Nedbank Group · JSE:NED
Nedbank — Andisa Securities African Banking Conference 2005
22 slides from Nedbank's conference presentation, Dec 7, 2005
Slide 1: Nedbank Africa: Andisa Securities African Banking Conference
Nedbank Africa Andisa Securities African Banking Conference Cape Town 7th December 2005 Presented by: Managing Director Nedbank Africa Paul Baloyi
Slide 2: Agenda
Agenda • Introduction • Financial services in Africa : opportunities & challenges • Nedbank Africa overview • Key focus & structured approach to growth • Conclusion 1
Slide 3: Introduction
Nedbank Africa Introduction
Slide 4: Introduction: increased focus expected going forward
Introduction • Full spectrum banking operations in Lesotho, Malawi, Namibia, Swaziland, & Zimbabwe • Small contributor to group earnings • Has not been a primary group focus • 2004/06 “improve & grow” existing banks emphasis • Using “lessons learnt” from SA in rest of African operations • Building a
Slide 5: Financial Services in Africa
Nedbank Africa Financial Services in Africa
Slide 6: Financial services in Africa: opportunities
Financial services in Africa: opportunities Macro opportunities • Economic integration of the region • Follow your clients • Higher growth/returns than domestic segments • BEE/Indigenisation Micro opportunities • Re-use of product/service/systems • Volumes for transactional platforms • Higher margin
Slide 7: Financial services in Africa: challenges
Financial services in Africa: challenges • Compliance with local regulators & SARB/FSB • Limited experienced management skills in Africa • Managing local aspirations vs controlling bank shareholder requirements • Risk/return relationship in terms of Basel II • Restriction on placing of surplus funds
Slide 8: Rationale for Nedbank expansion
Rationale for Nedbank expansion Opportunities Challenges • Leverage greater group • Internal competition for footprint expansion resources • Limited opportunities for • Banking leads assurance good acquisitions products • Cautionary approach of a • No big legacy investments bank in turnaround 7 … th
Slide 9: Africa Overview
Nedbank Africa Nedbank Africa Overview
Slide 10: Nedbank Africa: Vision & Strategy
Nedbank Africa: Vision & Strategy NEDBANK GROUP Vision To become Southern Africa’s most highly rated and respected bank……by our staff, clients, shareholders, regulators & communities. Build high Drive transactional Beyond Client-driven Strategic performance Optimise mix banking transformation busine
Slide 11: Nedbank Africa: key indicators
Nedbank Africa: key indicators % ROE Market Share Market Share effective Jun ’05 Jun ’05 Dec ’04 holding Nedbank Namibia 93 27,1 12,1 11,0 Nedbank Swaziland 67 23,8 18,0 14,0 Nedbank Lesotho 100 21,6 26,0 20,0 Nedbank Malawi 91 Break-even 2,5 3,0 MBCA Zimbabwe 44 90,0 5,0 Not available 10 … mixed pe
Slide 12: Nedbank Africa: business description
Nedbank Africa: business description ENTITY SEGMENTS STAFF # (‘000) OF CLIENTS FOOTPRINT Nedbank • Corporate/ Business 482 Corporate 2 Branches 14 Namibia Banking Retail 36 ATM’s 15 • Retail Banking Micro loans 35 Microloan • Micro-lending Agencies 13 Nedbank • Business Banking 145 Corporate 3 Branc
Slide 13: Nedbank Capital: activity in Africa
Nedbank Capital: activity in Africa Key Structured Trade & Commodity Finance Energy Project Finance Infrastructure Finance Private Equity Corporate Finance Mining & Resources Not included on slides 10 & 11 12
Slide 14: Key focus & structured approach to growth
Nedbank Africa Key focus & structured approach to growth
Slide 15: 2004 – 2006 management actions
2004 – 2006 management actions Challenges Key actions Align / consolidate Governance & risk • Implement delegated • Policies & procedures frameworks authorities • Drive discipline • Resource division • Audit tracking • Entrench Risk Framework • Align reporting • ALCO policies • Balanced scorecard •
Slide 16: 2004 – 2006 management actions cont.
2004 – 2006 management actions cont. Challenges Key actions Align / consolidate IT infrastructure • Globus implementation • Align strategies with centre • Africa IT forum • Optimise IT infrastructure • Bastion now part of • Re-usability of products Centralised Technology Financial • Budget process •
Slide 17: Guiding principles for African expansion
Guiding principles for African expansion Geo mapping Position for growth Optimal structure Business model Where to? Industry Dynamics 1. Controlling stake 1. Key stakeholder 1. Economic 1. Competition & 2. Management inclusive model market share variables control 2. Skills transfer 2. Government 2.
Slide 18: Old Mutual Plc group interests in Africa
Old Mutual Plc group interests in Africa . COUNTRY Botswana N N Y Kenya N Y N Lesotho Y N N Malawi Y Y N Mauritius Y N N Namibia Y Y Y Swaziland Y N Y Zimbabwe Y Y Y Angola, Mali, Mozambique, Y N N Nigeria, DRC, Burkina Faso, Nedbank Zambia, Guinea, Ghana, Namibia, Capital Mauritius, Zimbabwe 17
Slide 19: Conclusion
Nedbank Africa Conclusion NEDBANK CORPORATE
Slide 20: Conclusion
Conclusion • Aligned with Nedbank strategy • Increasing group focus on Africa operations with growth potential • Improving existing operations/governance • Leveraging Old Mutual relationship • Selected expansion opportunities in sub-Saharan Africa • 2008 ROE target > 25% 19 … a focused approach
Slide 21: Nedbank Africa quote
Nedbank Africa “There is no miracle moment. Small incremental wins in one common direction will restore Nedbank Group to a highly rated & respected financial institution.”
Slide 22: Thank you
Nedbank Africa Thank you NEDBANK CORPORATE
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