1. Financial results for the six months ended 30 June 2003

2. Programme Six month review Richard Laubscher Financial review Stuart Morris Strategy & prospects Richard Laubscher

3. Six month review Richard Laubscher

4. % change20032002 Post AC133Pre AC133 Core earnings (Rm)-21 5301 560 Core eps (cents)-12565645 RoE (%)18,521,4 RoA (%)1,201,73 Margin (%)2,593,05 Efficiency ratio (%)59,053,4 Headline eps (cents)-61244630 Capital adequacy (%)10,111,2 NAV per share (cents)-125 3986 105 for the six months ended 30 June Key indicators (statutory)

5. Key issues New accounting standards present fair value balance sheet AC133 impacted positively on earnings Asset quality sound Capital adequacy impacted, but regulatory compliant R20bn funding requirement resulted in margin compression New accounting standards present fair value balance sheet AC133 impacted positively on earnings Asset quality sound Capital adequacy impacted, but regulatory compliant R20bn funding requirement resulted in margin compression

6. Key issues (cont.) NIR under pressure from volatile operating climate and weak equity markets –Investment Banking –Wealth Management –Once-off NIB items and BoE deals in 2002 Strong Rand depressed offshore earnings Expense growth well contained Taxation rate increased

7. Core earnings (Rm)% change20032002 Corporate-8358388 Business Banking+61339210 Property & Asset Finance+6142134 International & Africa+87872 Imperial Bank+1466426 Total Corporate Banking+18981830 Peoples Bank-4182139 Retail+98218110 Gerrard Private Bank-132124 for the six months ended 30 June (pre AC133 basis, including BoE) Segmental performances

8. Core earnings (Rm)% change20032002 Total Banking Operations+151 2661 103 Funding(401)167 Net Banking Operations-328651 270 Trading+98426215 Investment Banking & Advisory-54124272 Wealth Management-544597 Shared Services-84(292)(158) Total-291 2041 696 for the six months ended 30 June (pre AC133 basis, including BoE) Segmental performances

9. Core earnings (Rm)% change20032002 JD/Capital One-233(20)(6) Pick ‘n Pay Go Banking-64(41)(25) Old Mutual Bank-178(7)– Amex/Capital One+50(5)(10) for the six months ended 30 June (pre AC133) Alliances performances Handout only

10. Financial review Stuart Morris

11. Key messages Operational performance Impact of AC133 Future accounting changes

12. (Rm) H01 % ch 1H20032H20021H2002 Net interest income+23 3123 4433 237 Non-interest revenue-53 8764 2394 081 Total income-27 1887 6827 318 Provisions+14 7951 218 921 Net income–6 3936 4646 397 Expenses-74 5624 3724 282 Net operating income-131 8312 0922 115 Taxation-9 467 176 430 Net income after taxation-191 3641 9161 685 Associate income-25707093 Minorities-180 (230) (160) ( 82) Core earnings-291 2041 8261 696 (pre AC133 basis, including BoE) Income statements

13. Margin Benefit of preference share capital raised Lower endowment –Imperial Bank –Other alliances –Cash dividends –Non-performing assets Demand for funding Pre AC133 1H20032H20021H2002 Margin (%)2,682,843,05

14. % % Rm adv Rm advRmadv Non-performing loans8 2683,88 0013,87 0144,4 Expected recoveries3 5911,73 8361,83 6032,2 Expected losses4 6772,14 1652,03 4112,2 Provisions (coverage)7 0953,36 5533,14 6913,0 Adequacy of provisions – Gross coverage (%)868267 – Net coverage (%)152157138 Non-performing loans and provisions Jun 2003Dec 2002Jun 2002

15. Non-interest revenue Rm H011H20032H20021H2002 % change Commission & fees-32 5912 8942 669 Securities & exchange trading+2864538844 Investment banking income +14520328583 (incl. Canal Walk & Virgin Active) Dividends received-3571108109 Other-61147414377 Total-53 8764 2394 082 (pre AC133 basis, including BoE)

16. Expenses Rm H011H20032H20021H2002 % change Staff expenses+12 3642 2352 347 Computer processing+18613466518 Premises+20464498387 Communication & travel-3229232237 Marketing+14229272201 Fees & insurance+5370353351 Other+22293316241 Total+74 5624 3724 282 (pre AC133 basis, including BoE)

17. Employee numbers 22 000 22 500 23 000 23 500 24 000 24 500 25 000 25 500 26 000 2002 July2003 Q12003 Q22003 Q32003 Q42004 Q12004 Q22004 Q32004 Q4 Headcount including permanent, contractors and temporary staff July 2002 base 25 000 24 580 Group Actuals ahead of plan Headcount reduction target relative to July 2002 base as a result of merger initiatives implemented Synergy Target Handout only

