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26 Related information can be found in the material issues tables on pages 36 to 37. Material issues Our material issues were reviewed and refi ned this year, through a process of dialogue amongst senior executives and the board. The purpose of the review was to provide a more simplifi ed and focused view of economic, social, environmental and governance considerations in our various business operations. While the key dimensions and impacts on the business and its stakeholders have essentially remained the same, the grouping of different aspects has changed from 2011 to 2012. The table below indicates the material issues and the changes from 2011: 2012 2011 M1. Leading the positioning of unsecured lending M1. Staying true to our business model M2. Structuring our business for the long term M2. Growing our people M3. Growing our people M3. Positively impacting customers’ lives through the provision of credit M4. Delivering value to our customers M4. Maintaining a solid foundation in terms of funding and capital M5. Maintaining a solid funding and M5. Contributing to the sustainable capital foundation growth and transformation of our country M6. Delivering value through M6. Delivering value through sustainable and responsible sustainable and responsible processes processes M7. Maintaining good corporate M7. Environmental awareness and citizenship responsibilities We understand that the very existence of our business is dependent on our ability to continue to deliver value not only to our customers, but to all stakeholders, and that sustainable growth can only be achieved through paying greater attention to the world in which we operate. We continue to strive to deliver this value in a meaningful and responsible way. Economic environment The group experienced moderate economic conditions during 2012, with real salary increases and relatively stable employment numbers, balanced with low GDP growth and labour unrest more recently. Lacklustre growth in secured credit has been compensated for by signifi cant growth in unsecured credit. The retail sector experienced a further deterioration in the durable good categories, continued defl ation and a lack of consumer confi dence. The group is currently addressing the potential fallout from the recent mining and other labour strikes, both from a fi nancial and customer centred perspective. The mining book is a relatively small part of the total book, representing approximately R2,8 billion or about 5% of advances. Whilst there has been some adverse impact on collections relating to the mines affected by the strikes, the overall mining portfolio has not been impacted in a signifi cant way. The level of monitoring of the portfolio has increased, and in line with our existing policies the group will assist affected customers to the extent possible.
Ulwazi oluhambelanayo lungatholakala ezindabeni zempahla emakhasini 36 ukuya ku-37. Izindaba zempahla >business overview Izindaba zethu zempahla zabukezwa futhi zapholishwa kulo nyaka, ngokusebenzisa uhlelo lwenkulumo mpendulwano phakathi kwezikhulu eziphethe kanye nebhodi. Inhloso yokubukeza kwakuwukuhlinzeka ngokubhekela okulula kakhulu nokubheka okugxilile kwezomnotho, inhlolo yomphakathi, imvelo kanye nokubusa emisebenzini ehlukene yebhizinisi. Nakuba izingxenye ezibalulekile kanye nemithelela ebhizinisini nakubabambiqhaza bayo kuhlale kunjalo kakhulu, ukuqoqela ndawonye izinto ezahlukene kuguqukile ukusuka ngo-2011 ukuya ku-2012. Ithebuli elingezansi likhombisa izindaba zempahla kanye nezinguquko ukusuka ngo-2011: 2012 2011 M1. Ukuhola ukuhlelwa kokubolekisa M1. Ukuhlala ngeqiniso esibonelweni okungavikelekile sethu sebhizinisi M2. Ukuhlelela ibhizinisi lethu isikhathi eside M2. Ukukhulisa abantu bethu M3. Ukukhulisa abantu bethu M3. Ukuba nomthelele omuhle ezimpilweni zamakhasimende ngokuhlinzekwa kwesikweletu M4. Ukuletha ukubaluleka M4. Ukugcina isisekelo esiqinile kumakhasimende ethu ngokunikeza izimali kanye nemali yokwenza umsebenzi M5. Ukugcina ukunikeza izimali M5. Ukufaka isandla ekuqhubekeni okuqinile kanye nesisekelo semali kokukhula kanye nasoguqukweni yokwenza umsebenzi lwesizwe sethu M6. Ukuletha ukubaluleka M6. Ukuletha ukubaluleka ngokusebenzisa izinhlelo ngokusebenzisa izinhlelo eziqhubekayo nezithembekile eziqhubekayo nezithembekile M7. Ubuzwe benhlangano obuhle M7. Ukwazi ngemvelo nokubhekana nemisebenzi Siyaqonda ukuthi ukuba khona kwebhizinisi lethu kuncike ekukwazini kwethu ukuqhubeka nokuletha ukubaluleka hhayi nje kuphela kumakhasimende ethu, kodwa kubo bonke ababambiqhaza, nokuthi ukukhula okuqhubekayo kungafezwa kuphela ngukunaka kakhulu umhlaba esisebenza kuwo. Siyaqhubeka nokuphokophela ukuletha lokhu kubaluleka ngendlela ebalulekile nethembekile. Isimo sezomnotho Iqembu libe nezimo zomnotho eziphakathi nendawo ngesikhathi sika-2012, nokukhuphuka kwemiholo yangempela okuphezulu kakhulu kanye nezinombolo zomsebenzi ezisimeme kahle ezibhalansiswe nokukhula kwe-GDP okuphansi kanye neziyaluyalu kwezemisebenzi ezisandukwenzeka nje. Ukukhula okungahlabi mxhwele esikweletwini esivikelekile kunxeshezelwe ukukhula okukhulu esikweletwini esingavikelekile. Ingxenye yezokuthengisa ibe nokunye ukwehla kwesimo ezigabeni zezimpahla ezihlala isikhathi eside, ukuqhubeka kokwehla kwamandla emali kanye nokungabi bikho kokuzethemba kwamakhasimende. Iqembu okwamanje libhekene nomphumela onokwenzeka obangwa yiziteleka zezimayini kanye nezeminye imisebenzi ezisandukwenzeka, ngakho kokubili ukucabanga ngezezimali kanye nokugxile kumakhasimende. Ibhuku lezezimayini ingxenye encane yebhuku selilonke, elimelele amabhiliyoni cishe angu-R2,8 noma ama-5% ezimali ezifi ke ngaphambi kwesikhathi. Nakuba bekunomthelela omubi ekuqoqweni okuphathelene nezimayini ezithintwe yiziteleka, iphothifoliyo yezimayini jikelele ayibanga nomthelela ngendlela enkulu. Izinga lokuqapha iphothifoliyo likhulile, nangokuhambisana nezinqubomgomo zethu ezivele zikhona iqembu lizosiza amakhasimende athintekile ebangeni elinokwenzeka. <strong>African</strong> <strong>Bank</strong> Investments Limited | Integrated Report for the year ended 30 September 2012 27
Page 1 and 2: Responsible credit with passion, co
Page 3 and 4: ABIL group - shareholders, funders,
Page 5 and 6: Contents Group profi le 2 Operating
Page 7 and 8: Operating structure >ABIL in perspe
Page 9 and 10: Our values We pledge to live by the
Page 11 and 12: ‘03 ABIL achieves investment grad
Page 13 and 14: African Bank Investments Limited Fi
Page 15 and 16: African Bank Investments Limited Fi
Page 17 and 18: Shareholders’ profile Top fund ma
