DOCSLIB.ORG

Firstrand Report to Society 2020

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Firstrand Report to Society 2020 2020 report to society CONTENTS 01 Report purpose 02 Foreword 04 Group profile 06 Macroeconomic context 08 Role of financial institutions in society 10 FirstRand’s shared value contract with society 11 The United Nations Principles for Responsible Banking REPORT 12 Making progress PURPOSE 14 Deploying the group’s balance sheet to 01 drive economic growth and inclusion FIRSTRAND’S PURPOSE IS TO 42 How the group’s products and transactional BUILD A FUTURE OF SHARED 02 platforms deliver financial inclusion to broader society PROSPERITY THROUGH 03 58 Treating customers fairly ENRICHING THE LIVES OF ITS 64 Addressing transformation and CUSTOMERS, EMPLOYEES AND 04 employment equity THE SOCIETIES IT SERVES. 72 Providing an enabling environment 05 for employees This is the foundation to a sustainable future and will preserve the group’s enduring promise to create long- 82 A CSI strategy designed to contribute term value and superior returns for its shareholders. 06 to upliftment 07 102 Managing the group’s environmental impact Whilst FirstRand’s Annual Integrated Report focuses on the group’s financial and operational performance, 121 Looking ahead the Report to Society aims to provide deeper insight 122 External assurance statement into the social impact of that performance. FirstRand continues to refine its thinking and processes to This report covers the FirstRand better determine and measure this social impact. group including its subsidiaries. The report links to the Annual Integrated Report (www.firstrand.co.za). All reported data is for the year ended 30 June 2020, unless indicated otherwise. Information in the profiled case studies may relate to events and initiatives that occurred after 30 June 2020 but before the issue date of this report. 02 irstRand and its operating Notwithstanding the COVID-19 focus businesses provided help to on lives and livelihoods, environmental many stakeholder groups in and social matters must continue to responseF to the pandemic. The group inform corporate purpose. As a public rapidly mobilised cash flow relief solutions affirmation of the group’s commitment for its customers; enabled the majority of to addressing the societal, economic our employees to work remotely and and environmental needs of the countries provided well-being support to assist in which we operate, FirstRand has them in adjusting to very challenging become a signatory to the reporting circumstances. Also, through the SPIRE framework of the Task Force on Climate- fund we assisted government and broader related Financial Disclosures (TCFD) society to tackle healthcare and food and to the United Nations Principles for security challenges. Responsible Banking. The COVID-19 pandemic accentuated This affirmation aligns to FirstRand’s the interconnectedness of the health of purpose statement to build a future of FOREWORD the planet, humans and the economy and shared prosperity for our customers, afforded us the opportunity to reflect on employees and the societies we serve. THIS HAS BEEN AN UNPRECEDENTED YEAR. THE COVID-19 PANDEMIC how we live, how we work and how we I believe that the social impact strategies HAS HAD A PROFOUND IMPACT ON THE WORLD. IN SOUTH AFRICA IT do business. The pandemic demonstrated we have embarked on, many of which are RESULTED IN THE DEEPEST GDP CONTRACTION SINCE THE SECOND that we share the natural environment, covered in this report, demonstrate our WORLD WAR. THE ASSOCIATED LOCKDOWN DEVASTATED THE we share our living spaces and that we deep commitment to delivering on this ECONOMY AND IT WILL BE A LONG, HARD ROAD BACK TO RECOVERY. need effective government. The pandemic purpose. proved that when we partner with others, we can do so much more, and this last point will be particularly key to South Africa’s recovery. Government and business must continue to work together to get the country back onto a sustainable growth path. Alan Pullinger, CEO Report to Society | FIRSTRAND GROUP 0202 03 03 GROUP PROFILE FIRSTRAND’S OPERATING FOOTPRINT THE GROUP HAS A MULTI-BRAND STRATEGY, WITH A NUMBER OF LEADING CUSTOMER- FACING BRANDS IN THE PORTFOLIO London irstRand Limited FNB represents FirstRand’s activities in the retail (FirstRand or the and commercial segments in South Africa and United Kingdom RETAIL AND F the broader African continent. It is growing its J group) is a portfolio of COMMERCIAL