Capitec Bank Holdings Limited · JSE:CPI
Capitec Bank — FY2015 Earnings Presentation
42 slides from Capitec Bank's earnings presentation, 2015
Slide 1: Results 2014 - 2015
Results 2014 - 2015 PS) CAPITEC
Slide 2: Agenda
Agenda Playing Field Game Plan - 2014/15 Focus • Drive brand acceptance • Increase product take-up • Improve credit quality • Focus on existing business • Develop people Scoreboard Some Applause Future 2
Slide 3: Playing Field
Playing Field • Economic conditions • Employment • Indebtedness • Regulatory uncertainty • Credit rating • ABIL • Services • Power • Security 3
Slide 4: Game Plan – 2014/15 Focus: Brand Acceptance
Game Plan – 2014/15 Focus Brand Acceptance 4
Slide 5: Brand Acceptance – Main Bank - AMPS
Brand Acceptance – Main Bank - AMPS Percentage Market Share Jul’11 to June ‘12 Jan ‘12 to Dec’12 Jul‘12 to Jun’13 Jan ‘13 to Dec’13 Jul ‘13 to Jun’14 5
Slide 6: Brand Acceptance - Main Bank - Nielsen
Brand Acceptance - Main Bank - Nielsen Where do respondents deposit their salary? - Dec 2014 Main Bank % 35 33 31 30 31 29 24 24 24 23 21 22 20 20 22 21 23 22 22 19 17 19 19 19 18 18 18 13 17 10 10 9 12 8 8 8 8 6 8 9 8 Copyright ©2012 The Nielsen Company. Confidential and proprietary. 5 5 2 6 2 3 2
Slide 7: Brand Acceptance - Recommendation
Brand Acceptance - Recommendation Recommend a Bank % 31 21 19 18 10 Absa Capitec FNB Nedbank Standard Bank Source: If you had to recommend a bank to somebody, which bank would it be? Copyright ©2012 The Nielsen Company. Confidential and proprietary. Which bank do you think is the best bank in South
Slide 8: Bank Acceptance - Service
Bank Acceptance - Service SA Customer Satisfaction Index Sample Size: 16 112 8
Slide 9: Bank Acceptance – Perceived Value Score
Bank Acceptance – Perceived Value Score SA Customer Satisfaction Index 88.0 Sample Size: 16 112 9
Slide 10: Game Plan – 2014/15 Focus: Product Take-up
Game Plan – 2014/15 Focus Product Take-up 10
Slide 11: Product Take-up
Product Take-up Primary bank clients vs Total active clients ‘000 11
Slide 12: Product Take-up: Transaction usage per client
Product Take-up Transaction usage per client Number per client Banking Clients Non-Banking Clients Feb-14 Feb -15 Feb-14 Feb -15 ATM 5.1 5.0 1.1 1.1 Branch 0.8 0.8 0.4 0.4 Debit Order 2.2 2.3 0.1 0.1 Internet 0.4 0.4 0.0 0.0 Mobile 14.7 17.0 2.3 2.8 POS 4.8 5.4 0.8 0.9 Other 1.1 1.0 0.8 0.8 Total 28
Slide 13: Product Take-up: Transaction volumes
Product Take-up Transaction volumes - six months Number of Transactions Year ending Year ending Growth % (Millions) Feb 2014 Feb 2015 ATM 162.0 195.0 20 Branch 34.4 39.9 16 Debit Order 56.2 71.9 28 Internet 9.7 13.2 37 Mobile 410.0 617.0 50 POS 141.0 197.8 40 POS Acquiring 4.0 6.1 53 Other 53.3 62.0
Slide 14: Product Take-up - Bank Transacting
Product Take-up - Bank Transacting Net Transaction Fee Income R’millions 14
Slide 15: Product Take-up: Electronic Channels
Product Take-up Electronic Channels Change Change Total Feb 14 Feb 15 Feb 15 Cell phone clients (‘000) 840 930 2 195 USSD (for Feb’15) 1 962 App (for Feb’15) 233 Internet clients (‘000) 66 39 309 15
Slide 16: Product Take-up: Loans advanced
Product Take-up Loans advanced – R’millions 16
Slide 17: Game Plan – 2014/15 Focus: Credit Quality
Game Plan – 2014/15 Focus Credit Quality 17
Slide 18: Credit Quality: Product Percentage
Credit Quality Product Percentage – 6 months 18
Slide 19: Credit Quality
Credit Quality Credit Model adjustments / approvals % of Applications 2013 2014 2015 Total declined applications 54 56 57 Applications accepted – 8 15 13 not taken up Applications accepted - 38 29 30 taken up Total Applications 100 100 100 • Improved credit decision model 19
