NEDBANK CAPITAl - Nedbank Group Limited

OVERVIEWEconomic capital requirements and available financial resources (by risk type)Rm2009 2008New basis Old basis Old basisCredit risk* 14 515 13 541 15 605Transfer risk 142 134 166Market risk 3 406 3 300 3 066Trading risk 442 428 352IRRBB risk 39 39 33Property risk 1 158 1 121 1 019Investment risk 1 734 1 679 1 635Forex translation risk 33 33 27Operational risk 2 855 2 548 1 682Business risk 4 254 4 133 4 798Other assets risk 613 595 689Minimum economic capital requirement 25 785 24 251 26 005+ Capital buffer (10%) 2 579 2 425 2 601= Total economic capital requirement 28 364 26 676 28 606vs AFR 40 147 42 780 38 216Tier A capital (shareholders’ equity) 34 909 33 735 28 336Tier B capital (non-core Tier 1-type capital) 5 238 9 045 9 880= Surplus available after capital buffer 11 783 16 104 9 610* Credit risk economic capital incorporates counterparty credit risk and securitisation risk.** New basis includes the new solvency standard (99,93%) and the new definition of AFR.10,5%2,4%Economic capital requirements (by risk type)2009 2008Credit risk6,6%3,0%GROUP REPORTSOPERATIONAL REVIEWSTransfer (sovereign) risk17,1%Trading riskIRRBB risk18,0%0,1%6,9%4,6%0,2%1,8% 0,6%55,8%Property riskInvestment riskForex translation riskBusiness riskOperational riskOther assets risk0,1%6,3%3,9%0,1%1,4%0,6%60,0%The total economic capital (including 10% buffer) decreased by R1,9 billion from R28,6 billion in 2008 to R26,7 billion in 2009 (oldbasis), owing mainly to a decrease in credit risk economic capital and business risk economic capital. The decrease in business risk isas a result of parameter updates as well as the lower projected growth, compared with the previous year.GOVERNANCE183NEDBANK GROUP ANNUAL REPORT 2009