Nedbank
Encyclopedia
Nedbank is one of the largest bank
s in South Africa
; however it is one of the newest banks to be incorporated in South Africa. It is headquartered in Johannesburg
. Market capitalization
was ZAR:509.7 billion (approximately US$73 billion), as of 31 December 2009.
as the Nederlandsche Bank en Credietvereeniging voor Zuid-Afrika ("Dutch Bank and Credit Union for South Africa"). In 1903 the company was renamed into Nederlandsche Bank voor Zuid-Afrika ("Dutch Bank for South Africa"). In 1906, the bank expanded and opened an office in London
. The bank expanded to South Africa
in 1951, incorporating as the Nederlandse Bank in Suid-Afrika Beperk/Netherlands Bank of South Africa Limited. The amount of South African shareholder
s increased greatly, and in 1969 the company was 100 percent South African after the Bank Mees en Hope bought 20 percent of share
s.
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
, so Imperial Bank South Africa is now fully owned by Nedbank.
of all Nebank's businesses, subsidiaries and affiliates. Those subsidiaries and affiliates include the following:
South African Subsidiaries:
Foreign Subsidiaries
made an offer to buy up to 70% of Nedbank in a deal worth R
49,9 billion (US$6.8 billion). If the deal had obtained South African government approval and gone through the buyout would have given HSBC a strong foothold in the African financial services sector. On the 15th 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.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s in South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
; however it is one of the newest banks to be incorporated in South Africa. It is headquartered in Johannesburg
Johannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
. Market capitalization
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
was ZAR:509.7 billion (approximately US$73 billion), as of 31 December 2009.
History
Originally founded in 1888 in AmsterdamAmsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
as the Nederlandsche Bank en Credietvereeniging voor Zuid-Afrika ("Dutch Bank and Credit Union for South Africa"). In 1903 the company was renamed into Nederlandsche Bank voor Zuid-Afrika ("Dutch Bank for South Africa"). In 1906, the bank expanded and opened an office in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
. The bank expanded to South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
in 1951, incorporating as the Nederlandse Bank in Suid-Afrika Beperk/Netherlands Bank of South Africa Limited. The amount of South African shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
s increased greatly, and in 1969 the company was 100 percent South African after the Bank Mees en Hope bought 20 percent of share
Share (finance)
A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...
s.
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
Old Mutual
Old Mutual plc is an international long-term savings group. Established in 1845 in South Africa, it is now a FTSE100 listed company operating in 33 countries.-History:...
, Nedcor's holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
, was demutualised and listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in 1999. It became a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
. Nedbank acquired the Isle of Man
Isle of Man
The Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
and Jersey
Jersey
Jersey, officially the Bailiwick of Jersey is a British Crown Dependency off the coast of Normandy, France. As well as the island of Jersey itself, the bailiwick includes two groups of small islands that are no longer permanently inhabited, the Minquiers and Écréhous, and the Pierres de Lecq and...
private banking
Private banking
Private banking is banking, investment and other financial services provided by banks to private individuals investing sizable assets. The term "private" refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers...
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
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
. In August 2009, Nedbank bought the remaining 49.9% of Imperial Bank South Africa
Imperial Bank South Africa
Imperial Bank South Africa Limited, also referred to as Imperial Bank South Africa , but commonly known as Imperial Bank, is a commercial bank in the Republic of South Africa...
, so Imperial Bank South Africa is now fully owned by Nedbank.
Nedbank Group
Nedbank Group is the holding companyHolding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
of all Nebank's businesses, subsidiaries and affiliates. Those subsidiaries and affiliates include the following:
South African Subsidiaries:
- Nedbank Limited - 100% shareholding
- Imperial Bank South AfricaImperial Bank South AfricaImperial Bank South Africa Limited, also referred to as Imperial Bank South Africa , but commonly known as Imperial Bank, is a commercial bank in the Republic of South Africa...
- `100% shareholding - Nedcor Investment Limited - 100% shareholding
- Nedgroup Investment 102 Limited - 100% shareholding
- B.o.E. Holdings Limited - 100% shareholding
- Nedgroup Collective Investments Limited - 100% shareholdings
- The Board of Executors - 100% shareholding
- Nedgroup Wealth Management Limited - 100% shareholding
- NBS Boland Group Limited - 100% shareholding
- B.o.E Life Limited - 100% shareholding
- Nedgroup Securities (Pty) Limited - 100% shareholding
Foreign Subsidiaries
- NedEurope Limited - 100% shareholding
- Nedbank Malawi Limited - 97% shareholding
- NedNamibia Holdings Limited - 100% shareholding
- Tando AG - 100% shareholding
- Alliance Investments Limited - 100% shareholding
- MN Holdings Limited - 100% shareholding
- MBCA Bank LimitedMBCA BankMBCA Bank, whose full name is MBCA Bank Limited, is a commercial bank in Zimbabwe. It is one of the licensed commercial banks in the country.-History:The bank was founded in 1956 as the Merchant Bank of Central Africa...
- 70.4% shareholding - Nedbank Lesotho Limited - 100% shareholding
- Nedbank Swaziland Limited - 67.2% shareholding
- Nedcor Trade Services Limited - 100% shareholding
HSBC Buyout Bid
On 23 August 2010, HSBCHSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
made an offer to buy up to 70% of Nedbank in a deal worth R
South African rand
The rand is the currency of South Africa. It takes its name from the Witwatersrand , the ridge upon which Johannesburg is built and where most of South Africa's gold deposits were found. The rand has the symbol "R" and is subdivided into 100 cents, symbol "c"...
49,9 billion (US$6.8 billion). If the deal had obtained South African government approval and gone through the buyout would have given HSBC a strong foothold in the African financial services sector. On the 15th 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.
See also
- BoE StockbrokersBoE StockbrokersBoE Stockbrokers is an authorised financial services provider, and a member of the Nedbank Group. As a full-service South African stockbroking company, BoE Stockbrokers Ltd offers services from personal investment advice and investment management to extensive E-commerce facilities, focussing...
- List of banks in South Africa
- Economy of South AfricaEconomy of South AfricaThe economy of South Africa is the largest in Africa, accounts for 24% of its Gross Domestic Product in terms of PPP, and is ranked as an upper-middle income economy by the World Bank, which makes the country one of only four countries in Africa represented in this category...
- South African Reserve BankSouth African Reserve BankThe South African Reserve Bank is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920," as a direct result of the abnormal monetary and financial conditions which World War I had brought...