Full integrated annual report - African Bank - Investoreports

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74 Remuneration report continued Actual payments by component ABIL group Integrated report 2011 | African Bank Investments Limited 2011 2010 Number of employees Amount Number of employees Amount Fixed remuneration R1 798 million R1 638 million Variable payments R590 million R463 million Guaranteed bonuses 10 008 R46 million 10 677 R47 million Sign-on bonuses 25 R7 million 18 R9 million Severance payments 838 R28 million 370 R17 million
Risk management report This is a condensed version of risk report. For more detailed information refer to our web-based risk report at: http://africanbank.investoreports.com/africanbank_ar_2011/risk/ The ABIL risk management philosophy and culture The management of risk is a fundamental element of the group’s strategic business execution although in recent times local and international events have increased the expectations for the management of risk in the group. The group risk management approach is an approved enterprise-wide risk management methodology and philosophy to ensure adequate and effective risk management. In addition, the methodology also provides regulatory principles that, together with the risk management approach, will continue to ensure optimum return on shareholders’ equity through the application of the following core principles: Clear assignment of responsibilities and accountabilities; Common enterprise-wide risk management framework and process; The identifi cation of uncertain future events that may infl uence the achievement of business plans and strategic objectives; and The integration of risk management activities within the company and across its value chains. Sustainable high-quality shareholder returns can only be derived by accepting a certain measure of risk. In light of the understanding of risk management by the group, the board has strategically accepted a higher risk appetite for credit risk than most other credit lenders. This increased risk appetite is informed by a stable, effective and effi cient risk management philosophy and framework within the group. ABIL views risks as an inherent part of running a successful business, i.e. risks are not only mitigated but are also analysed and investigated for potential opportunities. This approach provides the direct correlation and linkage between risk management and maximising shareholder value. The group applies a logical and systematic methodology to identify, analyse, assess, mitigate and monitor all known risks. The critical success factor is the alignment of the key fundamentals of governance, business objectives, stakeholders, ethics, policies, standards, strategies and compliance. The risk management process is continuous, with well-defi ned and entrenched procedures that support improved decision-making by contributing a greater insight into risks and their potential impact. One of the objectives of the risk management philosophy is to ensure that mitigating strategies are geared to deliver reliable and timely risk management information. ABIL’s approach to risk accepts and embraces risk management as a core competency that allows the business to optimise risk taking through objectivity and transparency that will ensure effective and effi cient risk pricing and optimised returns within a chosen risk appetite. Integrated report 2011 | African Bank Investments Limited 75
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Integrated report 2011 Giving peopl
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Contents ABIL in perspective Page S
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Operating structure ABIL is a publi
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Our values These are the basic beli
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Eyomhlaba, ABIL’s fi rst R600 mil
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Shareholders’ snapshot Top fund m
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High level risks R1 R2 R3 R4 R5 R6
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2011 2010 Customers Number of custo
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Stakeholders’ issues Link to mate
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Stakeholders’ issues Link to mate
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2006 2005 2004 2003 Defi nition 1 1
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Mojankunyane Florence Gumbi (52) Po
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Samuel Sithole (38)* Position Indep
Page 27 and 28: Izincwadi zababambiqhaza Matseno Po
Page 29 and 30: Izincwadi zababambiqhaza tšwetšwa
Page 37 and 38: The selection of issues was informe
Page 39 and 40: Strategic issue covered Risks cover
Page 41 and 42: ABIL manages its regulatory environ
Page 43 and 44: Within the context of further build
Page 45 and 46: experiencing each other’s day-to-
Page 47 and 48: The Bank has made extensive headway
Page 49 and 50: Credit products EHL made good progr
Page 51 and 52: The rollout of this additional dist
Page 53 and 54: Financial review How ABIL generates
Page 55 and 56: Financial review continued Economic
Page 57 and 58: African Bank Investments Limited Co
Page 61 and 62: African Bank Investments Limited Gr
Page 67 and 68: Banking business unit Results at a
Page 69 and 70: Retail business unit Results at a g
Page 71 and 72: Retail business unit Financial stat
Page 73 and 74: Composition of the board The compos
Page 75 and 76: Remuneration report This is a conde
Page 77: Sign-on bonuses Sign-on bonuses are
Page 81 and 82: Risk management mechanisms ABIL bel
Page 83 and 84: Mitigation Further detail ABIL cons
Page 85 and 86: Mitigation Further detail This moni
Page 87 and 88: Mitigation Further detail ABIL acce
Page 89 and 90: Listings information Listings excha
Page 91 and 92: Shareholders’ profi le Top fund m
Page 93 and 94: Analysis of preference shareholders
Page 95 and 96: Findings Based on our review of the
Page 97 and 98: Explanatory note On 1 May 2011, bei
Page 99 and 100: Percentage of voting rights require
Page 101 and 102: 10. Special resolution 4 - amendmen
Page 103 and 104: 12. Special resolution 6 - amendmen
Page 105 and 106: Percentage of voting rights require
Page 107 and 108: 16.6 the minimum funding return (al
Page 109 and 110: c) the issued share capital and res
Page 111 and 112: 19.3 Directions for obtaining a cop
Page 113 and 114: Jacobus Dorotheus Maria Gerardus In
Page 115 and 116: Remuneration policy of African Bank
Page 117 and 118: Annexure to the notice of AGM - Par
Page 119 and 120: (v) Share capital of ABIL Ordinary
Page 121 and 122: Application form: electronic partic
Page 123 and 124: Form of proxy African Bank Investme
Page 125 and 126: Summary of shareholders rights in r
Page 127 and 128: This page has been left blank Integ
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Corporate information Board of dire
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