Standard Bank Clive Tasker Democracy is gaining momentum in sub- Sahara Africa • The region evolved from a few democratic governments to near complete democracy today • Positive changes in the socio-political environment across the entire region Elected governments in 1986 Elected governments in 2008 ALGE ALGE RIA RIA Elected governments 2 1 Sovereign ratings of sub-Saharan countries Rank Country Rating Outlook Rating agencies 1 Botswana A Stable S&P 2 South Africa BBB+ Stable/Positive S&P/Fitch 3 Nigeria BB- Stable S&P/Fitch 4= Ghana B+ Stable S&P/Fitch 5 Senegal B+ Negative S&P 6= Burkina Faso B Positive S&P 6= Mozambique B Positive S&P/Fitch 7= Cameroon B Stable S&P/Fitch 7= Madagascar B Stable S&P 7= Mali B Stable S&P/Fitch 7= Uganda B Stable Fitch 8 Kenya B Negative S&P 9 Malawi B- Stable Fitch Sources: Fitch, S&P • Only 4 sub-Saharan countries were rated in 2003 • Governments are taking initiatives to promote good governance and transparency • Evident shift to capital markets as a primary source of government funding 3 Overview of Standard bank Standard Bank has grown HEPS and DPS by an average of 20% per annum over the past 20 years Standard Bank has extensive expertise in the complicated dynamics of emerging markets, enabling us to effectively partner clients in achieving their strategic • Standard Bank is the largest African bank and a leading objectives emerging markets bank, operating on a global scale • Full service bank product offering, including: – Investment banking – Corporate banking – Personal and business banking – Investment management; and – Life assurance • Our global reach extends to 38 countries, with capabilities in the world’s leading financial centers, New York, London and Hong Kong • Corporate and Investment Banking (“CIB”) provides corporate and investment banking services to corporate clients, financial institutions and international counterparties Africa Rest of world Key regional offices focused on emerging markets around the world • Standard Bank has over 48,000 employees world wide with • 18 African countries • 20 countries outside • Offices in key regional a market capitalisation at 31 December 2007 of • 709 branches in South Africa financial centers USD19 billion Africa • 88 branches in including London, • Standard Bank’s strategic partnership with ICBC Moscow, New York, • 306 branches in the Argentina establishes a gateway between Africa and China, which Hong Kong, Sao rest of Africa accelerates the bank’s respective international strategies Paulo and Dubai 4 2 African Roots Central & West Africa East Africa Southern & Islands Ghana Kenya Botswana Nigeria Malawi Lesotho Democratic Republic of Tanzania Mozambique Congo Uganda Namibia Angola South Africa Swaziland Zambia Zimbabwe Mauritius Madagascar Standard Bank Group trades under the name Standard Bank in Angola, Lesotho, Mauritius, Mozambique, Namibia, South Africa and Swaziland; and as Stanbic Bank in Botswana, Democratic Republic of Congo, Ghana, Kenya, Madagascar, Malawi, Nigeria, Tanzania, Uganda, Zambia and Zimbabwe 5 Our current footprint TUNISIA MOROCCO ALGERIA WESTERN LIBYA SAHARA EGYPT Red Sea MAURITANIA MALI NIGER ERITREA SENEGAL THE CHAD SUDAN GAMBIA BURKINA DJIBOUTI GUINEA GUINEA BISSAU BENIN TOGO NIGERIA COTE ETHIOPIA SIERRA DTVOIRE GHANA CENTRAL LEONE AFRICAN REPUBLIC LIBERIA CAMEROON DEMOCRATIC UGANDA SOMALIA EQUATORIAL REP. OF REBPUBLIC OF KENYA GUINEA THE THE CONGO GABON CONGO ZAIRE) Indian RWANDA BURUNDI Ocean ANGOLA TANZANIA MALAWI ANGOLA ZAMBIA Mauritius MOZAMBIQUE MADAGASCAR NAMIBIA ZIMBABWE BOTSWANA No representation SWAZILAND LESOTHO Indian Ocean Standard Bank representation SOUTH AFRICA 6 3 Optimising Opportunities on the Continent Presence L S U Nigeria Kenya M B DRC MZ Z Ghana NM T MR High Acceleration Maintain Grow Angola Non Presence L = Lesotho ; S = Swaziland ; M = Malawi ; MR = Mauritius ; MZ = Mozambique ; NM = Namibia ; Z = Zambia ; B = Botswana ; U = Uganda ; T = Tanzania 7 Insights into the SBA Portfolio Revenue generated Mauritius Malawi 1% DRC Tanzania 3% 1% 3% Namibia Lesotho 16% 5% Ghana 5% Swaziland 5% Kenya Nigeria 5% 15% Botswana 8% Uganda Zambia 12% 10% Mozambique 11% 8 4 Africa distribution Cluster Key Brand Features Uganda • Good position, seen as safe, secure and adding value • Convenience factor, due to extensive branch and ATM network • The only international bank to bank the salaried and regular income segment • Dominant brand with strong retail presence Lesotho Namibia • Brand influenced by spill-over from South Africa Swaziland Mozambique • Prominent and known as South African brand, less known as international brand • Good/Fair service levels Zambia Zimbabwe • High regard in the market, largely due to good service Botswana • Prestigious brand amongst affluent customers Ghana Kenya • Brand is developing in meaning & awareness is increasing Tanzania • Known to serve corporates, businesses and high net worth customers Malawi • Improvements in systems and performance areas resulted in improved brand association • Prominent player, known as a South African bank. Angola Nigeria • Small player DRC • Brand is relatively unknown • Mostly wholesale, negligible share of retail market. 