Origination Overview Presentation June 2010

oobarometer Analysis: Indicator May 2010 May 2009 Change yr on yr (May 10 vs May 09) Apr 2010 Change month on month (May 10 to Apr 10) Avg purchase price872,083777, %881, % Avg purchase price of first time buyer 604,857554,3039.1%626, % Avg approved bond size716, , %689,6134.0% Avg deposit (as % of purchase price) 17.8% (R155,221) 21.7% (R168,940) -18.0% 21.7% (R191,431) -18.0% Avg age of applicant37381 Year Younger37No Change Avg decline ratio52.9%49.5%3.4%54.1%-1.2% Ratio of applications declined by one lender but approved by another 16.2%22.6%-6.4%21.1%-4.9%

Origination Overview: Application volumes for May showed a year-on-year increase of 35%. Granted bond conversion ratios are still lower year-on-year but this should trend stronger as banks continue to relax their lending criteria and economic conditions improve. Bank decline ratios are still marginally higher year-on-year but have shown a month-on-month improvement. Ratio of applications declined by one bank, granted by another is trending at a lower ratio predominantly due to the stricter credit criteria banks are imposing on 100% bonds.

Origination Overview: (Continued) Banks are continuing to relax their credit policies and deposit requirements and are now once again offering 100% bonds. Number of buyers purchasing property with a 100% bond requirement has more than doubled since September 09. Banks are adopting a cautious approach to approving 100% bonds by applying stricter credit criteria. Only 31% of 100% bond applications are approved and 49% of these approvals are subject to deposits. Applications with deposits are securing higher approval rates than 100% bond applications. 91% of ooba applications are granted within 5 days of submission.

Bank Loan to Value Criteria: * Maximum LTV % based on the Lower of purchase price or bank valuation of property VACANT LAND All Loan Amounts = maximum 60% STD Current Account Holders All loan amounts = maximum 75% Non STD Current Account Holders Loan amount ≤ R 1m = maximum 75% Loan amount > R 1m = maximum 65% All loan amounts = maximum 70% Nedbank Properties In Possession = maximum 100% All Purchase prices = maximum 60%N/A RESIDENT IAL PROPERT Y (Includin g Building Loans) A. Completed Property: ABSA Customers who are employed: Loan Amounts ≤ R 1.5m = max 100% Loan Amounts > R 1.5m – R2.7m= max 90% Loan Amounts > R2.7m = max 85% (Except for Legal Entities who will only qualify for a maximum ltv of 85%) ABSA Distressed Properties & ABSA PIP ’ s = max 100% ABSA Customers who are self-employed: Loan Amounts ≤ R2.7m = maximum 85% Loan Amounts > R2,7m = maximum 75% Non- ABSA Customers : All Loan Amounts = maximum 70% B. Building Loans: ABSA Customers: Loan Amounts ≤ R 2.7m = maximum 80% Loan Amounts > R 2.7m = maximum 70% Non-ABSA Customers All Loan Amounts = maximum 65% STD Current Account Account Holders & Non STD Current Account Holders Loan Amount ≤R2.5m = maximum 90% Loan Amount > R2.5 m = maximum 80% SA Citizens Living and Working Abroad: All Loan Amounts = maximum 70% Loan Amount ≤ R 3m = maximum 100% Loan Amount > R 3m = maximum 85% Non-Nedbank Customers who are self-employed: Loan Amount ≤R3m = maximum 90% Loan Amount >R3m = maximum 85% Nedbank Properties In Possession = maximum 100% Initiation fee permitted for inclusion in loan amount but only provided that total loan, including initiation fee, does not exceed maximum ltv cap of 100%. A.Completed Property: Purchase price ≤ R2.0m = maximum 100% Purchase price > R2.0m = maximum 80%* (* Awaiting confirmation from FNB of revised ltv criteria) A.Building Loans: Purchase price ≤ R2.0m = maximum 90% Purchase price > R 2.0m = maximum 80%* (*Awaiting confirmation from FNB of revised ltv criteria) Same guidelines are applicable for FNB ONE ACCOUNT ABSA Savings & Current Account Holders Purchase price ≤ R 2.7m = maximum 85% Purchase price > R 2.7m = maximum 75% NON ABSA Savings & Current Account Holders All Purchase Prices = maximum 70% FURTHER LOANS A. Vacant Land = Maximum 60% B. Completed Property Loan Amounts ≤ R1.5m = maximum 90% Loan Amounts > R1.5M = maximum 85% C. Building Loans Loan Amounts ≤ R2.7m = maximum 80% Loan Amounts > R2.7m – maximum 70% Same guide-lines for new loans would be applicable. All loan amounts = maximum 80% Same guidelines are applicable for Further Building Loans For Further advance or Re- Advance a cap of R 5m must be applied.

