Standard Bank Group Limited · JSE:SBK
Standard Bank — Investor Presentation (November 2002)
22 slides from Standard Bank's investor presentation, November 2002
Slide 1: The challenge of revenue growth - the pragmatist's perspective
The challenge of revenue growth - the pragmatist’s perspective Jacko Maree November 2002
Slide 2: Standard Bank Group in perspective
Standard Bank Group in perspective 31 December 2001 ZAR US$* Total assets 395.8bn 40.2bn Headline earnings 4.4bn 447.0m Shareholders funds 26.0bn 2.6bn * Converted at current exchange rate (ZAR9.844:US$1)
Slide 3: Standard Bank Group in perspective
Standard Bank Group in perspective Market Capitalisation ZARbn US$bn* Standard Bank 43.3 4.4 Firstrand 42.4 4.3 Nedcor 31.7 3.2 ABSA 22.6 2.3 Investec 13.8 1.4 * Converted at current exchange rate (R9.844:US$1)
Slide 4: Standard Bank Group
Standard Bank Group Standard Bank Group 100% 100% 100% 30% Domestic International Africa Liberty 100% 50% 50% Retail SCMB Commercial STANLIB
Slide 5: International operations
International operations Natural resources, emerging debt capital markets, private banking Head Office London (603) Regional hub- New York Asia Regional hub- (62) Americas Miami (48) Hong Kong (112) Singapore (25)
Slide 6: International operations
International operations Substantial local presence Isle of Man Moscow (102) (15) Jersey (230) Taipei Istanbul (21) (20) Sao Paulo (26)
Slide 7: International operations
International operations Business origination offices Stockholm (2) Prague (5) Milan Tehran Shanghai (3) (3) (3) Dubai (8) Kuala Lumpur (1) Lima (5) Sydney Mauritius (4) Buenos Aires (24) (9)
Slide 8: Stanbic Africa representation
Stanbic Africa representation NIGERIA •170 points of IVORY COAST GHANA representation UGANDA DEMOCRATIC REPUBLIC OF CONGO KENYA •5,500 staff TANZANIA MALAWI ZAMBIA MOZAMBIQUE NAMIBIA ZIMBABWE MADAGASCAR MAURITIUS BOTSWANA SWAZILAND LESOTHO
Slide 9: Standard Bank Group
Standard Bank Group • Established as Standard Bank of British South Africa Limited, incorporated in London 1862 • In 1987 Standard Chartered plc sold its 39% shareholding - severing the 125 year link
Slide 10: Standard Bank Group - 1987
Standard Bank Group - 1987 100% 100% Retail & Merchant Commercial Banking Banking • South Africa • South Africa
Slide 11: Standard Bank Group - post 1987
Standard Bank Group - post 1987 • 1987 Reconnaissance team sent to London • 1988 Expanded presence in Africa (Swaziland, Botswana) • 1992 Standard Bank London officially launched • 1992 ANZ Grindlays Bank in Africa acquired (Kenya, Nigeria, Uganda, Zaire, Zambia, Zimbabwe) • 1998 Bought control of L
Slide 12: Nedcor take-over bid - September 1999
Nedcor take-over bid - September 1999 • Enabled rapid change • Moved away from silo approach • New team • Forced to make promises – Cost initiatives – Profit forecasts for 1999, 2000, 2001 • We delivered!
Slide 13: Wealth manager created - February 2002
Wealth manager created - February 2002 Standard Bank Liberty 50% 50% STANLIB 100% 100% STANLIB STANLIB Asset Wealth Management Management “The factory” “Product / marketing / distribution arm”
Slide 14: Standard Bank Group
Standard Bank Group 100% 30% 65% 100% Retail & Life Wealth Merchant & Commercial Investment Assurer Banking Banking • South Africa STANLIB SCMB International • Africa Africa
Slide 15: Growth in headline earnings
Growth in headline earnings Building alternative profit sources 20% 5,000 27% 4,000 40% 3,000 8% Column 6 Stanlib Liberty & bancassurance Rm 2,000 Africa International 1,000 Domestic 0 -1,000 1997 1998 1999 2000 2001
Slide 16: Headline earnings per business segment
Headline earnings per business segment Diversification is key Africa 9% Insurance 8% Retail banking 31% International 13% Business banking 39% 30 June 2002
Slide 17: Revenue growth sources - retail banking
Revenue growth sources - retail banking • New products - no long term competitive advantage • Long term competitive advantage and revenue growth achieved through: – Efficient systems – Service – Correct pricing – Focus on cross selling and CRM
Slide 18: Revenue growth sources - retail banking
Revenue growth sources - retail banking Revenue opportunities in the mass market Highest growth potential 40% 35% 29% 29% 4,770,000 2,780,000 26% 2,980,000 254,000 70,000 Lower Mass Upper Mass Affinity Upper Affinity Priority 2001 Adult Banked Population 10,600,000 SBSA market share
Slide 19: Revenue growth sources - retail banking
Revenue growth sources - retail banking Bancassurance - some way to go Embedded products % Penetration 2002 2001 Home Loan Protection 11.6 8.7 Personal Loan Protection 26.9 22.3 Funeral plan 14.6 11.2 Complex products Management of salesforce outsourced to Liberty
Slide 20: Revenue growth sources - retail banking
Revenue growth sources Retail banking Standard Bank Group 100% 100% 100% 30% Domestic International Africa Liberty 100% African retail 50% 50% Simpler. Better. expansion Faster Retail SCMB Commercial STANLIB Mass market Bancassurance
Slide 21: Business banking - integrated approach
Business banking - integrated approach • Financial institutional • Interest rate derivatives • Private banking banking • Credit trading • Asset management • Securitisation • Debt origination • Asset Portfolio Group • Stock broking SCMB • Foreign exchange • Equities trading International • Debt Capit
Slide 22: Revenue growth sources - business banking
Revenue growth sources Business banking Standard Bank Group 100% 100% 100% 30% Domestic International Africa Liberty Integration & 100% 50% 50% Client focus Retail SCMB Commercial STANLIB
Standard Bank Group — Investor Presentation (November 2002) on 6ix