Standard Bank Group Limited · JSE:SBK
Standard Bank — Corporate Update (2007)
17 slides from Standard Bank's corporate update, 2007
Slide 1: Personal and Business Banking transactional price increases for 2007
Personal and Business Banking transactional price increases for 2007
Slide 2: Objectives
Objectives z Provide context as to how we set our prices z Provide an overview of some of the environmental factors that we take into account when setting prices z Communicate our 2007 pricing changes z Provide an overview of our relative competitive positioning 2
Slide 3: Agenda
Agenda z Pricing principles z Environmental factors z Customer education z Transactional non-interest revenue trends z Price increase for 2007 z Summary of key pricing changes z Competitive positioning z Conclusion 3
Slide 4: Pricing principles
Pricing principles z Value for money z Based on customer segment demands and needs z Simplicity and transparency z Affordability z Sustainability z Support business objectives in terms of balancing stakeholder needs (including customers and shareholders) z Competitiveness relative to other banks and
Slide 5: Environmental factors
Environmental factors z Competitive landscape z Economic environment z Changing customer trends and behaviour z Competition Commission z National Credit Act 5
Slide 6: Environmental factors: Competition Commission
Environmental factors Competition Commission z Operate in a competitive market z Fully committed to the process z Willing engagement with the commission z Annual pricing review process continues as usual based on our pricing principles 6
Slide 7: Environmental factors: National Credit Act
Environmental factors National Credit Act z Implementation date on 1 June 2007 z Implications extend beyond pricing (Access to credit, Affordability assessments, etc.) z Regulatory pricing regime necessitated the re-evaluation of our lending related fees (Overdrafts, Personal loans, Credit cards, Ve
Slide 8: Customer education
Customer education z Customer education remains critical and is a challenge, particularly in the lower income segments - In branch initiatives (Staff training, needs analysis, explanation of pricing at account opening, brochures and leaflets) - Multi-language brochures where appropriate - Internet p
Slide 9: Personal and Business Banking 2007 Personal transaction price increases
Personal and Business Banking 2007 Personal transaction price increases
Slide 10: Transactional non-interest revenue trends
Transactional non-interest revenue trends 2005 – Drivers of revenue (Transaction Products) Transaction account growth 6,500,000 Total Revenue Growth – 15.3% Total Growth – 16.1% 8.6% 6,000,000 3.1% New 5,500,000 accounts Open Active Transaction Usage accounts 4.4% 5,000,000 Price Jan 2002 Jan 2006 z
Slide 11: Price increase for 2007: Transaction products
Price increase for 2007 Transaction products Expected to increase to 6% in 2007 6.00% 5.10% 5.00% 4.96% 4.00% 3.70% 3.50% 3.00% 2.46% 2.00% 1.00% 1.00% 0.00% Mzansi E Plan Savings and Personal Overall Inflation (CPIX) Investment Current Increase Accounts Accounts z Price increases well below the lev
Slide 12: Summary of key pricing changes
Summary of key pricing changes z Mzansi and Eplan - No increase on Maestro purchases (unchanged for 3rd year running) - Debit orders on Mzansi (2 free internal; 5 external at R4.20; thereafter double fee) - 2 free unpaid debit orders (thereafter R31.50 capped at 2 per month) z Current Accounts - Int
Slide 13: Summary of key pricing changes cont…
Summary of key pricing changes cont… z Current Accounts cont.. - Monthly overdraft ledger fee of R17.50 on all current accounts with overdraft limits greater than R250 (Previously a fee of R20.40 was charged if the actual overdraft balance exceeded R100 for 5 days or more) - R295 annual card fee wil
Slide 14: Competitive positioning: Low income accounts
Competitive positioning Low income accounts Average fee per month (Median profile) Product Transactions Standard Bank 2007 Bank A Bank B Bank C Rank PureSave <2 R 6.75 R 11.76 R 12.17 R 6.15 2 Mzansi 3 R 9.28 R 7.23 R 10.10 R 10.06 2 EPlan 6 R 35.09 R 40.27 R 39.28 R 28.71 2 z Standard Bank is compe
Slide 15: Competitive positioning: Unbundled current accounts
Competitive positioning Unbundled current accounts Average fee per month (Median unbundled current account profile) Product Transactions Standard Bank 2007 Bank A Bank B Bank C Rank Classic 11 R 107.86 R 114.99 R 124.32 R 117.44 1 Achiever 15 R 147.10 R 147.84 R 151.44 R 152.38 1 Prestige 13 R 166.2
Slide 16: Competitive positioning: Bundled current accounts
Competitive positioning Bundled current accounts Average fee per month (Median bundled current account profile) Standard Bank 2007 Bank A Bank B Bank C Product Transactions Bundled Unbundled Unbundled Unbundled Unbundled Rank Classic 16 R 85.52 R 141.35 R 151.48 R 169.92 R 154.28 1 Achiever 22 R 121
Slide 17: Conclusion
Conclusion z Pricing increases below inflation z Pricing aligned to our underlying principles z Challenging economic and regulatory environment z Customer education remains a key focus z Strong focus on account acquisition and growth z Remain competitively positioned - 1st or 2nd cheapest for our ty