Bank Loan to Value Criteria: APPROV ED COLLATE RAL SECURIT Y **  Z573 (Gov/Municipal Guarantee) OR  ABSA Approved Group Scheme OR  ABSA Fixed Deposit (100% value) OR  Other banks Fixed Deposit (90% value) OR  Life Policies with surrender value (100% of free S/V – no premium debt) OR  Covering bond over un-bonded  residential property (80% of ABSA value of property) If collateral is provided by a 3 rd party (i.e. other than the applicant), it will need to be supported by a limited suretyship from the 3 rd party in favour of the applicant to the value of the security provided  Z573 (Gov/Municipal Guarantee) OR  Covering bond over an un-bonded residential property (owner MUST be applicant)  Nedbank Fixed Deposit OR  Covering bond over an un-bonded residential property. No forms of collateral security have been approved.  ABSA Fixed Deposit (100% value) OR  Other banks Fixed Deposit (90% value) OR  Life policies with surrender value(100% of free S/V – no premium debt) OR  Covering bond over an unbonded residential property (current LTV caps will apply to the collateral property) If collateral is provided by a 3 rd party (i.e. other than the applicant), it will need to be supported by a limited suretyship from the 3 rd party in favour of the applicant to the value of the security provided ** If approved collateral security is ceded to the bank, reducing the risk to the relevant permissible level, a higher loan amount may be considered. COST INCLUSI VE LOANS Only offered on the ‘ My Home ’ Product ’ (affordable market) Only available for First Time Homebuyers who apply directly to Standard Bank and on the Affordable Housing product No cost inclusive product available

Affordable Lending Guide-Lines By Bank: Bank Product Name: My HomeAffordable HousingSmartbond No specific product name KZN Only - No specific product name Maximum Income Qualifying Criteria: Single / Joint Monthly Income: Maximum income of R Single / Joint Monthly Income: Maximum income of R Single Applicant: Maximum income of R Joint Applicant ’ s: Combined income may not exceed R Single/Joint Monthly Income: Maximum income of R No maximum income limit Maximum Installment to Income Ratio All income brackets: Based on Affordability All income brackets: Maximum 30% All income brackets: Based on Affordability Income up to R3500: Maximum 25% Income > R3501 Maximum 30% All income brackets: Maximum 30% Maximum Loan to Value Ratio 80% - without Collateral Security 100% - with Collateral Security 110% - With CRIS Guarantee (Collateral Replacement Indenmity Scheme) 100% - Non First-Time Buyer 104% - First Time Buyer 100% 90% - without Collateral Security 100% - with Collateral Security 100% - Maximum Loan Amount of R1m 95% - >R1m – R1.5m 80% - Loan Amount greater than R1.5m Vacant Land No Yes Maximum Loan to Value – 60% Maximum Loan Amount Maximum in terms of affordability R – 100% Risk R – Costs Inclusive Maximum in terms of affordability Life Assurance Compulsory Yes

Credit Market Conditions: Banks appetite for lending is gradually recovering and increased competitiveness for homeloan business amongst banks is becoming evident. Bank approval rates are still inhibited by consumers’ high debt to income ratio and impaired credit records. Although average homeloan interest rate concessions are still lower year on year, there is evidence that banks are starting to compete on pricing. Banks are recording a slower growth in the number of non-performing loans. Property market is gearing itself for a gradual recovery during 2010, already evidenced in the consistent house price growth recorded in the house price indices released by the banks and ooba for May Credit Market Conditions:

Application Loan to Value Analysis 100%LTV43% 90% % LTV22% 80% % LTV10% 70% % LTV8% 60% % LTV5% <60% LTV12% 100% LTV18% 90% % LTV40% 80% % LTV18% 70% % LTV9% 60% % LTV6% <60% LTV9%

Bonds Approval Analysis: 100% LTV Only 31% of 100% bonds submitted are approved. 100% LTV49% 90% % LTV36% <90% LTV15%

Bond Approval Analysis: 80% - <90% LTV 50% of 80% - <90% LTV bonds submitted are approved. 80% % LTV89% 70% % LTV6% <70% LTV5%

Absa Overview: Currently declining 45% of applications submitted 14% of applications declined by Absa are granted by another bank/s 92% of loans submitted to Absa are granted within 5 days May’s results reflect that ABSA’s pricing has improved marginally

Nedbank Overview: Currently declining 57% of applications submitted 19% of applications declined by Nedbank are granted by another bank/s 95% of loans submitted to Nedbank are granted within 5 days May’s results indicate that Nedbank’s pricing has improved marginally

FNB Overview: Currently declining 57% of applications submitted 15% of applications declined by FNB are granted by another bank/s 94% of loans submitted to FNB are granted within 5 days May’s results reflect that FNB have continued to offer the most competitive rates in the market

General: Bank’s are focusing on: Bad Debt Limitation Cost of Funding Profitability Quality of Applications Reducing NTU’s Processing Costs efficiencies Fraud Prevention Streamling Bond Conveyancing Panels