Nedbank Group · JSE:NED
Nedbank — Investor Day (September 2009)
17 slides from Nedbank's investor day presentation, September 2009
Slide 1: Nedbank Business Banking Investor Day
Nedbank Business Banking In estor Day Investor Da Ingrid Johnson Managing Executive: Nedbank Retail & Business Banking September 2009
Slide 2: Contents
Contents • Background B k d - Business profile - Geographical representation - Client/brand positioning • Strategy - Business B i rationale ti l - Vision & strategic intent - ASCENT roadmap • Progress made - Feedback on ASCENT initiatives - Netbank Business client feedback - Corporate Saver evolutio
Slide 3: Business profile
Business profile • Target market: medium sized businesses - turnover of approx. R7 - 400 million • Relationship driven, decentralised business model based on accountability • Full spectrum financial services offered: Transactional Deposit taking Lending Other services b ki banking Current account Se
Slide 4: Geographic representation
Geographic representation Structured around 4 geographical business units, divided into 13 regional & 54 area offices 67 locations 4
Slide 5: Client / brand positioning
Client / brand positioning O Attributes Our Att ib t V l to Value t our client’s li t’ business b i Access to skilled • Single point of contact via Business Manager (BM) bankers supported • Back-up & relationship continuityy through g team based approach by a team of (client knowledge with more than
Slide 6: Business rationale
Business rationale • Good franchise in biggest growth sector of economy • Relationship based client offering with credit extension & cross-sell key levers • Loyal client base valuing bank’s backing of them - generally do not move banks due to hassle factor & loss of track record • Decentralised busi
Slide 7: Vision & strategy
Vision & strategy Vi i Vision & strategic t t i Intent I t t Become leading business bank for SA • Rated highest in attracting, developing, motivating & retaining Strategic road map defined as ASCENT people & regarded as preferred employer A cquire primary banked clients • Acknowledged as leading bu
Slide 8: ASCENT roadmap to deliver on vision
ASCENT roadmap to deliver on vision • Attract new p y banked clients,, collaborating primary g with sales specialists p A cquire primary • Convert single product clients to primary banked clients banked clients • Focused acquisition of black SME clients S ales l fforce • Improve profitability per sa
Slide 9: Feedback on ASCENT initiatives
Feedback on ASCENT initiatives • Focus on acquisition continued despite economic challenges; Acquisition BMs (new role); A cquire primary acquiring new clients, but market share slow to shift banked clients • Re-established player in Public Sector • Single product client conversion difficult – VAF /
Slide 10: Netbank Business client feedback
Netbank Business client feedback 4 point scale, scale ratings for Import- Import FNB Business Business Netbank Netbank extremely satisfied ance to Online Online Integrator Business Business client - Banking Domestic Cash (NBB) (Ranking Ranking (FNB) Banking Focus - 4 main (STD) (ABSA) banks) Conveni
Slide 11: Corporate Saver evolution
Corporate Saver evolution Leveraging new structure to drive deposit growth - Holistic investment mgt 2009 approach in BB 2008 • 35 Portfolio Managers Pro-Banker integration & • Integration of investment actively targeting new system enhancement management team & CS li bili i liabilities 2003-2007 bu
Slide 12: Competitive environment
Competitive environment Area Nedbank Business Banking Competitors* Competitors Financial • Good economic profit & high RORAC (28%), decline in • Comparable ROE’s & similar HE trend HE growth (-32% in H1 ‘09 after 5 years of strong • Excellent NIR growth (>10%) & better NIR / NII growth) • Impairment
Slide 13: Key differentiators
Key differentiators • Fully F ll empowered d regions i run b by R Regional i lBBusiness i H Head d within ithi clearly defined frameworks; end-to-end accountability with 1 individual • Decentralised business model & Client Service Team approach with specialist support • Investment into leadership &
Slide 14: Income statement drivers
Income statement drivers I/S driver Impact of initiatives to date NII (Assets) • Successful asset re-pricing to widen margin on new business & risk clients • Negative impact on volumes as a result of conscious decision in 2007 to price up or reduce exposure in selected EP negative product lines & ri
Slide 15: Focus areas for 2010
Focus areas for 2010 Priorities Description • Primary banked client acquisition - increased central oversight (better tracking of progress allowing quicker feedback loops & consequence Step p change g in NIR management) growth • Cross-sell & Up-sell - in particular leveraging existing Nedbank relati
Slide 16: Further questions?
Neaititis Oc sia Further questions ? @ MAKE THI@®)Gs HAPPEN NEDBANK
Slide 17: Disclaimer
Disclaimer Nedbank Group has acted in good faith & has made every reasonable effort to ensure the accuracy & 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 legisl