OBJECTIVES FOR 2013 AND BEYOND

• Driving transformation to create a diverse workforce in an inclusive environment.
• Development and retention of key black talent to create bench strength for senior black managers through recruitment, retention and accelerated development.
• Continued enabling of a unique, innovative and client-centred culture through the development of a long-term employee engagement strategy with the aim of activating Nedbank brand ambassadors to enhance the client experience.
• Ongoing building of personal and team leadership effectiveness through the Leading for Deep Green (LFDG) programme.
• Embedding the Integrated Talent Framework – including succession planning and talent acquisition, together with revitalising the EVP.
• Reviewing and enhancing the Nedbank reward, performance and benefits strategies in support of a differentiated employee proposition.
• Creating a learning organisation to support employee development and the achievement of business objectives.
• Building functional expertise in prioritised job roles through job-family-related learning academies.

OBJECTIVES FOR 2013 AND BEYOND

• Retaining and growing primary-banked clients and increasing share of wallet, emphasising portfolio tilt.
• Ongoing repositioning of Nedbank Retail.
• Becoming the leader in business banking for SA.
• Becoming the public sector bank of choice.
• Continuing as one of the top two wholesale banks.
• Ramping up the wealth management, asset management and insurance businesses.
• Delivering on the creation of a single Nedbank Group high-net-worth proposition.
• Continuing to focus on client needs and the provision of customised and innovative solutions.
• Continuing to leverage the existing brand position in green products and solutions.
• Exploring new growth opportunities within SA and across the continent and further leveraging the alliance with Ecobank.

OBJECTIVES FOR 2013 AND BEYOND

• Weak global economic environment resulting in SA's low GDP growth of 2,5% for 2012 compared with 3,1% in 2011.
• A 50 basis point interest rate cut in July 2012 led to endowment income pressure.
• Muted advances growth:
• consumer debt to disposable income remains high at 75%; and
• lack of business confidence reflected in purchasing managers' index of 47,4 (2011: December 50,3).

OBJECTIVES FOR 2013 AND BEYOND

International and local regulatory reform (in particular Basel III and Twin Peaks) has materially increased capital levels and liquidity costs, and internationally is changing business models. Regulatory risk remains high, but there is now less uncertainty due to Basel III being substantially finalised by BIS and SARB, while Twin Peaks is expected to be finalised in 2013 with an ongoing emphasis on consumer protection. To meet the stringent requirements of all regulators fully Nedbank Group will:

• Maintain good, regular and transparent relationships with all regulators.
• Ensure compliance with all legal and regulatory requirements.

A comprehensive risk strategy is in place and forms an integrated component of the group's business plan. The salient features include continuing to evolve the strong risk culture, the Enterprisewide Risk Management Framework (ERMF), risk and balance sheet management and building of worldclass risk management, with particular emphasis on maintaining strong relationships with regulators.

OBJECTIVES FOR 2013 AND BEYOND