Standard Bank Group Limited · JSE:SBK
Standard Bank — Investor Presentation (September 2009)
8 slides from Standard Bank's investor presentation, Sep 1, 2009
Slide 1: Signs of Spring – Media presentation
Signs of Spring…… Media presentation p 1 September 2009 Index 2 1. How we think about extending credit 2. Moving forward – signs of Spring 3. Increasing g risk appetite pp Home loans Credit cards 4. Engaging select mortgage originators 5. Standard Bank is open for business and extending credit r
Slide 2: How we think about extending credit
How we think about extending credit 3 Primary obligation is to return depositors’ funds Need to deliver adequate return to shareholders Need to satisfy the needs of our existing customers and then prospective customers We have a critical role to play in the economy, given our function of int
Slide 3: Natural deleveraging in the personal and business markets
Natural deleveraging in the personal market 5 Natural deleveraging in the business market 6 Capacity utilisation shows surplus capacity 3
Slide 4: The cost of term funding has increased dramatically
The cost of term funding has increased dramatically 7 Unprecedented macro-economic conditions have substantially reduced demand for new credit 8 Personal market Natural risk aversion and deleveraging off record high levels of indebtedness Exacerbated by increasing unemployment and retrenchments,
Slide 5: Moving forward – signs of spring
Moving forward – signs of spring ......... 9 Although debt levels still at near record levels, affordability is improving 10 90% Household debt-to-disposable income 18% Debt payments to disposable income (RHS) 16% 80% 14% 70% 12% 10% 60% 8% 50% 6% 4% 40% 2% 30% 0% Dec-69 Dec-73 Dec-77 Dec-81 Dec-85
Slide 6: Improving optimism leading to greater risk appetite
Improving optimism leading to greater risk appetite 11 Improved debt affordability after 500 bps interest rate relief Improvements in pre-NPL ratios, signalling improving health of consumers Potential increases in real disposable income Asset prices appear to be bottoming out Ongoing heavy
Slide 7: Increased risk appetite in credit card; new home loans with select originators
Standard Bank has increased its risk appetite in Credit card 13 The focus is on the entry-level area of the credit card market Raising our “acceptable” probability of default by 3% on new business written in this segment The performance and risk appetite of this product will be continually re
Slide 8: Standard Bank is open for business and extending credit responsibly
Standard Bank is open for business and extending credit responsibly 15 Standard Bank is raising its risk appetite, particularly in PBB: Consumer affordability has improved with lower interest rates Market conditions have prompted changes in our risk acceptance criteria: In home loans, we are
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