2008 HIGHLIGHTS

... resilience in the face of challenges

'Nedbank Group has shown resilience in the face of the challenges posed by the crisis in global financial markets and the rapid slowdown in the domestic economy. South African banks and the domestic financial system remain structurally sound, but high interest rates and the global economic slowdown impacted earnings. In this operating environment it is pleasing that the group has significantly strengthened capital ratios and maintained earnings at a level similar to the prior year. We have continued to grow net asset value, our liquidity remains sound and the group’s risk management systems are proving effective in these volatile markets.

2009 will undoubtedly be tough for the local banking sector, but we currently anticipate improved prospects for growth in the medium term.'

	SA BANKS AND FINANCIAL SYSTEM
	REMAIN STRUCTURALLY SOUND
	RESILIENT PERFORMANCE
	IN CHALLENGING ENVIRONMENT
	15,7% growth in tangible
	net asset value R5,8 billion headline earnings
	CAPITAL ADEQUACY
	INCREASED SIGNIFICANTLY
	Core Tier 1	from 7,2% to 8,2%
	Tier 1	from 8,2% to 9,6%
	Total	from 11,4% to12,4%
	LIQUIDITY
	REMAINS SOUND
	RISK MANAGEMENT
	SYSTEMS PROVING EFFECTIVE

Tom Boardman
Chief Executive