Capitec Bank Holdings Limited · JSE:CPI
Capitec Bank — Shareholder Meeting (2013)
59 slides from Capitec Bank's shareholder meeting presentation, 2013
Slide 1: Results – 2013
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Slide 2: The Highlights - 2013
The Highlights - 2013 Key Indicators 2013 Change Headline earnings per share 1519c + 35% Shareholders’ funds R8.5b + 64% Return on equity 27% - 2% points Active clients 4.7m + 26% Net transaction fee income R1.3b + 61% Net transaction income to operating 45% + 11% points expenses
Slide 3: The Highlights - 2013
The Highlights - 2013 Key Indicators 2013 Change Operational changes • Branches 560 + 53 • ATMs 2 554 + 478 • Employees 8 308 + 1 114
Slide 4: Key Financials: Headline earnings per share
Key Financials Headline earnings per share
Slide 5: Headline Earnings per Share vs Price Earnings ratio
Key Financials Headline Earnings per Share vs Price Earnings ratio
Slide 6: Market share – main bank account
The Highlights Market share – main bank account
Slide 7: Number of active clients
The Highlights Number of active clients
Slide 8: The Unique Offer: Global One Money Management
The Unique Offer Global One Money Management
Slide 9: The Savings Offer
The Savings Offer
Slide 10: The Savings Offer: Unique attributes
The Savings Offer Unique attributes • High interest from the first cent • Small minimum balance • ‘Client defined’ deposit plan • Flexible or fixed • Client named • No administration fee
Slide 11: Number of Savings Plan Clients
Number of Savings Plan Clients
Slide 12: Savings and Deposits
Savings and Deposits Oe Retail call —@ Retail fixed @ Wholesale 2005 2006 2007 2008 2009 2010 2011 2012 = 2013 Z | } Z RNA _
Slide 13: The Transacting Offer
The Transacting Offer
Slide 14: The Transacting Offer: Unique attributes
The Transacting Offer Unique attributes • One administration fee for all accounts • Lowest, fixed fees per transaction • No fee for card purchases • Free access to mobile and internet • Monthly sms on monthly bank costs
Slide 15: Number of Primary Bank Clients
Number of Primary Bank Clients
Slide 16: Transaction Platform: Branches
Transaction Platform Branches
Slide 17: Transaction Platform: ATMs
Transaction Platform ATMs 600 2 554 500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 = =2013 | | noc 90 TNS |
Slide 18: Transaction Platform: Card Machines
Transaction Platform Card Machines
Slide 19: Number of Active Clients: Internet
Number of Active Clients Internet
Slide 20: Number of Registered Clients: Mobile
Number of Registered Clients Mobile
Slide 21: Transaction Activity
Transaction Activity Transactions performed on the bank system
Slide 22: Net Transaction Fee Income
Net Transaction Fee Income RM 1 400 1 200 1 000 @ 00 for) (00 EN 00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 [ noc 90 TNS OC
Slide 23: Transaction Fees and Operating Expenses
Transaction Fees and Operating Expenses
Slide 24: The Credit Offer
The Credit Offer The Unique Offer
Slide 25: The Credit Offer: Unique attributes
The Credit Offer Unique attributes • Single credit solution • Client defined term • Immediate approval and payment • Competitive pricing • No extra fee for credit life / retrenchment cover
Slide 26: Number of Loan Clients
Number of Loan Clients 1196 2009 2010 2011 2012 2013
Slide 27: Number of Loans Advanced
Number of Loans Advanced ‘000 5 000 4000 3 000 2000 1 000 Oo 2003 2004 2005 2006 2007 2008 2009 2010 4648 2011 2012 = 2013 ) noes oO
Slide 28: Loans Advanced
Loans Advanced RM 25 000 20 000 15 000 10 000 5 000 2003 2004 =2005 2006 2007 25 401 2008 2009 = =2010 2011 2012 = 2013 noc 90 TNS Oe
Slide 29: Credit: Arrears and Provisions
Credit Credit Arrears and Arrears andProvisions provisions Feb Feb Feb Feb 2010 2011 2012 2013 Gross loans and advances R’m 5 607 10 916 18 408 30 658 Loans past due (arrears) R’m 350 626 932 1 777 Arrears to gross loans & % 6.2 5.7 5.1 5.8 advances Provision for doubtful debts R’m 382 845 1 545 2 7
Slide 30: Credit: Arrears to gross advances
Credit Arrears to gross advances
Slide 31: Credit: Loan impairment expense
Credit Loan impairment expense Change six months ended from Aug 2012 – Feb Feb 2013 – Aug 2012 R’m 2013 R’m Book growth 300 465 (Improvement) deterioration in book quality (150) 185 Increased valuation of handed over book (34) – Increase in gross loan impairment expense 116 650
