STRATEGIC FOCUS AREAS FOR 2011

BECOME CLIENT-DRIVEN

The group will continue to become more competitive by putting the client at the centre of everything it does. It will refine its segmentation strategies and further develop and deliver differentiated offerings based on unique client value propositions.

Clients’ experience with Nedbank Group will be enhanced through worldclass service, streamlined processes and investment in channels and footprint to enhance access and convenience.

The wholesale clusters will continue to work collaboratively to provide a seamless service for corporate clients. Nedbank Retail is focused on delivering a choice of positive, client-centred banking experiences through a new differentiated strategy that will effectively synthesise product, channel and client insights. This is to create opportunities for clients to enjoy enhanced capabilities in terms of managing their portfolio and for Nedbank Group to avoid duplicated administration.

MANAGE FOR VALUE

Portfolio tilt highlights the fact that the group will continue to enhance the economics of businesses with a negative economic profit and, in particular, retail secured lending. Advances growth will be based on focusing on asset growth that leads to positive economic profit – not overall advances market share. The group will focus on growing its deposit franchise and exploit opportunities as they arise, including potential acquisitions.

STEP CHANGE IN NON-INTEREST REVENUE GROWTH

Nedbank Group will continue to focus on gaining primary clients in all its businesses and improving cross-sell ratios and collaboration between frontline businesses. The group’s journey of becoming the public sector bank of choice will be advanced, and unlocking the potential of the recent acquisitions (buyout of the Old Mutual joint ventures in 2009 and Imperial Bank in 2010) will remain focus areas. Innovation will continue to be a key enabler in growing non-interest revenue (NIR).

The medium- to long-term target to achieve a ratio of NIR to operating expenses of more than 85% will continue to drive these initiatives. The plan is to achieve this by 2013.

MANAGE RISK AS AN ENABLER

Nedbank Group will work towards further embedding the groupwide risk plan and worldclass practices, managing the business within its risk appetite parameters, managing advance impairments, focusing on collections and striving for credit loss ratios within the target ranges. Furthermore, it will implement the groupwide business intelligence thrust and data management strategy, which is aimed at enabling superior business intelligence to facilitate better decisionmaking that links into other strategic focus areas such as managing for value and managing risk.

ENHANCE PRODUCTIVITY AND EXECUTION

Smart cost management across the bank will be maintained while investing for the future. The group will improve innovation and execution, streamline project prioritisation and delivery, and make it easier for its clients to do business. In addition, the group will look to rationalise, simplify and consolidate duplicated cross-organisational processes, systems and functions to unlock cost savings and efficiencies that will aid the funding of its systems upgrade plan to enhance client systems through an ‘optimise to invest’ programme.

BUILD A UNIQUE CULTURE FOR COMPETITIVE ADVANTAGE

A differentiated corporate culture will build sustainable long-term competitive advantage and will help to attract and retain talented staff. The various management and leadership development programmes are key enablers. Nedbank Group’s goal is to be the employer of choice, recognising that market competition for talent continues to increase. Continued focus remains on making Nedbank Group a great place to work and being able to attract, develop and retain the best people.

Part of this differentiated corporate culture is the acceleration of transformation and embracing diversity. Key focus areas of transformation are meeting our employment equity targets, while simultaneously evolving behaviours and culture.

ACCELERATE TRANSFORMATION

Transformation remains a business imperative for sustainability in the SA context and will continue to provide business benefit in years to come. It also remains a core element of Nedbank Group’s
strategy. The group recognises that it needs to deliver on its stretch Department of Trade and Industry targets as it maintains a leading position in transformation. Transformation involves more than meeting numeric targets, and Nedbank Group embraces diversity in all aspects of its business to ensure Nedbank remains relevant in a transforming society.

LEAD AS A GREEN AND CARING BANK

Nedbank Group will continue to embrace its role as a leading large corporate in the private sector to create a sustainable environment for all South Africans. It strives further to integrate sustainability issues throughout its own operations, while increasing its focus on socioeconomic development and environmental and social risk management. By entering into collaborative partnerships Nedbank
Group intends extending its reach to make a real difference on both social and environmental fronts.