Slide 1: FirstRand Limited Retail Analysts' Day May 2004
FirstRand Limited Retail Analysts’ Day May 2004
Slide 2: Agenda
AGENDA ¾ Introduction to FirstRand Retail Cluster Wendy Lucas-Bull ¾ Brand Value and Advertising Efficiency Derek Carstens ¾ WesBank Ronnie Watson ¾ FNB Segment Focus Michael Jordaan eBucks Lezanne Human HomeLoans Ed Grondel One Account Gail Roberts ¾ Expo Tour ¾ FNB Credit Cards Jan Kleynhans Trans
Slide 3: FirstRand Limited Structure
FirstRand Limited Structure FirstRand Limited FirstRand Bank Holdings Limited Momentum Group Limited Retail Corporate Wealth Health Rand RMB Private FNB Retail Bank Discovery Merchant Bank FNB Trust Destiny FNB Africa FNB Services Corporate Momentum Discovery RMB Private Life Life WesBank Equity RMB
Slide 4: Retail Cluster Structure
Retail Cluster Structure Financial Reporting Retail Cluster Wendy Lucas-Bull FNB Retail WesBank Insurance FNB Africa Willem Roos & EB Nieuwoudt Michael Jordaan Peet van der Walt Ronnie Watson Howard Aron Customer Solutions Service Network OUTsurance • Business • Botswana • Branch Banking • Motor • N
Slide 5: Retail Cluster Structure Recent Changes
Retail Cluster Structure Recent Changes Retail Cluster Wendy Lucas-Bull FNB Retail WesBank Insurance FNB Africa EB Nieuwoudt Michael Jordaan Peet van der Walt Ronnie Watson Willem Roos & Howard Aron Customer Solutions Service Network • Business OUTsurance • Botswana • HomeLoans • Branch Banking • Mo
Slide 6: The journey so far...
The journey so far...
Slide 7: From an Internal to an External Focus
From an Internal to an External Focus… June June June June June June 2000 2003 2004 1998 1999 2001 2002 *NBS Insurance *NBS HomeLoans *Saambou Deposits *Saambou Home Loans *Swabou *Saambou Affordable Housing *Saambou Insurance “Hands-off” Get Basics Right External Focus Growth New Strategy being imp
Slide 8: Retail Cluster's financial dynamics in perspective
Retail Cluster’s financial dynamics in perspective…
Slide 9: Retail Cluster Advances at Dec'03
Retail Cluster Advances at Dec’03 Retail Cluster 52% Share of FirstRand Banking Group Advances HomeLoans 20% Other 48% WesBank 21% FNB Africa 5% Loans Division Transactional 2% Credit Card Banking 2% 2%
Slide 10: Income Statement relative to FirstRand Banking Group
Income Statement relative to FirstRand Banking Group (Dec ‘03) NPBT Operating Expenditure 64% 70% Net Interest Income Non-Interest Revenue 67% 67%
Slide 11: Our Brands
FirstRand Retail Cluster OUR BRANDS Derek Carstens
Slide 12: Mission Statement
Mission Statement To passionately build & nurture the most compelling and innovative range of financial service brands in the business
Slide 13: Brands – The Business Imperative
Brands – The Business Imperative ROE EFFICIENCY 16,3% vs. 12,0% 54,5% vs. 66,8% Source: Council on Financial Competition 2003
Slide 14: FNB Brand Report Card
FNB Brand Report Card Commitment Levels ¾ Daily market perception tracking study o Information segment based o Metropolitan areas only o Banked population o Reported quarterly ¾ How we stand o Mass – strongly committed (R60k) o Middle (Black/Coloured) – strongly committed (R60 – R350k) o Middle (Whi
Slide 15: FNB Advertising Efficiency
FNB Advertising Efficiency Spontaneous Ad Awareness Comparative Spends 26% 3% BANK Rm’s ABSA 97 10% 23% 8% Standard 70 30% Nedbank 18 FNB ABSA NEDBANK STANDARD PEOPLE OTHER FNB 43 Source: Ad Index Source: BrandVision
Slide 16: WesBank
WesBank Ronnie Watson
Slide 17: WesBank Key Highlights Dec '03
WesBank Key Highlights … Dec ’03 WesBank’s Share of Retail Cluster NPBT 22% ¾ NPBT up 35% ¾ New business production up 24% ¾ NPLs down to 0.78% (0.93% June WesBank Share of 03) Retail Cluster Advances ¾ NIR up 33.1% 41%
Slide 18: Operational Improvement
Operational Improvement Specific Bad Debts to Advances for the Financial Year ended June ‘03 1.4 250 1.2 1 0.8 200 % 0.6 Rm 0.4 0.2 0 150 1999 2000 2001 2002 2003 Bad Debt % Rand Values
Slide 19: Market Share - Book Values
Market Share - Book Values Instalment Sale and Leasing Book 35 30 25 20 % 15 10 5 0 Mar Mar Mar-03 Jun-00 Jun Jun June Sep Sep Sep Sep Dec Dec Dec Dec WesBank FirstRand Group Standard Group ABSA Group Nedcor Group Others Source: DI900 - Collated to latest Reserve Bank totals + Toyota Financial Servi
Slide 20: New Vehicle Market Share
New Vehicle Market Share 35 30 25 % 20 15 10 5 Jul Jul May Nov May Nov Mar-02 Mar-03 Mar-04 Jan Sep Jan Sep Jan WesBank SBVAF AVAF Cash Source: WesBank
Slide 21: Used Vehicle Market Share
Used Vehicle Market Share 35 30 25 % 20 15 10 5 Jul Jul Mar-02 May Nov Mar-03 May Nov Mar-04 Jan Sep Jan Sep Jan WesBank SBVAF AVAF Cash Source: WesBank
Slide 22: Motor Division Business Diversity
Diversity Annual Growth Rate 31% Annual Growth Rate 25% Motor Division Business Division Dec 2003 Book R44bn
Slide 23: Partnerships
Partnerships Supermarket Finance
Slide 24: Motor Value-Adding Activities
Motor Value-Adding Activities Wholesale Finance F&I Training Motor Sewells & Finance Benchmarking Car Care Consultants
Slide 25: Strategic Focus Areas
Strategic Focus Areas ¾ People ¾ Customer Service ¾ Efficiencies ¾ Growth
Slide 26: Growth Opportunities
Growth Opportunities ¾ Organic o SANTACO, InspectaCar, Private Leasing, Business Division growth strategy, Islamic Finance and Collection Solutions External ¾ Acquisition o Actively looking for opportunities that will add load e.g. Barloworld Equipment book ¾ Greenfields o Australia and other Intern
