Financial results for the six months ended 30 June 2003

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

Six month review Richard Laubscher

% change Post AC133Pre AC133 Core earnings (Rm) Core eps (cents) RoE (%)18,521,4 RoA (%)1,201,73 Margin (%)2,593,05 Efficiency ratio (%)59,053,4 Headline eps (cents) Capital adequacy (%)10,111,2 NAV per share (cents) for the six months ended 30 June Key indicators (statutory)

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

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

Core earnings (Rm)% change Corporate Business Banking Property & Asset Finance International & Africa Imperial Bank Total Corporate Banking Peoples Bank Retail Gerrard Private Bank for the six months ended 30 June (pre AC133 basis, including BoE) Segmental performances

Core earnings (Rm)% change Total Banking Operations Funding(401)167 Net Banking Operations Trading Investment Banking & Advisory Wealth Management Shared Services-84(292)(158) Total for the six months ended 30 June (pre AC133 basis, including BoE) Segmental performances

Core earnings (Rm)% change 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

Financial review Stuart Morris

Key messages Operational performance Impact of AC133 Future accounting changes

(Rm) H01 % ch 1H20032H20021H2002 Net interest income Non-interest revenue Total income Provisions Net income– Expenses Net operating income Taxation Net income after taxation Associate income Minorities-180 (230) (160) ( 82) Core earnings (pre AC133 basis, including BoE) Income statements

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

% % Rm adv Rm advRmadv Non-performing loans8 2683, , ,4 Expected recoveries3 5911, , ,2 Expected losses4 6772, , ,2 Provisions (coverage)7 0953, , ,0 Adequacy of provisions – Gross coverage (%) – Net coverage (%) Non-performing loans and provisions Jun 2003Dec 2002Jun 2002

Non-interest revenue Rm H011H20032H20021H2002 % change Commission & fees Securities & exchange trading Investment banking income (incl. Canal Walk & Virgin Active) Dividends received Other Total (pre AC133 basis, including BoE)

Expenses Rm H011H20032H20021H2002 % change Staff expenses Computer processing Premises Communication & travel Marketing Fees & insurance Other Total (pre AC133 basis, including BoE)

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

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

Taxation Rm%

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

Capital adequacy 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

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

Balance sheet classifications as at 30 June 2003 (Rm)Assets Liabilities Marked to market Held for trading (IS) Available for sale (equity)2 653– Amortised cost Originated loans – Held to maturity1 280– Non-trading liabilities– Other Total shareholders’ funds–

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

IncomeDistributable Credit impairments (Rm) statementreservesNDR Total Release of general reserve provision – – 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

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

AC 133 – Income statement impact on current year 2003 (Rm) AC133Difference Pre AC133 Net interest income Non-interest revenue Total income Provisions 891(96) 795 Net income Expenses4 562 –4 562 Net operating income Taxation 592(125) 467 Net income after taxation Associate income70–70 Minorities(223) 7(230) Core earnings

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

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

Richard Laubscher Strategy and prospects

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

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

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

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

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

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

Q & A