Guernsey < franchise on the back of a compelling customer < integrated financial BANK offering that provides a broad range of innovative services businesses financial services products. s China operating in South Africa, certain markets in Nigeria sub-Saharan Africa and RMB represents the group’s activities in the India corporate and investment banking segments in Ghana < in the UK. CORPORATE Q South Africa, the broader African continent and AND Kenya Many of these businesses are India. Its strategy leverages a strong origination INVESTMENT s leaders in their respective franchise, a leading market-making and BANK Angola s segments and markets, and offer distribution offering, a strong private equity track Zambia a broad range of transactional, record and a growing transactional platform. TOTAL EMPLOYEES: lending, investment and insurance Namibia products and services. South Africa 49 233 WesBank represents the group’s activities in Group earnings remain significantly instalment credit, fleet management and insurance tilted towards South Africa. INSTALMENT in the retail, commercial and corporate segments AND FINANCE SA EMPLOYEES: of South Africa. WesBank has a unique and long- The group’s strategy outside of PROVIDER South Africa includes growing its standing model of partnering with leading motor presence and offerings in certain manufacturers, suppliers and dealer groups. 40 668 key markets in the rest of Africa, where it believes it can build competitive advantage and scale Aldermore represents the group’s activities in the Botswana over time. In the UK, the group UK. It has a clear strategy of offering simple aims to build further franchise UK SPECIALIST financial products and solutions to meet the needs Lesotho Tanzania value through scaling, digitisation LENDER of underserved small and medium-sized and disruption. enterprises (SMEs), as well as homeowners, Eswatini Mozambique professional landlords, vehicle owners and savers. Report to Society | For a detailed review of the operations refer to the Ashburton Investments represents FirstRand’s Annual Integrated Report asset management activities. Ashburton has an Full-service banking Full-service banking, insurance Branch ASSET < (www.firstrand.co.za). active investment management strategy spanning and asset management MANAGEMENT Q Investment banking s Representative office traditional and alternate investments as well as J UK specialist banking unique on-balance sheet opportunities. FIRSTRAND GROUP 04 05 MACROECONOMIC CONTEXT The macroeconomic environment created by South Africa’s already extremely weak Given this backdrop, financial institutions must play an active role in the COVID-19 crisis is now considered to be domestic position was further worsened by the helping economies and society recover from the impacts of COVID-19. the worst global economic crisis since the COVID-19 crisis and resultant lockdown, with They have the tools to drive sustainable, inclusive economic activities Second World War. It resulted in three limited fiscal space to support the economy. and positive social outcomes. simultaneous and profound shocks: to global South Africa’s high debt levels and the trade; to global confidence, causing financial potential for additional sovereign credit conditions to tighten significantly and abruptly; downgrades may further impact the economy. Financial intermediaries are able to: and to economic activity following the The South African Reserve Bank (SARB) lockdown policies adopted by most of the provided monetary policy support, 1 provide products and services 4 enable investment world’s major economies. This translated into implementing 275 bps of rate cuts since the that assist people to create in transformational a once in a generation economic stress event. start of the crisis, however, the real-economy wealth and save for their futures infrastructure impact of COVID-19 remains deep given the This scenario prompted coordinated efforts loss of economic activity, tax revenue, and by central banks and governments to lower household and corporate income. These interest rates and simultaneously provide challenges will result in higher levels of fiscal stimulus packages to cushion the impact bankruptcies, structural unemployment – 2 provide leverage for businesses 5 provide low-income consumers of the economic shock to the real economy. particularly amongst the youth – and the to grow, create jobs and access to financial services Despite these actions, global financial disruption of global supply chains which improve lives through digital platforms, conditions are expected to remain challenging enabling economic productivity means certain industries will not fully recover. Report to Society and any form of recovery will be contingent on | proof that the spread of the virus in developed economies has peaked. 