M&R Integration – Sales/Service model agreed; All managerial positions (1550) advertised; complete structure of approx in place by December
Digitisation – Aggressive delivery on technology related projects (82 delivered vs 71 in 2001; value commissioned R772m)
CAMSII (1mill cards)
Alpha cost savings (R400m since 1999)
NetBank (SMS security for payments, digital cheque images)
International – European initiative in progress

54. OMB Business Opportunities
2 million OMPF customers
ex-Permanent Bank customers
No need to create a brand
Huge intermediary network
Established branch distribution network
No need to use expensive originators for mortgages 8

55. Nedcor Wealth Management
Jointly-owned Businesses with Old Mutual
Wholly-owned Businesses
Private Clients
(South Africa)
Credit Protection
(South Africa)
Retail Investment Products & Services
International Companies
(On and Offshore)

56. Nedcor Wealth Management
Jointly-owned Businesses with Old Mutual
Wholly-owned Businesses
Private Clients
(South Africa)
Credit Protection
(South Africa)
Retail Investment Products & Services
International Companies
(On and Offshore)
Scope of offering to High Net Worth Individuals:
Discretionary Portfolio Management
Private Banking
Other Investment Products
Fiduciary Services:Trusts, Wills,
Estates
Complete offering both onshore & offshore
No. of staff 554/Clients 17500/AUM R23bn

57. Private Clients business structure
Nedbank Syfrets Private Banking Wealth Mngmnt
Syfrets Trust
FTNIB Private Client Asset Mgt
BoE Private Bank
BoE Personal Stockbrokers
Old Mutual Trust
Handout only

58. Private Clients One client-centric model
Relationship Manager
Distribution
Products
• Private Client Asset Mgmnt • Stockbroking
• Structured Lending • Fiduciary
Product provision
In-sourcing products
FAIRBAIRN CAPITAL
NEDBANK
Handout only

59. Private Clients Impact of merger
Six different business models to be combined into one business - presently working with McKinsey & Co to determine optimal business model
Extended product range for clients
Off-shore opportunities with Gerrard Private Bank
Increase share of wallet of existing customers (currently single product clients only)
Economies of scale lead to decrease in relative costs
increasing profitability
eliminate duplication of operations
Handout only

60. Private Clients International joint venture
Old Mutual and Nedbank have a joint initiative in Gerrard Private Bank
Comprehensive offering to high net worth individuals
Will be BoE’s offshore offering
Full product range now available on a ‘seamless’ basis
Banking
Trust and Fiduciary Services
Investment Management
With the representative office recently opened - perfectly positioned to service clients
Handout only

61. Nedcor Wealth Management
Jointly-owned Businesses with Old Mutual
Wholly-owned Businesses
Private Clients
(South Africa)
Credit Protection
(South Africa)
Retail Investment Products & Services
International Companies
(On and Offshore)
Scope of providing banking customers with credit protection
Nedbank customers
JV and Alliances
Other banks customers
No. of staff 105 / Premium income R491m / EV R44m

62. Credit Protection Impact of merger
Single focus on credit protection
Repositioning of business as a ‘Bank Life Company’
Utilise the strengths of both shareholders
distribution from Nedbank
expertise from Old Mutual
Handout only

63. Nedcor Wealth Management
Jointly-owned Businesses with Old Mutual
Wholly-owned Businesses
Private Clients
(South Africa)
Credit Protection
(South Africa)
Retail Investment Products & Services
International Companies
(On and Offshore)
Develops, distributes and supports both international and SA investment product solutions to chosen target markets
No. of staff 80/Unit holders /AUM R7bn

64. Retail Investment Products & services
Outsourced
Support
Services
Target
Market
Retail Products & Services
Outsourced
Asset
Management SA
BoE Private Clients
BoE Trust Services
HNW Intermediaries
LISPs/FOFs
Nedbank Retail
Nedbank Corporate
Group Alliances
International
Gerrard Private Bank
Offshore Trust Companies
HNW Intermediaries
Gerrard UK
Offshore Life Companies
Both SA & International
Product research & development
All collective investment schemes
Marketing, sales, distribution support SA
BoE
Aka
Nedbank Treasury
SYmmETRY
OMAM
International
Stenham Gestinor
NIBi
Chiswell Associates
OMUS
Handout only

