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  • Introduction
    • OUR APPROACH TO INTEGRATED THINKING
    • ABOUT OUR INTEGRATED REPORT
    • OUR REPORTING SUITE
    • WHO WE ARE
    • ADDITIONAL INFORMATION
  • Leadership
    • CHAIRMAN’S STATEMENT
    • GROUP CHIEF EXECUTIVE’S REVIEW
  • Value creation
    • OUR OPERATING CONTEXT
    • OUR MATERIAL ISSUES
    • OUR STRATEGY
    • OUR EXECUTION MODEL
    • OUR STRATEGIC PROGRESS
    • OUR VALUE PROPOSITION
  • Our strategy
    • CLIENT FOCUS
    • EMPLOYEE ENGAGEMENT
    • RISK AND CONDUCT
    • FINANCIAL OUTCOME
    • SEE IMPACT
  • Accountability
    • GOVERNANCE OVERVIEW
    • REMUNERATION OVERVIEW
  • Downloads
  • Our execution model

    Our business model enables us to respond dynamically to our operating environment while executing our strategic priorities.

    OUR INPUTS AND HOW WE ORGANISE OURSELVES

    We manage our resources and relationships responsibly in what we do and how we do it. This allows us to deliver the best outcomes for our clients, our people, our shareholders and other stakeholders.

    OUR INPUTS

    We manage our resources and relationships responsibly in what we do and how we do it, to deliver the best outcomes for our stakeholders.

    Social and relationship capital / Manufactured capital

    Clients

    • Over 13 million clients
    • 1 114 branches
    • 8 970 ATMs

    Human capital

    Employees

    • Over 50 000 group employees
    • High-performance ethical culture
    • Positive employee engagement survey score
    • Strong executive and leadership teams
    • Engaged and proficient employees

    Intellectual capital

    Stakeholders

    • Reputable and ethical brand
    • Strong relationships with regulators and governments
    • Modern banking platform supporting innovative client solutions
    • Strong strategic partnerships include ICBC, Microsoft and Amazon

    Financial capital

    Providers of financial capital

    • EQUITY

      R209bn

    • DEPOSITS

      R1.4tn

    • POLICYHOLDERS' LIABILITIES

      R324bn

    Social and relationship capital / Natural capital

    Society

    • Working with clients to manage environmental risk
    • Dedicated sustainable finance unit to drive sustainable finance investment
    • Founding signatory of the United Nations Principles for Responsible Banking
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    HOW WE ORGANISE OURSELVES

    Implementing our strategy

    Our strategy is unchanged. Our business lines and corporate functions are responsible for executing the strategy and, in turn, delivering the outcomes in the desired timeframes.

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    Managing our risks and opportunities

    We align our risk appetite to changes in our operating environment, instil a risk-aware culture throughout the group and proactively enhance our risk management capabilities.

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    Embedding good governance

    Our governance approach promotes strategic decisionmaking that combines short-term and long-term outcomes to reconcile the interests of the group and society in our pursuit of sustainable value. Our governance framework supports ethical and effective leadership, corporate citizenship and a sustainable organisation.

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    Measuring our performance

    We track the progress we make in executing our strategy according to the outcomes and metrics associated with our value drivers.

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    Measuring our performance

    Business activities

    Our business lines and corporate functions work together to deliver our banking and insurance solutions.

    As an integrated financial services group with a broad offering of products and services, we are organised to do valuable things for our clients in an integrated way.

    OUR OUTPUTS AND OUTCOMES
    1. Group Real Estate Services
    2. Enterprise Data Office
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    OUR OUTPUTS AND OUTCOMES

    We deliver complete solutions that help our clients to transact, earn, grow, insure, save and leave lasting legacies for future generations. We act in a socially responsible manner to drive the financial wellbeing of individuals, businesses and economies, creating sustainable value for the group, our stakeholders and for Africa.

    OUR OUTPUTS
    INFLOWS
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    OUTFLOWS
    african region
    REINVEST
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    • INFLOWS
    • OUTFLOWS
    • REINVEST

    WHAT WE DO
    Business activities and outputs

    BANKING ACTIVITIES
    Lend money to our clients
    Source funding from client deposits and other funders
    Provide transactional banking facilities and knowledge-based services to clients
    Market access and risk mitigation products to businesses
    Revenue from other sources linked to core businesses and strategic investments

