Nedbank

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Nedbank
Type Public (JSE: NED)
Industry Banking
Founded 1888
Headquarters Sandton, South Africa
Area served South Africa
Key people

Michael William Thomas Brown (CEO)
Raisibe Morathi (CFO)
Graham Dempster (COO)

Dr Reuel Khoza (Chairman)
Products Financial Services
Revenue R31.8 billion (US$3.75 billion) (FY 2012)[1]
Total assets R683 billion (US$ 80.5 billion) (2012)[2]
Employees 28,000+ (2012)[3]
Website www.nedbank.co.za

Nedbank is one of the largest banks in South Africa; however, it is one of the newest banks to be incorporated. It is headquartered in Johannesburg. Market capitalization was ZAR:89.6 billion (approximately US$9 billion), as of 31 December 2012.

History[edit]

The bank was originally founded in 1888 in Amsterdam as the Nederlandsche Bank en Credietvereeniging voor Zuid-Afrika ("Dutch Bank and Credit Union for South Africa"). In the same year the bank opened an office in Pretoria, South African Republic; in 1898 the bank moved its office to Church Square. In 1903 the company was renamed to Nederlandsche Bank voor Zuid-Afrika ("Dutch Bank for South Africa"). In 1906, the bank expanded and an office in London was opened. The bank split in 1951, renaming its South African part as Nederlandse Bank in Suid-Afrika Beperk/Netherlands Bank of South Africa Limited. The number of South African shareholders increased greatly, and in 1969 the company become 100% South African-owned after the Bank Mees en Hope sold 20 percent of its shares. The South African part was completely independent. The Dutch part of the bank no longer exists; it's currently part of ABN AMRO.

In 1992, the name of the bank was changed to Nedcor Bank Limited, of which Nedbank became the largest division. In 1992, Syfrets, UAL, and Nedbank Investment Bank merged to become Nedcor Investment Bank (NIB). Old Mutual, Nedcor's holding company, was demutualised and listed on the London Stock Exchange in 1999. It became a constituent of the FTSE 100 Index. Nedbank acquired the Isle of Man and Jersey private banking business of Robert Fleming & Co. in 2001.

The new Nedcor Group was formed on 1 January 2003, combining Nedcor, BoE, Nedcor Investment Bank, and Cape of Good Hope Bank into one legal entity. The Nedcor Group was renamed the Nedbank Group on 6 May 2005. Nedbank headquarters are in Sandton, South Africa. In August 2009, Nedbank bought the remaining 49.9% of Imperial Bank South Africa, which is now fully owned by Nedbank.[4]

Nedbank Group[edit]

Nedbank Group is the holding company of all Nebank's businesses, subsidiaries and affiliates. Those subsidiaries and affiliates include the following:[5]

Nedbank Ltd local subsidiaries
  • Peoples Mortgage Ltd
  • Nedcor Investments Ltd
  • Nedgroup Investment 102 Ltd
  • Depfin Investmentss (Pty) Ltd
  • BoE Holdings Ltd
Nedbank Ltd foreign subsidiaries
  • Nedbank (Lesotho) Ltd
  • Nedbank (Swaziland) Ltd 65%
  • Nedcor Trade Services Ltd
Foreign Nedbank Group subsidiaries
  • NedEurope Ltd
  • MN Holdings Ltd
  • Nedbank (Malawi) Ltd 97.1%
  • MBCA Bank ltd 70.9%
  • NedNamibia Holdings Ltd
  • Nedbank Namibia Ltd
  • Nedgroup International Holdings
  • Nedbank Private Wealth Ltd, formerly Fairbairn Private Bank (IOM) Ltd
  • Nedgroup Trust Ltd, formerly Fairbairn Trust Company Ltd
  • Alliance Investments Ltd
Boe Investment Holdings Ltd
  • BoE Private Client Investment Holdings Ltd
  • Nedgroup Structured Life Ltd, formerly BoE Life Ltd
  • Nedgroup Life Assurance Company Ltd
Nedgroup Investment Holdings 101 Ltd
  • Nedgroup Securities (Pty) Ltd
  • NBG Capital Management Ltd
  • NIB Blue Capital Investments (Pty) Ltd
  • Nedgroup Private Wealth (Pty) Ltd, formerly BoE (Pty) Ltd
Trust and securities entities
  • Syfrets Securities Ltd
  • Nedgroup Private Stockbrokers (Pty) Ltd, formerly BoE Stockbrokers (Pty) Ltd
  • Nedgroup Collective Investments Ltd
  • Dr Holsboer Benefit Fund
Other insurance entities
  • Nedgroup Insurance Company Ltd
  • Nedbank Group Insurance Company Ltd, formerly Nedcor Group Insurance Company Ltd

[6]

HSBC buyout bid[edit]

On 23 August 2010, HSBC made an offer to buy up to 70% of Nedbank in a deal worth R49.9 billion (US$6.8 billion). If the South African government had approved the deal and it had gone through, the buyout would have given HSBC a strong foothold in Africa's financial services sector.[7] On 15 October 2010 HSBC withdrew its offer to Nedbank following the expiration of the agreed exclusivity period. If the deal had gone through it could have been worth an estimated R45 billion.[8]

See also[edit]

References[edit]

  1. ^ [1], Nedbank 2012 Integrated Report
  2. ^ [2], Nedbank 2012 Integrated Report
  3. ^ [3], Nedbank 2012 Integrated Report
  4. ^ Nedbank buys out Imperial Bank for US$226m
  5. ^ Affiliates And Subsidiaries Of Nedbank Group
  6. ^ [4], Nedbank 2012 Interim Report
  7. ^ HSBC to buy up to 70% of Nedbank, Mail & Guardian, DAVID DOLAN AND KELVIN SOH, 23 Aug 2010
  8. ^ Chinese Abandon Nedbank Bid, Times Live, By Sapa ,15 October 2010, 4:32pm

External links[edit]