REVIEW OF 2012

In 2012 we improved our cultural sustainability performance as measured by non-financial key performance indicators. This was a direct result of our cultural sustainability focus of delivering on our strategic objectives. The performance scorecard below reflects the most significant performance indicators for the period under review.

REVIEW OF 2012

Nedbank's Deep Green aspiration to become a great place to bank continued to drive a 'client first' mindset across all areas of the bank. Delivering distinctive client-centred banking experiences and the ability to delight clients in every interaction with the brand remain fundamental to our growth and sustainability.

Over time all of the client-facing clusters have developed a deep understanding of their clients' needs and life stages and are delivering a choice of distinctive, client-centred offerings. The year 2012 saw the development of a number of new and refined value propositions (namely the Nedbank 4me youth offering, Personal Relationship Banking and SimplyBiz), the launch of new products (eg the Nedbank Green Savings Bond, MyFinancialLife™, MoneyTrader and JustSave), channel innovation (eg the Nedbank App Suite™ branch-of-the future concept and enhanced self-service capabilities) and refinement of processes (eg Approve-it™ and account opening in branch).

All of these contributed towards enhanced client-satisfaction metrics, increased brand strength and growth in the client base.

REVIEW OF 2012

• During 2012 Nedbank Group delivered to shareholders in multiple ways:
• Total shareholder return of 34,3%.
• Increase in price to tangible book value for the year from 1,6 times to 2,0 times.
• Second-best-performing large bank on the JSE Ltd.
• Economic profit up 63,5% to R1 511m underpinned by good revenue growth, an improving credit loss ratio and responsible expense management while investing for growth.
• Total dividend of 752 cents, up 24,3%.
• Leadership in transparent stakeholder reporting was maintained.

REVIEW OF 2012

Included in Nedbank Group's vision is to be highly regarded by its regulators. Nedbank Group's primary regulator is the Bank Supervision Department of the SARB. The SARB is highly rated internationally as a regulator, especially following SA's successful navigation through the global financial crisis. The World Economic Forum's competitiveness report of 2012 ranked SA as number two in the category 'Soundness of Banks' and number one in the category 'Strength of Auditing and Reporting Standards'.

Other important regulators with whom Nedbank Group interacts frequently include JSE Ltd (the JSE), the Financial Services Board (FSB), the Financial Intelligence Centre (FIC), the National Credit Regulator (NCR), the Consumer Protection Regulator (CPA), regulators in the countries in which our subsidiaries operate, the Financial Surveillance Department of the SARB and the Department of Labour.

Regular and open communication with regulators ensures that Nedbank Group is seen to be transparent in its dealings with regulators, thereby instilling trust in risk management in the group and in the Nedbank brand.

REVIEW OF 2012

Continue to lead as a corporate citizen to ensure that we remain SA's leading 'green and caring' bank, thereby building a sustainable and highly relevant business in the communities we serve.