9 Who are our competitors We compete against two major classes of banks: Multi-national and large local z Multi-national banks – Standard Chartered, Barclays, Citi – These banks tend to focus on MNC’s, Governments, top local corporates high end retail and business banking (Citi has moved away from retail and business banking in recent years) – They all have slightly different core capabilities but focus on treasury, trade and transactional banking. Increasingly they are concentrating on big ticket investment banking as the operating environments allow for greater product proliferation – Africa might not be considered to be core to their global strategy and their financial targets are thought to be less aggressive than in other larger non-African markets, they are here by virtue of history and their client bases z Nigeria is a noteworthy exception where all have expressed an intention to grow their presence 10 5 Who are our competitors We compete against two major classes of banks: Multi-national and Large Local z Large local banks – Increasingly these are becoming regional players and are expanding their footprint into neighbouring countries – Many are well capitalised with significant market shares, if not dominant – Provide significant competition to ourselves by virtue of their: ¾ Low cost of funds, expansive distribution networks, good government relationships, strong ties with top local corporates and increasing product sophistication off recent large investments in systems – Could be considered weak in: ¾ Treasury, Debt Capital Markets, Project Finance and Structured Trade 11 What is our offering? 12 6 Standard Bank Africa Personal & Business Banking Banking, investment, insurance and other financial services to individuals and small- to medium-sized enterprises Transactional Instalment sale Card products Mortgage lending Bancassurance products and finance leases ● Includes deposit ● Credit card ● Home loans to ● Instalment ● Short- to long- taking activities, solutions to individual finance in the term insurance electronic individuals and customers consumer products to banking and businesses market, mainly clients, through cheque accounts vehicles, and third parties, and utilising various finance of financial planning contact channels vehicles and services to equipment in the clients business market 13 Standard Bank Africa Corporate & Investment Banking CIB is responsible for all aspects of investment banking services offered to international corporate and institutional clients The combination of experience, diverse skills, product range offered and the substantial capital base of Standard Bank Group enables CIB to provide effective integrated investment banking solutions Global Transactional Coverage & Global Markets Investment Banking Products & Services Distribution ● Custodial Services ● Money Markets ● Client facing sales ● Acquisition Finance ● Transactional ● Forex activities within ● Equities Banking Corporate and ● Commodities Investment Banking ● Corporate Finance ● Trade Services ● Debt Capital Markets division ● Equity Capital Markets ● Interest Rate Sales ● Asset syndication & ● Project Finance distribution and Structuring ● Private Equity and ● Securitisation Specialised Funds ● Global Markets ● Structured Trade Research Finance ● Asset based finance 14 7 Standard Bank Africa Wealth and Life Management Standard Bank, via Liberty Life/ Stanlib provides investment management and life insurance products to the majority of our markets in Africa Offering a comprehensive range of long-term insurance products and services to both the individual and corporate markets Insurance Business Assurance Corporate Benefits Healthcare Committed to building long-term African relationships, developing creative solutions to problems and partnering our clients on the road to investment success Investment for Investment for Financial Planning Individuals Institutions 15 Standard Bank Africa Channel Strategy An integrated shared channel strategy across all products. One overall group channel strategy coupled with specific geography nuances Branch Infrastructure Electronic Channel Alternative Channels ● Key locations ● Comprehensive and ● Global markets trading ● Full physical banking dynamic electronic banking systems services ● Internet ● Telephone banking ● Limited service centres ● Proprietary services (cell