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2
Business Banking – leadership team
Effective 1 June 2014
1 Nedbank Group Exco member; appointed to Old Mutual plc wef 1 July 2014
2 Nedbank Group Exco member
Ingrid Johnson (47)
Group Managing Executive:
Retail and Business Banking1
20 years service
20 years banking experience
BCom, BAcc, CA(SA), AMP
(Harvard)
Sandile Shabalala (47)
Managing Executive:
Business Banking2
18 years service
22 years banking experience
BAdmin, NHD: Management Practice,
CAIB (SA), MBL, Strategic Management in
Banking (Insead), AMP (Harvard)
Douglas Lines (42)
Divisional Executive:
Strategic Business Unit
Goolam Kader (47)
Divisional Executive:
Business Banking Cape
Craig Evans (48)
Divisional Executive:
Business Banking Coastal &
Inland
Herman de Kock (40)
Divisional Executive:
Business Banking Northern
Kandis Swanepoel (47)
Divisional Executive:
Business Banking Gauteng
Bedresh Dhanjee (43)
Executive Head:
Business Banking Risk
Jan Bosch (41)
Executive Head: Business
Banking & Retail
Relationship Banking
Specialist Services
Brinsley du Plessis (43)
Executive Head:
Innovation, Process and
Project Integration
Lebo Biko (38)
Executive Head:
Strategy, Marketing &
Communications
13 years service
17 years banking experience
BAcc, Dip Acc CA(SA), AMP
(Duke)
14 years service
27 years banking experience
BCom , CAIB (SA) , GEDP
(GIBS), Strategic Management
in Banking (Insead)
20 years service
23 years banking experience
BSc Agriculture Economics,
CAIB (SA), AMP (Insead)
11 years service
11 years banking experience
MA, MBA, IEP (Insead),
Strategic Management in
Banking (Insead)
18 years service
18 years banking experience
BCom, BAcc, CA(SA), MBA
(Univ of Wales), AMP (Insead)
24 years service
24 years banking experience
Bcompt, EDP (GIBS)
9 years service
13 years banking experience
BA Hons (NMMU), IEDP (Wits)
15 years service
15 years banking experience
BCom Hons, CA(SA), IEP (Insead)
23 years service
23 years banking experience
Executive MBA (Henley) , TGM
(Insead)
3 years service
3 years banking experience
Bcoms, MBA (Wits), Manager of
Function (Duke)
Name and position Experience and qualificationExperience and qualification Name and position
Nomaxabiso Teyise (34)
Executive Head:
Business Banking Human
Resources
3
Nedbank – segmentation of business market
Business Banking
Retail
Relationship
Banking
Retail
Consumer
Banking
Individual Businesses
Business
Banking
Turnover proxy R10-700m pa incl.
complex start ups; business owners
& their household
Higher complexity
Decentralised, accountable model,
leveraging localised knowledge of
clients, industry and geography
Retail Relationship Banking
Turnover proxy R0-10m incl. start
ups; business owner; upper middle
individuals, incl seniors & their
household
Lower complexity
Centralised processes, leveraging
integrated channels
SmallBusiness Services
Start-up
R10m t/o*
R700m t/o*R1.5m pa*
R500k pa*
* Turnover & salary guideline – emphasis on client needs & complexity
Nedbank Wealth Corporate;
Capital
4
Business Banking – sustainably transformed &
competitively positioned
2005 Baseline 2013
15% main banker
market share
20% main banker market
share1
Limited client
management
capabilities
Globally ranked 2nd / 900
CMAT and 1st/ 92 SCHEMA
assessments2
Seen as the market
laggard
Rated 2nd best Business Bank
in SA3
Client loyalty at multi-year high
and ahead of peers4
Limited presence in
small business
Comprehensive, innovative
offering
Ranked as the bank of choice
for small business5
Source of
distinctiveness
• Decentralised,
accountable business
model with clear
frameworks & high
cultural alignment
• Holistic relationship
banked offering
through localised
Client Service Teams
• “Influencer” strategy
to unlock virtuous
circle
• Effective client-
centred risk culture
1 BMI-T / KPI Electronic Banking Survey (companies with annual turnover above R20m)
2 Reap Consulting independent assessment of 334 customer mgt capabilities against global best practice
3 Business Day ‘Top Business Bank’ survey 2013
4 Consulta customer satisfaction survey
5 Nedbank Small Business Tracker survey
Source: Nedbank 2013 results presentation
5
Business Banking – worldclass customer mgt
capabilities as measured by CMATTM
59
72 76
BB 2010 BB 2012 Best Ever
Overall CMAT score Intention, Reality and
Effect scores
72
82
59
73
48
60
2010 2012
Reality
Effect
Intention
2nd
highest
score5th
highest
score
What is CMAT?