Slide 27: Customer Solutions
Customer Solutions Michael Jordaan
Slide 28: Agenda
Agenda ¾ Segment Focus - Michael Jordaan ¾ eBucks Reward Programme - Lezanne Human ¾ HomeLoans - Ed Grondel ¾ One Account - Gail Roberts ¾ Credit Card - Jan Kleynhans ¾ Transactional Banking & Investments - Gaila Durbach ¾ Insurance - Schoeman Rudman ¾ Loans - Dave Dantu
Slide 29: SA Banking Market
SA Banking Market FNB share of Banking Relationships 2003 or latest available 18% 18% Premier 1 R350K + 160k - Multi-banked Business 25% 25% Turnover R60k to 780k R20m pa 17% 17% 2.25m Middle and Upper (94% banked) R60k – R350k 10.95 21% 21% Mass (54% banked) R6k – R60k Low Income 15.75m 21% 21% R0k
Slide 30: eBucks Reward Programme
eBucks Reward Programme Lezanne Human
Slide 31: eBucks - Overview
eBucks - Overview ¾ Commenced operations 3+ years ago (Oct 2000) ¾ Dedicated rewards programme – split from Internet banking in January 2004 ¾ Customer base – 693,000 and growing ¾ Voted best Financial Services Rewards Programme in 2003
Slide 32: Growth in Member Base
Growth in Member Base eBucks Rewards Programme - registered base 800,000 692,659 700,000 600,000 511,226 500,000 400,000 293,425 300,000 200,000 100,000 0 Nov-00 Jul-01 Nov-01 Jul-02 Nov-02 Jul-03 Nov-03 May-01 May-02 May-03 Jan-01 Jan-02 Jan-03 Jan-04 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-0
Slide 33: eBucks Earn Partners
eBucks Earn Partners …..Watch this space for more
Slide 34: Spend Channels
Spend Channels ¾ Internet o eBucks Shop (over 1,000 products) o Innovative offers (i.e. only online LOTTO supplier) o Payment Solution (click-through to merchants such as Makro & Kalahari for even wider choice) ¾ Call centre (Agents, IVR) ¾ Dedicated eBucksTravel service centre
Slide 35: eBucks Spent (Rm)
eBucks Spent (Rm) Ju 0 1 2 3 4 5 6 7 l- 0 Se 1 p- 0 No 1 v- 0 Ja 1 n- M 02 ar -0 M 2 ay -0 Ju 2 l- Se 02 p- 0 No 2 v- 0 Ja 2 n- Month M 03 ar -0 M 3 ay -0 Ju 3 l- Se 03 eBucks Spent per Month by Members (Rm) p- 0 No 3 v- Ja 03 Growth in Member Spend n- M 04 ar -0 4
Slide 36: HomeLoans
Wd First National Bank A division of FirstRand Bank Limited HomeLoans Ed Grondel
Slide 37: HomeLoans Key Highlights Dec '03
HomeLoans Key Highlights … Dec ’03 FNB HomeLoans Share of Retail Cluster NPBT 13% ¾ New business up 37% ¾ New business market share up from 15.3% to 16.1% ¾ Advances up 5.9% FNB HomeLoans Share of Retail Cluster Advances ¾ Re-advances up 70% 39% ¾ Gross margins down from 3.87% to 3.03%
Slide 38: Market Share
Doing the right things, Doing things right. Decline Turnaround Acquisition Profitable Growth +20% M/S +17% NB 8% 21% M/S Market Share Book Market Share 16% NB PWC (M/S) 6% Best Mortgage Share of New Provider JP Morgan Business (NB) Best Home Loan 11% M/S 15% NB Operation Time 1999 2000 2001 2002 200
Slide 39: Growing Profitably
Growing Profitably HomeLoans Profits R 600 R532m R343m R272m R334m R 400 R196m R269m R132m R 200 R0 1999 2000 2001 2002 2003 2004 R -200 ½ Year R -400 -R271m -R333m Rural HomeLoans New acquisitions Pips once-off profits HomeLoans
Slide 40: Profit Leader
Profit Leader Individual Mortgages Financial Year Rand Profit / Bank (R’M) Profit (2003) R’Billion FNB HomeLoans R39,610 R532m R13m Standard * R56,270 R563m R10m ABSA * R73,860 R447m R6m * Source: DI900 line 122
Slide 41: Collections Excellence
Collections Excellence NPL % of Gross advances 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- 99 99 00 00 01 01 02 02 03 03
Slide 42: Volume Growth
Volume Growth Loan Book Growth in no. of Registrations 45,000 60,000 40,000 50,000 35,000 45,000 30,000 40,000 R‘ Million 25,000 35,000 20,000 30,000 15,000 25,000 10,000 20,000 5,000 15,000 - 5,000 98/99 99/00 00/01 01/02 02/03 1/2 Year 2003/4
Slide 43: Greater Efficiencies
Greater Efficiencies Registrations per operational staff member 250 202 200 162 150 137 127 No. 100 74 50 0 99/00 00/01 01/02 02/03 03/04
Slide 44: First from FNB HomeLoans
First from FNB HomeLoans ¾ Bottom-line driven home loan focused unit ¾ Centralization of processing ¾ 2 Hrs reply times ¾ Individual pricing ¾ Outsourcing model for valuations ¾ Revolutionary Pips solution – HomeTraders ¾ Embraced Mortgage Origination ¾ Pioneered electronic origination
Slide 45: South African Residential Mortgage Market 2004
South African Residential Mortgage Market 2004 ¾ Boom not bubble ¾ Strong and growing competition ¾ Continued influence by market intermediaries
Slide 46: Where do we get our business?
Where do we get our business? 2001/2 2003/4 Estate Agents Estate Agents Mortgage 22% 13% Originators 46% Mortgage Branches & Originators other Direct Branches & 55% 23% other Direct 41%
Slide 47: Obtaining Value from Originators
Obtaining Value from Originators ¾ Volume ¾ Efficiencies ¾ Variable commissions
Slide 48: Risk Exposure
Quality of Book Risk Exposure of New Business Dec ‘03 40% 35% 30% Risk Exposure 25% 20% 15% 10% 5% 0% Low Low-Med Medium High Very High
Slide 49: Meeting Customers' Needs
Meeting Customers’ Needs Segment Offer Life Stage Offer Foreign Choice Repayment Choice Investment O Wealthy n Offer e A Education c Upper c Choice o u n t Middle Maternity Choice Affordable Housing BondPlus Mass Upper Single/Newly Full Nest Empty Nest Retirement Weds Generic Offer Future Choice, Fl
Slide 50: Where Will Growth Come From?
