Download - African Bank

Focus and strategy
The focus of the group is to underwrite largely unsecured credit risk through the provision
of personal loans to the formally employed emerging market and tailored credit solutions
to small, medium and micro enterprises (SMMEs). Its profitability and sustainability is
dependent on its ability to underwrite this risk and efficiently manage the collections
process.
The model is reinforced through a strong capital base, high positive cash flow generation,
a conservative approach to funding and liquidity and strong risk management processes.
Key elements to the strategy may be summarised as follows:
A single-minded focus on the niche markets and products that it has a core
competence and a market leading position in.
Servicing client needs through direct interaction with clients and fast turnaround.
Investment into innovation of new products and channels in our niche.
Pricing for risk discovery and a conservative approach to loan sizes and term.
Strong investment into credit risk management and collection techniques.
Focus on RoA and RoE.
Conservative and early provisioning methodology.
Low risk appetite for liquidity or interest rate risk (positive liquidity gap maintained and
interest rate risk neutralised).
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