Nedcor Trading Statement

Old Mutual PLC
21 November 2002

                                 OLD MUTUAL PLC

                                 Nedcor Limited


Old Mutual plc ('Old Mutual') draws attention to the following announcement
issued today by Nedcor Limited, the South African banking group in which it has
a 53.2% holding:

Nedcor Limited ('Nedcor') trading statement

In line with international best practice and for the reasons set out below, a
trading update is provided for the benefit of Nedcor's shareholders. A further
update on the integration of BoE is also provided. This information will be
contained in the trading update to be released by holding company Old Mutual plc
on 25 November 2002.

2002 has been an eventful year for Nedcor, and for the South African banking
sector. There has been extreme volatility in the value of the Rand, four
successive interest rate hikes, troubles in the micro-lending industry,
liquidity stress in or failure of some smaller banks, referred difficulties from
unsettled global and other markets and competitiveness in the investment bank
arena.

Nedcor is pleased to have played its part in the return of stability to the
South African banking sector by its successful acquisition of BoE Ltd (BoE) with
effect from 2 July 2002. The acquisition of BoE then became a catalyst for an
overall Nedcor Group re-organisation. Furthermore, in October 2002 Nedcor
acquired the outstanding minority shareholders interests in Nedcor Investment
Bank Holdings Ltd (NIB) which will enhance the Group's ability to extract
potential synergies from the integration of Nedbank, BoE, NIB, Cape of Good Hope
Bank Ltd and parts of Peoples Bank Ltd.

It is pleasing to note that the Group's core operations are performing
satisfactorily during these challenging times and are producing sound growth.
Average organic advances growth of 15%, excluding BoE, has been achieved
year-on-year to October 2002, and retail deposit growth has likewise been
positive.

As indicated at the update on  28 October 2002, the BoE integration is
proceeding well and we anticipate that annualised cost synergy savings and
rationalisation benefits of some R900m before tax will be achieved in 2005. BoE
was under stress when it was acquired and we are pleased to report strong
returns of deposit flows and good progress in most areas in its return towards
expected profit levels.

We have now concluded our initial review of the fair value of BoE assets at
acquisition. The fair value of BoE's net assets at acquisition has been assessed
and will be written down by some R700m. The largest adjustment is the write-off
of R287m unamortised goodwill raised by BoE when it acquired Credcor, a consumer
finance / micro-lender. Furthermore, one-off downward adjustments to bring BoE
accounting policies into line with Nedcor's will amount to some R170m.  These
adjustments are consistent with the findings of the due diligence exercise
conducted at the time of the acquisition. After these adjustments, resultant
goodwill arising on the acquisition of BoE will be approximately R2.6bn, giving
a price / book ratio of approximately 1.6 on acquisition.

The BoE acquisition was paid for mainly in cash which reduced Nedcor's capital
adequacy surplus. This provided an opportunity for Nedcor to simultaneously
change the capital mix in favour of secondary capital, which is less expensive
than traditional primary capital. An attractive alternative to traditional
primary capital has now been identified in the form of non-redeemable
non-cumulative preference shares, and this avenue is being pursued as a new
source of capital to add beneficial diversity to the capital mix and to
replenish the capital adequacy surplus.

Nedbank's Business Banking division currently and historically has adopted a
provisioning policy of Legal Certainty, which structures the income statement
charge at the end of the collection cycle and usually leads to improved
recoveries. A number of factors, including higher interest rates, deterioration
of the book with age and poor security realisations, exacerbated by a slower
court execution process, have led to declining collections in a portion of the
non-performing book. This necessitated a re-evaluation of this book, conducted
since the half year, which concludes that collections are likely to be below
those previously anticipated.  In these circumstances, it is appropriate to move
towards a more dynamic policy of provisioning which inherently recognises
provisions at an earlier stage.

Provisions will therefore be accelerated this year, which will cause an
additional charge against 2002 earnings of some R280m after tax. This will also
achieve better consistency with the BoE portfolio, after having effected the
pre-acquisition write-downs, which will make for an easier integration. In
addition, both portfolios will be more in line with the loan loss impairment
requirements of new accounting statement AC 133, which is effective from 1
January 2003.

Nedcor's exposure to the micro-loan industry is held through Peoples Bank, where
the exposure is shared with Capital One, and through BoE's Credcor. The Group's
net micro-loan exposure of R1.2bn, after provisioning, represents less than one
half percent of total group assets of approximately R270bn. Both micro-loan
operations are adopting a cautious approach to new lending and provide
dynamically at an early stage for potential bad debts. Despite this cautious
lending approach, the micro-loan operations are currently reporting losses,
against originally budgeted profits, reflecting the difficult conditions of the
micro-lending market. The impact on Nedcor's earnings of additional provisions
raised in 2002 will be some R50m after tax.

Nedcor intends to account for the above largely once-off bad debt provisions in
its 2002 results. While this will adversely impact upon 2002 results, core
operational earnings exclusive of these factors are currently satisfactory. The
recognition now of the financial impact of these provisions is expected to
position Nedcor favourably in the 2003 financial year. Headline earnings, which
include the effects of losses arising on translation of integrated foreign
operations, are currently depressed by the continuing strength in the value of
the Rand.

The investment in Dimension Data was written down to R6.45 per share at 30 June
2002 and will again be marked to market at year-end. At Dimension Data's current
market price of R4.00, a further exceptional loss of some R250m would be
incurred.

On a longer term basis, the anticipated ongoing benefits of the integration and
consolidation process recently announced, and the strength of the combined
Group, provide a sound foundation for future growth. Subject to regulatory
approval, the integration is on schedule and restructuring is anticipated to
commence from January 2003.

With the BoE merger, our primary focus remains on banking in South Africa. Given
a stronger and more stable Rand and higher levels of growth, we remain positive
about the period ahead.


                                                             21 November 2002


ENQUIRIES:

Old Mutual, London                               Tel: [phone]
James Poole

College Hill, London                             Tel: [phone]
Tony Friend



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