Where Will Growth Come From? ¾ Leverage Product and Marketing innovation ¾ Process and Technology efficiency ¾ Building embedded value o Focus on customer retention and re-advancing o New business and profitable market share growth
Slide 51: Where will growth come from?
Where will growth come from? ¾ Branch Network ¾ Group Collaboration ¾ Innovation in Service ¾ Non-interest Income
Slide 52: Presenting the One Account
Presenting the ONE ACCOUNT From FNB Gail Roberts Tadaah!!!
Slide 53: What the One Account is
What the One Account is Convenient ¾ A single banking solution for all primary needs ¾ Product for life Accessible ¾ All channels and 0860 FNB ONE ¾ Chequebook and debit card, petrol card Excellent value (savings) ¾ Single, low, tiered interest rate ¾ Salary into account = pay off the loan faster ¾
Slide 54: Differentiators
Differentiators ¾ New in Middle Market ¾ Up to 10% unsecured portion ¾ Risk and Affordability management o 4 repayment options o Individual risk rating ¾ Real-time o Truly integrated back-end o 24 hour access to credit, customer controlled o Single statement ¾ Built for high volumes = source of grow
Slide 55: Why it's so cool for FNB
Why it’s so cool for FNB ¾ Breaking ranks with other banks ¾ Existing concept in new markets ¾ Intended to grow market share in middle market, retain upper segments ¾ Profitable: rapid breakeven ¾ New product enhancements every year ¾ Touted as most exciting thing to happen to banking in many years
Slide 56: How can we help you?
& How can ‘we help you? wwwcinb.coza Streamlined banking with multiple advantages One low interest rate One monthly statement One monthly payment One account for life Get One
Slide 57: Expo Tour
EXPO TOUR
Slide 58: Credit Card Issuing
Credit Card Issuing Jan Kleynhans
Slide 59: Card Key Highlights Dec '03
Card Key Highlights … Dec ‘03 FNB Card Share of Retail Cluster Advances ¾ Card loans up 20.1% 4% ¾ Cardholder numbers up 7.5% ¾ 14.8% growth in cardholder turnover ¾ Deposits up 11.6%
Slide 60: Our Key Focus Areas
Our Key Focus Areas ¾ Thorough understanding of customer profitability and credit risk ¾ Highly differentiated card products ¾ Great prospects for growth.
Slide 61: Evolution of FNB Card
Evolution of FNB Card Split issuing and acquiring, to Settling down Focussed on Focussed on More aggressive data service business and getting database getting Balance base selling and cost segment. entrenching mining sales transfers up and management. management. going. running. 2000 - 2001 2001 - 2
Slide 62: Credit Card Loans market share
16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% 26.0% 27.0% 28.0% 29.0% 30.0% Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 May-02 FNB before offset Jun-02 Credit Jul-02 Aug-02 Sep-02 ABSA Oct-02 Nov-02 CREDIT CARD LOANS Dec-02 Jan-03 Card Loans Nedcor Feb-
Slide 63: Credit Card Loans market share
16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% 26.0% 27.0% 28.0% 29.0% Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 FNB before offset Nov-01 Dec-01 Jan-02 Feb-02 ABSA Mar-02 Apr-02 May-02 Jun-02 Nedcor Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Standard CREDIT CARD LOANS Dec-02 Jan-03 Credit Card Loans F
Slide 64: Customer Growth
Customer Growth ¾ Reviewed SA credit card market and saw potential threat of international monolines into the market ¾ International best practice and skills transfer from US-based Providian Financial (and hard lessons learned!) ¾ Moved from reactive branch-only walk-in sales to proactive database m
Slide 65: Customer Account Growth
Customer Account Growth Accountnumbers Account Numbers 780000 760000 740000 720000 700000 680000 660000 640000 620000 600000 Se 1 Se 2 Se 3 Ja 1 N 3 Ja 3 N 1 N 2 Ja 2 2 3 M 2 M 3 04 M 2 M 3 4 l-0 l-0 l-0 0 -0 0 -0 0 -0 -0 -0 0 0 -0 -0 -0 p- p- p- n- n- n- ov ov ov ay ay ar ar ar Ju Ju Ju M Shows imp
Slide 66: Customer Focused Marketing
Customer Focused Marketing ¾ Managing effective credit risk and account utilisation ¾ Customer management is about increasing the economic value of each customer account. Active marketing means putting a better product or offer in front of the customer more often in the hope of attracting the custom
Slide 67: Customer Profitability Decision-Making Model
Customer Profitability Decision-Making Model High Most Least Profitable Opportunity Most Customers Utilisation Are in Here Sizable Least Opportunity Profitable Low Low Risk High
Slide 68: Customer Risk Distribution
Customer Risk Distribution 40% 35% 30% 25% % of Customers 31-Dec-02 20% 30-Jun-03 31-Dec-03 15% 10% 5% 0% FR0-20 FR21-30 FR31-40 FR41-50 FR51-60 FR61-70 FR71-80 FR81-100 Credit Risk Ratings
Slide 69: Customer Profitability Analysis
% of Total Profit Customer Profitability Analysis 31-Dec-02 31-Dec-03 Less -R100 to R0 R0 to R50 to R100 to R200 to R300 to R400 to R500 to R600 to R700 to R800 to R900 to over than - R0 R50 R100 R200 R300 R400 R500 R600 R700 R800 R900 R1000 R1000 R100 Risk-adjusted Profit Bands
Slide 70: Products Offered to Increase Economic Value
Products Offered to Increase Economic Value ¾ Balance Transfers ¾ Limit increases and decreases ¾ Add-On Product Sale e.g. Petro cards ¾ Product Upgrade ¾ Cash advances e.g. budget ¾ Account closure ¾ eBucks Rewards upgrade ¾ Do Nothing
Slide 71: eBucks Rewards Driving Profitable Customer Behaviour
eBucks Rewards Driving Profitable Customer Behaviour ¾ 23% of customer base linked to eBucks Rewards programme ¾ eBucks credit card customers are o 47% more profitable than non eBucks customers o 50% more likely to be retained as credit card customers o using their credit card 75% more than non - eB
Slide 72: Card Product Differentiation
Card Product Differentiation ¾ Credit Electron for low income, higher risk end of market ¾ eBucks Rewards programme ¾ Embedded Insurance features o Debt Protection o Comprehensive Global Travel Insurance o AA Emergency Roadside Assistance o Lost Card and Card replacement insurance ¾ E-commerce produ
Slide 73: Growth Prospects
Growth Prospects ¾ Leverage off 2 year investment in analytical and database mining skills ¾ World-class credit application and behavioural scoring systems ¾ New income estimation and pre-scoring database mining techniques leveraging off group investment in GIS ¾ Credit Electron product for previous
Slide 74: Our Challenges
Our Challenges ¾ Basel II preparations ¾ Credit Card fraud ¾ EMV smartcard chip implementation ¾ New competitors o Barclaycard o Standard Chartered
Slide 75: Transactional Banking & Investments