3 provide a secure and readily 6 alongside the South African available platform for payments Reserve Bank, ensure the stability and efficiency of the financial system FIRSTRAND GROUP 06 07 FOREIGN LOCAL ROLE OF FINANCIAL Cross-border payments FINANCIAL INSTITUTIONS INSTITUTIONS IN Foreign direct related to the Foreign direct investment and export/import
Load more

Recommended publications
  • Transformation in Banking Report 2019
    February 2020 TRANSFORMATION in banking 2016 - 2018 Contents 1. Foreword 2 2. Highlights 3 3. Introduction 4 4. Methodology 5 5. Data and analysis 6 About this report Ownership 7 This report is produced by Intellidex (Pty) Ltd Management 8 1st Floor, Building 3 Skills development 12 Inanda Greens Office Park 54 Wierda Road West Socioeconomic development 14 Sandton South Africa Procurement 14 Email: [email protected] Consumer education 15 Web: www.intellidex.co.za Tel: +27 (0)10 072 0472 Empowerment financing 17 Disclaimer Intellidex was commissioned by the Banking While Intellidex believes all information in this report to be accurate, Intellidex makes no representations Transformational infrastructure 17 Association South Africa (BASA) to produce or warranties regarding the completeness, accuracy this report from data supplied from member or reliability of any information, facts, estimates, forecasts or opinions contained in this document. The Black agricultural financing 18 banks. information and opinions could change at any time without prior notice. Intellidex, its directors, officers, The report reflects transformation in the staff, agents or associates shall have no liability for Black SME financing 18 any loss or damage of any nature arising from the use banking industry and its progress towards of this document. achieving the targets set out in the Financial Affordable housing 19 Sector Code. Copyright Supplier development contribution 20 ©2020. This document is copyrighted to the Banking The publication serves as a report to society Association South Africa. It may be distributed in on the contribution of the banking industry this form without prior permission, but prior written B-BBEE transaction financing 20 permission must be obtained before using the to the development of the country, and content in another form.
    [Show full text]
  • A STRATEGIC ANALYSIS of CAPITEC BANK LIMITED WITHIN the SOUTH AFRICAN BANKING INDUSTRY by Michael Coenraad De Lange
    A STRATEGIC ANALYSIS OF CAPITEC BANK LIMITED WITHIN THE SOUTH AFRICAN BANKING INDUSTRY By Michael Coenraad de Lange Submitted in partial fulfilment of the requirements for the degree of MAGISTER IN BUSINESS ADMINISTRATION at the Nelson Mandela Metropolitan University Business School Research Supervisor: Prof JA Jonker November 2013 DECLARATION I hereby declare that the above-mentioned treatise is my own work and that it has not previously been submitted for assessment to another University or for another qualification. I further declare that I followed all the applicable ethical guidelines in the conducting the research. Signed: Michael de Lange Date: November 2013 i ACKNOWLEDGEMENTS This research study would not have been possible to complete without the valuable contributions and support of the following people: To my research supervisor, Professor Kobus Jonker, for his dedication, support and professional advice in helping me complete this study; To my girlfriend Jess, for all her understanding and willingness, her support, undying love and dedication in helping me throughout the duration of my MBA; To my family, for believing in me and providing the necessary support and for raising me to be a dedicated and disciplined individual in order to reach my goals and complete this research study. DEDICATION This research treatise is dedicated to my late father who tragically passed away last year. He was an inspiration to us all and my hero. Gone but never forgotten. Thank you Dad. ii ABSTRACT The South African banking industry is well regulated and oligopolistic by nature. The financial sector in South Africa is of a world class standard, comparing favourably to that of developed economies i.e.
