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Results
2014 - 2015
1
2
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
Agenda
3
• Economic conditions
• Employment
• Indebtedness
• Regulatory uncertainty
• Credit rating
• ABIL
• Services
• Power
• Security
Playing Field
4
Game Plan – 2014/15 Focus
Brand Acceptance
5
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
Co
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20
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6
Main Bank %
Where do respondents deposit their salary? - Dec 2014
Source: At which bank do you deposit your salary? (i.e. which bank do you consider to be your primary bank?)
Base: All respondents (n=23752)
31
35 33
30 31 29
24 20
18 19
22
23 24
18 19
17 19
19
21
24
23 22
20 22
22
18
17
8 8 10 10
8
8
8 8 9
2 5 5
6
6
9
13
12
21
2 3 2 2 3 2 2 0 1
2006 2007 2008 2009 2010 2011 2012 2013 2014
Absa Standard Bank FNB Nedbank Capitec Post Bank
Brand Acceptance - Main Bank - Nielsen
6
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20
12
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Recommend a Bank %
Source: If you had to recommend a bank to somebody, which bank would it be?
Which bank do you think is the best bank in South Africa at the moment?
Base: All respondents (n=23752)
19
31
21
10
18
Absa Capitec FNB Nedbank Standard Bank
Brand Acceptance - Recommendation
7
8
Bank Acceptance - Service SA Customer Satisfaction Index
Sample Size: 16 112
9
Bank Acceptance – Perceived Value Score
SA Customer Satisfaction Index
Sample Size: 16 112
88.0
10
Game Plan – 2014/15 Focus
Product Take-up
11
Primary bank clients vs Total active clients ‘000
Product Take-up
12
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 28.5 32.0 5.2 6.2
Transaction usage per client
Product Take-up
13
Number of Transactions
(Millions)
Year ending
Feb 2014
Year ending
Feb 2015
Growth %
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 16
Total 870.4 1 202.8 38
Transaction volumes - six months
Product Take-up
14
Net Transaction Fee Income R’millions
Product Take-up - Bank Transacting
15
Electronic Channels
Product Take-up
Change
Feb 14
Change
Feb 15
Total
Feb 15
Cell phone clients (‘000) 840 930 2 195
USSD (for Feb’15)
App (for Feb’15)
1 962
233
Internet clients (‘000) 66 39 309
16
Loans advanced – R’millions
Product Take-up
17
Game Plan – 2014/15 Focus
Credit Quality
18
Product Percentage – 6 months
Credit Quality
19
Credit Model adjustments / approvals
% of Applications
2013 2014 2015
Total declined applications 54 56 57
Applications accepted –
not taken up 8 15 13
Applications accepted -
taken up 38 29 30
Total Applications 100 100 100
Credit Quality
• Improved credit decision model
20
Arrears to gross advances %
Credit quality
• Increased credit collections; better credit granting
21
Arrears and Provisions
2010 2011 2012 2013 2014 2015
Gross Loans &
Advances R’m 5 607 10 916 18 408 30 658 33 690 36 341
Loans past due
(arrears) R’m 350 626 932 1 777 2 174 1 964
Arrears to gross loans
& advances % 6.2 5.7 5.1 5.8 6.5 5.4
Provision for doubtful
debts R’m 382 845 1 545 2 723 3 637 3 857
Provision for doubtful
debts to gross loans &
advances % 6.8 7.7 8.4 8.9 10.8 10.6
Provision/arrears
coverage ratio % 109 135 166 153 167 196
Credit Quality
22
Provisions
Credit Quality
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 100.0 100.0
23
Loan clients with > 40% cash available - %
Credit Quality
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
24
Loan clients banking with us - %
Credit Quality
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
25
Client profiling – balances on book
% per income bracket
Credit Quality
26
Game Plan – 2014/15 Focus
Existing Business
27
Service Quality
• Service flow in branch
• Time To Service
• Time Of Service
Existing Business
28
Change
Feb 14
Change
Feb 15
Total
Feb 15
Branches 69 39 668
ATMs including own
Partnership ATMs 364 500 3 418
Staff 762 1 191 10 261
Changes - Logistics
Existing Business
Growth / Capacity
• Branches
• Workstation occupancy
• Remote Banking – App / USSD
29
Game Plan – 2014/15 Focus
Develop People
30
Develop people • Management Operating System
• Leadership
• Management
Project delivery
31
Score Board
32
Score Board
Headline Earnings per share (cents)
33
Return on equity (%)
Score Board
34
Net transaction fee income to expenses (%)
Score Board
35
Net transaction fee income to net banking income (%)
Score Board
36
Cost to income ratio (%)
Score Board
37
Deposits (R’millions)
Score Board
38
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 of Africa’s 16 most dynamic global growth companies
• Moneyweb
• Best internet banking platform in South Africa
39
Future
• External
• Internal
40
External
• Regulatory
• Clarity
• Stability / co-operation
• Economy
• Jobs
• Services
• Market
• Opportunity
• Brand acceptance
• Best value
Future
41
Internal
• Bank client focus
• Service
• Efficiency
• Optimise client / distribution platform
• People
Future
Thank you 42
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