PROGRAMME

Introduction

Financial Review

Banking Operations

Strategic Partnerships and Channels

Technology & Operations

Strategic Review

Richard Laubscher

Stuart Morris

Derek Muller

Mike Leeming

Barry Hore

Richard Laubscher

AN EVENTFUL YEAR

Economy Tough banking environment, improving Strength and diversity delivers results

Subsidiaries Acquired ENF, FBC and Emirates book Merged Peoples into FBC Empowerment Group takes 20% of Peoples Sold 50% of NIBAM to Franklin Templeton

Alliances Old Mutual, Capital One, JD Group, Pick ‘n Pay, Imperial, Virgin Active

AN EVENTFUL YEAR

Associates and Investments Outlaid R2,5bn to acquire more DDIL, Internet Solution, IQ, Aplitec, Nihilent, Miraculum and Kagiso Exchanged DDIL for Didata plc, surplus R3,6bn, recouped R1,8bn cash

New Accounting Standards Implemented effects of Goodwill, Pension Funds, Software Development, accelerated Hardware Depreciation, Deferred Tax Assets, Investments and Headline Earnings

INCOME STATEMENT % ch Dec-00 Dec-99

Net interest income 9 4 732 4 359Non-interest revenue 23 4 292 3 486

Total income 15 9 024 7 845Provisions 5 910 869

Net income 16 8 114 6 976Expenses 11 4 516 4 054

Net operating income 23 3 598 2 922Taxation 16 722 625

Net income after taxation 25 2 876 2 297Associate income 91 249 130Minorities 367 (98) (21)

Headline earnings 26 3 027 2 406

Financial Review

Stuart Morris

ASSET GROWTH

12.6

16.521.9

0

5

10

15

20

25

Average advances Total advances Total assets

NET INTEREST INCOME TO INTEREST-EARNING ASSETS

3,0

77

3,5

55

3,9

25

4,3

59

4,7

32

4.17% 4.00%

3.70% 3.64%

3.46%

4.17% 4.01%

3.79% 3.79% 3.73%

Dec 96 Dec 97 Dec 98 Dec 99 Dec 00

NII (Rm) NII to IEA (%) NII (Incl.'s Assoc. Inc. Gross-up) to IEA (%)

NON-INTEREST REVENUE TO TOTAL INCOME

2,0

87

2,6

11

3,2

11

3,4

86

4,2

92

40.4

1%

42.3

4%

44.9

9%

44

.43

% 47.5

6%

Dec 96 Dec 97 Dec 98 Dec 99 Dec 00

Non Interest Revenue N I R to Total Income (%)

SPECIFIC AND GENERAL PROVISIONS CHARGE

34

8 5

11

86

9

91

0

69

8

11.3

3%

14.3

8%

17.7

9%

19.9

3%

19.2

2%

Dec 96 Dec 97 Dec 98 Dec 99 Dec 00

Specific & General Provisions Charge (Rm) % of Net Interest Income

PROVISIONS

Dec-00 Dec-99

INCOME STATEMENT Rm Avg adv Rm Avg adv

Provision charge- incl. Interest reserve

9101 155

0.79%1.00%

8691 099

0.85%1.07%

BALANCE SHEET Cls adv Cls adv

Specific provisions 3 079 2.5% 1 807 1.7%

General provisions 1 003 0.8% 1 028 1.0%

4 082 3.3% 2 835 2.7%

Credit insurance 283 0.2% 193 0.2%

TOTAL 4 365 3.5% 3 028 2.9%

NON-PERFORMING LOANS

Dec-00 Dec-99

Rm Cls adv Rm Cls adv

Non-performing loans 5 832 4.7% 3 513 3.3%

Expected recoveries (2 753) -2.2% (1 706) -1.6%

Expected losses 3 079 2.5% 1 807 1.7%

Adequacy of provisions Dec-00 Dec-99

Gross coverage 75% 86%

Net coverage 142% 168%

EXPENSES 3

,16

4

4,5

16

3,6

01

4,0

08

4,0

54

61.2

7%

58.4

1%

51.6

8%

56.1

6%

50.0

4%

Dec 96 Dec 97 Dec 98 Dec 99 Dec 00

Expenses (Rm) Expense to Income Ratio (%)