18. Total Opening balance495 Expenditure154 Commissioned(213) Closing balance436 Related amortisation of commissioned assets85 Development costs for the six months ended 30 June Handout only

19. Taxation Rm%

20. Goodwill (Rm)30 Jun 0331 Dec 02Amortisation BoE 3 0233 155(129) NIB364524(9) Gerrard Private Bank418436(14) Peoples Bank7981(2) Imperial Bank216174(5) Other subsidiaries & associates2986(50) Totals4 1294 456(209) for the six months ended 30 June Handout only Note: There have been no changes to the BoE pre-acquisition adjustments

21. Capital adequacy 20032002 Rbn%*Rbn %* Tier 114,16,315,69,0 – Ordinary capital & reserves12,15,415,69,0 – Preference capital2,00,9–– Tier 28,43,83,92,2 – Callable notes6,02,72,01,1 – Other2,41,11,91,1 Total22,510,119,511,2 as at 30 June * Percentage of risk-weighted assets

22. Impact of AC133 Asset & liability classifications Opening transitional adjustments Impact on current year

23. Balance sheet classifications as at 30 June 2003 (Rm)Assets Liabilities Marked to market88 55152 136 Held for trading (IS)85 89852 136 Available for sale (equity)2 653– Amortised cost227 152245 468 Originated loans215 259– Held to maturity1 280– Non-trading liabilities–244 041 Other10 6131 427 Total shareholders’ funds–18 099315 703

24. AC 133 – opening transitional adjustments Rm Balances as previously stated12 239 Credit impairment adjustments(632) Fair value adjustments(741) Balances as now stated10 866

25. IncomeDistributable Credit impairments (Rm) statementreservesNDR Total Release of general reserve provision 1 717 – – 1 717 Additional specific provision (585) (963) – (1 548) Creation of portfolio impairment (1 132) – – (1 132) Transfer to general risk legal reserve – (585) 585 – – (1 548) 585 (963) Taxation – 464 (175)289 – (1 084) 410 (674) Attributable to minorities – 42 –42 Total – (1 042) 410(632) AC 133 – opening transitional adjustments

26. Distributable Fair value adjustments (Rm) reservesNDR Total Revaluation of held for trading portfolios(449)–(449) Revaluation of available for sale portfolios – 28 28 Non-qualifying foreign exchange hedges (451) – (451) (900) 28(872) Taxation 139 (8) 131 Total (761) 20(741) AC 133 – opening transitional adjustments

27. AC 133 – Income statement impact on current year 2003 (Rm) AC133Difference Pre AC133 Net interest income 3 4891773 312 Non-interest revenue4 2393633 876 Total income7 7285407 188 Provisions 891(96) 795 Net income6 8374446 393 Expenses4 562 –4 562 Net operating income2 2754441 831 Taxation 592(125) 467 Net income after taxation1 6833191 364 Associate income70–70 Minorities(223) 7(230) Core earnings1 5303261 204

28. AC 133 – Income statement impact on current year 2003 (Rm) AC133Difference Pre AC133 Core earnings 1 5303261 204 Translation losses(735)(284)(451) Merger costs(134)–(134) Headline earnings66142619 Exceptional capital items(309) 52(361) Attributable earnings35294258

29. Future accounting policy changes AC133/IAS39 debate continuing Foreign operations being reclassified Share-based payments to be expensed Accounting for leases

30. Richard Laubscher Strategy and prospects

31. Strategic priorities Achieve critical mass in Retail –Future of Peoples Bank –Bancassurance –Joint ventures/Alliances –Transactional banking T&O Strategy –IT investments & Didata –Offshore processing International & Africa Financial Services Charter –Black ownership

32. Key strategic issues Merger & reorganisation proceeding well –Synergies & plan on track –Client focus: retention good –Staff focus Financial Services Charter –BEE credentials Basel II developments positive

33. BEE credentials Empowerment financing –Southern Sun/Tsogo Sun –African Legend/Caltex –Harmony/Armgold/Africa Vanguard –Shell/Thebe –Total/Tosaco –MTN –Bidvest Handout only

34. Ownership –Peoples Bank = 30% –Quaystone Asset Management = 50% –Nedcor = 17% + Banking services to PDIs –Peoples Bank –JD –Aplitec –Pick ‘n Pay Go Banking BEE credentials (cont.) Handout only

35. Employment Equity –AIC = 49% of total staff –20% of management –Females = 63% of total staff –Females = 35% of management Procurement lagging BEE credentials (cont.) Handout only

36. Prospects & actions Focus on merger – synergy extraction Expense reduction drive Cost of funding improvement (MT) Investment banking & advisory – deal flow improving Wealth Management Pursue new processing opportunities Client retention and service improvement Image & reputation enhancement

37. Q & A