Standard Bank Group Limited · JSE:SBK
Standard Bank — pres othe01 pdf18
22 slides from Standard Bank's investor presentation, 2004
Slide 1: Lessons from the Financial Sector Charter
Lessons from the Financial Sector Charter Jacko Maree CEO, Standard Bank 1
Slide 2: Vision
Vision “ …. promoting a transformed, vibrant and globally competitive sector that reflects the demographics of SA, and contributes to the establishment of an equitable society by effectively providing accessible financial services to black people and by directing investment into targeted areas in th
Slide 3: Principles
Principles • A commitment that is voluntarily developed • A transformational framework that establishes mechanisms for BEE • A balanced scorecard approach to measure achievements and BEE objectives • Growth and development of the sector integral to BEE • Provisions subject to sound business practice
Slide 4: The scorecard
The scorecard Points Points Human resources development (HRD) 20 Senior management 5 Middle management 5 Junior management 5 Skills spend 3 2 Learnerships Access to financial services 18 Empowerment financing 22 Targeted investments 17 5 BEE transactions Procurement and enterprise development 15 Own
Slide 5: Ratings (2008)
Ratings (2008) Rating Points Weighting in tenders A >80 100% B 70 - 80 75% C 55 - 70 50% D 40 - 50 25% E <40 0% 5
Slide 6: Human resource development
Human resource development (20 points) Building a diverse, non-racial, non-sexist and sustainable intellectual pool Unquantified commitments to: • Mentorship and career pathing programmes • Cultural diversity and gender sensitivity programmes • Support educational institutions • Skills audit 6
Slide 7: Human resource development targets
Human resource development targets % Black people by 2008 25% Executive level (4% black women) 20 – 25% Senior level (4% black women) 30% Middle level (10% black women) 40 – 50% Junior level (15% black women) • Levels are defined by income • Learnership programme (matriculants) 7
Slide 8: Access to financial services
Access to financial services (18 points) Broadening the effective provision of financial services to LSM 1-5 Effective Access: • Accessibility • 80% of population within a 20km radius Affordability • new national bank account and money transfer service for LSM 1-5: • Innovative and user friendly • A
Slide 9: Access to financial services cont.
Access to financial services cont. • Originating approximately R20bn of low- income housing loans • Over five years = R1bn per annum for each of the major banks • Originating approximately R2bn of black SME and micro-enterprise loans • Originating approximately R1.5bn of agricultural development loa
Slide 10: Access to financial services cont.
Access to financial services cont. • Banking, life assurance, collective investments, short term insurance • Consumer and financial education • 0.2% of each institution’s post tax profits per annum • Support for second- and third-tier financial institutions 10
Slide 11: Empowerment financing
Empowerment financing (22 points) Underdeveloped areas where there are backlogs and gaps Targeted Investments • Transformational infrastructure • Low-income housing • Financing development agriculture • Financing SME’s BEE transactions financing 11
Slide 12: Empowerment financing cont.
Empowerment financing cont. Mobilising resources for investment in socio-economic transformation • Sector’s new investments could be in excess of R75bn • Process and mechanisms to be finalised with government and development finance institutions (DFIs) • Respective roles of government, DFIs and the
Slide 13: Procurement and enterprise development
Procurement and enterprise development (15 points) Supporting the development of sustainable black enterprises, third-tier financial institutions and black SMEs •BEE accreditation • Procurement from BEE accredited organisations • 50% of the value and procurement by 2008 • 70% of the value and procur
Slide 14: Ownership and control
Ownership and control (22 points) Enable strategic participation in the sector Black ownership aimed at • productive and sustainable participation • involving broad based constituencies • ownership participation that adds value • funding structures that facilitate transfer of economic interest • pro
Slide 15: Ownership and control cont.
Ownership and control cont. 25% total Black ownership by 2010 • Minimum of 10% direct ownership and maximum of 15% Indirect ownership In addition, branches of foreign banks may have • Additional BEE Transactions target equivalent to 25% of the value of the branch; and • joint ventures and partnershi
Slide 16: Corporate social investment
Corporate social investment (3 points) Narrow definition of Charter entails • Primarily black groups, communities and individuals • Strong developmental approach • Contribution towards transformation • Focuses on: • Education • Training • Development • Environment • Job creation • Arts and culture •
Slide 17: Application
Application • Targets apply from 1 January 2004 to 31 December 2014 • Principles embodied in the Charter are timeless • Comprehensive Charter reviews in 2009 and 2015 17
Slide 18: Monitoring and implementation
Monitoring and implementation Ensuring a result-orientated and effective implementation • Charter Council with representatives from the sector and stakeholders • Consensus-driven decision making process • Charter Council to oversee the implementation • Appointment of the executive 18
Slide 19: Balanced scorecard
Balanced scorecard Objective measure of achievements in transformation and empowerment Mechanics of the scorecard: • Thresholds for scoring • No scoring in exempted areas • No minimum performance in any area • Charter rating used in procurement 19
Slide 20: Impact on the financial services sector
Impact on the financial services sector in the medium term Revenue Cost Capital Sustain- growth efficiency adequacy ability Human resource development Access Empowerment financing ? Procurement and enterprise development Ownership and control Corporate social investment Positive Neutral Negative 20
Slide 21: Procurement (15%)
Procurement (15%) •Basic supplier assessments remain (e.g. business stability and sustainability analysis) •FSC procurement guidelines (based on ownership) are: Supplier Rating Ownership Criteria Spend Weighting A Black owned / engendered / SME’s (>50% ownership 125% and control) B Black empowered 1
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