• CMAT stands for Customer Management Assessment Tool. It is a diagnostic and benchmarking tool.
• The CMAT model requires that the business be assessed according to 260 practices which are then scored in three dimensions,
namely Intention, Reality and Effect.
• CMAT had a track record of 13 years and was used over 900 times by blue-chip companies across the globe as well as several
well-known JSE-listed brands.
7067
78
78
79
7271
64
71
76
72
87
88
76
83
87
86 91
73
79
72
100
47 42
35
35
40 38
43
40
37
46
55 59
57
54
51
54
46
78
56
43
55
79
Strategy andLeadership
People andOrganisation
CustomerInformation
UnderstandingCustomers
Planning theActivity
CustomerPropositions
CustomerChannels
Day-to-dayExperience
Customer ValueEnhancement
Measuringthe Impact
Working theWider Context
Best ever score
for category
NBB 2012
Top Decile Entry
B2B average2nd
highest
globally
3rd
highest
globally
Section scores
Key findings & results from CMAT report 2012
NBB has scored 72% this year, a 13% increase over 2010. This is an extremely creditable performance, placing NBB as the 2nd
highest CMAT scorer ever from any sector anywhere in the world (up from 5th). This score means that NBB has reached its 2010
Intention score in just two years, which is an excellent achievement. NBB’s Intention score has increased by 10 points, Reality scores
have leapt by 14 points (i.e. faster than Intentions), and the Effect score has improved by 12 points.
Peter Lavers, REAP Consulting
6
Business Banking – consistent, quality
performance through challenging cycle
Headline earnings (Rm)
11
21
82
5
86
6
94
4
92
9
757 744850
920 929
2009 2010 2011 2012 2013
52
40
53
34
65
2009 2010 2011 2012 2013
Credit loss ratio (bps)TTC target range:
RoE (%)
Net new primary clients (#)
26
,6
26
,4
21
,3
21
,5
19
,4
18,4 18,7 18,520,2 19,4
2009 2010 2011 2012 2013
60-80
44
6
60
1
74
8
77
5
96
5
2009 2010 2011 2012 2013
55-75
Aligned1Aligned1
1 Aligned ECAP volumes to 2013 capital ratio & endowment earnings to an assumed 8,5% interest rate; carries 24% of Group IRR - since 2009, as avg.
prime rate reduced 7pp to 8,5%, ~R1bn less endowment NII was replaced with core revenue
Source: Nedbank 2013 international investor roadshow with some refinements
7
Business Banking – strong growth momentum
across core transactional business
Growth drivers
• Client review approach to identify
cross-sell opportunities to counter
reducing volumes in challenging
economy & choice of price reduction
• Pricing disciplines & automation in fee
collections
• Rigour in contact management
(interaction frequency, touch points)
• New client acquisition, with focus on
small business
• Acquisition sales force,
complementing organic relationship
managers; shared with RRB for
optimal effectiveness
• Growth in liabilities as a consequence
of transactional client growth
• Investments in sales force
effectiveness
NIR
1 211 1 342
1 486 1 578
1 729
2009 2010 2011 2012 2013
Rm
CAGR:
+9,3%
10,7 12,1 13,5 12,1
13,5
2009 2010 2011 2012 2013
Rbn
CAC1
1 Current Account Creditor balances
CAGR:
+6,0%
8
Business Banking – market share growth
balanced with risk appetite
Market share (%)2
n = 500, R20m-2b, urban based
39 39
37
42 42
35
42
39
36
39
35 36
3433
35
27
23 23
25
2324
29
2425
24 24
21
22
28
26
20
23
21 1819
20 1518
16 16
21
20 2019
20
1415
1615
16
21
14
19 2221
20
24 23
20
19
1998 1999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Nedbank
Risk management
principles
consistently applied
• Proactive measures
to reduce exposures
in high risk, low EP
advances
• Emphasis on primary
banked advances (no
stand-alone assets)
• Rigorous pricing for
risk, applying client
value management
principles
Initiated in 2007, with
cultural shift & impact
accelerated from 2009
9
55-7560-80
Weighted average product rate relative to
prime
bps
14,3 8,6 10,3 11,6 11,5
15,2
8,3
6,1 1,74,6
7,6
7,7
22,6
14,712,0
16,219,1
22,9
Asset payouts
Rbn
-114
-55 -27 -25 -20 -16
2008 2009 2010 2011 2012 2013
ABF, HLs & commercial mortgages
Overdrafts & other loans
Credit loss ratio (CLR)
bps
Target range
58 5240
53
34
65
2008 2009 2010 2011 2012 2013
Quality advances growth at higher pricing… …while maintaining CLR within target range
+20%Actual
Business Banking – client centred risk culture
key to quality advances & consistently low CLR
Source: Nedbank 2013 results presentation
10
Business Banking – diverse asset portfolio
Finance and insurance
28%
Private Households
19%
Manufacturing18%
Wholesale & Retail10%
Transport & communication
7%
Community & Social
7%
Agriculture6%
Construction4% Mining & Other
1%
Actual advances portfolio by sector
% of total client assets as at Dec 2013
100% = R64bn
GDP growth by sector
Indexed performance
85
90
95
100
105
110
115
120
Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014
Agriculture
Mining & Quarrying
Manufact.
