Financial Results for the year ended 31 December 2002

1. Financial Results for the year ended 31 December 2002

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

3. Year in review Richard Laubscher

4. The year in contextMacro 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

8. Segmental performances

9. Acquisitions and alliances’performance (Rm) % 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 integrationEarly 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 20 000 employee positions finalised • Operational merger going to plan

12. 1 Jan 2003 V.1 Final Major merger milestones 2003 2004 2005 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Activity 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

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 earningsyear ended 31 December 2002 2002 2001 % ch % ch* Rm Rm* Rm Net interest income +20 +12 6 300 5 874 5 268 Non-interest revenue +37 +15 6 929 5 833 5 054 Total income +28 +13 13 229 11 707 10 322 Provisions +68 +62 1 778 1 712 1 058 Net income +24 +8 11 451 9 995 9 264 Expenses +36 +13 7 334 6 140 5 416 Net operating income +7 – 4 117 3 855 3 848 Taxation -25 -26 580 569 772 Net income after taxation 15 7 3 537 3 286 3 076 Associate income -11 -18 162 148 181 Minorities 103 103 (333 (333 (164 Core earnings +9 – 3 366 3 101 3 093 Core eps +4 -5 1 330 1 226 1 284 ) ) ) *Excluding BoE

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

17. Core earnings to headline earnings Dec Dec % 2002 2001 change Rm Rm Core earnings 9 3 366 3 093 Translation gains/(losses) (1 011 1 096 General risk provision 400 (400 Merger costs (170 – Headline earnings -32 2 585 3 789 Headline eps -35 1 022 1 574 ) ) )

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) 984 Attributableincome 13 389 Attributableeps 5

20. Goodwill and capital writedowns 2002 2001 Rm Rm Goodwill 501 273 BoE 214 – The Internet Solution – 131 IQ Business Group 58 21 Other T&O investments 59 74 MBCA (Zimbabwe) 36 – Other goodwill 134 47 Impairments 119 34 Investment sold 58 – Total 678 307 Handout only

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

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

23. Analysis of provisions by activity % 2002 2001 change Rm Rm Retail Banking 1 417 411 Peoples Bank 73 59 34 Commercial (21 160 202 Imperial Bank 64 105 64 Cape of Good Hope Bank (19 29 36 Corporate (18 50 61 NIB (25 30 40 Other 11 105 (10 861 953 Microlending 550 195 30 SME Book 775 656 75 BoE 66 – 68 1 778 1 058 ) ) ) ) )

24. SME ringfenced collection book Trading Start statement Now Rm Rm Rm Carrying value 700 700 698 Estimated collections (220 (64 (42 480 636 656 Planned provisioning 480 636 656 2002 – normal 190 190 190 – additional – 400 4662003 200 46 –2004 90 – – ) ) )

25. Non-performing loans Dec 2002 June 2002 Dec 2001 % % % Rm adv Rm adv Rm adv Non-performing loans 8 001 4,0 7 014 4,4 6 974 4,4 Expected recoveries 3 836 2,0 3 603 2,3 3 473 2,2 Expected losses 4 165 2,0 3 411 2,2 3 501 2,2 Provisions (coverage) 6 553 3,1 4 691 3,0 5 154 3,3 Adequacy of provisions – Gross coverage (%) 82 67 74 – Net coverage (%) 157 138 147

26. Capitalised development costs 2002 2001 Opening balance 881 480 Development expenditure 386 549 Commissioned (772 (148 Closing balance 495 881 Software amortisation 182 92 ) )

27. Capital adequacy 2002 2001 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 adjustmentsPost-tax Rm Net asset value – 31 March 2002 6 058 Headline earnings April – June 2002 97 Exceptional items (173 Net asset value – 30 June 2002 5 982 Fair value adjustments (899 Accounting policy alignments (170 Adjusted net asset value as at 30 June 2002 4 913 ) ) ) 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. 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% Indicative new segmental

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 No. of clients : 1 700 Market share : ± 22% Corporate Banking R250m turnover Business Banking No. of clients : 25 000 Market share : ± 24% R5m turnover

35. Nedbank Corporate

36. Nedbank Corporate Assets No. of (Rm) people Corporate Banking 36 600 310 Business Banking 22 300 3 720 Corporate Finance – 30 ENF – 200 Capital markets 10 700 350 Property & Asset Finance 25 000 1 200 International & Africa 23 200 670 Treasury 34 000 340 Total 151 800 6 820

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

45. Strategic review (continued) Tom Boardman

46. Nedbank Retail & Wealth Management

47. View of the market BoE 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 17 000 clients Income > R500 000 p.a. Assets > R3 million Nedbank Personal Banking 85 000 clients Income > R200 000p.a. Nedbank Retail 719 000 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%