Page 19 and 20: 2007 2006 2005 2004 2003 >ABIL in p
Page 21 and 22: 2007 2006 2005 2004 2003 >ABIL in p
Page 23 and 24: Robert John (Johnny) Symmonds (53)
Page 25 and 26: Mojankunyane Florence (Mojanku) Gum
Page 27 and 28: Contents Letter to stakeholders 24
Page 29: Incwadi eya kubabambiqhaza Isingeni
Page 33 and 34: Umhlaba oncintisanayo Ukukhula okuk
Page 35 and 36: labele izidingongqangi ezikhulayo e
Page 37 and 38: Ukuze uthole olunye ulwazi ngemizam
Page 39 and 40: ngo-1994. Wenze ukufaka isandla oku
Page 41 and 42: usiness overview Material issue Why
Page 43 and 44: For more information on people rela
Page 45 and 46: egistered some short term gains and
Page 47 and 48: What sets us apart Quality of our p
Page 49 and 50: Active engagement with our people i
Page 51 and 52: Our customers Engagement methods St
Page 53 and 54: ABIL engaged with a wide group of l
Page 55 and 56: The most important of these are dis
Page 57 and 58: The risk base of the group is not c
Page 59 and 60: Return on equity in line with targe
Page 61 and 62: Retail unit Consolidation adjustmen
Page 63 and 64: Retail unit Consolidation adjustmen
Page 65 and 66: Share based payment reserve Other O
Page 67 and 68: Financial returns >business overvie
Page 69 and 70: Gross profit margin % 46 44 42 41 3
Page 71 and 72: were launched in October. The virtu
Page 73 and 74: Number of employees - Banking unit
Page 75 and 76: Of the credit cards issued in 2012,
Page 77 and 78: Disbursement features Disbursements
Page 79 and 80: Vintage graph - African Bank (More
Page 81 and 82:
Liabilities Funding >business overv
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Capital management >business overvi
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The changes to capital adequacy on
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Contents Corporate governance repor
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Corporate governance structure Grou
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Board meetings and attendance >acco
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Conflict of interest All directors
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The office of the group compliance
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Introduction and report objectives
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■ Ensuring that there is an adequ
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Component Summary Benefits Benefits
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Exposure to existing long term ince
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The components of executive directo
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LTIPs awarded to executive director
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accountability the annual general m
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Risk management objectives >account
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Three levels of defence as applied
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Case volumes received: Year-on-year
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For more detail, see the group’s
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accountability Risk Mitigation Furt
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accountability Risk Mitigation Furt
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expectation that losses will occur
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Refer to page 74 and 76 in the inte
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ABIL - capital adequacy ratio % 25
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Liquidity and funding The group man
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deposits at highly competitive rate
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Regulatory risk South Africa’s cu
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Regulatory issue Description Risk/I
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Regulatory issue Description Risk/I
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Dear Sir/Madam In the year 2009 I e
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Scorecard information* Target score
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GRI SO1 For a detailed report on CS
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accountability Overall employee tur
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The Banking unit has increased the
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accountability Transformation and e
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Union membership 2012 47,8% 52,0% 0
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Employee turnover % 45 40 35 30 25
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Union membership % 70 60 50 40 30 2
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Transformation and employment equit
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■ C = Collect; ■ A = Advise;
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GRI PR7 GRI PR8 GRI PR9 Customer ex
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GRI PR1, PR2 >accountability condit
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GRI EC8, EC9, S01 >accountability l
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Number of projects 9% 5% ■ KwaZul
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Ilembe schools connectivity project
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For more information on CSI visit h
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accountability and measured against
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GRI EN18 Weaknesses and shortfalls
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GRI EN2 >accountability Paper savin
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GRI EN30 Community engagement >acco
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Case studies Cato Ridge Epping The
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est practice) gasses are absent and
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Findings Based on our review of the
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Description Explanation 2.7 Markets
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Description Explanation 4.8 Interna
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Description Explanation EC4 Signifi
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Description Explanation Emissions,
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Description Explanation Occupationa