Construction
Retail trade & accomm.
Transport & comm.
Finance& Bus Services
GDP at Market Prices
CAGR
for period
1,7%
0,1%
3,1%
Source: Nedbank 2013 results presentation
11
Business Banking & Small Business Services –
investing and innovating in the SME sectorSmall Business Index PocketPOSTM e-Commerce
Small business credit card Integrated accounting Small Business Seminars
SimplyBiz Debtor Management AppSuite for business
Cash
revolve
card
Rewards
revolve
card
12
Small Business IndexTM indicates opportunity in
SME sector
~30% of businesses are
planning to expand in
Africa
53% of business owners
are planning capital
expenditure…
Only 34% of the funding
will be from credit
Capital Expenditure Sources of funding International Expansion
57%
34%
15% 17%
Businessprofits
Credit Savings Other
Sources of funding Business expansion
No40%
Don't know7%
Yes53%
Planned capital expenditure
Source: Nedbank Small Business Index 2013 Q4 results
13
Small Business Services – well positioned for
small business growth
1915 15 14 15
34 3328 28 2625
3034
31 32
16 17 1822 21
Bank for smallbusinesses and
understandstheir needs
Offer acomprehenive
range ofproducts and
services
Show anunderstandingof my business
Knowledgeableand
professionalrelationshipmanagers
Provide valueadded services
34 3330
27
28
26
21
25
2825
29
33
14 15 1619
1714
3026
26 25 2426
42 2
2008 2009 2010 2011 2012 2013
Small business market share
Businesses with <R7.5m annual turnover, %
How the banks are positioned in the minds of small business owners
2013 survey, no of respondents*
…but small business segment now well positioned for growth
1412 13 14 14
29 28 27 26 2731
2931 32
30
2224 23 23 23
Innovative intheir approach
to smallbusinesses
Offer value formoney
Best bank forstart ups
Supportsentrepreneurs
Looks after mypersonal and
banking needs
Market share has dropped…
• Small Business now represented in all branches
(from less than 38% in 2009)
• Upper middle clients serviced by all branches
(previously only 16 private banking suites)
• Nedbank Integrated Channels (NIC) cohesively
drives front line team through one aligned area
management structure (for >R60m run-rate savings
and greater effectiveness)
• Leveraging efforts with BB (e.g. marketing,
acquisition sales force, value propositions)
• Strengthened marketing presence & offering
NedbankNedbank
*Question: Excluding your primary business bank, which other ONE bank do you associate with these
statements? Source: KPI Research & strategy, Nedbank small business tracking study
Source: Nedbank 2013 Retail investor day presentation with small refinements
14
Small Business Services – seamless professional
offering to feed small business pipeline
Qualified
Professional
Entrepreneur / bus. owner
Young
Professional
Established
Professional
Student
Lifecycle of professional clients
Time
Complexity
of needs
(Youth)
(Relationship
banking)
(Private Wealth)
(Small Business/
Bus. Banking)
15
Retail & Business Banking – unlocking the
virtuous circle of household & business
Retail strategic
wheel
(capturing elements
of organisational
design)
BB Delivery model
(evolved to capture
the opportunity
around the business
owner & employees)
1. Including their household
EMPLOYEES
ENTREPRENEUR/
SMALL BUSINESS
OWNERBUSINESS
OWNER
BUSINESS SENIORSYOUTH
16
Retail & Business Banking – leveraging key
trends for distinctive positioning
Source: 2012 Investor Day Presentation; United Nations; IFC; Financial Inclusion Expert Group;
World bank – doing business; team analysis
Sources of distinctivenessTrends
Consumer preference for choice,
simplicity, increased transparency and lower
cost banking
Technological innovation (e.g. mobile &
digital, big data) offering opportunity for
