|  |  | Business Banking |  | | |
Dave Brown, 48
Managing Director, Business Banking
B Com MBA (UCT) PMD (Harvard)
Appointed 2000
|
Dipak Patel, 39
Managing Director, Stannic
MBA (Wits) MSc (London)
Appointed 2002
|
What we do
We provide financial services to medium sized businesses in South Africa through account executives working with financial specialists. Our operations include: Stannic asset finance and fleet management services; business lending, transactional and investment products; electronic banking services; debtor finance; franchising; and foreign exchange products.
How we did
|
2002 |
2001 |
| Total assets (Rm) |
19 175 |
18 265 |
| Headline earnings (Rm) |
635 |
461 |
| Headline ROE (%) |
35,2 |
30,4 |
| Cost-to-income ratio (%) |
36,2 |
39,0 |
| Headline earnings contribution (%) |
12 |
10 |
The year ahead
We will:
- restructure the division with the larger client segment transferred to SCMB and small to medium client segment transferred to Retail Banking
- continue with Stannic as a product based division, with profits allocated between Retail and SCMB
- ensure that this structure will be optimal for customer service and the ability to cross-sell group products
- continue to focus on electronic transactional banking business and on delivering new value-added services.
Deposits and fee income growth drive good performance
Strong growth in deposits, fee income and higher asset finance volumes helped Business Banking increase headline earnings by 38%. Lending balances, other than asset finance, were at a lower level than the previous year.
Bad debts contained
We continued to place strong emphasis on improving the quality of our book. Bad debts were in line with the previous year, but were lower as a percentage of total assets.
Costs increased more than usual due to the recruitment of specialist staff, with the higher level of skills largely focused on niche sales, advisory and other value-added services.
Electronic focus
There was again strong growth in the use of electronic banking services, with four out of five customers now using online services. As business customers migrate to our market-leading electronic platform for business on-line services, paper-based transactions are declining commensurately.
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