Standard Bank Group Limited · JSE:SBK
Standard Bank — Russell 20-20 Conference 2003
25 slides from Standard Bank's conference presentation, October 2003
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Slide 2: Jacko Maree, Russell 20-20 Conference, Cape Town
Jacko Maree Russell 20-20 ForConference the six Based on interim months results toended Cape Town June 2003 3020June 2003 October 2003 2
Slide 3: SA Banking sector
SA Banking sector ABSA FirstRand Nedcor Standard Bank Banking assets (Rm) 269 064 257 926 315 702 432 519 Deposits 222 056 186 031 280 904 257 519 Headline/core earnings 3 441 5 429 3 060 5 884 (Rm) * Shareholders’ funds 16 866 23 431 18 099 26 290 (Rm)** Market capitalisation 24 972 45 320 19 365 4
Slide 4: SA Banking Sector
SA Banking Sector • SA’s four largest banks - 89% of banking advances • Financial sector - 24% of JSE market capitalisation • Financial services - 20% of SA’s GDP • SA banks in line with international peers in terms of key ratios: • returns on equity (20%) • cost-to-income ratio (57%) • non-interest
Slide 5: SA Banking sector now & then
SA Banking sector now & then 1994 1998 2002 Number of registered local banks Of the 35 banks registered in 1994, only 15 were registered 35 39 28 at December 2002 Number of registered foreign banks Of the 40 banks registered in 1994, 19 were still registered 40 58 52 at December 2002 5
Slide 6: South African retail lending market
South African retail lending market Leases and instalment Personal loans sales 15% 17% Cards 5% Mortgages 63% Source: BJM research 6
Slide 7: The cost of household debt
The cost of household debt % F/cast 16 Distress levels 14 12 10 8 6 4 2 Mar-75 Mar-78 Mar-81 Mar-84 Mar-87 Mar-90 Mar-93 Mar-96 Mar-99 Mar-02 Debt cost % of PDI Well below the 33-year average; consumers have capacity to take on debt Source: BJM research 7
Slide 8: Personal & Business Banking
Personal & Business Banking • Mortgage loans R258 billion • Overdrafts R106 billion • Investments R112 billion Standard Bank – > 8 million current, savings, investment, loan and card accounts – 690 branches, service centres and AutoBank E centres – >80% of personal account transactions via electroni
Slide 9: Direct Banking
Direct Banking • Approximately 12,000 ATM’s in SA • All major banks in SA provide on-line banking facilities Standard Bank – First online banking service in business market 20+ years ago – Business clients process transactions in excess of R3.000 billion pa – > 258 million ATM transactions processed
Slide 10: Information Technology
Information Technology • 156 million Saswitch ATM transactions processed annually • 444 million interbank electronic account payments processed annually • 230 million cheques processed annually Standard Bank – Earliest adopters of innovative technology eg ATMs, internet banking – Leading edge inform
Slide 11: The Financial Sector Charter
The Financial Sector Charter For the six Based on interim months results toended June 2003 30 June 2003 11
Slide 12: Key themes
Key themes • Sector transformation strategy • Interventions on targeted areas in the economy • Broadening access to financial services • BEE financing strategy • A comprehensive framework
Slide 13: 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 the e
Slide 14: Principles
Principles • A commitment that is voluntarily developed • A transformational framework that establishes mechanisms for BEE • A balanced scorecard approach to measure achievements in broad transformation and bee objectives • Growth and development of the sector integral to BEE • Provisions subject to
Slide 15: Key areas in the scorecard
Key areas in the scorecard % % Human Resources Development (HRD) 20 Senior management 5 Middle management 5 Junior management 5 Skills spend 3 Learnerships 2 Access to Financial Services 18 Empowerment Financing 22 Targeted Investments 17 BEE Transactions 5 Procurement and Enterprise Development (ED
Slide 16: 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% 16
Slide 17: Standard Bank - Differentiating factors
Standard Bank - Differentiating factors For the six Based on interim months results toended June 2003 30 June 2003 17
Slide 18: Standard Bank's DPS growth 18.3% compounded annually
Standard Bank’s DPS growth 18.3% compounded annually (Standard Bank vs Anglos) Sustained growth in dividends over 21 years 18 Source: I-Net
Slide 19: 50 / 50 Retail Wholesale split
50 / 50 Retail Wholesale split International Operations 17% Retail 37% SCMB 34% Liberty 3% Stanbic Africa Stanlib 8% 1% 19
Slide 20: Life insurance model
Life insurance model Sanlam Old Mutual ABSA Nedcor 20
Slide 21: Life insurance model
Life insurance model Standard Bank FirstRand FirstRand Momentum Banking Liberty Operating bancassurance JV 21
Slide 22: African strategy
African strategy • 8% of group earnings from Africa • Presence in 17 countries • Acquisitions likely • Retail roll-out • 15% contribution likely in the medium- term 22
Slide 23: International strategy
International strategy • 15% of group earnings from international investment banking • Focus on emerging markets (debt) and natural resources • Distribution, not balance sheet driven • Russia and Brazil banks opened 2003 23
Slide 24: Mass market focus
Mass market focus Transactional banking main focus • Automated self service network • Active E Plan accounts +11% to 2,6m Charter will encourage lending • Low income housing • SMEs Microlending in JV with ABIL 24
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