NIB - Preliminary Results

Old Mutual PLC
15 February 2001





                                OLD MUTUAL PLC



                   Nedcor Investment Bank Holdings Limited

           Preliminary results for the year ended 31 December 2000



Old Mutual plc is an integrated financial services group, based in London,
with a substantial life assurance business in southern Africa an international
range of businesses in asset management (including unit trusts, portfolio
management and stockbroking services), together with businesses in banking and
general insurance.

Nedcor Investment Bank Holdings Ltd ('NIB'), the South African investment
bank, in which Nedcor Limited, the South African banking group has majority
control, has today issued financial results for the year ended 31 December
2000. Old Mutual plc ('Old Mutual') has a 53.3% holding in Nedcor Ltd. The
full text of the NIB announcement is attached, which has been drawn up in
accordance with South African GAAP. The results will be consolidated in Old
Mutual's accounts in accordance with UK GAAP.

Commenting on NIB's results, Mike Levett, Chairman and CEO of Old Mutual said:

'NIB has established itself as a leading player in investment banking and
asset management in South Africa. It is especially pleasing that the company
has achieved a 23% increase in EPS in a testing environment for all financial
markets.'

                                                              15 February 2001



ENQUIRIES:
Old Mutual, London                                    Tel: + 44 20 7569 0100
James Poole, Director Investor Relations

College Hill, London                                  Tel: + 44 20 7457 2020
Tony Friend
Matthew Gregorowski

Old Mutual, Cape Town                                 Tel: + 27 21 509 2732
Bruce Allen, Manager, Group Media Communications

College Hill, Johannesburg                            Tel: + 27 11 447 3030
Kim Milnes





                   NEDCOR INVESTMENT BANK HOLDINGS LIMITED

               Audited results for the year to 31 December 2000



Headline earnings up 23% to R615 million

Headline earnings per share up 21%

Return on average equity 23%

Expense to income ratio down to 35%



Financial highlights
                                            Audited       Audited
                                               2000          1999             %
                                                                         change

Income statement
Operating income (Rm)                         1,182         1,101             7
Operating expenditure (Rm)                      419           435             4
Headline earnings (Rm) (1999 Adjusted)          615           500            23
Weighted average number of shares (m)         1,591         1,567
Headline earnings per share (cents) (1999        39            32            21
Adjusted)
Diluted headline earnings per share (cents)      37            30            23
(1999 Adjusted)

Selected returns
Return on average equity (%)                   23,3          22,7
Return on average total assets (%)              2,6           2,4
Non-interest revenue to total income (%)       71,9          69,8
Expense-to-income ratio (%)                    35,4          39,5

Capital adequacy
Shareholders' funds (Rm)                      3,203         2,535            26
Total assets (Rm)                            25,171        21,469            17
Capital ratio (%) (Bank only)                  12,1          12.7






                   NEDCOR INVESTMENT BANK HOLDINGS LIMITED

               Audited results for the year to 31 December 2000

Group income statement
                                            Audited        Audited
                                               2000           1999
                                                 Rm             Rm            %
                                                                         change

Interest income                               2,465          2,652          (7)
Interest expense                              2,133          2,320            8
Net interest income                             332            332            0
Non-interest revenue                            850            769           11
Operating income                              1,182          1,101            7
Specific and general provisions                  35             61           43
Net income                                    1,147          1,040           10
Operating expenditure                           419            435            4
Net operating income                            728            605           20
Income from associated companies                 17              8          113
Add: Net capital profit on the disposal and      65             40
restructuring of businesses
Less: Supplement to general risk                  -             40
provision
Net income before taxation                      810            613           32
Taxation                                        130            113         (15)
Income attributable to shareholders             680            500           36

Headline earnings reconciliation               2000       Adjusted
                                                              1999

                                                 Rm           **Rm            %
                                                                         change
Income attributable to shareholders             680            500           36
Less: Net headline earnings adjustment           65              -            -
Headline earnings (1999 Adjusted)               615            500           23

** Adjusted headline earnings for 1999 has been calculated by excluding the
supplement to general risk provision to ensure comparability.



