Creating value for stakeholders

Transcription

1 Creating value for stakeholders 07 Creating sustainable growth for stakeholders is Capitec s overarching objective. 42 Capitec Bank Holdings Limited

2 Our stakeholders Diverse groups have an interest in Capitec s performance and continued success. Our stakeholders validate our business model, sustain the business and enable growth. Stakeholders have been grouped according to their expectations of and relationship with the organisation and we interact with each group on an ongoing basis. All stakeholder groups have an interest in the creation of sustainable value. Stakeholder engagement Clients Feedback from regular contact with clients is regarded as an opportunity to review our ability to differentiate our offer and to evaluate the quality of service experienced by clients. Face to face in branches Client surveys SMS communication Internet communication Banking costs Application of the principle know what you get, know what you pay Simplified transparent pricing (page 13) Monthly SMS confirming bank costs Minimal transaction price increases (page 13) Continuous reduction of the cost of credit (page 26) Client helpline Service delivery Management monitoring of service delivery (page 14) Complaint evaluation via New service system (page 14) the call centre Branch managers are custodians of client Formal market research relationships (page 14) Employee selection (page 14) Monitoring of conversations Training and development (page 15) on social websites Marketing and advertising Accessibility Distribution expansion and new service channels (page 14, 26) Enhanced product offer (page 13, 30) Integrated Report

3 Investors, analysts and credit agencies Investors comprise a mixture of retail depositors, shareholders, bond holders and other debt funders that facilitate continued growth in business operations and the maintenance of capital adequacy. Analysts are an important means of communication between Capitec and the investment and funding market, and the ratings assigned to Capitec Bank by credit agencies play a role in the availability and pricing of funding for operations and growth. These stakeholders expect a secure, stable organisation that offers sustainable returns and capital growth. Prompt results announcements Impact of global and domestic economic conditions Continuous review of economic conditions and consideration of the impact on Capitec (page 17) Health of the Continuous monitoring of the unsecured unsecured lending credit market (page 18, 19, 23) Quarterly capital adequacy updates market Stringent credit risk management and proactive amendments to credit granting criteria (page 67 73) The regulatory Executive management focus on changes JSE news service environment in the environment (page 20) Prioritisation of statutory compliance (page 82) Sound capital management Financial results presentations and roadshows Competition (page and note 28.7 to the annual financial statements) Close monitoring of the competitive landscape (page 21 23) Differentiation through unique product, positioning, pricing and service (chapter 4) Integrated annual report Quality of the loan book Constant detailed analysis of loan book quality by credit decision support to ensure that we remain within our risk appetite Annual general meeting and can proactively manage the loan book (page 31 33, 70 and note 7 to the annual financial statements) Electronic enquiry channel Ratings updates by credit agencies Availability of funding for growth Conservative management of liquidity risk and focus on funding by executive management (page 39, and notes 5, 6, 13 and 28.6 to the annual financial statements) 44 Capitec Bank Holdings Limited

4 Employees Capitec Bank s unique service approach originates from inside the organisational culture and is part of the employee experience from first contact to well after retirement. Employees are valued for their unique potential and talent. Capitec Bank s identity is that of a diverse family that finds relevance in serving its diverse client base. Human resources helpdesk Employment equity forum Market-related remuneration Responsible remuneration practices (page 85 90) Web-based employee portal and electronic communications (C.Net and C.Connect) Transformation and a pleasant working environment Employment equity forum (page 16) Employee relations management (page 16) Appropriate policies and procedures Learning and development programmes Performance management process Face-to-face interactions with senior management Job security and personal development Talent management initiative (page 15) Learning and development programmes (page 15) Society Capitec Bank provides for the basic banking needs of the consumer and its business model promotes the economic welfare of the communities in which it operates. Our leadership recognises that we have an important role to play in the development of those communities and society in general. Through clients Financial literacy programmes Interventions at schools Community development and upliftment Commitment to social development (page 93, 94) Provision of employment opportunities and training (page 14, 15, 93) Partnerships with, and support of, community- Supplier opportunities B-BBEE criteria included in supplier evaluation (page 94) based organisations CSI investments Interactions with suppliers Environmental impact Formulation and implementation of environmental objectives (page 95 97) Integrated Report

5 Government and regulators Compliance with government and regulatory requirements contributes to the creation of a healthy banking system in South Africa, and good relationships with government and regulators give Capitec Bank the opportunity to provide input on policies and regulations that may affect its operations. Interaction with the following government and regulatory bodies takes place regularly: South African Reserve Bank (SARB) The National Treasury department National Credit Regulator (NCR) South African Revenue Service (SARS) JSE Limited Financial Intelligence Centre Participation in banking industry and related bodies Compliance with relevant legislation and Prioritisation of statutory compliance (page 82) regulations Presentations and feedback sessions Health and stability of the South African financial system Sound capital management (page and note 28.7 to the annual financial statements) Effective management of material risks Submission of required (chapter 9 and note 28 to the annual returns financial statements) Transformation Compliance with Employment equity Written responses as part of legislation (page 16) consultations Focus on B-BBEE objectives (page 94) Sound remuneration practices Regulator surveillance (page 85 90) Capitec Bank participates in the following industry bodies: Banking Association of South Africa (BASA) Payments Association of South Africa (PASA) 46 Capitec Bank Holdings Limited

6 Economic value added Capitec contributed value to the local economy and created wealth for its stakeholders for the current and previous reporting periods as reflected below: Direct economic value generated 2013 R Interest income Loan fee income Transaction fee income Dividend income Net movement in financial instruments held at fair value through profit or loss (298) Non-banking sales Other income Share of profit in associate 167 Net impairment charge on loans and advances to clients ( ) ( ) R Economic value distributed To suppliers in payment of operating expenses To employees Ordinary dividends Preference dividends Interest paid to providers of wholesale funding Interest paid to savings clients To providers of funds Normal tax Value added tax Secondary tax on companies Unemployment insurance Skills development levies Property rates and taxes (28) 96 To government To the community Economic value retained for expansion and growth Retained income Depreciation and amortisation Deferred tax (65 817) ( ) Integrated Report