Standard Bank Group Limited · JSE:SBK
Standard Bank — Investor Day (August 2008)
9 slides from Standard Bank's investor day presentation, Aug 18, 2008
Slide 1: Personal & Business Banking SA – Analyst day
Personal & Business Banking SA – Analyst day 18 August 2008 Agenda ● Economic outlook ● Financial Highlights ● Strategy of PBB ● Looking ahead ● Questions Start one-on-one meetings 2 1
Slide 2: Macro economic environment in SA in 2008
Macro economic environment in SA in 2008 ● GDP ? ● Inflation ? ● Interest rates ? ● Food and fuel price ? ● Steady formal sector labour market ? 3 Trading conditions in SA 20 10 18 9 16 8 14 7 12 6 10 5 8 4 6 3 4 2 2 1 0 0 Mar-02 Jun-02 Mar-03 Jun-03 Mar-04 Jun-04 Mar-05 Jun-05 Mar-06 Jun-06 Mar-07
Slide 3: SA retail sales
SA retail sales In June 2008, retail sales fell by 2.6%y/y in real terms. Retail sales declining noticeably 14 12 10 8 6 4 2 0 -2 -4 -6 %y/y 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 5 SA retail sales (seasonal cycle) Rm, constant 2000 prices Retail sales are extremely seasonal 36000 34000 3
Slide 4: SA passenger vehicle sales and median property prices
SA passenger vehicle sales Passenger vehicle sales declined by 19% y/y in July 55 12-month moving average 45 35 25 15 5 -5 -15 -25 -35 -45 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 %y/y 7 Standard Bank - median property prices 40.00 30.00 20.00 10.00 0.00 -10.00 -20.00 % M 00 M 01 M 02 M 03
Slide 5: Challenges foreseen in South Africa; Financial highlights
Challenges foreseen in South Africa ● Consumer affordability ● Pressure on pricing of term funding ● Competition Commission ● Legacy Banking Systems 9 Financial highlights June 2008 Change % June 2007 Dec 2007 Total income Rm 13 274 20 11 066 23 733 Headline earnings Rm 2 300 (7) 2 472 5 269 Total a
Slide 6: Moderate levels of customer activity; Current structure
Moderate levels of customer activity ● Retail sales down 4% y/y in May ● Value of new HL business registered down 28% ● Value of new loans in motor book down 32% ● Number of current accounts up 10% ● Number of other transaction and savings accounts up 4% ● Branch based transaction volumes – Teller v
Slide 7: Strategy; Inspired. Motivated. Involved people
Strategy ● Service ● Engaging people ● Focus on Transactional and savings accounts ● Employ suitable pricing and margin management strategies ● Sensible cost management 13 Inspired. Motivated. Involved people ● Successful in talent retention and continued positive progress on transformation targets
Slide 8: Sensible cost management; Outlook
Sensible cost management ● Total costs increased below inflation ● Staff costs up 6% – Managerial appointments effectively halted – January – Complete freeze on external recruitment – April – Active management of temporary workforce and labour broker – Robust management of poor performance ● Other o
Slide 9: Questions
Questions 17 9