                   NEDCOR INVESTMENT BANK HOLDINGS LIMITED

               Audited results for the year to 31 December 2000

Group balance sheet
                                                      Audited           Audited
                                                         2000              1999
                                                           Rm                Rm
Shareholders' funds                                     3,203             2,535
Long-term debt                                              1                 1
Deposit, current and other accounts                    21,958            18,924
Liabilities under acceptances                               9                 9
Capital, reserves and liabilities                      25,171            21,469

Cash and short-term funds                               1,668               805
Other short-term securities                             1,795               755
Government and public sector securities                 2,498             3,377
Advances and other accounts                            18,087            15,827
Customers' indebtedness for acceptances                     9                 9
Associated companies                                       58                19
Other investments                                         975               567
Property and equipment                                     81               110
Total assets                                           25,171            21,469

Segmental analysis of headline earnings by business activity

                                      31 December        31 December
                                             1999               2000          %
                                               Rm                 Rm     Growth
Treasury                                      118                129          9
Property Finance                               17                 32         88
Advisory Services                               9                 33        267
Investments                                    51                 19       (63)
Partnerships/Associates                         8                 17        113
Structured and Project Finance                103                134         30
Capital Account-Endowment                     194                138       (29)
Capital Account-Value Added                     -                113        n/a
                                              500                615         23







                    NEDCOR INVESTMENT BANK HOLDINGS LIMITED

               Audited results for the year to 31 December 2000



Consolidated statement of changes in equity

                             Ordinary share Non-distributable Distributable
                        capital and premium        reserves      reserves
                                                                          Total
                                         Rm              Rm            Rm    Rm
Balance as at 1 January                 391              11         1,610 2,012
1999
Issue of new share                      429                                 429
capital
Share issue expenses                    (6)                                 (6)
Goodwill written off                  (400)                               (400)
Currency translation                                      5           (5)     -
and other adjustments
Income attributable to                                                500   500
shareholders
Balance as at 31                        414              16         2,105 2,535
December 1999
Issue of new share                       36                                  36
capital
Currency translation                                    (5)          (34)  (39)
and other adjustments
Income attributable to                                                680   680
shareholders
Dividend - cash                                                       (9)   (9)
election
Balance as at 31                        450              11         2,742 3,203
December 2000



Consolidated cash flow statement                              Audited   Audited

                                                                 2000      1999
                                                                   Rm        Rm

Cash flows from operating activities                              817       819
   Cash receipts from clients                                   3,248     3,476
   Cash paid to clients, employees and suppliers              (2,529)   (2,726)
   Dividends received on investments                               98        69
Changes in working funds                                          565   (1,126)
Taxation paid                                                    (48)     (143)
Net cash utilised in investing activities                       (419)      (37)
Net cash (utilised) / provided by financing activities           (52)       313
Net increase / (decrease) in cash and short-term funds            863     (174)
Cash and short-term funds at beginning of year                    805       979
Cash and short-term funds at end of year                        1,668       805

Comparative figures are restated, where necessary, to afford a proper
comparison. Percentages are calculated using actual numbers.



Chairperson's review

The Nedcor Investment Bank Group ('NIB') achieved sound financial results for
the 12 months ended 31 December 2000, particularly within an operating
environment characterised by low business confidence and the highly
competitive financial services sector. The 23% increase in headline earnings
and 21% increase in headline earnings per share are particularly pleasing, as
NIB's approach of emphasising the quality of assets as a prerequisite for any
transaction has not been compromised. Earnings per share were slightly diluted
primarily by the issue of ordinary shares to shareholders electing scrip
dividends.

During the year NIB took further steps to position itself strategically for
sustained growth. The business continued to be reconfigured in line with its
internationalisation, partnership and outsourcing strategies, as discussed in
the Chief Executive's review.