    [Show full text]
  • Financial Cooperatives Indaba 2012”
    “Financial Cooperatives Indaba 2012” Fikile Kuhlase, Senior GM, Socio-Economic Growth and Development The Banking Association South Africa Durban – 19 October 2012 SETTING THE SCENE… 2 “A journey of a thousand miles begins with a single step”. (Lao-tzu) The Banking Association SA - not-for-profit voluntary industry body representing all registered banks operating in SA - currently has 34 member banks. VOICE of the industry. Role of banks is financial intermediation – facilitating the flow of funds from savers to borrowers. Financial Intermediation – process performed by banks of taking in depositor funds and on-lending to borrowers. SA rated 2nd in soundness of banking system after Canada. “Big 4”: ABSA, FirstRand, Nedbank, Standard Bank – 85% of total banking assets Continuum of financial institutions for diversification, depth and reach SA Financial sector comprises of R6trillion in assets; 10.5% of GDP. Misnomer that banking is amongst most hated professions Exploring expected role of banking industry in coop. banking (Kenya study tour etc.) ROLE & GOVERNANCE STRUCTURE… 3 Broad role of The Banking Association SA is to establish and maintain the best possible platform on which banks can do progressive, responsible, competitive, profitable and sustainable banking. Main Board – CEOs of ‘Big 4’ ABSA, FirstRand, Nedbank, Standard Bank and Investec. 2 Intl. Bank reps. – Citi and Standard Chartered, 2 Independent banks – African Bank and Ubank . Board Exco – EXCO – MANCO MD, 4 Divisions - Banking & Financial Services, Socio-Economic Growth & Development, Strategy & Stakeholder Management and Shared Services. SEGD – Financial Inclusion, Financial Literacy, SME Development, CSI and Draft Financial Sector Code for transformation. SADC BA Role of the banking industry in the real economy – poverty alleviation, job creation etc.
    [Show full text]
  • “Bank Stability in South Africa: What Matters?”
    “Bank stability in South Africa: what matters?” Syden Mishi https://orcid.org/0000-0002-7727-8946 AUTHORS Sibanisezwe Alwyn Khumalo https://orcid.org/0000-0002-4330-9249 Syden Mishi and Sibanisezwe Alwyn Khumalo (2019). Bank stability in South ARTICLE INFO Africa: what matters?. Banks and Bank Systems, 14(1), 122-136. doi:10.21511/bbs.14(1).2019.11 DOI http://dx.doi.org/10.21511/bbs.14(1).2019.11 RELEASED ON Wednesday, 27 February 2019 RECEIVED ON Monday, 02 July 2018 ACCEPTED ON Monday, 21 January 2019 LICENSE This work is licensed under a Creative Commons Attribution 4.0 International License JOURNAL "Banks and Bank Systems" ISSN PRINT 1816-7403 ISSN ONLINE 1991-7074 PUBLISHER LLC “Consulting Publishing Company “Business Perspectives” FOUNDER LLC “Consulting Publishing Company “Business Perspectives” NUMBER OF REFERENCES NUMBER OF FIGURES NUMBER OF TABLES 75 4 3 © The author(s) 2021. This publication is an open access article. businessperspectives.org Banks and Bank Systems, Volume 14, Issue 1, 2019 Syden Mishi (South Africa), Sibanisezwe Alwyn Khumalo (South Africa) Bank stability in South Africa: what matters? BUSINESS PERSPECTIVES Abstract The study examined the determinants of bank stability within the South African bank- ing sector. By controlling for individual bank characteristics and market characteris- tics, the study determined possible determinants of solvency, a proxy for bank stabil- ity, measured by z-score within the South African financial sector. The South African LLC “СPС “Business Perspectives” financial sector is highly concentrated but with a significantly large number of banks, Hryhorii Skovoroda lane, 10, Sumy, the greater portion being foreign owned banks.
