Firstrand Limited · JSE:FSR
Firstrand — UBS Financial Services Conference 2015
20 slides from Firstrand's conference presentation, Oct 15, 2015
Slide 1: RMB's African Growth Story
RMB’s African Growth Story 15 October 2015 1
Slide 2: FirstRand's strategy
FirstRand’s strategy BE THE AFRICAN FINANCIAL SERVICES GROUP OF CHOICE In its domestic market: Protect and grow lending and Capture a larger share of profits from transactional franchises through the broader financial services markets disruption and differentiation Establish meaningful in-country fr
Slide 3: FirstRand's pillars for execution of strategy in Africa
FirstRand’s 3 pillars for execution of strategy in Africa 1 Utilise South African franchise Where most of FirstRand’s (B/S, intellectual capital, growth international platforms) has come from with existing footprint historically 2 Start in-country franchises Shift in focus given and grow organically
Slide 4: Key ingredients for success in Africa
Key ingredients for success in Africa Strictly Private and Confidential 4
Slide 5: What has informed our decision on which markets to focus on?
What has informed our decision on which markets to focus on? RMB “Ease of Business” index1 Forecast growth 2015 - 20202 Good < 0% – 2% growth Moderately good 2% - 4% growth Average 4% - 7% growth Poor 7% - 10% growth Very poor > 10% growth Top investment destinations in sub Saharan Africa Impact of
Slide 6: How is our strategy evolving to deliver the key ingredients for success?
How is our strategy evolving to deliver the key ingredients for success? Deployment + Pure briefcase Corporate Bank In-country balance “modified” briefcase banking model strategy sheets banking model Strictly Private and Confidential 6
Slide 7: How is our strategy evolving to deliver the key ingredients for success?
How is our strategy evolving to deliver the key ingredients for success? Deployment + Pure briefcase Corporate Bank In-country balance “modified” briefcase banking model strategy sheets banking model Strictly Private and Confidential 7
Slide 8: Significant transactions originated through the Rep Offices
Significant transactions originated through the Rep Offices RMB subsidiary Country information FNB subsidiary Kenya FNB & RMB subsidiary Established Rep Office: 2012 FirstRand rep office Nr. of 6 employees employees Main activities Deal sourcing and origination in East Africa Kenya Power PTA Bank &
Slide 9: Briefcase banking: drivers of success and continuing benefits
Briefcase banking Drivers of success Following strategic clients Tailoring structured and innovative solutions for clients USD cheaper cross border versus in-country Long track record of sector and product expertise Continuing benefits Offset capacity and liquidity constraints in-country Augment lim
Slide 10: How is our strategy evolving to deliver the key ingredients for success?
How is our strategy evolving to deliver the key ingredients for success? Deployment + Pure briefcase Corporate Bank In-country balance “modified” briefcase banking model strategy sheets banking model Strictly Private and Confidential 10
Slide 11: Growing in partnership with FNB
Growing in partnership with FNB RMB subsidiary Country information FNB subsidiary FNB Ghana FNB & RMB subsidiary Established Soft opening October 2015 FirstRand rep office Ghana Ports Cenpower Country information & Harbours FNB Tanzania Gas fired power station Expansion of Established 2011 Tema Port
Slide 12: Deployment + modified briefcase banking model: drivers of success
Deployment + “modified” briefcase banking model Drivers of success Global Markets In-country coverage teams Engage in-country clients and originate Total ownership of GM product set in subs opportunities for RMB as a whole Investment and training to bring clients up the Leverage South African expert
Slide 13: How is our strategy evolving to deliver the key ingredients for success?
How is our strategy evolving to deliver the key ingredients for success? Deployment + Pure briefcase Corporate Bank In-country balance “modified” briefcase banking model strategy sheets banking model Strictly Private and Confidential 13
Slide 14: Building on the investment banking platform
Building on the investment banking platform RMB subsidiary Country information FNB subsidiary RMB Nigeria FNB & RMB subsidiary Established Rep Office: 2009 Merchant Bank: 2013 FirstRand rep office Nr. of 45 employees across CIB employees Main activities Full service corporate and AOS Orwell investme
Slide 15: Growing the RMB franchise
Growing the RMB franchise RMB subsidiary Country information FNB subsidiary RMB Namibia FNB & RMB subsidiary Established 2011 FirstRand rep office Nr. of 71 employees, building employees to 76 Main activities Full service corporate and investment banking Ohrongo RMB Namibia Cement Yuan trading Term
Slide 16: Corporate Banking strategy
Corporate Banking strategy RMB-led strategy Focused Corporate Banking sales and product teams Differentiated strategy to previously commercial-led approach Look at markets by segment and product line in terms of strategy, structure and people Multi-currency functionality Investment in platforms Misy
Slide 17: In-country balance sheet
In-country balance sheet Harness ancillary business opportunities Why? Fully develop in-country client relationships How? Building a deposit franchise across all segments (including institutional) Building product capability (cross currency swaps, dual currency deposits) Approaching DFI’s DMTN progr
Slide 18: How have we performed in Africa?
How have we performed in Africa? Rest of Africa gross revenue* (R million) 1 600 CAGR 23.6% Africa has been a source of growth over the past 5 years – strategy is paying off 1 400 1 200 1 000 Short term outlook negatively impacted 800 by adverse growth impact of commodity price cycle 600 400 200 Lon
Slide 19: Where to from here for RMB in Africa?
Where to from here for RMB in Africa? RMB subsidiary • Investment Banking business is tracking FNB subsidiary the business case FNB & RMB subsidiary • Looking to augment the business with custody and stockbroking services FirstRand rep office • Continuing with Rep Office but • Initial focus on Globa
Slide 20: RMB's African Growth Story
RMB’s African Growth Story 15 October 2015 20