Corporate information    Operational review     Annual financial statements    Additional information    Annual general meeting  
  
 
2004  Annual Report  
 
Site tools
 

Annual financial statements
Segmental analysis – Business/operational reporting

for the year ended 31 December
 
 

 

   
 
 
       Nedcor  
Nedbank Corporate 
Rbn
2004 
2003* 
2004 
2003* 

Average balance sheet
 
 
 
 
Cash and short-term funds
13 
12 
1 
 
Other short-term securities
11 
15 
1 
1 
Government and other securities
21 
12 
2 
2 
Derivative instruments***
26 
28 
 
 
Mortgage loans
90 
79 
37 
32 
Leases and instalment debtors
27 
21 
11 
10 
Loans and overdrafts
93 
100 
49 
62 
Other assets
18 
24 
17 
1 
Total assets
299 
291 
118 
108 
Total interest-earning assets
242 
224 
117 
107 
Current and savings accounts
44 
38 
17 
13 
Deposit and other accounts
203 
199 
92 
85 
Long-term debt
9 
7 
 
 
Derivative instruments***
24 
28 
 
 
Allocated capital
19 
19 
9 
10 
Total liabilities
299 
291 
118 
108 

Income statement
 
 
 
 
Rm
 
 
 
 
Net interest income
7 567 
6 808 
4 061 
4 001 
Non-interest revenue
8 197 
7 953 
2 168 
1 714 
Foreign currency translation losses
(372)
(1 416)
 
 
Gross operating income
15 392 
13 345 
6 229 
5 715 
Impairment of advances
1 416 
2 063 
266 
564 
Income after impairment of advances
13 976 
11 282 
5 963 
5 151 
Operating expenses
11 041 
10 305 
2 944 
2 704 
Fees to alliance partners
70 
4 
 
 
Merger expenses
246 
394 
31 
7 
Recovery programme expenses
379 
 
114 
 
Profit/(Loss) from operations
2 240 
579 
2 874 
2 440 
Attributable earnings of associates and        
joint ventures
147 
132 
33 
5 
Profit/(Loss) before taxation
2 387 
711 
2 907 
2 445 
Taxation
576 
390 
768 
603 
Profit/(Loss) after taxation
1 811 
321 
2 139 
1 842 
Minority interest income attributable to:
 
 
 
 
  Ordinary shareholders
135 
133 
27 
1 
  Preference shareholders
229 
133 
 
 
Headline earnings
1 447 
55 
2 112 
 1 841 

Selected ratios
 
 
 
 
%
 
 
 
 
Return on average assets
0,45 
0,02 
1,79 
1,70 
Return on average equity
9,22 
0,38 
23,43 
18,96 
Interest margin
3,13 
3,04 
3,47 
3,73 
Impairments to net interest income
18,70 
30,30 
6,60 
14,10 
Non-interest revenue to gross income
52,00 
53,90 
34,80 
30,00 
Efficiency ratio**
74,50 
72,50 
49,60 
47,40 
Effective tax rate**
20,90 
18,30 
26,40 
24,70 
Staff complement (actual)
21 103 
24 205 
4 074 
4 651 
* Restated as per note 3.
** Excluding foreign currency translation losses.
*** Derivatives are reported and managed on a net basis within Nedbank Capital and Nedbank Corporate. However, the gross-up for derivatives is disclosed in Capital Management and Central Funding.
 
 
Nedbank  
Imperial  
 
Capital  
Bank 
Rbn
2004 
2003* 
2004 
2003* 

Average balance sheet
 
 
 
 
Cash and short-term funds
6 
6 
 
 
Other short-term securities
7 
11 
 
 
Government and other securities
13 
10 
 
 
Derivative instruments***
 
 
 
 
Mortgage loans
 
 
4 
4 
Leases and instalment debtors
 
 
10 
6 
Loans and overdrafts
27 
21 
1 
 
Other assets
8 
20 
 
 
Total assets
61 
68 
15 
10 
Total interest-earning assets
54 
60 
14 
10 
Current and savings accounts
1 
1 
 