Transactional Banking & Investments Galia Durbach
Slide 76: Transactional Banking and Investments Key Highlights
Transactional Banking and Investments Key Highlights … Dec ‘03 Transactional Banking Share of Retail Cluster NIR ¾ Transactions up 8,3% 49% ¾ Debit card number growth o 60% in cheque cards o 140% in Visa Electron cards. ¾ Transacting base up 7.2% Transactional Banking and Investment Product House Sh
Slide 77: Who We Are
Who We Are ¾ Cheque Accounts Core Relationship Products ¾ Transmission Accounts ¾ Savings Accounts ¾ Call Accounts ¾ Money Market Accounts Investment Products ¾ Notice Deposits ¾ Fixed Deposits ¾ Unit Trusts Segments ¾ Consumer ¾ Business
Slide 78: Who We Are
Who We Are ¾ Core Teams, focused on: o Deep understanding of customers’ needs o Product design and development o Systems and processes, around selling and administering products o Enabling and supporting frontline staff o Credit management o Outsourced sales and service to delivery channels, e.g. br
Slide 79: The Journey
The Journey Laying the foundation 2000 2001 2002 2003 2004
Slide 80: Laying the Foundation
Laying the Foundation Fix the Basics ¾ Systems and processes o Building channel flexibility o One central platform enabling changes/development across channels ¾ Products and pricing o Stem revenue leakage o Establish pricing philosophy & principles • Match pricing approach to customer needs/channel
Slide 81: The Journey
The Journey Building & Innovating Laying the foundation 2000 2001 2002 2003 2004
Slide 82: Building & Innovating
Building & Innovating ¾ Marketing/brand positioning o ‘Revitalize’ FNB’s product presence in the market o Timed to coincide with branch readiness ¾ Innovating o Launch of FNB Internet Banking o Innovative, informative customer statements ¾ Credit o Began laying foundations – automation & efficiencie
Slide 83: The Journey
The Journey Leveraging Building & Innovating Laying the foundation 2000 2001 2002 2003 2004
Slide 84: Leveraging
Leveraging ¾ ‘Fixing the basics’ enabled rapid delivery of complex solutions ¾ Ability to take on Saambou Deposit book o Take-on of over 400 000 customers in 90 days o Conscious opportunity cost put certain initiatives on hold – credit, payments enhancements ¾ Launch of InContact o Integrated with
Slide 85: Leveraging inContact
Leveraging inContact 700,000 9.0 8.0 600,000 7.0 Registrations Over 800 000 500,000 6.0 customers 400,000 May ‘04 5.0 SMS' 300,000 4.0 3.0 200,000 2.0 100,000 1.0 Over 9m SMS’ 0 sent per month 0.0 Jul-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 May-03 Jun-03 Jul-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-0
Slide 86: Technology is a key differentiator
Leveraging ¾ Streamlined buying process o Cross-sell triggers at frontline o Reduced time to sell by 50% Technology is a key differentiator
Slide 87: The Journey
The Journey Positioned for Future Leveraging Building & Innovating Laying the foundation 2000 2001 2002 2003 2004
Slide 88: Positioned for the Future
Positioned for the Future ¾ Delivery capability (physical and virtual) o Real-Time Account Opening on the Internet ¾ Systems and processes enable rapid automation / streamlining ¾ Customer convenience o Free Debit Order Switching (10 000 + customers assisted to date) o Automated Renewal of Fixed Dep
Slide 89: Positioned for the Future
Positioned for the Future Development of new markets through product innovation ¾ Expand Current Products o Notice Accounts to the mass market o Embedded credit life in overdraft o InContact Pro for business ¾ New products o Prime Floor/Bonus account o Pre-Plant Contract product for Agriculture
Slide 90: Positioned for the Future
Positioned for the Future ¾ Improved Credit Processes o Application and Balanced Risk Scorecards o Dynamic Provisioning o Automated Management of Credit Excesses o Hubbing of Credit ¾ eBucks rewards on Cheque accounts o eBucks earners 23% less likely to close their accounts o eBucks earners transact
Slide 91: Growth Challenges
Growth Challenges ¾ Low interest rate, low inflation environment o Product innovation o Cost containment o Continued re-engineering o Active margin management o Endowment hedge 18.00% 13.50% 9.00% 4.50% 0.00% 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 A
Slide 92: Electronic Channels Driving Volume Growth
Electronic Channels Driving Volume Growth 16.63 % 22.21 % -3.39 % -1.15 % Dec 01 Dec 02 Dec 03 Electronic Cheques & Cash Overall growth in transaction volumes 8.3% in 2003 (6.4% in 2002)
Slide 93: Balance Sheet Growth
Balance Sheet Growth YOY growth Dec 03/02 Dec 02/01 Money Market 19.0% 22.0% Saambou Take-on Call Accounts 12.2% 63.4% Notice Deposits 1.1% 52.5% Fixed Deposits 7.4% 168.9% Cheque, S & T 13.5% 13.6% Continued strong growth on back of Saambou Move to short term money
Slide 94: Managing Interest Rate Risk & Pricing
Managing Interest Rate Risk & Pricing ¾ Applied intellectual capital to the whole book – manage interest rates on a highly skilled basis ¾ Apply same techniques on a product basis to actively manage margin
Slide 95: Conclusion
Conclusion ¾ Positioned for growth ¾ Development of new markets through product innovation ¾ Focus on customer convenience & efficiencies
Slide 96: FNB Insurance (Bancassurance)
FNB Insurance (Bancassurance) Schoeman Rudman
Slide 97: What is FNB Insurance
What is FNB Insurance More than Bancassurance – Total Collaboration ¾ Focus ¾ FNB Insurance Brand ¾ Utilisation of existing assets
Slide 98: Strategy: Wallet Share
Strategy Credit Relationship Insurance Relationship Wallet Share Wealth Creation Bundling, Packaging, Cross-sell Total Embedding Time
Slide 99: Strategy: Customer Base Growth
Strategy : Customer Base Growth 800000 700000 Bundle & Cross Sell 600000 500000 400000 Embedment & Acquisition 300000 Stem Leakage & 200000 Achieve Synergy 100000 Scope & Build 0 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 2004 2004 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Number of Active
Slide 100: Positioned for Growth
Positioned for Growth ¾ Branch Network Sales ¾ Insurance Advisors ¾ African Subsidiaries
Slide 101: Collaboration
Collaboration ¾ Retail income from insurance operations up 58% year-on-year R’m Dec 02 Dec 03 June 03 % ∆ HY/HY OUTsurance 40 68 85 70% First Link 18 25 62 39% WesBank 75 100 160 34% HomeLoans - 35 46 n/a FNB Life 18 22 42 22% FNB Consultants 18 17 33 -6% Total 169 267 428 58%
Slide 102: Lessons Learnt
Lessons Learnt We are doing well, but…. The potential is huge !
