Transformation in Banking Report 2019
Total Page:16
File Type:pdf, Size:1020Kb
Load more
Recommended publications
-
Financial Inclusion Policy
AN INCLUSIVE FINANCIAL SECTOR FOR ALL Draft for consultation AN INCLUSIVE FINANCIAL SECTOR FOR ALL Draft for consultation To obtain additional copies of this document, please contact: Communications Directorate, National Treasury, Private Bag X115 Pretoria, 0001, South Africa Tel: +27 12 315 5757 | Fax: +27 12 406 9055 The document is also available on the internet at: www.treasury.gov.za AN INCLUSIVE FINANCIAL SECTOR FOR ALL Draft for consultation TABLE OF CONTENTS LIST OF ACRONYMS, FIGURES, AND TABLES ........... vii 3.1.3. Treating customers fairly (TCF) EXECUTIVE SUMMARY ................................................ 1 framework ................................................................... 31 1 INTRODUCTION ..................................................... 8 3.1.4. Financial Sector Regulation Act ..................... 31 1.1. What is financial inclusion 3.1.5. Parliamentary enquiry into and why is it important? ........................................................8 transformation of the financial sector ....... 32 1.2. Policy objectives and scope ............................................. 12 3.1.6. The Financial Intelligence Centre Act ........ 33 1.2.1. Objectives .................................................................... 12 3.1.7. Insurance Act ............................................................ 33 1.2.2. Scope ............................................................................. 12 3.1.8. Review of banking and payment methods in distributing social grants ........ 34 2 SOUTH AFRICA’S -
Registered Attendees
Registered Attendees Company Name Job Title Country/Region 1996 Graduate Trainee (Aquaculturist) Zambia 1Life MI Manager South Africa 27four Executive South Africa Sales & Marketing: Microsoft 28twelve consulting Technologies United States 2degrees ETL Developer New Zealand SaaS (Software as a Service) 2U Adminstrator South Africa 4 POINT ZERO INVEST HOLDINGS PROJECT MANAGER South Africa 4GIS Chief Data Scientist South Africa Lead - Product Development - Data 4Sight Enablement, BI & Analytics South Africa 4Teck IT Software Developer Botswana 4Teck IT (PTY) LTD Information Technology Consultant Botswana 4TeckIT (pty) Ltd Director of Operations Botswana 8110195216089 System and Data South Africa Analyst Customer Value 9Mobile Management & BI Nigeria Analyst, Customer Value 9mobile Management Nigeria 9mobile Nigeria (formerly Etisalat Specialist, Product Research & Nigeria). Marketing. Nigeria Head of marketing and A and A utilities limited communications Nigeria A3 Remote Monitoring Technologies Research Intern India AAA Consult Analyst Nigeria Aaitt Holdings pvt ltd Business Administrator South Africa Aarix (Pty) Ltd Managing Director South Africa AB Microfinance Bank Business Data Analyst Nigeria ABA DBA Egypt Abc Data Analyst Vietnam ABEO International SAP Consultant Vietnam Ab-inbev Senior Data Analyst South Africa Solution Architect & CTO (Data & ABLNY Technologies AI Products) Turkey Senior Development Engineer - Big ABN AMRO Bank N.V. Data South Africa ABna Conseils Data/Analytics Lead Architect Canada ABS Senior SAP Business One -
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. -
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. -
“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. -
Bidvestco Programme Information Statement
BRR/SM 06042021/RENN0955.46 Information Statement_Execution/#6665874v1 BIDVESTCO LIMITED (Registration Number 1966/011512/06) (Established and incorporated as a public company with limited liability in accordance with the laws of South Africa) Guaranteed by THE BIDVEST GROUP LIMITED (Registration Number 1946/021180/06) (Established and incorporated as a public company with limited liability in accordance with the laws of South Africa) INFORMATION STATEMENT in respect of Bidvestco Limited's ZAR12,000,000,000 Domestic Medium Term Note and Commercial Paper Programme Bidvestco Limited (the "Issuer") may from time to time issue notes (the "Notes") under its ZAR12,000,000,000 Domestic Medium Term Note and Commercial Paper Programme (the "Programme") on the terms and conditions set out in the programme memorandum dated 6 April 2021, as amended or restated from time to time (the "Programme Memorandum"). Capitalised terms used in this information statement (the "Information Statement") and not otherwise defined herein, have the meanings ascribed to those terms in the section of the Programme Memorandum entitled "Terms and Conditions of the Notes" under the heading "Interpretation". Availability of Information This Information Statement and the Programme Memorandum are also available on the Issuer's website at https://www.bidvest.co.za/dmtn-cp.php. This Information Statement is incorporated by reference into the Programme Memorandum. The only information on the Issuer's website which is incorporated by reference into the Programme Memorandum are those documents which are specifically so incorporated by reference as set out in the section headed "Documents Incorporated by Reference" in the Programme Memorandum. Information Statement dated 6 April 2021. -
2020 BASA Transformation Report 05 March 2020