 
Deposit and other accounts
57 
64 
13 
9 
Long-term debt
 
 
1 
 
Derivative instruments***
 
 
 
 
Allocated capital
3 
3 
1 
1 
Total liabilities
61 
68 
15 
10 

Income statement
 
 
 
 
Rm
 
 
 
 
Net interest income
931 
585 
619 
575 
Non-interest revenue
1 509 
1 720 
217 
211 
Foreign currency translation losses
 
 
 
 
Gross operating income
2 440 
2 305 
836 
786 
Impairment of advances
65 
182 
245 
232 
Income after impairment of advances
2 375 
2 123 
591 
554 
Operating expenses
1 090 
902 
402 
339 
Fees to alliance partners
19 
36 
 
 
Merger expenses
 
27 
 
 
Recovery programme expenses
52 
 
 
 
Profit/(Loss) from operations
1 214 
1 158 
189 
215 
Attributable earnings of associates        
and joint ventures
 
 
 
 
Profit/(Loss) before taxation
1 214 
1 158 
189 
215 
Taxation
334 
321 
24 
(17)
Profit/(Loss) after taxation
880 
837 
165 
232 
Minority interest income attributable to
 
 
 
 
Ordinary shareholders
2 
 
82 
116 
Preference shareholders
 
 
 
 
Headline earnings
878 
837 
83 
116 

Selected ratios
 
 
 
 
%
 
 
 
 
Return on average assets
1,44 
1,23 
0,55 
1,16 
Return on average equity
30,87 
33,42 
11,33 
16,70 
Interest margin
1,71 
0,97 
4,47 
5,53 
Impairments to net interest income
7,00 
31,10 
39,60 
40,40 
Non-interest revenue to gross income
61,80 
74,60 
26,00 
26,80 
Efficiency ratio**
47,60 
41,90 
48,10 
43,10 
Effective tax rate**
27,50 
27,70 
12,80 
(7,90)
Staff complement (actual)
602 
853 
753 
643 
* Restated as per note 3.
** Excluding foreign currency translation losses.
*** Derivatives are reported and managed on a net basis within Nedbank Capital and Nedbank Corporate. However, the gross-up for derivatives is disclosed in Capital Management and Central Funding.
         
 
Nedbank  
Shared 
 
Retail  
Services 
Rbn
2004 
2003* 
2004 
2003* 

Average balance sheet
 
 
 
 
Cash and short-term funds
1 
1 
1 
1 
Other short-term securities
3 
3 
 
 
Government and other securities
 
 
 
 
Derivative instruments***
 
 
 
 
Mortgage loans
49 
43 
 
 
Leases and instalment debtors
6 
5 
 
 
Loans and overdrafts
12 
12 
 
 
Other assets
5 
9 
9 
10 
Total assets
76 
73 
10 
11 
Total interest-earning assets
69 
64 
1 
2 
Current and savings accounts
26 
24 
 
 
Deposit and other accounts
45 
44 
9 
10 
Long-term debt
 
 
 
 
Derivative instruments***
 
 
 
 
Allocated capital
5 
5 
1 
1 
Total liabilities
76 
73 
10 
11 

Income statement
 
 
 
 
Rm
 
 
 
 
Net interest income
3 816 
3 672 
(375)
(536)
Non-interest revenue
3 846 
3 473 
571 
397 
Foreign currency translation losses
 
 
 
 
Gross operating income
7 662 
7 145 
196 
(139)
Impairment of advances
930 
937 
25 
(2)
Income after impairment of advances
6 732 
6 208 
 171 
(137)
Operating expenses
5 742 
5 562 
1 102 
843 
Fees to alliance partners
51 
(32)
 
 
Merger expenses
17 
91 
198 
267 
Recovery programme expenses
79 
 
134 
 
Profit/(Loss) from operations
843 
587 
(1 263)
(1 247)
Attributable earnings of associates and joint ventures
10 
18 
103 
109 
Profit/(Loss) before taxation
853 
605 
(1 160)
(1 138)
Taxation
194 
135 
(411)
(23)
Profit/(Loss) after taxation
659 
470 
(749)
(1 115)
Minority interest income attributable to:
 
