Notes to this report

It is important to note at the outset of this report that although much of the following commentary focuses on quantitative scoring, in line with the assessment methodology set out by the Financial Sector Charter (charter), the underlying aim of the charter is to advance the equitable growth and progress of the sector and the country. Standard Bank is committed to respond to the charter in this spirit and not merely as a compliance obligation.

During 2005, three quarterly progress reports on the bank’s implementation of the charter were produced and presented to the board. This report provides a consolidated overview of progress over the entire year, and serves as a benchmark of progress made by Standard Bank over the entire charter period. The report is structured according to the categories (or pillars) set out by the charter and includes definitions and explanations of terminology where appropriate, to assist the reader who may not be familiar with the charter.

Introduction

The charter represents a comprehensive approach by the financial sector to address black economic empowerment. Through the charter, the financial sector has defined key commitments to enable institutions to maximise their contribution towards economic growth generally, and sector transformation specifically.

This report is the first of its kind from Standard Bank and attempts to convey key outcomes achieved by the bank over the past two years towards fulfilling our charter responsibilities. Standard Bank began more than eighteen months ago to integrate charter objectives into its business model to ensure implementation is sustainable and meets the needs of our stakeholders.

Customers, shareholders, employees, the regulator, government and civil society all have distinct expectations of what Standard Bank is required to achieve through the charter. A report of this nature is therefore necessary to convey exactly how the bank is progressing and what issues or challenges confront us at this point.

Without credible quantitative measures of progress, it will be difficult for the general public, the Charter Council and government to assess the impact the charter will make over time in addressing the fundamental challenges facing the South African economy.

Summary scorecard