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Description Explanation Freedom of
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Description Explanation Customer he
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Annual financial statements 197-320
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45.1 Operating segments 285 45.2 Se
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Dividend cover (times) Dividend cov
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Acronyms and abbreviations ABIL Afr
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Nine-year summarised group income s
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Currency adjusted group income stat
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Directors’ responsibility stateme
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Audit committee report The audit co
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Domestic Medium Term Note (DMTN) Pr
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Interest of directors of the compan
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■ Granting the general approval t
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Group income statement for the year
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Share based payment reserve Cash fl
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Notes to the group annual financial
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IFRS/IFRIC Title and details Expect
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IFRS/IFRIC Title and details Expect
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3. Critical accounting judgements a
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3.2.2 Impairment of advances >annua
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annual financial statements practic
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Business combinations >annual finan
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annual financial statements payment
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4.10.3 Subsequent measurement >annu
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annual financial statements A finan
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annual financial statements Bank or
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annual financial statements For the
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annual financial statements Ordinar
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4.20 Cost of sales 4.19.3.4 Deliver
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annual financial statements The sha
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annual financial statements the exp
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annual financial statements R milli
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9. Net advances continued 9.1 Credi
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9. Net advances continued 9.1 Credi
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R million Opening balance Recognise
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R million Carrying value at the beg
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R million Balance at the beginning
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2012 2011 Unamortised discount Net
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2012 2011 Unamortised discount Net
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Foreign currency translation Foreig
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Interest capitalised 2012 2011 Unam
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annual financial statements 2012 20
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annual financial statements 2012 20
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annual financial statements 46. Fin
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R million Up to 1 month Greater tha
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annual financial statements Index t
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R million Carrying value at year en
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annual financial statements 49. Int
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annual financial statements 50. Lon
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51. Analysis of financial assets an
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annual financial statements 51. Ana
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annual financial statements 55. Ret
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annual financial statements 58. Res
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Company statement of comprehensive
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Notes to the company annual financi
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Page 321 and 322:
Page 323 and 324:
Prefsure (Botswana) Limited Insuran
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Contents Shareholder information Di
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Dividend timetable >shareholder inf
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JSE statistics >shareholder informa
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Analysis of ordinary shareholders a
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Contents Annual general meeting Not
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3. Ordinary resolution 3 - Election
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annual general meeting As the revis
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annual general meeting 9.1 immediat
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annual general meeting 11.3.3 repur
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Motivation for ordinary resolution
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annual general meeting message util
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Leonidas (Leon) Kirkinis Chief exec
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higher. Qualifying participants are
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(iv) Directors’ interests in secu
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Application form: Electronic partic
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Form of proxy African Bank Investme
Page 357 and 358:
annual general meeting Summary of s
Page 359 and 360:
Corporate information Board of dire
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