Nedbank Group · JSE:NED
Nedbank — European Banking Forum Conference 2012
15 slides from Nedbank's conference presentation, May 9, 2012
Slide 1: Building a sustainable, distinctive retail bank, relevant for emerging trends
Building a sustainable, distinctive retail bank, relevant for emerging trends European Banking Forum Conference 9 May 2012 Ingrid Johnson Group Managing Executive: Nedbank Retail & Business Banking 0 9 May, 2012
Slide 2: Disclaimer
Disclaimer ▪ Nedbank Group has acted in good faith and has made every reasonable effort to ensure the accuracy and 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
Slide 3: Overview of South Africa and Nedbank as one of the 4 major banks
Overview of South Africa and Nedbank as one of the 4 major banks South Africa Nedbank • 50.6 million people, 21.46 million • €65b in assets banked adults, 41 million mobile users • €600m earnings in 2011, up 26% YoY • 4.9 million additional banked customers by 2020; demographics • Well capitalised -
Slide 4: Nedbank key strategic focus areas – significant challenges in Retail creates burning platform for change
Nedbank key strategic focus areas – significant challenges in Retail creates burning platform for change Retail banking - headline earnings, Rm 1875 1463 817 1002 -2031 -156 -27 2005 2006 2007 2008 2009 2009* *restated Retail banking - credit loss ratio, % 3.4 2.7 Target 1.14 1.15 1.35 range 1.5-2.2
Slide 5: Excellent progress achieved in charting a new path to sustainable profitable growth
Excellent progress achieved in charting a new path to sustainable profitable growth, through a skilled team, distinctive strategy & speed of execution Retail headline earnings (Rm) Retail client numbers (‘000) +434 11,8 1 176 5 266 4 832 826 4 181 627 1 892 3 773 1 742 RoE Total 3 519 (0,2) 1 473 (%
Slide 6: Three strategic imperatives for Retail stem from external trends & Nedbank's internal context
Three strategic imperatives for Retail stem from deep understanding of external trends & Nedbank’s internal context Trends 3 strategic imperatives ▪ Rising demographics and 6% p.a. small Choice of business growth represent tomorrow’s distinctive valued, aspirational clients client-centred banking ▪
Slide 7: Nedbank Retail will build banking relationships with all in South Africa
Nedbank Retail will build banking relationships with all in South Africa, leveraging distinctive strengths, underpinned by strong risk management STRATEGIC INTENT Delivering a choice of distinctive client-centred banking experiences that build many deep, enduring relationships with Nedbank Deliverin
Slide 8: Nedbank Retail is uniquely positioned to generate shareholder value in a lower growth environment
Nedbank Retail is uniquely positioned to generate shareholder value in a lower growth, lower interest rate environment, leveraging key trends Trends Core differentiators ▪ Rising demographics and 6% p.a. small A rigorous approach to capturing virtuous circle and business growth represent tomorrow’s
Slide 9: Overall distinctiveness is achieved by aligning all elements of the CVP
Overall distinctiveness is achieved by aligning all elements of the CVP to deliver a choice of great client-centred banking experiences Great products and offers Deep client insights Competitive Marketing Pricing that is connecting 5 year Relevant Related Distribution economics 15 9 May, 2012
Slide 10: Nedbank Savvy CVP is driving acquisition & cross-sell momentum in the middle market
Nedbank Savvy CVP is driving acquisition & cross-sell momentum in the attractive middle market segment, which represents the largest EP pool Impact Client Acquisition, Middle Segment Acquisition Sales per month 8 000 8 6 6000 +33% 2010 2011 Cross-sell Clients with 2+ products % 77 45 +71% Product le
Slide 11: Integrated channels strategy is enabling distinctive client-centred banking experiences
Integrated channels strategy is enabling distinctive client-centred banking experiences, deepening cross-sell, optimising costs and sales processes Business Banking and Retail Banking strategy IT enabled Business Process Re-engineering Client segmentation, value propositions & management Integrated
Slide 12: Discerning micro-market growth / optimise strategies for relevant mix of format, functionality & location
Discerning micro-market growth / optimise strategies for relevant mix of format, functionality & location, leveraging collaboration at area level Nedbank micro markets by area potential and current • 30 area growth market share nodes 90% • 60 branch re- High Attract and Retain and locations develop
Slide 13: Successful bank wide collaboration unleashes growth in new micro-markets
Successful bank wide collaboration unleashes growth in new micro-markets and benefits communities 1.Kuruman Clear definition 2.Grabouw Joint prioritisation 3.Bethal of Micro-market 4.Clarens & definition of 5.…. requirements 6.…… Design Understanding optimisation of area economics - 160m2 Employees
Slide 14: Excellent momentum in repositioning Retail to be sustained through diligence in execution
Excellent momentum in repositioning Retail to be sustained through diligence in execution towards our true north, yet responsive to evolving trends Uniquely positioned for Diligence in execution Distinctive strategies macro economy & trends of imperatives STRATEGIC INTENT Delivering a choice of dist
Slide 15: Building a sustainable, distinctive retail bank, relevant for emerging trends
Building a sustainable, distinctive retail bank, relevant for emerging trends European Banking Forum Conference 9 May 2012 Ingrid Johnson Group Managing Executive: Nedbank Retail & Business Banking 27 9 May, 2012
Nedbank Group — European Banking Forum Conference 2012 on 6ix