Two initiatives are currently being undertaken in the context of NIB's listing
- the establishment of an investor relations programme and a strategy to
address the lack of liquidity in NIB shares.

THE ENVIRONMENT

The financial and corporate environments were difficult in 2000. Despite
strong global economic growth, international markets performed badly. The
collapse of the technology-dominated Nasdaq index in the US and the
significant rise in oil prices increased uncertainty and the risks of an
economic slowdown in 2001. Rising risk aversion spilled over into emerging
markets, limiting capital flows and placing currencies and market valuations
under pressure. Most international equity markets suffered losses in US dollar
terms in the course of the year.

Consequently, the rand experienced periods of significant volatility, falling
by over 18,6% against a strong US dollar and by 12,5% against a broader,
trade-weighted index during the year. The currency's weakness and higher
energy costs negatively impacted on inflation and prevented any further
decreases in short-term interest rates after an early cut in January. In this
environment domestic equity prices performed poorly, with the JSE all-share
index falling by 2,5% in rand terms. Most sectors were weak, although diamond
and particularly platinum shares helped to bolster the index. Banking shares
posted modest gains, helped by economic recovery and a view that interest
rates would ease further. The financial services sector fell dramatically out
of favour amid investor concerns about the longer-term prospects of financial
services boutique operations. Hopes of an easier monetary policy were dashed
periodically by rand weakness, culminating in the Reserve Bank finally
increasing the repurchase rate in October.

Economic conditions were varied. The weaker rand, firm commodity prices and a
strong global economy helped export sectors. However, domestic demand was more
subdued. The uncertain environment hampered capital formation, although
several large-scale projects were announced as the year progressed. Consumer
spending began to recover, aided by lower real interest rates and improving
incomes, but consumers were more price conscious, which limited retailer
margins. The property sector remained depressed with the exception of strong
growth in a few geographic nodes. The higher oil price and the combined
effects of increased spending on gambling and cellphones had a
disproportionate effect on lower income earners, limiting non-durable goods
expenditure.

CORPORATE CONSCIOUSNESS

NIB believes that it has a wider responsibility to the society within which it
operates, and remains committed to attaining meaningful employment equity
objectives. The promotion of black and female economic empowerment at all
levels throughout the economy is an objective that NIB supports.

NEW BOARD MEMBERS

During the year the NIB board was further strengthened with the non-executive
appointments of Eric Molobi and Richard Cottrell. Mr Molobi is Executive
Chairman of the Kagiso Trust Investment Company (Pty) Limited and serves on
the boards of a number of leading South African companies. In addition to his
knowledge of the financial services industry and corporate South Africa, Mr
Molobi's background enables him to guide and facilitate NIB's thrust into
empowerment initiatives. Mr Cottrell has served as Chief Executive Officer of
the Financial Services Board and was previously Deputy Chairperson and
Managing Partner of Coopers & Lybrand. His wealth of experience and sound
judgement will be of great value to the company.

OUTLOOK

The year ahead will produce new challenges. With central and more recently
local government elections successfully completed, the focus in the public
arena will be on service delivery and the effectiveness of spending.
Significant changes to the tax system are to be introduced and government's
privatisation programme will gather momentum as the planned initial public
offering of Telkom reaches an advanced stage. Domestic spending and credit
demand are likely to improve as business confidence returns and interest rates
remain relatively stable. Clearly, the key will be the international
environment. The expected soft landing in the US should keep exports
reasonably firm and imply good capital inflows as foreign investors take
advantage of low market valuations and positive growth prospects. By contrast,
a hard landing would suggest a weak balance of payments and domestic economy.

Rationalisation in the financial services sector will continue in the year
ahead and could accelerate due to changes in the regulatory environment. NIB
is in a favourable position to pursue opportunities that may arise during this
process.

CONCLUSION

It has been a privilege for me to serve as NIB's Chairperson for the first
time in 2000. A leading participant in the South African investment banking
market, NIB is also a key contributor to the performance of the Nedcor Group
and occupies an important position in the group's long-term strategy.