Slide 32: Arrears and Impairment Provision of Gross loans and advances
Credit Arrears and Impairment Provision of Gross loans and advances
Slide 33: Key Financials
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Slide 34: Key Financials: Headline earnings
Key Financials Headline earnings
Slide 35: Key Financials: Return on equity
Key Financials Return on equity
Slide 36: Key Financials: Shareholders' funds
Key Financials Shareholders’ funds
Slide 37: Key Financials: Total assets
Key Financials Total assets RM 40 000 @ Loans and advances 38 347 36 000 @ Cash 32 000 @ Investments @ Other 2003 2004 =2005 2006 2007 2008 2009 =2010 2011 2012 = 2013 Quo, O = — = B@ .-je¢@&E
Slide 38: Key Financials: Cost to income ratio
Key Financials Cost to income ratio
Slide 39: The Future
The Future
Slide 40: New branch design – new market segments
The Future New branch design – new market segments
Slide 41: New service process
The Future New service process • Queue system • Side by side • Paperless / scanning • OCR • Road map • Options • Agreement management • Centralised control • Meet Branch Manager
Slide 42: Virtual banking
The Future Virtual banking • Budget • Actual • Information support
Slide 43: The Future: Credit market potential
The Future • Credit market potential
Slide 44: Changing Market Dynamics: Credit Demand
Changing Market Dynamics Credit Demand
Slide 45: Credit Supply: 2007 – 2012
Changing Market Dynamics Credit Supply: 2007 – 2012 Source : NCR
Slide 46: Consumers who are credit active – millions
Changing Market Dynamics Consumers who are credit active – millions Source of actual Stats: NCR
Slide 47: Credit usage – Accounts
Changing ChangingMarket MarketDynamics Dynamics Credit Creditusage usage––Accounts Accounts Account Type Number – Millions 2008 2009 2010 2011 2012 Mortgages (Accounts) 1.8 1.8 1.8 1.8 1.8 Secures / other (Accounts) 5.6 5.2 4.6 4.6 4.8 Facilities (Accounts) 23.4 24.0 22.4 23.7 24.4 Unsecured (Accoun
Slide 48: Unsecured Credit Granted – Term
Changing Changing Market Market Dynamics Dynamics Unsecured Unsecured Credit Credit Granted – Term Term (Quarter (Quarter4)4) Unsecured Credit (R’m) Term 2008 2009 2010 2011 2012 < 6 months 119 75 150 418 619 7 – 24 months 2 615 2 882 3 771 4 923 4 981 25 – 36 months 2 939 2 882 4 023 5 356 5 416 37
Slide 49: Unsecured Credit Granted – Loan size
ChangingMarket Changing Market Dynamics Dynamics UnsecuredCredit Unsecured CreditGranted Granted –– Loan Loan size size (Quarter (Quarter 4) 4) Unsecured Credit (R’m) Loan size 2008 2009 2010 2011 2012 < R3 000 276 219 280 404 450 R3 000 – R10 000 2 219 2 270 2 792 3 739 3 525 R10 000 – R15 000 1 97
Slide 50: Credit Supply – Increasing 'high income' sector
Changing ChangingMarket Market Dynamics Dynamics Credit Supply Credit Supply––Increasing Increasing ‘high income’sector ‘high income’ sector(Quarter (Quarter 4) 4) Unsecured Credit Granted by ‘Income Level’ (%) Monthly Income 2008 2009 2010 2011 2012 < R10 000 68 53 48 42 39 R10 000 – R15 000 15 21
Slide 51: Credit Supply – Percentage applications rejected
Changing Market Dynamics Credit Supply – Percentage applications rejected
Slide 52: Credit Supply – % Reflected as current
Changing Market Dynamics Credit Supply – % Reflected as current
Slide 53: Credit Supply – % 1-2 months in arrears
Changing Market Dynamics Credit Supply – % 1-2 months in arrears
Slide 54: Credit Supply – % Impaired Accounts
Changing Market Dynamics Credit Supply – % Impaired Accounts
Slide 55: Capitec Bank Strengths
Credit Landscape Capitec Bank Strengths • World class approval and collections methodology • Active management • 13-year history, sound migration strategy • Rich data intelligence • Prudent provisioning
Slide 56: Capitec Bank Challenges
Credit Landscape Capitec Bank Challenges • Uncertain impact of industry restructure • Tough economic conditions • Regulatory uncertainty
Slide 57: Credit Landscape: Opportunity
Credit Landscape Opportunity • Continue to gain market share • Leverage of banking client intelligence • Funding of housing
Slide 58: The Future: Bank market potential
The Future • Bank market potential
Slide 59: Thank you
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