The group’s identification of its segments and the measurement of segment results are based on the group’s internal management reporting as used for day-to-day decisionmaking and as reviewed by the chief operating decisionmaker, which in Nedbank Group Limited’s case is the Group Executive Committee. The segments have been identified according to the nature of their respective products and services and their related target markets.
Nedbank Capital comprises the group’s investment banking businesses that together manage the structuring, lending, underwriting and trading businesses. Nedbank Capital seeks to provide seamless specialist advice, debt and equity raising and execution and trading capabilities in all the major SA business sectors.
Nedbank Corporate comprises the client-focused businesses of Corporate Banking, Property Finance, Nedbank Africa and the specialist businesses of Transactional Banking and Shared Services. These businesses focus mainly on providing lending, deposit-taking and transactional banking solutions and execution services to the wholesale banking client base of Nedbank Group Limited. Corporate Banking services companies with an annual turnover in excess of R400m as well as black economic empowerment (BEE) and public sector clients. Property Finance specialises in commercial and industrial property finance in the middle to large corporate market and also invests in property equities and in large property developments in partnership with selected clients. Nedbank Africa has banking operations in Lesotho, Malawi, Namibia, Swaziland and Zimbabwe. Nedbank Africa operates in the retail and wholesale banking segments in each country.
Nedbank Wealth provides insurance, wealth and asset management solutions to the broader Nedbank Group and provides its offering via financial planners, independent financial advisers and third-party intermediaries. The cluster is also responsible for the high-net-worth (HNW) segment of Nedbank Group.
Nedbank Retail serves the financial needs of all individuals (excluding high-net-worth individuals) and small businesses with a turnover of up to R7,5m to whom it offers a full spectrum of banking and assurance products and services. The Nedbank Retail product portfolio includes transactional accounts, home loans, vehicle and asset finance [including Motor Finance Corporation (MFC)], card (both card-issuing and merchant-acquiring services), personal loans and investments.
Nedbank Business Banking
Nedbank Business Banking offers the full spectrum of commercial banking products and related services to companies with an annual turnover of up to R400m.
Shared Services is an aggregation of business operations that provide various support services to Nedbank Group Limited, which includes the following clusters: Group Technology, Group Strategy and Corporate Affairs, Human Resources, Enterprise Governance and Compliance, Group Risk and Group Finance.
Includes group capital instruments together with certain group overheads not recoverable from business segments, mainly within the Balance Sheet Management Division.
|Nedbank Group||Nedbank Capital|
Statement of financial position (Rm)
|Cash and cash equivalents||25 409||19 745||4 474||2 732|
|Other short-term securities||35 986||27 044||31 329||20 792|
|Derivative financial instruments||12 840||13 882||12 755||13 790|
|Government and other securities||30 176||31 824||13 044||12 083|
|Loans and advances||496 048||475 273||68 510||62 328|
|Other assets||47 668||40 950||10 048||7 578|
|Intergroup assets||–||–||62 464||95 886|
|Total assets||648 127||608 718||202 624||215 189|
|Equity and liabilities|
|Total equity||52 685||47 814||5 335||5 116|
|Derivative financial instruments||13 853||12 052||13 824||12 006|
|Amounts owed to depositors||521 155||490 440||174 043||184 201|
|Provisions and other liabilities||30 992||32 308||8 610||13 200|
|Long-term debt instruments||29 442||26 104||812||666|
|Total equity and liabilities||648 127||608 718||202 624||215 189|
Statement of comprehensive income (Rm)
|Net interest income||18 034||16 608||1 180||1 201|
|Impairments charge on loans and advances||5 331||6 188||549||535|
|Income from lending activities||12 703||10 420||631||666|
|Non-interest revenue||15 412||13 215||2 454||2 264|
|Operating income||28 115||23 635||3 085||2 930|
|Total operating expenses||18 919||16 598||1 737||1 561|
|Operating expenses||18 725||16 450||1 726||1 506|
|BEE transaction expenses||194||148||11||55|
|Profit/(Loss) from operations||8 691||6 590||1 297||1 346|
|Share of profits of associates and joint ventures||–||1|
|Profit/(Loss) before direct taxation||8 691||6 591||1 297||1 346|
|Direct taxation||2 194||1 366||72||139|
|Profit/(Loss) after direct taxation||6 497||5 225||1 225||1 207|
|Profit attributable to non-controlling interest:|
|– ordinary shareholders||32||59||5|
|– preference shareholders||281||266|
|Headline earnings/(loss)||6 184||4 900||1 225||1 202|
|Average interest-earning banking assets (Rm)||521 149||495 930||156 188||156 864|
|Return on assets (%)||1,0||0,8||0,6||0,6|
|Return on equity (%)||13,6||11,8||23,0||23,5|
|Net interest income to average interest-earning banking assets (%)||3,46||3,35||0,76||0,77|
|Non-interest revenue to total income (%)||46,1||44,3||67,5||65,3|
|Non-interest revenue to total operating expenses (%)||81,5||79,6||141,3||145,0|
|Credit loss ratio – banking advances (%)||1,14||1,36||1,23||1,27|
|Efficiency ratio (%)||56,6||55,7||47,8||45,1|
|Efficiency ratio (excluding BEE transaction expenses) (%)||56,0||55,2||47,5||43,5|
|Effective taxation rate (%)||25,2||20,7||5,6||10,4|
|Contribution to group economic profit||924||(289)||531||477|
|Number of employees||28 494||27 525||721||699|
* These ratios (unless otherwise stated) were calculated using amounts to Rm.
Depreciation costs of R789m (2010: R714m) and amortisation costs of R609m (2010: R560m) for property, equipment, computer software, capitalised development and other intangible assets are charged on an activity-justified transfer pricing methodology by the segment owning the assets to the segment utilising the benefits thereof.