    FINANCIAL IMPACT AND
    ASSOCIATED RISK
    Read more

    Net interest income Interest income and credit impairments

    Risk Indicator Risk Indicator Risk Indicator Risk Indicator Risk Indicator

    Interest expense

    Risk Indicator Risk Indicator Risk Indicator Risk Indicator

    Net fee and commission revenue

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    Trading revenue

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    Other revenue

    Risk Indicator Risk Indicator Risk Indicator Risk Indicator Risk Indicator

    VALUE SHARED BETWEEN ALL STAKEHOLDERS

    CLIENTS

    R126bn

    2018: R121bn

    INSURANCE
    Long- and short-term insurance, investment products and advisory services

    Income from investment management and life insurance activities

    Risk Indicator Risk Indicator Risk Indicator Risk Indicator Risk Indicator Risk Indicator Risk Indicator
    Associated risks:
    Risk Indicator Credit risk Risk Indicator Interest rate risk Risk Indicator Insurance risk
    Risk Indicator Business and reputational risk Risk Indicator Funding and liquidity risk Risk Indicator Market risk
    Risk Indicator Operational risk, including compliance, environmental and/or social risk
    BANKING AND INSURANCE
    Invest in our people
    Invest in our operations
    Direct and indirect taxes to governments and regulators
    Returns to shareholders

    Staff costs

    Risk Indicator Risk Indicator

    Other operating expenses

    Risk Indicator Risk Indicator

    Direct and indirect taxes

    Risk Indicator Risk Indicator

    Dividends

    Risk Indicator Risk Indicator

    EMPLOYEES

    R35bn

    2018: R34bn

    SUPPLIERS AND THIRD-PARTIES

    R47bn

    2018: R43bn

    GOVERNMENTS

    R13bn

    2018: R12bn

    SHAREHOLDERS

    R16bn

    2018: R15bn

    Associated risks:
    Risk Indicator Credit risk Risk Indicator Interest rate risk Risk Indicator Insurance risk
    Risk Indicator Business and reputational risk Risk Indicator Funding and liquidity risk Risk Indicator Market risk
    Risk Indicator Operational risk, including compliance, environmental and/or social risk
    Reinvested to sustain and grow our business

    Retained equity

    R15bn

    2018: R17bn

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    OUTCOMES
    INFLOWS
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    OUTFLOWS
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    REINVEST
    african region
    • INFLOWS
    • OUTFLOWS
    • REINVEST
    What this means for the group
    What this means for our stakeholders

    Interest earned on loans granted to clients less loans not repaid.

    Individual clients can access financing to buy houses and cars and fund their children’s education. Business clients can borrow to grow and invest in their businesses, supporting employment and inclusive economic growth.

    Costs incurred on funds raised from depositors and other funders, used by the group to lend to clients who need finance.

    Depositors earn a return on the funds they place with the group.

    Fee and commission revenue earned for services provided.

    Transactional banking facilitates the movement of money, providing clients with convenient access to their funds. Our knowledge-based services allow our clients to benefit from our experience and track record on the continent, and enables us to connect them to global pools of capital.

    Fees earned from clients who use our platforms to access and trade foreign exchange, commodity, credit, interest rate and equity instruments.

    Market access enables businesses to grow, providing a conduit for investment into Africa, helping economies monetise resources and diversify. Risk mitigation products enable financial protection and diversification through risk transfer.

    Revenue earned from other sources, including income from property, private equity and investments in FinTechs.

    Strategic investments support inclusive economic activity and enable wealth creation, while also contributing to investments that drive Africa’s socioeconomic development.

    Brokerage fees and underwriting profits generated from the wealth offerings provided to clients and earns commission on Liberty and STANLIB risk and investment products held by clients.

    Insurance, investment and advisory services enable clients to build, diversify and protect their wealth and offer protection from loss of income due to illness, retirement and death.

    What this means for the group
    What this means for our stakeholders

    Cost of the people we rely on to consistently deliver exceptional client experiences and the cost of reskilling and upskilling our people to deal with a changing world of work.

    Employees derive value from remuneration and other benefits received, including training that equips them with relevant skills.

    Cost of our day-to-day operations, both internal and outsourced.

    We hire locally wherever possible and, through our activities, sustain other jobs in local economies.

    Cost of operating in the various jurisdictions in which we do business.

    Governments earn revenues which support local development.

    Charge for the capital made available to the group to enable it to operate.

    Shareholders earn a return for their investment in the group, in the form of dividends, consistent dividend policy and capital appreciation.

    What this means for the group
    What this means for our stakeholders

    Capital retained to leverage growth going forward.

    Capital reinvested to support the future growth of the business, which benefits all stakeholders.

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    EXTERNAL ENVIRONMENT

    The drivers of our strategy – the market forces impacting financial services in Africa, and the expectations of our stakeholders.

    Read more about our operating context