UBS 20 TH ANNUAL SOUTH AFRICA FINANCIAL SERVICES CONFERENCE. The blurring of lines between insurance and banking

Transcription

1 UBS 20 TH ANNUAL SOUTH AFRICA FINANCIAL SERVICES CONFERENCE The blurring of lines between insurance and banking

2 STANDARD BANK GROUP / OUR JOURNEY 155 YEAR OLD START UP Group strategic positioning Wealth strategy 1. Why / Strategic opportunity 2. What / Solutions 3. How / Distribution 4. Why will we succeed 4

3 UNIVERSAL Financial Services Organisation

4 UNIVERSAL FINANCIAL SERVICES ORGANISATION / WHAT DOES IT MEAN? universal Something that may be applied throughout the universe to many things, usually thought of as an entity that can be in many places at the same time. Being able to think outside in. Synonyms: comprehensive, omnipresent, all-embracing, all-inclusive

5 United Kingdom UNIVERSAL / WHAT IS IT IN SBG? Isle of Man Jersey Delivering the Universal Financial Services Organisation seamlessly and efficiently, where the client has access to and experiences all our propositions relevant to their needs. Ghana Nigeria Kenya An Integrated approach, leveraging our presence on continent and extracting value from existing scale. Namibia Liberty Mauritius South Africa

6 STANDARD BANK GROUP / BUSINESS LINES Corporate and Investment Banking (CIB) Personal and Business Banking (PBB) Wealth Liberty

7 WEALTH Our journey on the continent

8 Luanda, Angola 1. WHY / WEALTH Opportunity on the Continent

9 WEALTH OVERVIEW / WHY WEALTH? Enhancing ROE Earnings Quality & Diversification Earnings Growth

10 REALISING THE OPPORTUNITY / OUR 2020 FINANCIAL AMBITION Headline Earnings target range R4bn - R5bn CAGR double digit ROE > 30% Leader in Wealth on the African continent

11 Lagos, Nigeria 2. WHAT / SOLUTIONS Focus Areas

12 OUR SOLUTIONS / OPEN ARCHITECTURE INSURANCE INSURANCE INVESTMENTS FIDUCIARY LONG-TERM Life, disability, funeral and health SHORT-TERM Property, motor accident and health Pension Fund Asset Management (Nigeria) Bespoke segregated portfolios Fund Solutions Structured Products Stockbroking Alternates & Passives Wills Trusts Estate Beneficiary Care

13 SHORT-TERM INSURANCE PERFORMANCE & GROWTH PROSPECTS

14 SA SHORT-TERM INSURANCE SURVEY 1 GWP (R bn) , , , 386 8, , 249 1, 116 2, 341 1, 369 0, Annual KPMG Survey

15 SA SHORT-TERM INSURANCE SURVEY 1 GWP (R bn) % 101% 22, 96% % 100% 90% 89% % % 73% 51% 7, % 59% 10, % 67% 8, % 69% 71% % , 249 1, 116 2, 341 1, 369 0, Annual KPMG Survey Claims incurred to earned premium Combined Ratio

16 SHORT-TERM INSURANCE / GROWTH PROSPECTS Universal Head of Short-Term Insurance across the Continent Diversify o Personal Lines: Better cross sell into the client base in SA and AR o Commercial: In-house capability for strategic growth o Corporate & Niche: Selective focus o Digital: Online branch & Telematics o Reinsurance Across the continent where we have scale

17 LONG-TERM INSURANCE PERFORMANCE & GROWTH PROSPECTS

18 LIBERTY TEN POINT PLAN / MORE THAN BANCASSURANCE LIBERTY PRODUCTS TO SBG CLIENTS INSURANCE SBG PRODUCTS TO LIBERTY CLIENTS COLLABORATION FIDUCIARY ACROSS 1. Credit Life & Funeral cover 2. Liberty Risk & Investments 3. STANLIB 4. Direct Life 5. Business & Commercial 6. Corporate 7. Fiduciary 8. HNW Banking 9. STI 10. AFRICA REGIONS