Slide 103: Responsible Life
“The responsible Responsible Life is teticntie choice tomorrow.” % Survivor Praia ?Funeral Plan Education Savings Plan Contractual Savings Plan For more information, contact us on 0860 100 394 or ask at this FNB branch. How can we help you?
Slide 104: Loans
First National Bank A division of FirstRand Bank Limited Loans Dave Dantu
Slide 105: Positioning
Positioning We are the originator of non-asset backed loan products, within FNB and chosen market segments! Business Mass Middle Agricultural SmartSpend CashPower SME / BEE Smart Housing Plan Student Loans Commercial
Slide 106: Strategy: The Loans Centre
Collaboration at its Best!! Strategy And FNB Branch Network Strategy Fulfillment Support And WesBank Delivery THE LOANS CENTRE
Slide 107: Flight Plan Process
Flight Plan Process Phase 1 Phase 2 Phase 3 Phase 4 Consolidation Product Focus Segment Focus Growth • Launch Micro • Premises • Develop Value • Development Loans strategy • Staff Propositions of TLC • Focus on • Budgets • Structure • Cross-sell Retention • Financials • Pricing Models • Take on Rura
Slide 108: Loans Key Highlights Dec '03
Loans Key Highlights … Dec ‘03 FNB Loans Share of Retail Cluster Advances ¾ Return to profitability of FNB Instalment Loans from a prior loss of R104m 3% Micro Loans ¾ R400m book size ¾ NPLs down to 8,5% from 28% Non-mortgage loans book ¾ R344m book size ¾ NPLs down to 0.5% from 9%
Slide 109: Market Share Agricultural Loans
Market Share Agricultural Loans - Market Share R 40.0 R 30.0 R 20.0 R 10.0 R- Total Market Total Banks FNB Total Market R 31.0 Total Banks R 13.8 FNB R 4.6 Source: Shared Peer Information
Slide 110: Market Share CashPower Personal Loans
Market Share CashPower Personal Loans - Market Share R 6.0 R 5.0 BILLIONS R 4.0 R 3.0 R 2.0 33% R 1.0 R- Total Market FNB Total Market R 5.0 FNB R 1.6 Source: Shared Peer Information
Slide 111: Anticipated Growth
Anticipated Growth Production/Rand Value 700 Thousands 600 CashPower 500 Business Loans 400 SmartSpend 300 Student Loans Smart Housing Plan 200 Agri 100 SME 0 -100 2003 2004 2005
Slide 112: Strategic Focus Areas
Strategic Focus Areas ¾ Partnership opportunities ¾ Cross-sell initiatives ¾ Formalise Vanilla and Structured loan TLC structures ¾ Single loan acquisition system ¾ Improved efficiencies
Slide 113: Growth Opportunities
Growth Opportunities ORGANIC ¾ FNB Branches sales drive. ¾ Direct marketing including the pre-approval of customer base for the Middle and Mass markets. ¾ Ongoing improvement in scorecards ¾ Introduce an additional channel for the acquiring and fulfillment of personal loans – The ATM.
Slide 114: Greenfields
Greenfields ¾ FNB Enterprise Solutions – well placed with risk sharing public partnerships and a world class, world first, AfterCare Programme – In support of the SME and BEE market ¾ The Mass Market Drive ¾ The aforementioned initiatives will underpin our Financial Charter drive helping us to achie
Slide 115: Expo Tour & Lunch
EXPO TOUR & LUNCH
Slide 116: Service Network
Service Network Peet van der Walt
Slide 117: Agenda
Agenda ¾ Service Network – Peet van der Walt ¾ Branch Banking – Zweli Manyathi ¾ Banking Operations – Leonie van Tonder ¾ eDelivery – Roland le Sueur ¾ Self Service Channel – Michael Arnold
Slide 118: What is the Service Network?
What is the Service Network ? The Custodian of all FNB Relationships Through multiple channels, we strive to consistently deliver superior customer experiences. We aim to get, keep and grow all FNB customer relationships.
