Standard Bank Group Limited · JSE:SBK
Standard Bank — Corporate Update (October 2010)
12 slides from Standard Bank's corporate update, Oct 29, 2010
Slide 1: Standard Bank retrenchments: Press briefing
Standard Bank retrenchments Press briefing g 29 October 2010 Understanding the world of banking today 2 Global economic recovery is losing traction - US economy – weaker GDP, house sales, consumer sentiment - Europe – fiscal challenges constrain growth - Emerging markets remain resilient but with
Slide 2: Understanding the world of banking today
Understanding the world of banking today 3 Global financial crisis and global recession have had an unprecedented impact on banks Pressure on revenue – Sluggish loan growth – Low interest rates putting pressure on margins – Weak fee income – Higher funding costs Uncertain regulatory reforms
Slide 3: Healthy, growing banks are critical for SA
Healthy, growing banks are critical for SA 5 SA financial services sector accounts for about 12% of GDP – Employed more than 330 000 people in 2009 Banks are core to SA’s reputation as an investment destination – WEF 2010-2011 2010 2011 Global Competitiveness Report ► SA ranks # 6 in the world f
Slide 4: Revenues slowing down; pressure on return on equity
Revenues slowing down 7 7 Pressure on Return on equity (ROE) 8 8 4
Slide 5: Loans and advances reducing; deterioration in cost-to-income ratio
Loans and advances reducing 9 9 Deterioration in cost-to-income ratio 10 10 5
Slide 6: Examples of measures taken to reduce operating costs
Examples of measures taken to reduce operating costs 11 Delay and downsizing of various projects, especially in IT More selective roll out of branches and ATMs elsewhere in Africa Marketing and sponsorship costs reduced significantly Reduction in professional fees for consultants Premises
Slide 7: Measures taken to reduce staff costs
Our ratio of managers and executives to general staff is too high 13 13 Measures taken to reduce staff costs 14 Freeze on recruitment of new staff Non-renewal of short term employment contracts 7
Slide 8: What we are trying to achieve through retrenchment process
What we are trying to achieve through retrenchment process 15 Retrenchment process instituted as a last resort to: Arrest widening gap between costs and revenues Improve cost to income ratio This process was aimed at: Minimising duplication of functions across the group Making redundant
Slide 9: Latest Estimate of Redundant Roles
Latest Estimate of Redundant Roles 17 % of Total SA % of Total London South Africa London Workforce Workforce Executives 65 12% 40 16% Managers 670 7% 75 15% General Staff 410 2% 45 11% Total Permanent Staff 1 145 1,145 4% 160 13% Contractors / Non‐ 600 110 Permanent Staff What we are doing to assis
Slide 10: How we see the medium term
How we see the medium term 19 Banking is highly competitive Healthy, growing banks are important for economic growth In the long term, this action will be good for Standard Bank and all its stakeholders We will better positioned to adapt to the challenging landscape 19 Questions? 10
Slide 11: South Africa: reflecting on results
South Africa: reflecting on results 21 21 South Africa: reflecting on results 22 22 11
Slide 12: South Africa: reflecting on results
South Africa: reflecting on results 23 23 12
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