2020 BASA Transformation Report 05 March 2020 Dr Stuart Theobald, CFA Orin Tambo,CFA Letta Maponyane Colin Anthony Background 1 Methodology Economic context & Presentation 2 highlights outline 3 Findings 2 Background Data covers FY16-FY18 for all banks with December year ends (most), and FY17-FY19 for those with March year ends (Capitec, African Bank and 2 Investec) Data supplied by the banks were based on the Financial Sector Code scorecard methodology Ownership and management control data were weighed by banks’ total Methodology assets to determine industry aggregates Earlier year figures (2016, 2017) were recalculated to reflect changes in the same group to allow year-on-year comparisons (two banks exited and four banks entered) and therefore differ from last year’s report 4 Submitting banks: Absa, African Bank, Albaraka, GroBank, Bidvest Bank, Capitec, Finbond, FirstRand, Grindrod, Investec, Mercantile, Nedbank, Sasfin, Standard Bank, China Construction Bank Corporation, Citi, Ubank and HBZ Bank 3 Findings Economic context Economic environment Impact on transformation Difficult to drive • Weak economy transformation that depends • Worsening credit on lending growth to environment targeted sectors • Bank balance sheets grew 6.5% (inflation 4%) Difficult for banks to incur the • Bank ROE declining costs of enhanced skills and • Bank profit growth of only supplier development 4.7% Limited promotion opportunity 4 Background Black board directors up from 43% to 51%. Top black senior managers up from 32% to 36% Socioeconomic development spending 6% up to R666m Supplier development almost doubled to R795m Highlights Black skills development spend up 23% to R3.3bn Spending on consumer education up 24% to R180m Exposure to black SMEs 13% up to R28.8bn Black agricultural financing up 41% 5 Findings Ownership • Black ownership measures have declined Black ownership percentage in banks across the three years on all measures 40% but on aggregate remain above the FSC 32,8% targets, except for black economic 29,7% 30% 29,0% 28,7% interest. -
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. -
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. -
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 .... -
Products and Services
PRODUCTS AND SERVICES Contents We are Bidvest Bidvest at a glance 02 Divisional overview Bidvest Automotive 06 Bidvest Commercial Products 08 Bidvest Financial Services 10 Bidvest Freight 12 Bidvest Branded Products 14 01 Bidvest Services 16 Corporate transformation and CSI Transformation 20 02 Corporate social investment 24 Administrative information Bidvest directory 34 03 Administration 56 THE BIDVEST GROUP LIMITED Products and Services 2019 1 We are Bidvest Bidvest at a glance Group structure Bidvest Industrial Automotive Freight Commercial Branded Products Products Lindsay Ralphs Chief executive officer Financial Services Services Bidvest Properties Properties 112 Market value Mpumi Madisa Chief executive officer – designate R8 billion Material Associates Adcock Ingram 50,1% Comair Mark Steyn 27,2% Chief financial officer Other Investments Mumbai Airport 6,75% Various smaller unlisted investments Gillian McMahon Executive director 2 THE BIDVEST GROUP LIMITED Products and Services 2019 A leading South African services, trading and distribution group Bidvest is a leading South African services, trading and distribution group operating in the areas of consumer and industrial products, electrical products, financial services, freight management, office and print solutions, outsourced hard and soft services, travel and aviation services, automotive retailing and pharmaceutical products. Listed on the JSE Limited and with roots firmly established in South Africa, we consistently broaden our product offering through organic and acquisitive growth in local as well as select niche international markets. Entrepreneurship, incentivisation, decentralised management and communication are key. We turn ordinary companies into extraordinary performers, delivering strong and consistent shareholder returns in the process. Most importantly, we understand that people create wealth, and that companies only report it. -
The National Payment System Framework and Strategy Vision 2025
The National Payment System Framework and Strategy Vision 2025 © South African Reserve Bank All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without fully acknowledging The National Payment System Framework and Strategy: Vision 2025 of the South African Reserve Bank as the source. The contents of this publication are intended for general information only and do not serve as financial or other advice. While every precaution is taken to ensure the accuracy of information, the South African Reserve Bank shall not be liable to any person for inaccurate information and/ or the opinions contained in this publication. Comments and enquiries relating to this publication should be addressed to: Head: National Payment System Department South African Reserve Bank P O Box 427 Pretoria 0001 Tel. no.: +27 12 313 3442 Email: [email protected] ISBN (print): 978-1-920556-19-8 http://www.resbank.co.za ISBN (online): 978-1-920556-20-4 National Payment System Framework and Strategy • Vision 2025 Contents Foreword by the Governor ................................................................................. 1 Introduction ....................................................................................................... 2 Overarching vision ............................................................................................. 3 Goals and strategies: achieving Vision 2025 .....................................................