confidence - Investing In Africa

Directors’ Report to the Shareholders16To this end, client research isundertaken to gain a betterunderstanding of the individual andbusiness needs of customers andtailor-made products are proposedto satisfy those needs. Systemsfunctionalities are continuouslyimproved to ensure that products areclient-focused. During the year theBank launched “SBM StructuredFinance”, a product to assistcorporates to smooth their cash flowsand “Credit lines in ForeignCurrencies”. Cross selling issystematically done to ensure thatthe Bank is providing a full portfolioof services to its customers.The Bank continues to invest inelectronic delivery channels, includingthe issue of chip cards, upgrading ofInternet banking, installation of newATMs and POS devices for theenhanced security and convenience ofits customers. Dedicated RelationshipOfficers attend to the needs ofcorporates and high net worthindividuals.HUMAN CAPITAL, TECHNOLOGY AND INFRASTRUCTUREThe Bank has invested significant amounts in recent years to improve theworking conditions and benefits of its employees, in addition to continuouslyupgrading their skills. Senior and middle management personnel attendoverseas executive education programmes. In-house training is conducted atSBM Park, the Bank’s Learning centre, in addition to on-the-job training toenable employees to part and to upgrade their skills. The Bank takes prideand pleasure to report that during the year the Bank set up “The SBM StaffChildren Education Trust” into which it donated the income accruing on thecapital sum of Rs25M set aside to this end. The objective of the Trust is tosponsor the children of the Group’s employees to pursue higher education. TheBank is a pioneer in this direction, being the first to provide such benefits.The investments in state-of-the-art technology, data warehouse and applicationtools are instrumental in supporting our customers’ business needs. The Bank’srisk and value based performance management practices and tools includeFund Transfer Pricing, Activity Based Costing, provisions for losses and capitalallocation based on levels of risk. This system calculates economic profit and RiskAdjusted Return on Capital (RAROC) by lines of business, portfolio, customer,product and delivery channels. The process enables identification of profitableand unprofitable customers, products and customer segments, thus assisting inenhancing the quality of decision making capabilities.Integrated risk management tools and organisational design geared towardsenterprise wide risk management enable the Bank to protect, create andenhance shareholders’ value. Risk policies and methodologies arecontinuously reviewed and refined to adapt to an ever-changing marketenvironments and regulatory requirements.The Bank’s Health and Learning Centreis made accessible to Bank’s customersand their spouses, satisfying eligiblecriteria as a measure of adding valueto its privileged customers.Customer care will always remainparamount. The Bank will continue toenhance its Service Units to provide abetter banking experience and improvestaff training and motivation to ensurethat every encounter with the Bank,through whatever channel, is a delight.The Bank’s leadership in Information Technology gives the Group a significantcompetitive edge and advantage. A versatile Core System enables the Bankto provide sophisticated solutions such as flexible mortgages, effectingpayments at POS in currencies of the client’s choice and the offer of valueadded services such as the charging of prepaid mobile phones through itselectronic channels. The Board is pleased to report that the Proactive RiskManager (PRM) tool implemented during the year assisted the MauritianPolice to proactively uncover a massive fraud on credit cards issued byoverseas banks.The Bank implemented the Flexcube Core Banking solution at its subsidiary bankin Madagascar which went live in January 2005. The Bank is now embarking onthe implementation of a similar Core Banking Solution for its Indian Operations.The Board is pleased to report that in addition to the Core IT System, the Group