Nedbank Group · JSE:NED
Nedbank — Nedcor — Investor Presentation (2002)
18 slides from Nedbank's investor presentation, 2002
Slide 1: International Operations & Strategy
International Operations & Strategy Derek Muller Executive Director
Slide 2: International Banking Strategy
International Banking Strategy • Sustainable businesses in which we have core competencies • Customer Driven e.g. trade and project finance • Working with Old Mutual • Low Risk approach in Africa • Commercialisation of Technology and Operations • No major changes with integration of BoE. • No intent
Slide 3: Nedcor Offshore Structure
Nedcor Offshore Structure Jersey, Geurnsey Beijing Rep Office Isle of Man • Correspondent • Gerrard Private Bank Banking • Fairbairn Trust • Trade Finance • BoE / Stenham Taipei Rep Office • Correspondent Banking • Private Banking Hong Kong branch • Treasury • Corporate Banking • Private Banking Lon
Slide 4: Nedcor Africa Structure
Nedcor Africa Structure SBM FINCOM MBCA Banque Commercial SBM Bank of Swaziland Namibia Lesotho
Slide 5: Gerrard Private Bank
Gerrard Private Bank Old Mutual plc 52.4% 100% Nedcor Limited Gerrard Limited 100% Old Mutual International Holdings Ltd. (Bermuda) 75% 25% Gerrard Private Bank (Jersey) Ltd Fairbairn Trust Gerrard Trust Gerrard Private Bank Co. Ltd (Jersey) Ltd (IoM) Ltd Old Mutual have an option to increase their
Slide 6: Gerrard Private Bank: Strategic Rationale for Joint Ownership
Gerrard Private Bank Strategic Rationale for Joint Ownership • It provides an opportunity, outside South Africa, for Old Mutual and Nedcor to develop their relationship. • Draws on the complementary strengths of both shareholders in the asset and risk management areas. • It provides further hard cur
Slide 7: Gerrard Private Bank
Gerrard Private Bank • Strategy: • Work the Gerrard client base. • Expand South African client base • Recently rated internationally A2P1 by Moodys • Award winning products and services • Launched in South Africa via Representative Office September 02 • Subject to regulatory approval will open a Rep
Slide 8: BoE
BoE • BoE in the Isle of Man (RSA focussed) • Stenham Gestinor (SG) has a presence in Guernsey (RSA focussed), Luxembourg (Company Admin) and Switzerland (European focussed), with smaller offices in Panama, BVI, Netherlands. SG Trade Finance. • Chiswell Assoc. - Asset Management (focus on charity fu
Slide 9: NIB offshore
NIB offshore • Multimanager (NIBi) – IoM and London – Targets: Individuals and institutions both domestic and international • Treasury structured products – London – Targets: SA corporates offshore, asset managers and own account
Slide 10: Nedcor Africa Structure
Nedcor Africa Structure NEDCOR AFRICA MBCA Trade & Zimbabwe Term & Commodity Nedbank Project Finance SBM Lesotho Finance Mauritius Nedbank Swaziland Equator Fincom Malawi Banque SBM Madagascar Commercial Bank of Namibia SBM Nedbank International
Slide 11: Africa Strategy
Africa Strategy • Not “one size fits all” • Limited investment of capital • Physical Presence – Low-risk (limited retail branch network) – Low capital initiatives – SADC and Countries contiguous to RSA • Work with South Africa Corporate and Commercial clients • Structuring capability centred in Joha
Slide 12: Africa Strategy
Africa Strategy • Aplitec Strategy in Africa (Aplitec held 29% by Nedcor) • Supportive of NEPAD • Alliances – BNP Paribas – HSBC – State Bank of Mauritius
Slide 13: African Project Finance
African Project Finance • Risk mitigation via ECIC • Ability to assess and take commercial risk • Ability to manage risks • Professional experienced team • Debt and equity provider for limited recourse finance projects in SADC • Sourcing and implementation of structured, corporate and limited recour
Slide 14: Commercialisation of Technology & Operations
Commercialisation of Technology & Operations • Assessed as being globally competitive in the application of process and information technology to improve productivity • Precedents exist for successfully commercialised transaction service providers • Viable opportunity for a commercial entity supplyi
Slide 15: Asia
Asia • Have been in Hong Kong since 1984. • Successful track record, other than 1997 meltdown. • Continue to look for expansion opportunities in trade finance. • Singapore trade finance. • Representative offices have been disappointing. • Private banking with Old Mutual.
Slide 16: Sources of core earnings
Sources of core earnings 2% 6% SA 82% 18% UK Africa 10% Other The ROE was 12,8% for the six month period ended 30 June 2002.
Slide 17: The shape of Nedcor offshore
The shape of Nedcor offshore 31 December 2001 • Total assets R50,6bn (26%) • Total advances R32,8bn (22%) • Shareholders’ funds R5,1bn (32%) • Contribution of 17% of core earnings • ROE 11% (25% including translation gains)
Slide 18: Questions?
Questions? NEDCOR gb ia 4