    [Show full text]
  • Annual Report for the Year Ended 30 June a a a a a Report This About the Annualfinancialstatements
    19 annual report for the year ended 30 June A Overview of FirstRand Bank and analysis of financial about results (normalised) this report B The annual report covers the following: Summary risk and capital A overview of FirstRand Bank; management report A a detailed analysis of the bank’s normalised financial results, as the bank believes this most accurately reflects its economic performance (normalised results have been derived from the audited financial results); A a summary risk and capital management report; contents the audited annual financial statements; and C A A supplementary information. Annual financial statements A detailed description on the differences between normalised and IFRS results and a detailed reconciliation between normalised and IFRS results is provided on page A116 and pages A118 and A119. Jaco van Wyk, CA(SA), supervised the preparation of the annual financial statements. D Supplementary information 1929/001225/06 Certain entities within the FirstRand group are Authorised Financial Services and Credit Providers. This analysis is available on the group’s website: www.firstrand.co.za Email questions to [email protected] FIRSTRAND BANK LIMITED :: 01 :: A FirstRand Bank (FRB or the bank) is a wholly-owned subsidiary of FirstRand Limited (FirstRand or the group), which is listed on the Johannesburg Stock Exchange (JSE) and the Namibian Stock Exchange (NSX). The bank provides a comprehensive range of retail, commercial, corporate and investment banking services in South Africa and offers niche products in certain international markets. The bank has three major divisions, which are separately branded: First National Bank (FNB), Rand Merchant Bank (RMB) and WesBank.
    [Show full text]
  • Conduct Risk in South African Banks: Aligning Regulatory Compliance with Business Sustainability
    Article Conduct Risk in South African Banks: Aligning Regulatory Compliance with Business Sustainability Antje Hargarter Gary van Vuuren https://orcid.org/0000-0003-0064-751X https://orcid.org/0000-0001-6811-0538 North West University, South Africa North West University, South Africa [email protected] Abstract Regulators have imposed heavy penalties on banks for conduct failures since the global financial crisis occurred in 2007/2008. Banks play an important role in the economy, and it is therefore in the interests of both the public and government that banks have an effective conduct-risk approach in place; one that complies with reg- ulation and ensures business sustainability. Current conduct-risk approaches are in- adequate, and literature is sparse—especially regarding developing economies. The goal of this research was to explore ways in which banks can manage and mitigate conduct risk, while ensuring sustainability. The qualitative design of this study used South Africa as an example of a developing market; and it employed primary and secondary data. The analysis shows that banks have been focused on developing a suitable high-level strategy but have neglected the lower level (where employees and customers meet). Consequently, they have exposed themselves to conduct risk. Based on these findings, this article suggests that banks’ strategies should be tackled in a top-down fashion, while they simultaneously pursue customer outcomes from the bottom-up. This study is crucial, as banks must prepare for new legislation, avoid fines, and strategically position themselves to satisfy clients and remain sus- tainable. Since the last self-assessment by the (then called) Financial Services Board in 2013, no formal assessment of conduct risk in the South African banking industry has taken place.
    [Show full text]
  • ANALYSIS of FINANCIAL RESULTS for the Year Ended 30 June 2017 About This 01 OVERVIEW of BANK RESULTS Simplified Group and Shareholding Structure
    ANALYSIS OF FINANCIAL RESULTS for the year ended 30 June 2017 about OVERVIEW OF BANK RESULTS this 01 Simplified group and shareholding structure ..... 01 report Track record ..... 03 Key financial results, ratios and statistics – normalised ..... 04 Summary financial statements – normalised ..... 05 This report covers the audited summary Flow of funds analysis – normalised ..... 08 financial results of FirstRand Bank Overview of results ..... 09 Limited based on International Financial Segment report ..... 18 Reporting Standards (IFRS) for the year Additional activity disclosure – RMB ..... 26 ended 30 June 2017. The primary Additional segmental disclosure – WesBank ..... 27 results and accompanying commentary are presented on a normalised basis as the bank 02 INCOME STATEMENT ANALYSIS believes this most accurately Net interest income (before impairment of advances) ..... 30 reflects its economic performance. Credit highlights ..... 35 The normalised results have been Non-interest revenue ..... 38 derived from the IFRS financial results. Operating expenses ..... 41 Normalised results include a summary income statement, statement of BALANCE SHEET ANALYSIS AND FINANCIAL comprehensive income and statement of financial position. 03 RESOURCE MANAGEMENT Economic view of the balance sheet ..... 44 A detailed description of the difference Advances ..... 45 between normalised and IFRS results is Credit ..... 47 provided on pages 78 and 79. Detailed Deposits ..... 62 reconciliations of normalised to IFRS Funding and liquidity ..... 63 results are provided on pages 88 to 89. Capital ..... 71 Commentary is based on normalised Credit ratings ..... 76 results, unless indicated otherwise. Jaco van Wyk, CA(SA), supervised the preparation of the summary financial 04 IFRS INFORMATION results. Presentation ..... 78 FirstRand Bank’s annual financial Independent auditors’ report on summary financial statements ....