Slide 20: Credit quality: Arrears to gross advances
Credit quality Arrears to gross advances % • Increased credit collections; better credit granting 20
Slide 21: Credit Quality: Arrears and Provisions
Credit Quality Arrears and Provisions 2010 2011 2012 2013 2014 2015 Gross Loans & R’m 5 607 10 916 18 408 30 658 33 690 36 341 Advances Loans past due R’m 350 626 932 1 777 2 174 1 964 (arrears) Arrears to gross loans % 6.2 5.7 5.1 5.8 6.5 5.4 & advances Provision for doubtful R’m 382 845 1 545 2 72
Slide 22: Credit Quality: Provisions
Credit Quality Provisions February 2014 (%) February 2015 (%) Credit Status of Book Provided of Book Provided Up to date 91.4 6.7 92.2 7.0 Rescheduled <6mths 2.2 33.0 2.4 41.6 1 payment in arrears 3.7 46.4 3.1 45.0 2 payments in arrears 1.6 74.3 1.4 73.3 3 payments in arrears 1.1 87.9 0.9 86.9 TOTAL
Slide 23: Credit Quality: Loan clients with > 40% cash available
Credit Quality Loan clients with > 40% cash available - % Sector Feb-14 May-14 Aug-14 Nov-14 Feb-15 Government 63.5 74.7 69.5 67.9 64.0 Non Government 73.5 80.0 81.1 81.0 73.5 23
Slide 24: Credit Quality: Loan clients banking with us
Credit Quality Loan clients banking with us - % Client Insight Feb 14 Feb 15 Bank with us 64.1 70.7 Do not bank with us 35.9 29.3 Total 100.0 100.0 24
Slide 25: Credit Quality: Client profiling
Credit Quality Client profiling – balances on book % per income bracket 25
Slide 26: Game Plan – 2014/15 Focus: Existing Business
Game Plan – 2014/15 Focus Existing Business 26
Slide 27: Existing Business: Service Quality
Existing Business Service Quality • Service flow in branch • Time To Service • Time Of Service 27
Slide 28: Existing Business: Changes - Logistics
Existing Business Changes - Logistics Change Change Total Feb 14 Feb 15 Feb 15 Branches 69 39 668 ATMs including own Partnership ATMs 364 500 3 418 Staff 762 1 191 10 261 Growth / Capacity • Branches • Workstation occupancy • Remote Banking – App / USSD 28
Slide 29: Game Plan – 2014/15 Focus: Develop People
Game Plan – 2014/15 Focus Develop People 29
Slide 30: Develop people
Develop people • Management Operating System • Leadership • Management Project delivery 30
Slide 31: Score Board
Score Board 31
Slide 32: Score Board: Headline Earnings per share
Score Board Headline Earnings per share (cents) 32
Slide 33: Score Board: Return on equity
Score Board Return on equity (%) 33
Slide 34: Score Board: Net transaction fee income to expenses
Score Board Net transaction fee income to expenses (%) 34
Slide 35: Score Board: Net transaction fee income to net banking income
Score Board Net transaction fee income to net banking income (%) 35
Slide 36: Score Board: Cost to income ratio
Score Board Cost to income ratio (%) 36
Slide 37: Score Board: Deposits
Score Board Deposits (R’millions) 37
Slide 38: Some Applause
Some Applause Awards • Ask Africa Orange Index • SA Favourite financial institution – customer satisfaction • SACSI • SA Winner on customer satisfaction • SA Winner on best value offered • Business Times Intellidex – Best Service • SA Winner – overall bank of the year • World Economic Forum • One
Slide 39: Future
Future • External • Internal 39
Slide 40: Future: External
Future External • Regulatory • Clarity • Stability / co-operation • Economy • Jobs • Services • Market • Opportunity • Brand acceptance • Best value 40
Slide 41: Future: Internal
Future Internal • Bank client focus • Service • Efficiency • Optimise client / distribution platform • People 41
Slide 42: Thank you
CAPITEC BANK al a CAPITEC BANK 42