We will continue to become more competitive in all our businesses by putting the client at the centre of everything we do, refine our segmentation strategies and further develop and deliver differentiated offerings based on unique client value propositions. The client’s experience with Nedbank Group will be enhanced through delivering worldclass service, streamlining processes and investing in channels and footprint to enhance access and convenience.
Pricing assets appropriately in response to the higher cost of funding and increased risk in the postcrisis environment will continue. A key focus is optimising risk-weighted asset ratios closer to peer levels to unlock capital, and generally optimise risk and capital. We will continue to fix the economics of negative-EP businesses and in particular retail secured lending. Advances growth will be based on EP – not advances market share. We will focus on growing our deposit franchise and exploit opportunities as they arise, including potential acquisitions.
We will continue to focus on gaining primary clients in all our businesses and improving cross-sell ratios and collaboration between frontline businesses. Our journey of becoming the public sector bank of choice will be advanced, and unlocking the potential of the recent acquisitions (bancassurance joint-venture purchases and Imperial Bank) will be at the top of the agenda. Innovation will be a key enabler in growing NIR.
A new medium-to-long-term target to achieve an NIR-to-operating-expense ratio of more than 85% has been set to drive these initiatives.
We will work towards further embedding the groupwide risk plan and worldclass practices, managing the group within its risk appetite parameters, managing bad debts, focusing on collections and striving to have credit loss ratios below those of the peer group. Furthermore, we 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 our risk.
Smart cost management across the bank will be maintained while investing for the future. We will improve innovation and execution, streamline project prioritisation and delivery, and make it easier for our clients to do business with us.
A differentiated corporate culture can 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 needs to become the employer of choice, recognising that market competition for talent continues to increase. Continued focus remains on making Nedbank a great place to work and 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 the Department of Trade and Industry (dti) and employment equity targets, as well as simultaneously evolving the behaviours and culture.
Transformation remains a business imperative for sustainability in the SA context, will provide business benefit in years to come and is a core part of our strategy. We need to deliver on our stretch dti targets as we maintain our leading position in transformation. Transformation is more than just making the numbers – we embrace diversity in all aspects of our business to become a truly SA bank.
We will embrace the Dinokeng Walk Together scenario by playing our part as a large corporate in the private sector to create a better life for all South Africans. We will continue to lead in corporate social responsibility through partnerships, focused investment and staff and client involvement. Leading as the green and caring bank by making a difference through environmental leadership will be stepped up.