Slide 119: Key Themes
Key Themes ¾ People ¾ Efficiencies ¾ Sales ¾ Innovation ¾ Investments & Growth
Slide 120: People
People ¾ VUKA ¾ Product training ¾ Service culture – No 1 since inception of SAS IndexTM ¾ Improved productivity ¾ Recognition / incentives ¾ Leadership development ¾ Learnerships o Bachelor in Management Leadership Programme: • First intake - March 2003: 40 learners • Second intake – March 2004: 26
Slide 121: Efficiencies
Efficiencies ¾ Branch / Back office restructure (no IT re- engineering) ¾ Further centralization of branch admin ¾ Sales efficiencies ¾ Productivity improvement in all channels
Slide 122: Sales
Sales ¾ Integration of channels ¾ Sales conversion ratio ¾ Relationship management teams ¾ Group schemes ¾ Personal relationship banking
Slide 123: Innovation
Innovation ¾ Culture ¾ Innovation Units ¾ Continuous Innovation
Slide 124: Investments
Investments ¾ Imaging Project ¾ ATM software ¾ Increased Internet Banking capacity ¾ Branch automation ¾ Refurbishment of branches ¾ Relocation and expansion of branches ¾ ATM Network expansion ¾ Contact Centre ¾ Direct Channel ¾ Customer Experience project Investments self-funded within financial y
Slide 125: Key Statistics
Key Statistics (As at Dec ’03) ¾ 5.5 million customers ¾ 223 000 Internet bankers ¾ 640 branches ¾ 2, 965 ATMs o 2068 ATMs o 849 Mini-ATMs o 48 BOB Cats
Slide 126: Branch Transactions
Branch Transactions Average Monthly Transactions (Withdrawals and Deposits) Dec ’02/’03 2% Growth 7% Growth 6,000 10,000 9,000 5,000 8,000 4,000 7,000 R Millions 6,000 000's 3,000 5,000 4,000 2,000 3,000 1,000 2,000 1,000 - 0 Dec 02 Dec 03 Dec 02 Dec 03 Volumes Cash Value Monthly average volumes pea
Slide 127: FNB Internet Banking
FNB Internet Banking Average Monthly Transactions (Payments & Transfers) Dec ’02/’03 85% Growth 74% Growth 1,400 8,000 1,200 7,000 1,000 6,000 R Millions 5,000 800 000's 4,000 600 3,000 400 2,000 200 1,000 - 0 Dec 02 Dec 03 Dec 02 Dec 03 Volumes Value Monthly average volumes peak at 1.3m and value p
Slide 128: ATMs Average Monthly transactions
ATMs Average Monthly transactions (Total transactions ’02/’03) 3% Growth 9% Growth 18,000 16,000 14,000 12,000 000's 10,000 8,000 6,000 4,000 2,000 - Dec 02 Dec 03 Dec 02 Dec 03 Total Transactions Withdrawals Monthly average volumes peak at 15.9m
Slide 129: Branch Banking
Branch Banking Zweli Manyathi
Slide 130: Our Journey
Our Journey 2000 ¾ February: First Express, First Commerce, Personal Bank and FNB Rural Branch migration ¾ June: Head Office consolidation ¾ November: Back Office centralisation and restructure of FNB Metro 2001 ¾ VUKA introduction ¾ SAS IndexTM 2001 – FNB rated number 1 for Customer Satisfaction 20
Slide 131: What is new in Branch Banking?
What is new in Branch Banking? ¾ Vuka bedrock of our culture, Rural roll-out initiated ¾ Similar (but not the same) structures in all provinces ¾ New measurements ¾ Implement franchise model
Slide 132: Key Themes going Forward
Key Themes going Forward ¾Efficiencies o Capacity management o Franchise approach ¾People o Creation of capacity ¾Sales o Sales effectiveness ¾Focus on the customer o Consistent customer experience across outlets o Customer Complaints Management System o Customer Portfolio Management System o Taking
Slide 133: Challenges
Challenges ¾Compliance o KYC o FAIS
Slide 134: Banking Operations
Banking Operations Leonie van Tonder
Slide 135: What is Banking Operations
What is Banking Operations STRATEGIC SUPPORT OPERATIONAL UNITS Finance Smart box Contact Processing Centre Risk Management Cheque CASH People Administration Information technology Human Capital Transformation
Slide 136: Focus
Focus Historical Future ¾ Centralisation ¾ Image roll out ¾ Efficiency/Productivity ¾ Contact Centre ¾ Fraud Prevention efficiencies ¾ Cost control ¾ Cash Holding Management
Slide 137: Productivity
Productivity 350 300 250 200 150 100 50 0 Orchid Target Jun-01 Jun-02 Jun-03 Dec-03 Productivity 100 238 243 262 316 % Increase 138% 143% 162% 216% ¾ Project Orchid target introduced in 2000 – a 300% increase ¾ An additional 216% increase in productivity after the introduction of Project Orchid
Slide 138: Reduction in Overnight Cash Holdings
Reduction in Overnight Cash Holdings AVERAGE CASH TURNOVER DAYS 4.0 3.0 2.0 1.0 - Jun-01 Jun-02 Jun-03 Dec-03 Days 3.4 2.7 1.9 1.5 ¾ 56 % Improvement on 2001
Slide 139: Cheque Processing
Cheque Processing COST PER ITEM - DAY 1 R 1.20 R 1.00 R 0.80 R 0.60 R 0.40 R 0.20 R- Jun-00 Jun-01 Jun-02 Jun-03 Dec-03 Cost per Cheque R 1.01 R 0.75 R 0.65 R 0.58 R 0.60 ¾ 41 % Improvement on 2000
Slide 140: Cheque Processing
Cheque Processing COST PER CHEQUE - DAY 2 R 5.00 R 4.00 R 3.00 R 2.00 R 1.00 R- Jun-00 Jun-01 Jun-02 Jun-03 Dec-03 Cost per Cheque R 4.50 R 1.81 R 1.01 R 1.04 R 0.95 ¾ 79 % Improvement on 2000
Slide 141: Fraud
Fraud 120 100 80 60 40 20 - Jun-02 Jun-03 Dec-03 Fraud Prevented Fraud Incurred ¾ 78% Reduction in fraud incurred ¾ 50% Decrease in fraud attempts
Slide 142: Fraud Prevention Measures
Fraud Fraud Prevention Measures ¾ Increased staff awareness ¾ Introduction of new cheques with enhanced security features ¾ Fraud prevention software ¾ Participation in Vow of Vigilance (R1m annual draw)
Slide 143: Future Focus
Future Focus Contact Centre ¾ Integrated sales and services platform ¾ Language options in Contact Centres ¾ Voice recognition Cheque Processing ¾ Cheque Imaging ¾ Centralised Statement rendition ¾ Automated Signature Verification
Slide 144: Tea
TEA
Slide 145: eDelivery
Wd First National Bank A division of FirstRand Bank Limited eDelivery Roland le Sueur
Slide 146: What Do We Do?