I should like to congratulate Izak Botha, his executive team and the entire
NIB staff for their efforts and dedication during 2000. In particular, the
warmth with which Izak and his colleagues have welcomed me is sincerely
appreciated. In addition, I feel a deep gratitude for all the support that NIB
and I have received from the Nedcor Group, particularly Chris Liebenberg,
Richard Laubscher, Tony Routledge and Stuart Morris. We are also most grateful
for the wonderful cooperation that we are receiving from the regulatory
authorities with whom we interact including, in particular, the Office of the
Registrar of Banks. I should also like to thank all members of the NIB board
for their contribution and guidance and I look forward to serving with them
once again in 2001.

Chief Executive's review

In 2000 NIB continued to deliver on its strategic approach announced at the
time of its listing in 1999. Two of the pillars of this approach are the
partnership and internationalisation strategies, which were evidenced by the
merger of the operations of NIB Asset Management with the South African
operations of Franklin Templeton Inc in the third quarter.

Furthermore, NIB identified that the ongoing South African business
transformation initiatives will continue to provide the financial services
industry with significant opportunities. Accordingly, the purchase of a 20%
equity stake in Kagiso Trust Investment Company (Pty) Limited, a leading
empowerment financial services company, was concluded earlier in the year.

Our acquisition of the commercial business of Edward Nathan and Friedland Inc
('ENF') at the end of 1999 has contributed to an enhanced deal flow in the
corporate finance area. We anticipate that further benefits from this
acquisition will be derived from deal flows across a broader base of NIB's
activities during 2001.

During the financial year NIB continued to benefit from a diversified income
base, which resulted in NIB achieving headline earnings for the year of R615
million. This excludes the net capital profit on the disposal and
restructuring of businesses of R65 million in respect of the sale of 50% of
the funds management business to Franklin Templeton Inc. The net capital
profit was arrived at after the offset of various costs and provisions
directly attributable thereto. These results were achieved in an environment
of stringent internal adherence to risk philosophies and limits, which will be
detailed in our Risk management review included in our annual report. The
centralisation of the credit management process that has been in place for
some time now has positioned NIB to pursue significant quality asset growth in
both the property and corporate environments.

In the Corporate Division teambuilding and the recruitment of new skills in
Corporate Finance, combined with a stable environment for Structured and
Project Finance, have led to another excellent year. This was somewhat
dampened by a small loss in Private Equity, which arose from poor returns,
particularly on the small capitalisation listed portfolio. All current market
value deficits on individual investments in Private Equity are fully provided
for, with the remaining portfolio carrying a materially reduced exposure.

Impressive contributions were also made by Treasury and Property Finance,
supported by NIB's Capital Account operations. NIB continued to manage
shareholders' funds on a ring-fenced, standalone arms-length basis, with core
activities managed on a fully costed, fully funded, marginal contribution
basis. The discrete management of NIB's shareholders' funds has protected NIB
from the adverse market contagion that undermined a number of financial
services companies last year. This year, for the first time, NIB has adopted a
policy of reporting income from shareholders' funds on a segmental basis,
being 'Capital Account - Endowment' and 'Capital Account - Value Added'. For
practical reasons prior-year comparatives are not available. The 'endowment'
element is the relatively risk free return on shareholders' funds invested in
cash and other liquid securities. The 'value added' element is the return
achieved by shareholders' funds in support of NIB's operations, including
offshore activities.

Notwithstanding the reclassification of operating income to equity-accounted
income as a result of the partnership initiatives implemented in the previous
and current year and the offset to some extent by the inclusion of ENF in the
current year, operating income still achieved 7% growth. Operating income and
expenditure figures included in the results for 1999, when partnership
initiatives had been concluded, are now included under equity-accounted
earnings in the current financial year. The return on average equity at 23,3%
compares with the previous year's 22,7%.