 
 
 
Ordinary shareholders
18 
15 
2 
1 
Preference shareholders
 
 
 
 
Headline earnings
641 
455 
(751)
(1 116)

Selected ratios
 
 
 
 
%
 
 
 
 
Return on average assets
0,84 
0,62 
 
 
Return on average equity
12,79 
9,74 
 
 
Interest margin
5,56 
5,78 
 
 
Impairments to net interest income
24,40 
25,50 
 
 
Non-interest revenue to gross income
50,20 
48,60 
 
 
Efficiency ratio**
76,90 
78,70 
 
 
Effective tax rate**
22,70 
22,30 
 
 
Staff complement (actual)
6 696 
7 263 
8 959 
10 762 
* Restated as per note 3.
** Excluding foreign currency translation losses.
*** Derivatives are reported and managed on a net basis within Nedbank Capital and Nedbank Corporate. However, the gross-up for derivatives is disclosed in Capital Management and Central Funding.
 
Capital Management
    
 
and Central Funding
Eliminations
Rbn
2004 
2003*
2004 
2003*

Average balance sheet
 
 
 
 
Cash and short-term funds
4 
4 
 
 
Other short-term securities
 
 
 
 
Government and other securities
 5 
 
1 
 
Derivative instruments***
26 
28 
 
 
Mortgage loans
 
 
 
 
Leases and instalment debtors
 
 
 
 
Loans and overdrafts
4 
5 
 
 
Other assets
 
4 
(21)
(20)
Total assets
39 
41 
(20)
(20)
Total interest-earning assets
9 
3 
(22)
(22)
Current and savings accounts
 
 
 
 
Deposit and other accounts
6 
5 
(19)
(18)
Long-term debt
8 
7 
 
 
Derivative instruments***
24 
28 
 
 
Allocated capital
1 
1 
(1)
(2)
Total liabilities
39 
41 
(20)
(20)

Income statement
 
 
 
 
Rm
 
 
 
 
Net interest income
(1 485)
(1 489)
 
 
Non-interest revenue
274 
780 
(388)
(342)
Foreign currency translation losses
(372)
(1 416)
 
 
Gross operating income
(1 583)
(2 125)
(388)
(342)
Impairment of advances
(115)
150 
 
 
Income after impairment of advances
(1 468)
(2 275)
(388)
(342)
Operating expenses
149 
297 
(388)
(342)
Fees to alliance partners
 
 
 
 
Merger expenses
 
2 
 
 
Recovery programme expenses
 
 
 
 
Profit/(Loss) from operations
(1 617)
(2 574)
– 
– 
Attributable earnings of associates and
 
 
 
 
joint ventures
1 
 
 
 
Profit/(Loss) before taxation
(1 616)
(2 574)
– 
– 
Taxation
(333)
(629)
 
 
Profit/(Loss) after taxation
(1 283)
(1 945)
– 
– 
Minority interest income attributable to:
 
 
 
 
Ordinary shareholders
4 
 
 
 
Preference shareholders
229 
133 
 
 
Headline earnings
(1 516)
(2 078)
– 
– 

Selected ratios
 
 
 
 
%
 
 
 
 
Return on average assets
 
 
 
 
Return on average equity
 
 
 
 
Interest margin
 
 
 
 
Impairments to net interest income
 
 
 
 
Non-interest revenue to gross income
 
 
 
 
Efficiency ratio**
 
 
 
 
Effective tax rate**
 
 
 
 
Staff complement (Actual)
19 
33 
 
 
* Restated as per note 3.
** Excluding foreign currency translation losses.
*** Derivatives are reported and managed on a net basis within Nedbank Capital and Nedbank Corporate. However, the gross-up for derivatives is disclosed in Capital Management and Central Funding.