What Do We Do? ¾ Internet banking (excluding corporates) ¾ Mobile/cellphone banking ¾ Banking by Telephone Products ¾ Online sales ¾ www.fnb.co.za
Slide 147: Internet Banking Incident October 2003
Internet Banking Incident October 2003 ¾ What happened? ¾ Steps taken to address problem ¾ Current status
Slide 148: Key Statistics
Key Statistics Internet ¾ 223,000 Internet bankers o Growing at +/- 7,000 pm o 337% growth since Dec 02 ¾ Processing an average of R6.1 billion of financial transactions each month ¾ Peak volumes of 4 logins / second ¾ Around 4,000 concurrent users at month-end peak ¾ Over 1.9 million site visits pe
Slide 149: Our (competitive) Strengths
Our (competitive) Strengths ¾ No monthly subscription fee ¾ Very high security with DigiTag & InContact ¾ Money back guarantee for fraud ¾ FOREX online ¾ eBucks rewards for transactions. ¾ Very good response times o Industry average - 2.01 seconds / transaction o FNB’s response time - 1.06 seconds /
Slide 150: Future Growth
Future Growth ¾ Internet Banking o Increased penetration, currently 21% of all cheque account base o Internet Kiosks in branches and ISP deals ¾ 321Contact o Pre-paid top-ups ¾ Online sales opportunities
Slide 151: Self Service Channel
Self Service Channel Mike Arnold
Slide 152: Strong SASWITCH Market Share
Strong SASWITCH Market Share FNB BOB ATM Volume as a % of SASWITCH POOL (as at December 2003) FNB BOB 24.3% Other Banks 75.7%
Slide 153: FNB on BOB Transaction Growth
FNB on BOB Transaction Growth GROWTH OF FNB ON BOB TRANSACTION VOLUMES 14% (Jul-Dec 2002 vs Jul-Dec 2003) 12% % Change in Transaction Volume 10% 8% 6% 4% 2% 0% -2% -4% Jul Aug Sep Oct Nov Dec
Slide 154: Strong Availability Performance (1 of 2)
Strong Availability Performance (1 of 2) SASWITCH TERMINAL AVAILABILITY (Dec 2003 – April 2004) 100.00% 99.75% 99.50% % Availability (24-Hour) 99.25% ABSA - Term STD - Term 99.00% FNB - Term 98.75% NED - Term 98.50% 98.25% 98.00% Dec-03 Jan-04 Feb-04 Mar-04 Apr-04
Slide 155: Strong Availability Performance (2 of 2)
Strong Availability Performance (2 of 2) SASWITCH AUTHORISOR AVAILABILITY (Dec 2003- March 2004) 100.00% 99.75% Network problems % Availability (24-Hour) 99.50% on the mainframe 99.25% and a cable fault during a scheduled ABSA - Auth maintenance slot. STD - Auth 99.00% FNB - Auth 98.75% NED - Auth T
Slide 156: BOB Device Growth
BOB Device Growth Number of BOB Devices (July 2003 – Dec 2003) 3000 Number of Devices Deployed 2500 2000 Number of BOB 1500 Mini-ATMs Number of BOB's and BOBCATS 1000 500 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar April May June Jul Aug Sep Oct Nov Dec
Slide 157: BOB Mini-ATM
BOB Mini-ATM ¾Allows ATM expansion into under represented areas. ¾Low volume business model enables extended reach. ¾Overcomes lack of infrastructure in rural areas. ¾Manages logistical and security issues. ¾Trades on the trusted BOB Brand. ¾Boosts local economies by recycling cash.
Slide 158: BOB Mini-ATMs Create New Transactions
BOB Mini-ATMs Create New Transactions BOB Mini-ATM Transaction Volumes (July 2003 – March 2004) 500 Transaction Volume (‘000’s) 400 300 200 100 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Slide 159: Strong Pre-Paid Growth
Strong Pre-Paid Growth Pre-Paid Transaction Volumes (July 2003- Dec 2003) 140,000 120,000 Transaction Volumes 100,000 80,000 60,000 40,000 20,000 0 July Aug Sept Oct Nov Dec
Slide 160: Transaction Innovation
Transaction Innovation ¾ New Payment Method o Concept proved with Intercape, Luxliner and Translux ¾ Traffic Fine Payments
Slide 161: IEC Voter Registration
IEC Voter Registration Supporting Proudly South African: almost 300 000 voter registration transactions processed!
Slide 162: Way Forward
Way Forward ¾ Expansion of the Network ¾ New Transactions ¾ EMV: Hardware and Software Upgrade
Slide 163: Technology
Technology Yatin Narsai
Slide 164: Strategic Differentiators
Strategic Differentiators ¾ IT decentralised into business units o Ensures strong business alignment and ownership ¾ Advanced use of Hogan functionality o 3 of 4 major SA banks use Hogan, but o FNB has leveraged off this strong integration platform ¾ Transaction hub for Africa o Innovation readily a
Slide 165: Strategic Differentiators
Strategic Differentiators ¾ Bank-wide implementation of middleware (VODS) o Reduced time to market on new products and channels o Multi-channel enablement ¾ Ability to execute rapidly o Multiple software releases per month versus per quarter ¾ A ‘business’ IT culture o Technology is a core competenc
Slide 166: Business Value Delivered
Business Value Delivered ¾ inContact (2001) o Over 800,000 subscribers o Vital customer data o Fraud management and reduced balance enquiries ¾ Mini-ATMs (2001) o Over 1,000 installed o Un/underbanked market is serviced ¾ Saambou/NBS/Swabou take-ons (2002-2003) o Over 600,000 new customer accounts m
Slide 167: Business Value Delivered
Business Value Delivered ¾ Meaningful, A4 statements across all products o Enhanced customer communication ¾ Linear scaling o Incremental growth achieved with marginal capacity increase o Large cost advantage Capacity and customer transaction growth MIPS Customer generated transactions Jan-01 Jul-01
Slide 168: Recent & Planned Initiatives
Recent & Planned Initiatives ¾ DigiTag security ¾ Comprehensive sales architecture o Improved turnaround time o Detailed measurement ability ¾ Advanced credit management o Account level approvals within seconds o Transaction level credit management ¾ FNB One Account o True One Account (no sweeping)
Slide 169: IT Investment
IT Investment A leading system integrator How is IT investment acknowledged FNB’s architecture to measured? be world best practice A leading management consultancy Business Value has shown FNB IT cost to revenue ratio to be better than world average but marginally higher than leading world banks ? W
Slide 170: OUTsurance
SURANCE SU RAN CE Willem Roos
Slide 171: What do we do?
What do we do? • Personal OUTsurance – your car & house – direct – telephonically • Direct response advertising Î inbound calls • Outbound calls Î FirstRand Bank client base • Business OUTsurance • Homeowners OUTsurance – FNB HomeLoans – RMB Private Bank • Cell captive arrangement for WesBank – cred
Slide 172: What makes us different?
What makes us different? • Actuarial rating
Slide 173: Risk pricing
Risk pricing c e r an u Ts OU Market Relative premium level Relative level of insurance risk
Slide 174: What makes us different?
