Nedbank Group · JSE:NED
Nedbank — UBS 12th annual SA Financial Services Conference 2009
20 slides from Nedbank's conference presentation, Oct 20, 2009
Slide 1: A new playing field: the game plan for growth
NEDBANK GROUP A new playing field what is theFINANCIAL INTERIM game plan for growth RESULTS SIX MONTHS ENDED 30 JUNE 2009 Tom Boardman Chief Executive 20 October O 2009 UBS 12th annual SA Financial Services Conference
Slide 2: Macroeconomic indicators
Macroeconomic indicators Source: Nedbank Group Economic unit 2009 2010 2011 2012 GDP (2,2)% 2,0% 3,2% 4,2% Inflation 7,2% 5,9% 5,6% 5,6% Current account deficit 4,1% 3,7% 2,9% 3,2% Prime overdraft rate (y (year end)) 10,0% 0,0% 10,5% 0,5% 13,0% 3,0% 13,0% 3,0% …difficult, but improving market condit
Slide 3: Core focus through the cycle
Core focus through the cycle Net asset value Strong capital • Up 7,4% from June ’08 • Core: 8,2% to 8,6% • Up 5,7% 5 7% from December ’08 08 • Tier 1: 99,6% 6% to 10 10,0% 0% • Total: 12,4% to 13,2% Focus on F balance sheet Strong liquidity • Funded balance sheet well matched Focus on • Good deposit
Slide 4: Long-term drivers of growth
Long-term drivers of growth Increase Customer Referrals 20-40% Attract New Customers 5-25% Improve Marketing 60-80% Effectiveness Improve Customer 70-90% Increase Target Satisfaction Grow Customer 45-65% 20-40% Cust. Retention Base Set-up Switching Costs for 10-30% Customers Increase Target 20-40% D
Slide 5: Position for longer-term growth
Position for longer-term growth • Manage for value • Grow NIR • Client Cli t driven di • Risk as an enabler • Build a unique culture for competitive advantage • Accelerate transformation • Lead as a corporate citizen • Alert to opportunities 5
Slide 6: Manage for value
Manage for value • Fix economic profit negative businesses – VAF profitability - Imperial Bank acquisition a catalyst – Lower concessions, risk & originator fees in Home Loans • Grow Bancassurance & Wealth • Repriced assets to appropriate levels – Maintain better margins on new assets across all clu
Slide 7: Grow NIR to expense ratio
Grow NIR to expense ratio • Grow transactional banking – Business Banking – NetBank, cash solutions, decentralised model – Nedbank Corporate – NetBank being implemented – Retail cross sell improving – further focus (Jan 08: 1,44% - Jun 09: 1,50%) • Gain primary clients – Net retail primary client gr
Slide 8: Client driven & more competitive
Client driven & more competitive • Differentiate through service delivery – Much improved experience in Retail – Business Banking differentiated decentralised model – Leverage strong corporate relationships to grow primary clients – Team approach (including Corporate) in Nedbank Capital – Ecobank •
Slide 9: Risk as an enabler
Risk as an enabler • Risk integral part of strategy – Performance measurement based on RAROC – Reward systems driven by economic profit • Manage bad debt & risks, risks focus on collections – Credit loss ratio reduced: 1,67% (Q1 09) - 1,57% (H1 09) – Retail - backward roll in early arrears for 7 con
Slide 10: Enhance productivity & execution
Enhance productivity & execution • Smart cost management • Optimise businesses for new environment • Continue to invest • No wholesale retrenchment – maintain staff morale 90% 80.2% Efficiency ratio 80% 71.8% 65.4% 64.8% 70% 58.2% 54.9% 52.5% 60% 51.1% 50% 40% 30% 20% 10% 0% 2002 2003 2004 2005 2006
Slide 11: Building a unique corporate culture
Building a unique corporate culture Culture 2005 Culture 2009 1 cost-consciousness accountability 2 profit client-driven 3 accountability client satisfaction 4 community involvement cost-consciousness 5 client-driven community involvement 6 process-driven achievement 7 bureaucracy teamwork 8 results
Slide 12: Staff morale shift
Staff morale shift Overall Rewards, Recognition 75.1 (+26.0%) & Performance... 64.7 (+32.0%) Policies & Procedures 69.9 (+38.7%) Direction ~\), 82.4 (418.9%) 69.5 (+21.5%) Diversity Management Style 78.5 (+12.6%) 72.1 (417.8%) | Relationships & Trust Leadership ‘ 80.0 (+33.1%) 74.5 (+33.8% . ” Opera
Slide 13: Accelerate transformation
Accelerate transformation 74% 70.8% 62% 49% 49% 41.0% 42% 40% 36% 36% 34% 32% 29% 31% 29% 25% 24% 22% 22.4% 19% 18% 14% 11% Senior Middle Junior Total M Management M Management M Management M Management 2004 2005 2006 2007 2008 2008 Targets 13
Slide 14: Accelerate transformation (continued)
Accelerate transformation (continued) Financial Mail: Financial Mail: Top 20 Empowerment Companies Top 20 Empowerment Companies 1 Adcorp Holdings 88,71% 11 Netcare 75,42% 2 Hosken Consolidated 84,63% 12 Primeserv Group 75,13% 3 Nedbank Group 82,45% 13 Standard Bank Group 72,40% 4 Kelly Group 82 28%
Slide 15: Alert to opportunities - acquisitions
Alert to opportunities - acquisitions JV’s - BoE, Nedlife & Fairbairn Private Bank Create single high net worth client value proposition & strategy Asset management centre of excellence - scale of benefits Enhance cross-sell & innovation Previous JV product restrictions cancelled Imperial Bank acqui
Slide 16: Alert to opportunities - Ecobank
Alert to opportunities - Ecobank Clients - access to 33 countries in Africa ‘One Bank’ experience − Open bank accounts through in-country relationship manager − Single view of statements & balances Project Finance & Advisory – strong pipeline Centre of Excellence – LocalKnowledgeAfrica – easy entry
Slide 17: Lead as a corporate citizen
Lead as a corporate citizen • Dow Jones Sustainability Index membership • 1 of 25 banks worldwide • JSE SRI Index- inclusion since 2004 • SA Carbon Disclosure Project Leadership Index • Best placed bank & 4th overall in low emissions category • Equator Principles – 1st bank signatory in Africa • WWF
Slide 18: Focus on winning the game
Focus on winning the game Strong balance sheet New management team in place Solid franchise & customer base Fix businesses with negative g economic p profits Continue with NIR growth strategies ⁺ Transactional banking & cross sell ⁺ Primary clients ⁺ Consolidate & extract value from acquisitions Bui
Slide 19: Thank you
19 THANK YOU MAKE THI@®)Gs HAPPEN NEDBANK
Slide 20: Disclaimer
Disclaimer Nedbank Group has acted in good faith & has made every reasonable effort to ensure the accuracy & completeness of the information contained in this document, including all information that may be defined as 'forward-looking statements' within the meaning of United States securities legisl
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