lower cost distribution and process simplicity
Higher cost of capital and liquidity from
Basel regulations put risk management and
liabilities at a premium
Rising demographics and 6% p.a. small
business growth represent tomorrow’s
valued, aspirational clients
Collaborative cultures increasingly
recognised as central to organizations
effectiveness and innovation
A choice of distinctive client
centred banking experiences,
delighting in moments of truth
Integrated channels strategy leveraging digital, high potential micro-markets & optimising cost
Collaborative people culture
with a client-centred, relationship-
oriented DNA
Robust risk management for quality asset portfolios & Deposit innovation sustaining historical strength
A rigorous approach to capturing
virtuous circle of household &
business
17
Retail and Business Banking – prospects
Accelerate client gains especially SMEs, professional & seniors
Area collaboration across 213 micro-markets
Client usage of extensive product innovation
Leverage strong wholesale relationships (e.g. for Card & N@W)
Growth
potential
Sustainable
investment
Strategically well positioned to grow with downside risk protection
Zero price increase for client retention, cross-sell and growth
(R346m NIR impact in 2014)
R2,1bn in ‘Branch of the Future’ roll-out (next 5 years)
Strategic
Momentum
Compelling CVPs leveraging the influencer in household/business
Integrated channels ensuring relevance & accessibility
Shift in brand perception; client & staff metrics at multi-year highs
Source: Nedbank 2013 results presentation
18
2 086 2 324 2 472 2 543 2 731 2 860 3 411 3 521 3 818 760 949 1 356 1 808 1 287 911
907 981 1 019 2 846 3 273
3 828 4 351 4 018 3 771
4 318 4 502 4 837
2005 2006 2007 2008 2009 2010 2011 2012 2013+1275
Gross Operating
Income
(Rm)
1 705 1 799 2 033 2 055 2 120 2 339 2 722 2 936 3 119 227 162
152 330 284 210 324 206 410
2005 2006 2007 2008 2009 2010 2011 2012 2013
+80
+1064
Costs
(Rm)
2 028 2 184 2 342 2 281 2 229 2 259 2 212 2 171 2 213
2005 2006 2007 2008 2009 2010 2011 2012 2013
1333
-68
Headcount
(#, as at Dec)
Avg Prime (%)
GDP growth (%)
10,6 9,09,911,915,111,1 13,1
5,3 3,53,1(1,5)3,65,6 5,5
11
Endowment income
Income excl endowment
Impairments
Operating costs
1333
1
2,5
8,8
1333
1333
1 Aligned ECAP volumes to 2013 capital ratio & endowment earnings to an assumed 8.5% interest rate
2 Restated for internal transfers to align with Corporate Saver / TB moves in 2008
3 Imperial Bank staff
1,5
8,5
4
RoE (%)20,3 21,326,426,631,525,0 29,6 21,5 19,4
2 2 2
Aligned RoE
(%)118,3 18,518,718,415,321,7 18,6 20,2 19,4
Change
2008 - 2013
-789
Rate impact
-989
4 Based on actual Q1 (0,9), actual Q2 (3,0) and actual Q3 (0,7)
Business Banking – consistent, quality
performance through challenging cycle
Source: Nedbank 2013 results presentation
19
Business Banking – Nedbank context
Nedbank
CapitalNedbank
Corporate
Nedbank
Business Banking
Nedbank
Retail
Nedbank
Wealth
Investment banking, global
markets & treasury solutions to
institutional and corporate
clients.
Offices: SA & London
Rep offices: Angola, Toronto
Lending, deposit taking,
transactional banking, property
finance to SA corporates with
t/over >R700m p.a.
Commercial banking solutions
to small- to medium-sized
businesses with turnover of
R10m – R700m p.a.
Holistic offering for the business,
business owners / households
and employees
A bank for all financial needs of
individuals & small businesses
<R10m turnover p.a.
Transactional, card, lending,
deposit taking, risk management
and investment products /
services, as well as card-
acquiring services for business
Insurance, asset management
& wealth management solutions
Offices in SA, London, Isle of
Man, Jersey, Guernsey &
Middle East.
