Standard Bank Group Limited · JSE:SBK
Standard Bank — UBS SA Financials Conference 2011
16 slides from Standard Bank's conference presentation, Oct 27, 2011
Slide 1: UBS SA Financials Conference: Making the investment case
10/28/2011 UBS SA Financials Conference Making the investment case Ben Kruger, Group deputy chief executive 27 October 2011 Standard Bank strategy To build the leading African financial services organisation using all our competitive advantages to the full We will focus on delivering superior sustai
Slide 2: What are we trying to do?
10/28/2011 What are we trying to do? Rest of Africa to become a meaningful proportion of group profit Targeting ROE of Growth 18% in the ROE medium term Maintain Right size and grow everything market Outside position in Africa South Africa Quality of Earnings Capital Allocation 3 Outside Africa Righ
Slide 3: Right size everything outside Africa and earn a reasonable ROE on the remaining capital
10/28/2011 Right size everything outside Africa and earn a reasonable ROE on the remaining capital • Essential part of the CIB Outside Africa NAV as a % of group franchise which enhances our competitive position Pre disposals Post disposals and relocation to SA • London legalg entity y to exist for
Slide 4: Economic growth in Africa has been widespread
10/28/2011 Economic growth in Africa has been widespread Growth rate, 2010 – 2011 average, % More countries growing at a faster rate 25 20 15 10 Less than 0 1 to 2.9 5 3 to 3.9 4 to 4.9 49 5 to 6.9 7 to 10 0 Negative 0 to 2 2 to 4 4 to 6 6 to 8 8 to 10 10 plus % of countries Average growth rate 2010
Slide 5: Africa's population has expanded rapidly and grown richer per capita
10/28/2011 PBB Rest of Africa Africa's population has expanded rapidly and grown richer per capita Africa’s population is growing, and GDP per capita (PPP) growth, 2000-2010 (%) urbanising 2000 8 1600 6 1200 4 800 2 400 0 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2
Slide 6: Personal market opportunity in Africa: rising middle class
10/28/2011 Personal market opportunity in Africa: rising “middle class” Share of households in each income bracket Household income brackets %, millions of households $ PPP1 2005 100% = 163 196 244 Households with 6 8 12 Global (>20 000) income >$5$ 000 11 14 (Discretionary 17 income)2 18 Consuming
Slide 7: Business banking opportunity in Africa: enterprises without access to credit
10/28/2011 Business banking opportunity in Africa: 30-33m enterprises have no access to credit Unserved Underserved 13 Source: IFC and McKinsey & Company Agriculture poised for growth World share of unexploited cropland: Countries with the largest potentially 61% in Sub-Saharan Africa available crop
Slide 8: PBB Rest of Africa focus areas
10/28/2011 PBB Rest of Africa focus areas Leverage Appropriate strong distribution Targeted Key focus on corporate Competitive platform and customer Local market business banking market products and related acquisition and credit capability banking position to pricing scalable sales culture bank the
Slide 9: Rich natural resource endowment, relatively under-explored
10/28/2011 Rich natural resource endowment, relatively under-explored Natural resources is a core sector for CIB (1) Major known mineral resources 17 Source: Standard Bank, Raw materials group Port infrastructure needs upgrading to increase capacity Lamu Port Matadi Line Kenyan government has give
Slide 10: Rail infrastructure in its infancy
10/28/2011 Rail infrastructure in its infancy Real need to connect inland production facilities to ports Egypt Railways Restructuring There is also a need to connect cross-border, along the lines Blocks shaded are for lines to of Western Europe service bulk commodities Project Key need to up
Slide 11: Our domestic client franchise is strong, with multinationals growing in importance
10/28/2011 Our domestic client franchise is strong, with multinationals growing in importance Top 50 Rest of Africa clients Multinational corporation vs. revenue derived from our domestic customers • Domestic clients make up 57% of th revenue from the f our top t 50 clients • We expect multinational
Slide 12: Maintain and grow market position in South Africa
10/28/2011 South Africa Maintain and grow market position in South Africa Challenges facing PBB SA • Transactional fee pressure • Secured lending dilemma • Unsecured lending gppanacea • Appropriate IT infrastructure • Cost pressure • Channel architecture complexity and evolution • Need to attract mo
Slide 13: PBB SA: Greater focus on our customers
10/28/2011 PBB SA: Greater focus on our customers • Inclusive banking is key to PBB’s future success - Leverage customer deposit base to enable increased unsecured lending - Primary market to attract new customers, using direct channels to displace costs • Personal markets still PBB’s bread and butt
Slide 14: CIB SA: The strength of an integrated corporate and investment banking model
10/28/2011 CIB SA: The strength of an integrated corporate and investment banking model • Offers clients a comprehensive value proposition • Provides us access to clients through corporate banking relationships • Returns enhanced through g Investment Banking g and Global Markets products Corporate b
Slide 15: The Standard Bank investment case
10/28/2011 The Standard Bank investment case We have a well established platform from which to move forward Rest of Africa to become a meaningful proportion of group profit Targeting ROE of Growth 18% in the ROE medium term Maintain Right size and grow everything market Outside position in Africa So
Slide 16: Standard Bank
(@ Standard Bank 10/28/2011 16
Standard Bank Group — UBS SA Financials Conference 2011 on 6ix