    [Show full text]
  • First National Bank Appoints First Ghanaian CEO
    First National Bank Appoints First Ghanaian CEO Press Release First National Bank Appoints First Ghanaian Chief Executive Officer Accra, Ghana – 26 June 2020 – First National Bank Ghana has announced the appointment of Dominic Adu as its first Ghanaian Chief Executive Officer, effective Wednesday July 01, 2020. Dominic takes over from Richard Hudson who has served in this position since the inception of the bank five years ago. Mr. Adu was the Chief Executive Officer of the erstwhile GHL Bank, which was recently acquired by First National Bank Ghana. “On behalf of the Board of Directors, we are excited to welcome Dominic to lead the First National Bank Ghana team. He has a wealth of experience in domestic and international Finance, private equity, entrepreneurship and leadership which will add great value to our team,” the chairman of the board of directors of First National Bank Ghana, Mr. Joseph Tetteh says. “Notably, this appointment marks another milestone in the history of First National Bank Ghana to have a Ghanaian citizen as CEO. We are confident that his leadership capabilities, coupled with his astute financial and economic management expertise, will enable the bank to further expand its product offering to all Ghanaians while contributing significantly to the growth the business. His experience will help unlock further value in our banking services and expand our existing offering to help the average Ghanaian fulfill their financial aspirations” Dominic Adu co-founded Ghana Home Loans, Ghana’s foremost mortgage finance institution in 2006. In June 2017 he led Ghana Home Loans through a transition to become a universal bank after obtaining a banking license under the name GHL Bank Plc.
    [Show full text]
  • Customer Satisfaction Survey 2014 Final Report
    Customer Satisfaction Survey 2014 Final Report Version: v1.00 Date: February 2015 Author: Redflank BANKSETA Customer Satisfaction Survey APPROVALS Sign-off signifies acceptance of the content. Conditional signature can be made, with space provided to express conditions. Name Designation Organisation Date Signature Conditions/Comments Zandile Skosana Manager: BANKSETA Marketing and Communications 2 BANKSETA Customer Satisfaction Survey Contents Table of Figures ....................................................................................................................................... 4 List of Tables ........................................................................................................................................... 5 List of Acronyms ...................................................................................................................................... 6 1. Executive Summary ......................................................................................................................... 7 1.1. Introduction ............................................................................................................................ 7 1.2. Research Design ...................................................................................................................... 7 1.2.1. Overview of Data Collection Process .............................................................................. 7 1.3. Key Findings ...........................................................................................................................