AUM:
R190bn
Clients amongst Top 200 SA
corporates & parastatals
Top 3 M&A player
Industry expertise:
› Infrastructure
› Mining & resources
› Oil & Gas
› Telecoms
› Energy
Top 2 SA corporate bank
>600 large corporate clients
Strong market share in public
sector loans
Continued market leadership in
commercial property finance
25 000 client groups & strong
primary clients gains
A leader in corporate saver
deposits & debtor mgt
Excellent client-centred risk
management and world-class
customer management
capabilities
Distinctive CVP’s & accountable
empowered decentralised
business model
6,4m clients (+529k y-o-y)
763 branches & alternate outlets
and 3382 ATMs
Strong positioning in household
motor finance (28% share),
household deposits (20%)
Compelling, innovative CVPs for
all segments
>10k HNW clients
AUM: >R190bn
Life embedded value: R2,1bn
Raging Bull Awards: Top 3
management company in SA
Morningstar awards: overall third
place.
SA: ranked 2nd in the ‘Up-and-
coming professionals’ category in
the 2013 SA’s Top Private Bank
survey.
International: ‘Best Private Best
Private Bank for HNW clients’
Strong Investment Banking (IB)
pipeline with more cross-sell
across businesses.
Strategic growth in Africa and
leverage Ecobank and Bank of
China.
Leverage industry expertise.
Leverage trading systems.
Participating strongly in SA’s
infrastructure build programme,
including renewable energy.
Strong client relationships.
Continued product and NIR
growth through enhanced
capabilities and primary-client
growth.
Increased Pan-African focus.
Strong risk management.
A choice of distinctive client-centred banking experiences.
A rigorous approach to capturing virtuous circle and interdependencies
between client segments.
Integrated-channels strategy leveraging mobile innovation, digital channels
and social media; selected micro markets for growth/optimisation; area
collaboration.
Robust risk management supporting strong product niches.
Liabilities innovation sustaining historical strength.
Collaborative, people-centred culture.
Explore broader complimentary
financial services growth
opportunities.
Leverage momentum in Wealth
and Asset Management.
Further CVP enhancements and
focus on service excellence.
Product expansion and delivering
client centred solutions.
Continued investment in brand
profiling.
Leverage advantage through
group collaboration.
Description
Opera
tional
overv
iew
Fin
ancia
l
metr
ics
Key s
trate
gic
drivers
AssetsHeadline
earnings AssetsHeadline
earnings AssetsHeadline
earnings AssetsHeadline
earnings
Headline
earnings
ROE: 29,4% ROE: 26,4% ROE: 19,4% ROE: 11,6% ROE: 36,2%
24% 20% 25% 26% 13% 11% 27% 29% 10%
Source: Nedbank 2013 international investor roadshow
20
Contact us & Disclaimer
Nedbank Group
www.nedbankgroup.co.za
Nedbank Group Limited
Tel: +27 (0) 11 294 4444
Physical address
135 Rivonia Road
Sandown
2196
South Africa
Download the Nedbank Investor Centre App from the
Nedbank App Suite:
Nedbank Investor Relations
Head of Investor Relations
Alfred Visagie
Direct tel: +27 (0) 11 295 6249
Cell: +27 (0) 82 855 4692
Email: AlfredV@nedbank.co.za
Investor Relations Consultant
Penny Him Lok
Direct tel: +27 (0)11 295 6549
Email: PennyH@nedbank.co.za
Investor Relations Analyst
Caron Askew
Direct tel: +27 (0) 11 294 0752
Email: CaronA@Nedbank.co.za
Disclaimer
Nedbank Group has acted in good faith and has made every reasonable effort to ensure the accuracy and 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 legislation.
Forward-looking statements may be identified by words such as ‘believe’, 'anticipate', 'expect', 'plan', 'estimate', 'intend', 'project', 'target', 'predict' and 'hope'.
Forward-looking statements are not statements of fact, but statements by the management of Nedbank Group based on its current estimates, projections, expectations,
beliefs and assumptions regarding the group's future performance.
No assurance can be given that forward-looking statements will prove to be correct and undue reliance should not be placed on such statements.
The risks and uncertainties inherent in the forward-looking statements contained in this document include, but are not limited to: changes to IFRS and the interpretations,
applications and practices subject thereto as they apply to past, present and future periods; domestic and international business and market conditions such as exchange
rate and interest rate movements; changes in the domestic and international regulatory and legislative environments; changes to domestic and international operational,
social, economic and political risks; and the effects of both current and future litigation.
Nedbank Group does not undertake to update any forward-looking statements contained in this document and does not assume responsibility for any loss or damage
whatsoever and howsoever arising as a result of the reliance by any party thereon, including, but n limited to, loss of earnings, profits, or consequential loss or damage.
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