What makes us different? • Actuarial rating • Consumer focussed – AWESOME service – risk management by product design • Direct – enables execution of fundamentals – lower acquisition costs • Claims management • Technology
Slide 175: Premium income
Premium income 1000 1007.6 900 800 700 670.4 600 590.3 R million 500 400 425.4 300 280.9 200 100 63.7 30 June 1999 30 June 2000 30 June 2001 30 June 2002 30 June 2003 6 months to December 2003
Slide 176: Headline Earnings
120 Headline Earnings 100 102.7 91.2 80 60 R million 40 41.5 20 23.3 12.1 30 June 1999 30 June 2000 30 June 2001 30 June 2002 30 June 2003 6 months to December 2003 (20) (28.8) (40)
Slide 177: OUTstanding Service!
OUTstanding Service! 7.0 100.0% 6.0 95.0% Percentage of call answered within 20 seconds 5.0 Average claims settlement in days 90.0% 4.0 85.0% 3.0 80.0% 2.0 75.0% 1.0 0.0 70.0% 2003-Q1 2003-Q2 2003-Q3 2003-Q4 2004-Q1 Buildings Vehicle Accidents Service Level
Slide 178: Collaboration
Collaboration OUTsurance Premium Income Split Personal cross-selling 8% (3% of total) Homeowners cover 62% (22% of total) Personal direct FirstRand 63% Collaboration 36% WesBank cell captive 30% (11% of total) Business 1%
Slide 179: Future growth
Future growth • Still strong growth in Personal OUTsurance – expanding into other market segments – innovative products – greater cross-selling into FirstRand • Business OUTsurance – gaining traction – FirstRand cross-selling
Slide 180: Financial Charter
Financial Charter Wendy Lucas-Bull
Slide 181: The Charter Scorecard
The Charter Scorecard ¾We are signatories to the Charter at the FirstRand Limited level ¾Retail Cluster is key to achieving 5 of the 6 Charter compliance areas Component Max 1. Human Resource Development • Employment Equity 15 • Skills Development 5 2. Procurement & Enterprise Development 15 3. Acce
Slide 182: Our Strategic Approach
Our Strategic Approach ¾ Not about compliance ¾ It’s how we do business ¾ Business-case driven within a framework of sustainability ¾ We had already begun Sustainability Shareholder Value Socio-economic Growth (Sustainable Profits) (Sustainable Growth) Charter
Slide 183: Human Resource Development
Human Resource Development ¾ Strategic partnership with CIDA in 2001 ¾ 266 learners in Learnerships across the business ¾ Well positioned to achieve the 1.5% training spend target ¾ Integrated HR Database and Model as key enablers ¾ VUKA
Slide 184: Retail EE Score March 2004
Retail EE Score 31 March 2004 Black as a % of: RETAIL Target 2008 Senior Management (>450k) 14% 20-25% Black Women as % of SM 4% 4% Middle Management (250- 450k) 21% 30% Black Women as % of MM 9% 10% Junior Management (150- 250k) 34% 40-50% Black Women as % of JM 21% 15 Score 9.89 15
Slide 185: Procurement
Procurement ¾ BuyIt ¾ Empowerdex Accreditation Process ¾ Facilitating BEE with our stakeholders
Slide 186: Access to Financial Services: Transactional Banking
Access to Financial Services Transactional Banking ¾ National Bank Account ¾ On track to achieve 80% target ¾ Over 1000 Mini-ATMs since 2002 ¾ Portable Branch ¾ Community Banking Pilot in 2000 ¾ 1.9m Smart Accounts since 2002 ¾ Pension Pay-Out
Slide 187: Access to Financial Services: Origination of SME Loans
Access to Financial Services Origination of SME Loans ¾ Many alternatives tested ¾ New innovative solution for responsible sustainable lending ¾ Joint Initiative with Umsobomvu Youth Fund (UYF) established 2001 ¾ FNB Enterprise Solutions in FNB Loans o Small Business Financing Team o Joint Enterpris
Slide 188: Access to Financial Services: Origination of Agriculture Loans
Access to Financial Services Origination of Agriculture Loans ¾ Leverage off our strong track record in this sector ¾ Well positioned to replicate our SME model for emerging agriculture ¾ Specialised risk mitigation alternatives still being tested
Slide 189: Origination of Low Income Housing
Access to Financial Services Origination of Low Income Housing ¾ Range of products and offerings o Mortgage loan o Pension-backed loans o Affordable Housing Model JV with RMB
Slide 190: Empowerment Financing
Empowerment Financing RMB Private RMB Structured / SME’s FNB Retail WesBank FNB Corp Equity Project Finance R100,000 R100,000––R20m R20m >>R20m R20m >>R50m R50m FNB FNBLoans Loans Asset AssetFinance Finance PE PEDebt Debt Listed Listedand and Unlisted Unlisted Fleet FleetMgmnt Mgmnt Medium MediumCor
Slide 191: Empowerment Financing
Empowerment Financing SME’s FNB Retail WesBank R100,000 R100,000––R20m R20m >>R20m R20m >>R50m R50m FNB FNBLoans Loans Asset AssetFinance Finance Fleet FleetMgmnt Mgmnt •SA National Taxi Finance - JV with SANTAC0 Enterprise •Kgwerano Asset Finance – JV with Enterprise Kgwerano Investment Holdings 19
Slide 192: CSI
CSI ¾ R48m = 1% - double the target of 0.5% of after tax profit ¾ Leverage our people - Volunteers
Slide 193: Charter = Opportunity
a Charter = Opportunity
Slide 194: Summation
Summation Wendy Lucas-Bull
Slide 195: What has all this delivered?
aa WHAT HAS ALL THIS DELIVERED?
Slide 196: Domestic Retail NPBT % Growth Year-on-Year
Domestic Retail NPBT % Growth Year-on-Year (2001 – 2003) 3000 2 753 HY / HY = 22% 2500 35% R 2000 Millions 17% 2 037 1 831 1500 1 745 1000 500 0 2001 1 2002 2 2003 3 2004 4
Slide 197: From an Internal to an External Focus
From an Internal to an External Focus… June June June June June June 2000 2003 2004 1998 1999 2001 2002 *NBS Insurance *NBS HomeLoans *Saambou Deposits *Saambou Home Loans *Swabou *Saambou Affordable Housing *Saambou Insurance “Hands-off” Get Basics Right External Focus Growth New Strategy being imp
Slide 198: Questions
= Questions