    [Show full text]
  • South African Peer Bank Analysis - H1:21 an EY Banking & Capital Markets Benchmark Report (Summarised) August 2021 Executive Summary Banks Benchmark Report 2021
    South African Peer Bank Analysis - H1:21 An EY Banking & Capital Markets Benchmark Report (summarised) August 2021 Executive summary Banks benchmark report 2021 While we have learned much about COVID-19 and its according to the SA Property Owners Association and has implications, the situation continues to evolve, and led to downward revisions to the economic outlook for the heightened uncertainty remains. Countries that were year. Over and above this, trade has been affected by the thought to be over the worst are seeing rising COVID-19 recent cyber-attack at Transnet at the end of July. cases - such as China, Israel and the United States. South Africa, which has been emerging from the worst recession The developing international and local events underline in a century in 2020, continues to battle the third wave with the continued importance of considering economic risk. future waves of the pandemic likely. Although it is difficult to know the future unknowns, or accurately quantify their effects, having considered the In addition, poor economic conditions, worsened by the possible impacts is better than being completely caught pandemic and a delicate political situation, resulted in the unaware. riots in July which caused R50bn in property damages, Strategic themes noted in H1:21 Challenging and volatile macroeconomic environment Weak GDP growth, COVID-19 third wave, low demand, low consumer confidence and electricity supply Key focus disruptions created Recent South on strategy uncertain economy African civil unrest outlook Customer
    [Show full text]
  • Review of Operations 2020
    REVIEW OF OPERATIONS 56 | FIRSTRAND GROUP | Review of operations Jacques Celliers | CEO | FNB Normalised earnings FNB’s results were materially affected by ROE 31% the COVID-19 pandemic and 25.8 % R12.3 billion resultant lockdown Significant Deterioration in Significant debt relief slowdown in customer income and requested across all affordability levels key growth segments drivers Low transactional activity and credit turnover in customer accounts The balance sheet grew, particularly deposits Deposits Advances RETAIL RETAIL 16 % 4% COMMERCIAL COMMERCIAL 19 % 3% SA customer numbers remained stable: • Ongoing migration from consumer to premium segment • Commercial customers increased 6% FIRSTRAND ANNUAL INTEGRATED REPORT 2020 | 57 Despite ongoing investment in: Operating APP Digitisation TRANSACTIONAL expenses well Platform VOLUMES contained at Insurance and 4% wealth management % strategies 28 eWallet transacting base Interest rate cuts Subdued NIR growth 39% Negative Lower absolute endowment impact volumes during FNB’s DIGITAL and margin pressure lockdown STRATEGY and PLATFORM FULFILMENT Impact of IFRS 9 enabled the forward-looking successful information due to provision of cash Impairment COVID-19 flow relief during charge doubled lockdown year-on-year Higher NPLs Increased stress in debt counselling portfolios Higher actual New business Growth in and expected insurance volumes underwritten life insurance claims impacted insurance policies 32% • Retrenchments • Slowdown in • Fulfilment on INSURANCE • Loss of income credit advances digital
    [Show full text]
  • Shaping the Bank of the Future South African Banking Survey 2013
    Shaping the bank of the future South African banking survey 2013 www.pwc.co.za/banking Contents Foreword 4 Executive summary 6 Introduction 12 Evaluating trends shaping the industry and banks’ responses 16 1 External developments 16 2 Macro trends 34 3 Internal responses 44 4 Stakeholder expectations 58 5 Level of preparedness 66 Appendix 1: Peer analysis 76 Appendix 2: Additional survey results 84 Appendix 3: Research methodology 88 Appendix 4: BA 900 data 90 Contacts 98 PwC | 3 Foreword 4 | Shaping the Bank of the Future We are pleased to launch the 13th edition of the PwC survey on banking in South Africa – Shaping the bank of the future. The banking industry is dynamic and has evolved significantly since our last survey in 2011 as banking chief executives have adapted their strategies in response to regulatory changes and global economic pressures. Our aim is to highlight the challenges and opportunities faced by CEOs as they position their banks to succeed in the future. We also explore industry trends to provide perspectives on how banking in South Africa may evolve over the next three years. We have grouped these challenges and opportunities faced by banks into four broad themes, namely external developments, macro trends, internal responses and stakeholder expectations. Central to all themes is how CEOs are planning to maintain asolid return on equity given the challenges they are facing. Our foremost findings include: • External developments: Regulatory reform coupled with an uncertain economic environment remains the most pressing issue facing CEOs; • Macro trends: The rise and interconnectivity of emerging markets is a significant opportunity for our banks; • Internal responses: Cost containment, leveraging technology in all aspects of banking and a renewed focus on being client centric are some of the internal tactics CEOs are using to stay on top; and • Stakeholder expectations: Although CEOs are positive about their ability to adapt, ROE levels will be lower than in the past.
    [Show full text]