The reduction in the income statement charge for specific and general
provisions for bad and doubtful advances of R26 million is a positive
reflection of an overall improvement in the quality of the NIB Property
Division's assets. This improvement results from the division's policy of
being very selective in the assets it finances, from the intensive management
that is brought to bear at an early stage on all potentially problematic
exposures and from the retention of only those advances that meet stringent
lending criteria.

The ratio of operating expenditure to total operating income continued its
positive trend from the previous year's level of 39,5% to 35,4%. The
sustainable foreign currency component of the group's headline earnings
increased to 21%, compared with the prior year's level of 16%.

HUMAN CAPITAL

NIB is committed to creating, developing and maintaining an equitable and
non-discriminatory culture in an environment that promotes and values
openness, human dignity, diversity and superior performance for all its
people.

It is pleasing to note that the level of staff turnover in all areas was
relatively low in a volatile environment. The NIB skills base was further
strengthened by significant recruitment in the advisory services area.
Employment equity initiatives are well-advanced and our current race and
gender complements compare favourably with industry benchmarks.

OPERATIONAL ISSUES

Revisions to the existing Banks Act and Regulations were implemented during
the second half of the year, which will result in significant changes to the
current Banks Act reporting requirements. A major project was initiated at NIB
to cater for these revised reporting requirements (effective from 1 January
2001). Full compliance of the revised reporting requirements has been achieved
by NIB. Compliance with the new minimum provisioning requirements, effective 1
January 2001, has also been achieved. As at 31 December 2000 NIB reflects a
capital adequacy ratio of 12,1% (bank only) and 13,5% (group consolidated).

A significant development during the year was the implementation of a new
domestic treasury system. With the treasury operation now functioning off an
integrated back, middle and front-office system, the benefits of streamlined
administration and dealer friendliness will enable the operation to increase
activity levels and lower risk exposures.

NIB is preparing for the application of Accounting Standard 133 with effect
from 1 January 2001 which is likely to have an impact on the manner of
reporting of financial instruments by financial institutions.

Earlier this year a decision was taken to seek an outsourcing partner for
NIB's asset management backoffice activities. In achieving this NIB was able
to secure a 20% equity stake in FinSource (Pty) Limited, which will lead to a
reduced risk profile in the administration of the funds management business.
In addition, the outsourcing of NIB's facilities management activities was
also achieved through an agreement entered into with Facilities Management
Africa Limited ('FMA') with effect from 1 September 2000.

PROSPECTS

The past year has been one in which NIB significantly improved the quality of
its lending assets. With a firmly established infrastructure and skills base
in place, and assuming reasonable market conditions, NIB is strongly
positioned to sustain earnings growth. Anticipated rationalisation of the
financial services sector as a result of tougher economic and regulatory
conditions should provide acquisition opportunities, which will be selectively
pursued.

ACKNOWLEDGEMENTS

The success of the year 2000 is attributable to the commitment, enthusiasm and
competence of all NIB employees. My thanks go to Michael Katz, our
Chairperson, Nedcor Group and other members of the board for their guidance
and support over the past 12 months. My gratitude is especially extended to
all members of staff for their contributions to NIB's achievements so far.

Declaration of dividend

Notice is hereby given that a final cash dividend of 12,9 cents (1999: 5,3
cents) per ordinary share was declared on Thursday, 15 February 2001 in
respect of the 12 months ended 31 December 2000, payable to shareholders
registered at the close of business on Friday, 9 March 2001. Payment will be
made on or about Thursday, 19 April 2001.







For and on behalf of the board
Prof MM Katz                             Dr IJ Botha
Chairperson                              Chief Executive
15 February 2001



Company Secretary and registered office

J S Eisenhammer

1 Newtown Avenue, Killarney, Johannesburg, 2193

                                                          Transfer secretaries

Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg, 2001

Transfer Secretaries (Pty) Limited, PO Box 2401, Windhoek, Namibia

                                                                      Web site

www.nib.co.za