HEADLINE EARNINGS

1,145

1,492

1,900

2,406

3,027

30.3

9%

26.0

5%

23

.60

%

24.5

7%

23

.68

%

528 665

822 1,024

1,266

Dec 96 Dec 97 Dec 98 Dec 99 Dec 00

Headline Earnings (Rm) Growth in E P S (%) E P S (cents)

SHAREHOLDERS’ FUNDS 5 7

01

7 2

12

9 1

31

10 0

66

15 9

80

22.4

0%

23.1

1%

23.2

5%

25.2

9%

24.0

0%

Dec 96 Dec 97 Dec 98 Dec 99 Dec 00

Shareholders' Funds (Rm) ROE (%)

RETURN ON ASSETS 7

5,6

35

91

,27

2

10

9,1

90

12

3,6

86

14

4,0

52

1.5

1%

1.6

3%

1.7

4%

1.9

5%

2.1

0%

Dec 96 Dec 97 Dec 98 Dec 99 Dec 00

Average Total Assets (Rm) Return on Assets (%)

SEGMENTAL ANALYSIS

Dec-00 % Dec-99 %

Nedcor Bank and Group ops 2 430 80 1,862 77

Retail (incl. Peoples) 369 12 261 11Commercial 697 23 660 27Corporate 836 28 601 25International & Treasury 305 10 227 9Associate income 223 7 113 5

Nedcor Investment Bank 518 17 479 20Cape of Good Hope Bank 79 3 65 3

3 027 100 2 406 100

Business transfers in process & transfer pricing under review

GEOGRAPHIC ANALYSIS

Dec-00 % Dec-99 %

South Africa 2 214 73 2 084 87Rest of Africa 147 5 86 4Rest of the World 666 22 236 10

3 027 100 2 406 100

Banking Operations

Derek Muller

2000 REVIEW

Reconfigured the Business

Peoples Bank

Business Direct

Branch Rationalisation

Credit Technology

Asia

Reasonable Growth

Strong Corporate Performance

Commercial Market Share Up

Robust Homeloan growth

ABF Improvement

2001 PRIORITIES

Customer Service

Retail Initiatives

Channel Management

Muscle Building

Customer Acquisition / Retention

Old Mutual JV

Greater Homeloan Focus

Datamining / X-sales

Nedtreasury

Strategic Partnerships and Channels

Mike Leeming

EXPANDING THE UNIVERSE

IMPLICATIONS

Nedcor Bank(existing)

Nedcor &partners

Clients 2,2m 9m+

Branches 395 1600+

Low acquisition cost i.t.o. NAV and goodwill Hitting the road running Low increase in expenditure Non-linear revenue growth vs. expense growth limitation with T&O momentum in place

Technology and Operations

Barry Hore

TECHNOLOGY & OPERATIONS

Back office restructured into "service factory"

Ongoing productivity gains from e-process

Significant delivery on new technology projects

Leveraging technology investments

Commercialisation

Strategic Review

Richard Laubscher

FUNDAMENTALS OF GROWTH IN BANKING

Scope Product Old MutualImperial

Reach AccountsGeographiesFootprint

ClientsOutletsDevices

Scale Volume OrganicJVsInsourcing

GROWTH CONSTRAINTS

Large-scale acquisition problematic

Africa - selective - trade, aid and GDFI

International

No to Investment Banking

No to High-street Banking

No to Global Treasury

GROWTH OPTIONS

Possibly yes to:

Private Banking

Insourced Processing

Investment in Banking Enabling Technologies

Convergence of Direct with e- and i- Commerce

CONCLUSION

Emphasis is on:

Local Retail Banking

Local Commercial Banking

Aided by Process-cost Reduction

Database Power

9 million potential customers

Capital One expertise

Affinity Partnership of Unparalleled Quality

Q & A