NEDBANK CAPITAl - Nedbank Group Limited

NIRNIR, including the consolidation of the Bancassurance andWealth joint ventures, grew by 11,0% to R11 906 million(2008: R10 729 million). Like-for-like NIR increased by 6,1%,driven by good growth in commission and fee income andtrading income, offset to an extent by fair-value gains, whichdropped from R368 million in 2008 to R44 million. The dropin fair-value gains is mainly the result of the group reporting,in 2008, fair-value gains of R207 million from the mark-tomarketof its own debt, which we mentioned were unlikely tobe repeated and were highlighted as poor-quality income andnot attributed to capital. In 2009 fair-value gains on the group’sdebt amounted to R6 million.Commission and fee income was 13,1% higher, largely fromvolume growth in retail transactional banking and increases infees charged across the bank.Trading income increased by 18,6% from R1 553 million in2008 to R1 841 million in 2009, reflecting robust tradingactivity in treasury, investment banking and the global marketbusinesses.Private equity income remained broadly flat for the year.However, underlying contributions were mixed with therecovery in the Nedbank Capital private equity portfolio beingoffset by the Nedbank Corporate property private equityportfolio having a lower unrealised gain.NIR from private equity (Rm) 2009 2008Nedbank Capital 269 127Nedbank Corporate property 35 176Total NIR from private equity 304 303Bancassurance and Wealth NIR increased by 61,7% toR1 518 million for the year, driven primarily from theconsolidation of the joint ventures for seven months and withgood performances from the asset management, financialplanning and life insurance businesses. On a like-for-like basisNIR for Bancassurance and Wealth increased by 4,7%, withgood growth in the SA businesses, but pressure on NIR in theinternational businesses due to the challenging economicenvironment.GROUP REPORTSNIR% changeexcl jointventures%change 2009 2008Commission and fees 8,9 13,1 8 583 7 588Trading income 18,6 18,6 1 841 1 553Private equity income 0,1 0,1 304 303Insurance income 27,6 91,0 615 322Fair-value adjustment on bonds/swaps (44,3) (44,3) 162 291Credit spread 6 207Basis 156 84Other fair-value adjustments (>100) (>100) (118) 77Other investment income (82,6) (81,2) 13 69Rental income 5,3 2,0 52 51Sundry income (4,4) (4,4) 454 475Tando 204 227Other 250 248OPERATIONAL REVIEWSTotal NIR 6,1 11,0 11 906 10 729GOVERNANCEOVERVIEW91NEDBANK GROUP ANNUAL REPORT 2009