65. Retail Investment Impact of merger
Amalgamation of four unit trust management companies (BoE, FT-NIB, Nedbank, NIBi)
Definition of a new value proposition and product set covering active, passive, multi- managed and absolute ranges
Rationalisation of more than 50 unit trust funds
Release R30m of under-utilised capital
Distribution, marketing and operational consolidation, yielding economies of scale
Consolidated negotiation with suppliers on performance-related SLAs
Handout only

66. Nedcor Wealth Management
Jointly-owned Businesses with Old Mutual
Wholly-owned Businesses
Private Clients
(South Africa)
Credit Protection
(South Africa)
Retail Investment Products & Services
International Companies
(On and Offshore)
3 main focus areas
Private Clients
Specialised Asset Mgmt
Private Banking
No. of staff 430/Clients /AUM £4,25bn

67. International Businesses
NIBi International
Stenham Gestinor
BoE International
Fairbairn Trust
Gerrard Private Bank
Chiswell Associates
Handout only

68. International Businesses Nature of business
Private client asset gathering and management
Fiduciary services
Hedge Funds
Syndicated Property Investments
Linked Investment platform
Retail pooled investments
Asset Management - manage investments of
families
charities and small institutional funds
Gerrard Private Bank - offers clients integrated
banking
asset management
fiduciary services
treasury products
Handout only

69. International Businesses Impact of merger
Creation of one multi-management business
Stenham Gestinor Asset Management
NIBi
Rationalise the trust businesses
BoE Trust Co
SG Trustee Services (Channel Islands. Switzerland, Luxembourg)
Fairbairn Trust/Gerrard Trust
NIBi Trust Company
Integration of the management and operations of the international businesses
Handout only

70. Wealth Management Long-term opportunities
We have all the products that are needed
We have a huge client base providing growth potential
Our businesses are already profitable
Leads to rapid growth!

71. Synergy estimates Integration costs being estimated
R’m
Shared Services
127
Nedbank Corporate
135
Integration costs being estimated
Synergies will benefit the Group fully in 2005
Nedbank Retail 36
Wealth Management
103
Peoples Bank 14
T&O
245
Total
660
Handout only

72. Strategic review (continued)
Richard Laubscher

73. Peoples Bank Highlights
Total assets increased 6% despite 19% decline in FBC assets
37% increase in NIR
Net effect of “excess” provisions only R30m
R130m benefit from assessed losses
Restructuring proceeding well
Risk and compliance centralised
More than 1 million transactional clients
Total assets R12bn (R10bn in advances)

74. Technology & Operations Highlights
Financial performance
Process culture
M&R Integration
Digitisation
CAMSII
Alpha cost savings
NetBank
International – Swisscard on track
Financial performance – Core costs well contained (+6.9% on 2001)
Process culture – Roll out of process culture according to plan
M&R Integration – Sales/Service model agreed; All managerial positions (1550) advertised; complete structure of approx in place by December
Digitisation – Aggressive delivery on technology related projects (82 delivered vs 71 in 2001; value commissioned R772m)
CAMSII (1mill cards)
Alpha cost savings (R400m since 1999)
NetBank (SMS security for payments, digital cheque images)
International – European initiative in progress

75. Prospects
Richard Laubscher

76. Strategy Wealth Management International SA Banking Corporates
Individuals
Businesses
Peoples Bank
Bancassurance
Alliances
T&O platform
Outsourcing

77. The year ahead Strategic platform in place Retain and grow client base
Integrate operations
Extract synergies
Address non-performing assets
2002 low base: 2003 therefore statistically better
2004: the power in the model should evidence itself
Implementation & execution