Nedbank Group · JSE:NED
Nedbank — UBS 10th SA Financial Services Conference 2007
22 slides from Nedbank's conference presentation, Oct 17, 2007
Slide 1: The Corporate Banking Revival
UBS Financial Services Conference Graham Dempster The Corporate Banking Revival 17 October 2007
Slide 2: Contents
Contents Current banking environment Nedbank Corporate overview Business Banking Corporate Banking Primary banker status Property Finance Africa Questions 2
Slide 3: Retail/wholesale split
Chart 2: Absa earnings (H107) Chart 3: FirstRand earnings (FY07, year ending June) Corporate & IB 33% 2% 49% Insurance 16% Atica 4% Insurance 19% Corporate & IB 53% Reail 24% Chart 4: Nedbank earnings (H107) Chart 5: Standard Bank earnings (H107) Corporate & 1B 70% CIB SA 45% Outside of Africa (CIB)
Slide 4: Growth & investment
Growth & investment Announced value of total capital projects Nedbank schedule: R billion (constant 2005 prices) Actual growth in capital formation % 350 15 Public Sector 300 Private Sector A t l gfcf Actual f f 10 250 5 200 150 0 100 -5 50 0 -10 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07* * The 2
Slide 5: Company credit growth exceeds household credit growth
Company credit growth exceeds household credit growth % Total credit growth (nominal) 60 56 52 48 Total 44 Households Companies (term loans) 40 36 32 28 24 20 16 12 8 4 0 -4 4 95 96 97 98 99 00 01 02 03 04 05 06 07 5
Slide 6: Nedbank Group structure
Nedbank Group structure Nedbank Capital Nedbank Nedbank Retail Corporate •Investment Banking •Banking Services •Specialised Finance • Business Banking •Card •Treasury •Equity Capital Markets •Bancassurance B & •Debt Capital Markets • Corporate Banking Wealth •Global Markets •Home Loans •Nedcor Secur
Slide 7: Nedbank Corporate positioning
Nedbank Corporate positioning Business Corporate Nedbank Property p y Finance B ki Banking Banking Af i Africa Market proposition Benefits of a big Partnering with you Expertise to deliver Regional network bank with personal to grow your world class service in Sub-Saharan touch of a small business &
Slide 8: Coverage model
Coverage model Large corporates with access to international lending Corporate Investment Banking ents? bankers originators Which clie Large corporates Capital/ investment Mid corporates product d t specialists Corporate Corporate & Investment Banking Banking Investment Banking Which products? Relat
Slide 9: Key differentiators
Key differentiators Decentralised client-centric, li t ti • High-performance Hi h f culture lt - accountability t bilit ffor d delivery li empowered model Customer focused • Dedicated relationship managers structures • “Integrated” g credit & service teams • Business Banking has strong position in m
Slide 10: Key differentiators (continued)
Key differentiators (continued) Property Finance • Property Finance strong reputation – market leader reputation • Cross sell opportunities • Integrated strategic account planning Coverage model • Leverage g expertise p in Nedbank Capital. p Recent BEE track • Leading position in BEE deals record •
Slide 11: Business Banking strategic road map
Business Banking strategic road map • Attract new & convert single product clients to primary banked clients Acquire primary • Acquisition of black SMEs banked clients • Improve profitability - aligning remuneration Sales force • Productivity benchmarking productivity & • Additional Additi l capacit
Slide 12: Business Banking challenges & opportunities
Business Banking challenges & opportunities Challenges Opportunities z Changing perception of z Decentralised, client-centric, empowered structure Nedbank - electronic z New innovative products banking solutions z Refining roles & accountability & client engagement processes z Increasing NIR momentu
Slide 13: Corporate Banking segment positioning
Corporate Banking segment positioning Loans & Advances Transactional Banking Liabilities • Strong position • Low L tteens market k t share h Key contributor to bank-wide funding • Growth in relation to • Product innovation & new quality & value client acquisition Generates Organic significant • Op
Slide 14: Corporate Banking segment positioning
Corporate Banking segment positioning Loans & Advances Transactional Banking • Nursery for tomorrow’s organic business • BEE deals offer opportunities to • BEE funding gap BEE lock in transactional banking • Leverage Nedbank BEE scheme • Risk p profile increases with BEE • Leverage Nedbank BEE schem
Slide 15: Primary banker status drive
Primary banker status drive Market Clients Corporate Bankers Client relationships, understanding & business origination omised Trade Solutions s analysis opment Specialist Product Payments Cash Global Trade Card Sales & Support olution develo ding business Corporate & •Electronic banking •Cash handl
Slide 16: Transactional banking
Transactional banking Netbank Business customers 6 030 Profiles 5 377 Migrations Cash devices in circulation
Slide 17: Property Finance
Property Finance z Consolidate listed property leadership position z Entrench leadership with large unlisted investors z Mid-market expansion z Rebuild the Property Partners equity business z Cross sell other products into client base 17
Slide 18: Property Private Equity
Property Private Equity Historic property private equity investment gains stronger than anticipated 6 months th tto 6 months th tto 6 months th tto Gains in NIR (Rm) June 2007 Dec 2006 June 2006 Revaluations & profits 144 112 102 Dividends 3 65 8 T t l Total 147 177 110 Challenging to exceed overall
Slide 19: Nedbank Africa – 3-tiered strategy
Nedbank Africa – 3-tiered strategy Selected opportunistic acquisitions / investment into full service banks in regions with compelling economic & High Ti 3 Tier business rationale rationale. impact, complex, costly Advisory boutiques - resource rich countries where large scale infrastructure project
Slide 20: Summary
Summary We have the: - Right leadership & teams in place - Business B i models d l iin place l - Clearly defined areas of focus Ongoing improvement of staff morale & client service 20 … building blocks in place
Slide 21: Focus areas
Focus areas Growing primary client base through: - Innovative products & services - Client value management - Transactional Banking Build on Public Sector successes Protect market position in commercial property finance Continue growth drive in Business Banking Prospects for Corporate Banking increa
Slide 22: Thank you
WHAT IF ELECTRONIC BANKING COULD ; OFFER YOU EASE OF USE, FLEXIBILITY Mmnank you AND THE BENCHMARK IN SECURITY? NETBANK BUSINESS. ®) NEDBANK GROUP
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