19 INVESTMENTS PERFORMANCE

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21 MELVILLE DOUGLAS FUNDS / PERFORMANCE VS PEER GROUP 1 Annualised Compound Returns (%) SA Equity (R) 12,6 9,6 6,3 4,2 3 Years 5 Years Melville Douglas Peer Group Annualised Compound Returns (%) SA Long Term Capital Growth (R) 10,9 9,4 8,7 8,1 5,2 5,7 3 Years 5 Years 10 Years Melville Douglas Peer Group Annualised Compound Returns (%) Global Equity (US$) 7,0 7,9 8,0 5,1 3 Years 5 Years Melville Douglas Peer Group Annualised Compound Returns (%) SA Equity Global Long Term Capital Growth (US$) 4,3 4,9 3,2 5,3 2,1 3 Years 5 Years 10 Years Melville Douglas Peer Group 2,0 1) As at September 2017

22 AFRICA REGIONS & INTERNATIONAL PRESENCE

23 AFRICA REGIONS & INTERNATIONAL / WHAT IS THE OPPORTUNITY EARNINGS Target Spread Global Finance s Best Private Banks Awards Best Private Bank in Africa, South Africa & Kenya 60% 20% International 20% Africa Regions South Africa Trustee Management Insurance Brokerage Private Banker International Best Bank for the next generation Outstanding Global Private Bank Africa WEALTH NIGERIA WEALTH International Earnings Spread Investments, Fiduciary & Banking CVP 1% R82bn Liabilities 1% 7% Liquidity provider Asset Management Euromoney Awards 91% for Excellence Africa s Best Bank for Wealth Pension Management Management

24 AFRICA REGIONS & INTERNATIONAL / WHAT IS THE OPPORTUNITY EARNINGS Target Spread WEALTH NIGERIA Earnings Spread 20% International Trustee Management Insurance Brokerage 1% 1% 7% Asset Management Global Finance s Best Private Banks Awards Best Private Bank in Africa, South Africa & Kenya 20% Africa Regions South Africa Private Banker International Best Bank for the next generation Outstanding Global Private Bank Africa Euromoney Awards 91% for Excellence Africa s Best Bank for Wealth Pension Management Management 60%

25 Accra, Ghana 3. HOW / DISTRIBUTION Access to the Group

26 WEALTH / ARCHITECTURE SOLUTIONS CLIENTS CLIENT ADVISORY CHANNELS Insurance HNW Wealth and Investment (Private Wealth) Investments Fiduciary Bespoke Banking CIB Commercial/ Business Personal and Corporate Wealth Retail

27 WEALTH / WEALTH AND INVESTMENT Potential for $1m investable assets (10k clients) Relationship pricing Leader in Africa in Wealth Management Best Private Bank in Africa Generational Wealth & Leadership academies Wealth and Investment

28 DISTRIBUTION & ADVISORY CHANNELS SBIB (Standard Bank Insurance Brokers) >4m policies 2.7m Credit Life and Funeral Policies Branch sales staff across South Africa Wealth Africa Regions Policies 15 African countries covered SBFC (Standard Bank Financial Consultants) 540 Planners across South Africa R92bn Assets under management

29 WEALTH OVERVIEW / ONLINE SHARE TRADING (OST) Launch of mobile - tablet Launch of mobile - phone 25% Feb -14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Users Largest Online stock broker in SA Tax Free Savings Accounts Market Leader World class Online Global offering 29 exchanges #1 Rated Research team (Financial Mail l SBG Securities) 20% 15% 10% 5% Penetration - 0% Total Users Total Users on mobile (%) Traders through mobile (%) 23% OST users registered for mobile app 12% OST trades done through mobile app

30 DIGITISATION and data

31 PERSONAL & BUSINESS BANKING OPPORTUNITY

32 PBB / ACCESS TO DISTRIBUTION Measuring front line performance across business lines 17% PBB clients on continent have one or more Wealth product 62% Digitally Active SA Customers do not have any SBG Insurance products 83% Wealth and Investment clients diversified globally to WIN R4.9bn 34% PBB Mass Affluent clients diversified globally to WIN R4.8bn

33 CORPORATE & INVESTMENT BANK COLLABORATION

34 ADVISE THE CORPORATE Bank the executives & address Insurance needs

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36 Nairobi, Kenya 4. WHY WE WILL SUCCEED

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38 THANK YOU