Nedbank Group · JSE:NED
Nedbank — Credit Suisse Standard Securities Consumer Conference 2008
18 slides from Nedbank's conference presentation, June 2008
Slide 1: Consumer conference June 2008
1 Consumer conference June 2008
Slide 2: Nedbank Retail strategy & segmentation
2 Nedbank Retail strategy & segmentation Building… Primary HNW segments Affluent R400k – Transformation & staff engagement R1m p.a. Productivity & execution Middle Secondary Customer value management R100k – segments R400k p.a. Optimise distribution Competitive risk management - Staff - Eyethu Deliv
Slide 3: The Nedbank Retail business structure
3 The Nedbank Retail business structure Retail Banking Services Clive van Horen Branch | Client Services | ATM/SST | Alliances & Channels | Siyakha Consumer Banking Nedbank Private Small Business Bank Mohamed Saloojee Services Alfred Ramosedi Mass | Middle | Staff | Cross Sibongiseni Ngundze Nedbank
Slide 4: Repositioning of the Nedbank brand
4 Repositioning of the Nedbank brand Competitors H1 2006 H2 2007 H2 2007 10% 12% 28% Bonding 43% 57% 76% Advantage Performance 59% 67% 84% Relevance 60% 68% 86% Presence 98% 80% 87% Image Attributes Jun ‘05 Jan ’08 %chg Is the most respected and admired bank 21% 24% 14% A bank for all South Africans
Slide 5: Brand bonding & client satisfaction levels
5 Brand bonding & client satisfaction levels Bonding with the brand 40% bonding Market Market Affluent Middle Market Mass Satisfaction Nedbank with service Affluent 80% 100% satisfaction satisfaction Nedbank Middle Nedbank Mass 0% g bonding
Slide 6: Client management framework
6 Client management framework R t il experience Retail i measurementt framework Long term Metric 2005 2006 2007 target CMATTM score: • 44 (Top • N/A • 36 (Ave.) • Top decile Quartile) Global • (#1 bank Local • 45 • 32 Orange Index: – by more (SA) • (#5 bank) • (#1 bank) • N/A than 5%) Clientt Cli •
Slide 7: Outlet & ATM presence
7 Outlet & ATM presence Clients : ATM ratios Clients : staffed outlet ratios 3,000 12,000 2,500 10 000 10,000 2,000 8,000 1,500 6,000 1,000 4,000 500 2,000 - - Nedbank Bank A Bank B BankC Nedbank Bank A Bank B Bank C Clients Clients ATM's Outlets ATM ratio Outlets ratio Nedbank 3,950,000 1,636 563 2
Slide 8: An aggressive pricing strategy
8 An aggressive pricing strategy Typical current account – average monthly banking charges R 200 Nedbank R 190 Bank A R 180 Bank B R 170 R 160 Bank C R 150 Transaction bundle: R 140 • 3 Own bank ATM withdrawals R 130 • 1S Saswitch it h withdrawal ithd l R 120 • 5 Cheque card purchases R 110 • 1 Cheq
Slide 9: Monthly advances growth
.0 .2 .4 .6 .8 1.0 -.6 -.4 -.2 .0 .2 .4 .6 .8 1.0 Q1 2 004 Q1 2005 Q2 2 004 Q2 2005 Q3 2 004 Q3 2005 Q4 2 004 Q1 2 005 Q4 2005 Q2 2 005 Q1 2006 Q3 2 005 Q2 2006 Q4 2 005 Q3 2006 Q1 2 006 Q2 2 006 Q4 2006 Bank Q3 2 006 B kA Q1 2007 Q4 2 006 Q2 2007 Q1 2 007 HL: net monthly book movement VAF: net mont
Slide 10: Nedbank Retail advances per segment
10 Nedbank Retail advances per segment Total advances split per segment Private Banking Personal Banking Markets SBS Other 100% 80% 60% 40% 20% 0% Feb-06 Jun-06 Oct-06 Dec-06 Feb-07 Jun-07 Oct-07 Dec-07 Feb-08 Apr-06 Aug-06 Apr-07 Aug-07 Apr-08
Slide 11: Delivering a financial turn-around
11 Delivering a financial turn-around Retail competitor ROE comparison 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% Bank A Bank B 15.0% Bank C Nedbank 10 0% 10.0% Dec-04 Dec-05 Dec-06 Dec-07
Slide 12: Tougher times are here…
12 Tougher times are here… Personal debt as a % of disposable income Interest service costs as % PDI and Prime 90 25 80 70 20 60 15 50 40 10 30 20 Debt to income ratio 5 Interest service costs 10 Prime 0 0 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08
Slide 13: Credit & collections actions in 2006
13 Credit & collections actions in 2006 2006
Slide 14: Credit & collections actions in 2007
14 Credit & collections actions in 2007 2007
Slide 15: Credit & collections actions in 2008
15 Credit & collections actions in 2008 2008
Slide 16: Income statement levers
16 Income statement levers 2007 ratios 2006 2007 Book R102 bn R128 bn Assets (60%) Margin 3.95% 3.67% NII Book R66 bn R77 bn Liabilities (40%) Margin g 3.17% 3.88% Inflation indexed (30%) NIR Fee indexed ((70%)) Impairments Credit loss ratio 1.10% 1.26% Staff (40%) Expenses Other (60%)
Slide 17: Chasing economic profit
17 Chasing economic profit Estimated market NED market NED strategic Economic profit (Rm) share (DI 900) focus • Reorganize Nedbank Retail Small Business n/a • SBS growth strategy • Focus on primary clients Retail Deposits 26% • Competitive pricing strategy • Focus on acquiring Credit Cards 13% (I)
Slide 18: Questions…
Y Bike 18 Questions... MAKE THIQ)GS HAPPEN [NBDE RETAIL A Member of the OLD MUTUALGroup
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