2009 Annual report - Nedbank Group Limited

Major improvementin the quality of riskSizeableincreasein bank market shareSmoothintroductionof Basel II accordC O M M I T T E D S TA F F A R E AC O M P E T I T I V E E D G EThe premise that staffwho are committedto focusing onobjectives andto continuouslyimproving serviceto clients representa competitive edgewas well provenacross the businessunits of NedNambiaHoldings in 2009.The strategic focus for the year under review was on growthwithin NedNamibia Life Assurance Company Limitedand NedPlan Insurance Brokers Namibia; at NedbankNamibia, the major subsidiary, it was on a fit-for-purposeinitiative aimed at improving the efficiency ratio, proactiveliability management to protect net interest incomein a declining interest rate environment, growth inloans and advances, maintaining customer deposits, andgrowing non-interest income.Highlights of the year were:> Establishment of the premium income stream atNedNamibia Life Assurance Company Limited;> growth ahead of target in the contribution fromexpanded operations at NedPlan Insurance Brokers;> year-on-year growth at Nedbank Namibia of 16% inloans and advances, 17% in client deposits, and of19% in non-interest income;> an improvement at the Bank in the quality of riskmanagement, with arrears and non-performingloans at their lowest levels in three years; and> the success of the fit-for-purpose initiative at the Bankwhich saw a mere 1% increase in operating expensesand an improvement in the efficiency ratio, withoperating expenses finishing 8% below budget.The business successes at Nedbank Namibia were achieveddespite a 12% reduction in personnel. The fit-for-purposeinitiative necessitated critical evaluation of positions thatbecame vacant, a streamlining of roles and responsibilities,tighter supervision by management, and aconcerted communications drive to ensure understandingof the objectives and their implications.It was significant that in this pressured environment theannual staff survey conducted in August across NedbankNamibia drew a record response from more than 77% ofpersonnel. Even more significant were the results of thesurvey, particularly much improved staff ratings for:> communication and keeping all staff informed ofBank performance;> rewards, recognition and performance in that staffreceived regular feedback on their performance;17