Balanced Scorecard performance summary

We continue to create value for our stakeholders despite a challenging operating environment

Progress is tracked by a number of sources including internal dashboards, regular management reporting materials and external measures, ensuring a balanced review of our performance.

What do we consider as success? How we measure success includes, but is not limited to Top line metrics Current performance
  • Achieving our financial targets within a reasonable timeframe, consistent with our aim of generating sustainable returns for the shareholders while managing the separation from Barclays PLC

Current financial targets of:

  • Returns
  • Capital
  • Cost
  • Revenue split

Return on equity
Target: 18 – 20%

Common Equity Tier 1 ratio
Target: 9.5 – 11.5%

Cost-to-income ratio
Target: low 50s

Revenue share from
Rest of Africa
Target: 20 – 25%

16.6%

 

12.1%

 

55.2%

 

22.5%

Performance highlights

JSE Top 40, company

Market capitalisation of R143bn1. Balance sheet assets
of R1.1trn

Headline earnings up 5%

Revenue contribution from Rest of Africa 23%

Cost-to-income ratio improved by 0.8% to 55.2%

Net asset value per share up by 4%

Return on equity down slightly to 16.6%

Paid R8.5bn in dividends to ordinary shareholders
(up 3%)

Total shareholder return of 24.6%

Spent R16.1bn on procurement

Contributed R7.3bn in taxes

Retained R6.0bn to support future business growth

1 Based on closing share price on 31 December 2016.
What do we consider as success? How we measure success includes, but is not limited to Top line metrics Current performance
  • Being trusted by customers and clients and ensuring excellent customer and client service
  • Customer and clients recommending us
    to others
  • Successfully innovating and developing products and services that meet customers’ and clients’ needs
  • Offering products and services in an accessible way
  • Customer surveys
  • Complaints performance
  • Client rankings and market shares

RBB and WIMI: ranking of Relationship Net Promoter Score® (NPS®) versus peer set1
Target: 1st in 2018

CIB: Compound annual growth rate in client franchise contribution
Target: 11% in 2018

4th





16%

Performance highlights

Serving 11.8m customers and clients

Safeguarding R675bn in deposits and providing over R720bn in gross loans and advances

Managing R288bn of assets on behalf of our customers and clients Invested R3.1bn in information technology Delivered innovations such as ChatBanking2 and the first Blockchain2 transaction while evolving existing platforms and products Group Net Promoter Score®3 improved for the fourth consecutive year
1 Bi-annual metric
2 ChatBanking allows customers to make payments, buy airtime, data and electricity, check balances or get mini statements via social media platforms. Blockchain uses distributed ledger technology to ensure that all parties can see, transfer title and transmit shipping documents and other original trade documentation through a secure decentralised network.
3 Net Promoter Score® is a brand relationship score.
What do we consider as success? How we measure success includes, but is not limited to Top line metrics Current performance
  • Engaged and enabled employees
  • A diverse and inclusive workforce in which employees of all backgrounds are treated equally and have the opportunity to be successful and achieve their potential
  • Employee engagement
  • Diversity and inclusion statistics

Sustained engagement of colleagues’ score
Target: ≥85% in 2018

Women in senior management
Target: 35% in 2018

Senior black management2
Target: 60% in 2017

75LA,1



31.6%LA


38.3%

Performance highlights

41 241LA, 3
employees

Paid R20.8bn in employee compensation

Invested R376m in direct training spend

Employees participated in 61 484 learning interventions

Employee turnover down to 9.86%LA

Retention of high-performing employees up to 93.5%

66% of vacancies filled internally, of which 48% were promotions

Women in senior management 31.6%LA

Senior black management in South Africa
38.3%4

1 Survey conducted in 2015
2 South African operations only
3 Includes permanent and temporary employees.
4 Percentage of senior black executives at managing principal/principal level.
LA This indicator is covered by the scope of a limited assurance engagement undertaken by EY and PwC. The basis of measurement thereof and the assurance statement can be found here.
What do we consider as success? How we measure success includes, but is not limited to Top line metrics Current performance
  • Making decisions and doing business that provides our, customers and clients, shareholders, employees and the communities we serve with access to a prosperous future, through our Shared Growth philosophy
  • Proactively managing the environmental and societal impacts of our business
  • Delivery against our Shared Growth goals
  • Employee engagement in Citizenship activities
  • Environmental and social impacts of our lending practices and the management of our impact on the environment

Shared growth Investment in education and skills
Target: R1.4bn by 2018

Funds raised and deployed for enterprise and supply chain development
Target: R1.3bn by 2018

R184mLA

 



R1.38bn
raised

Performance highlights

R184mLA invested in Shared Growth education and skills initiatives

10 582 employees volunteered
55 291 hours

Reached 41 200 small and medium enterprises and
45 930 consumers through business and financial literacy interventions
Procurement spend1 with black-owned suppliers up by 10% and black women-owned suppliers up by 17% Contributed to the financing of 20 renewable energy projects to date with a combined capital value of R52bn Since 2012, decreased our carbon emissions by 36.8% and our corporate real estate footprint by
333 573m2
1 South African operations only. As defined in the Broad-Based Black Economic Empowerment Amendment Act.
LA This indicator is covered by the scope of a limited assurance engagement undertaken by EY and PwC. The basis of measurement thereof and the assurance statement can be found here.
What do we consider as success? How we measure success includes, but is not limited to Top line metrics Current performance
  • A positive conduct and values-based environment
  • A business responsive to regulatory change and the resulting impacts
  • Conduct and culture measures
  • External benchmarks and surveys

Conduct reputation survey1, 2
Target: 7.6/10 in 2018

6.3/10

Performance highlights

Enhanced our Treating Customers Fairly and Conduct Risk frameworks Conduct Index2 reputation survey 6.3/10 FTSE4Good environmental, social and governance
rating improved 15%
CDP3 score remained at ‘taking coordinated action on climate change issues’ ahead of the industry average Dow Jones Sustainability™ Emerging Markets Index score of
71 points
1 Bi-annual metrics
2 Independent YouGov conduct reputation survey includes Botswana, Ghana, Kenya, South Africa and Zambia.
3 Was previously called the Carbon Disclosure Project.