On behalf of the board of Stanbic IBTC Holdings PLC, I am delighted to welcome you to the third annual general meeting of our company since it was restructured into a holding company.
On the global economic landscape, the year 2014 witnessed a re-emergence of concerns about global growth, fuelled by weaker-than-expected economic data from the Eurozone, disinflationary pressures from falling oil prices, the end of the quantitative easing (QE) programme in the US and the spread of the Ebola Virus Disease (EVD) in three West African countries. This created an appetite of significant risk aversion towards the end of the year.
Locally, the Nigerian economy witnessed a flurry of headwinds in 2014. The drop in oil prices and reduction in the nation’s external reserves culminated in a devaluation of the naira in the last quarter of the year. The insecurity in the North-eastern part of the country persisted resulting in a slowdown of economic activities in the region.
On the domestic capital markets scene, The Nigerian Stock Exchange’s (NSE) All Share Index closed the year on a bearish note with a decline of 16.14%. The negative sentiments witnessed from the second half of the year heightened in the fourth quarter, as the collapse of oil prices continued to expose the economy’s vulnerabilities. Buying appetite was consistently weakened for most of the quarter, which was characterised by rapid sell-offs rather than cautionary investing and heightened concerns over currency depreciation in the face of the steady decline in the external reserves and global crude oil prices.
Within the banking industry, the main drivers during the year were regulatory changes; with the most significant being the increase in cash reserve ratio for private and public sector deposits held by banks. Regulation on internal capital generation and dividend payout ratio restricted banks with high composite risk rating and non-performing loan ratio of above 10% from paying dividends. The Basel 2/3 guidelines also impacted on the capital adequacy of most banks and the increase in the monetary policy rate led to a steady increase in prime lending rates.
Against this backdrop, our company achieved many milestones during the year across our business lines. We were awarded several accolades across our group including the best dealing member firm at The NSE CEO award 2014 and the best Investment Bank in Nigeria by Euromoney. Our pension business assets under management also crossed the one trillion naira mark making Stanbic IBTC Pension Managers by far the largest wealth manager in Nigeria.
In 2015, we will continue to leverage on economies of scale to optimise costs, and continue to provide best-in-class service to our customers.
The group’s total assets increased by ₦181.3 billion or 24% from ₦763.0 billion to ₦944.3 billion at the end of 2014. This growth was in line with our continued focus on growing our balance sheet.
The Bank’s deposits from customers increased by ₦78.5 billion or 19% from ₦416.3 billion to ₦494.8 billion at the end of 2014. This growth was largely driven by a focus on gathering appropriately priced deposits and reducing the average cost of funds of the existing balance sheet.
The Bank’s net loans and advances to customers also increased by ₦108.9 billion or 38% from ₦289.7 billion to ₦398.6 billion at the end of 2014.
In line with the group’s robust risk management framework, provisions were made for the loans and advances portfolio. The total provisions made were 3.6% of the loans and advances book compared to 4.5% as at the end of 2013.
Stanbic IBTC Holdings PLC achieved gross earnings of ₦130.6 billion for the financial period ended 31st December 2014 which represented an increase of 17% over the ₦111.2 billion achieved in 2013. This was largely due to an exceptional performance from increased transactional fee income and growing investor flows.
The group’s net interest income increased by 26% from ₦37.0 billion in 2013 to ₦46.6 billion in 2014. This growth is largely as a result of the success we achieved in reducing our overall cost of funds.
Non-interest revenue grew by an impressive 20% from ₦48.2 billion in 2013 to ₦57.9 billion in 2014. This performance was on the back of a strong showing from our Wealth division as well as trading revenue earned by leveraging off opportunities recorded in the market during the year.
Overall, the group’s profit after tax increased by 55% from ₦20.7 billion earned in 2013 to ₦32.1 billion in 2014.
Following the interim dividend of 110 kobo per share already paid to shareholders on 26 August 2014, your Directors are pleased to recommend a final dividend of 15 kobo per share.
We have focused our corporate social responsibility initiatives around impactful sectors that align with our core beliefs and which also support development in a Nigerian context; health, education & economic empowerment.
We continue to demonstrate our commitment to excellence in corporate governance with entrenched practices that ensure that we run a profitable business in an ethical and environmentally sustainable manner.
I would like to use this opportunity to express our gratitude to our shareholders, regulators, host communities, customers and staff for the hard work and support that has enabled us to achieve these results.
In the coming year, we will continue to leverage on our core strengths to ensure that we are able to provide even better solutions to all of our customers’ financial needs.
Atedo N A Peterside CON
04 February 2015
The Nigerian economy in the year 2014 experienced growth of 6.2% despite the significant challenges faced. The economic structure of the country was hit by headwinds arising from the drop in oil prices and global oil supply glut. This had a major impact on the nation’s reserves and resulted in an 8% devaluation of the naira. The insecurity in the North-eastern part of the country persisted combined with the health challenges arising from the Ebola virus disease in the Southwest hindering economic activities in those areas.
The operating environment in the banking sector witnessed significant changes to regulations with continuous monetary policy tightening. While the capital markets were impacted with a 16.1% decline in the All Share Index of the Nigerian Stock Exchange and an increase in yields across all tenors on FGN bonds.
Notwithstanding the tough operating environment, the group’s financial results in the year reflect a solid performance and good momentum in the group’s underlying businesses. Significant growth in profitability and business operations were recorded. This was driven by increased clients transaction volumes and activities, improved operational efficiency and a strong determination to succeed from staff and management.
Our group posted respective increases of 23% and 54% over the prior year’s performance in operating income and profit after tax and achieved a ROE of 29% up from 21% in the previous year. You will find included herein detailed financial reports.
During the year, our pension business achieved record assets under management of ₦1.49 trillion, making Stanbic IBTC Pension Managers Limited the largest institutional investment business and number one wealth manager in Nigeria.
Our stockbroking subsidiary consolidated its leadership position as the No.1 stockbroking firm for the 7th year in a row; leading by both value and volume of transactions in 2014.
Our custody business retained its market leadership and reinforced its role as the leading non-pension custodial service provider in Nigeria. This feat was underscored by a significant growth in assets under custody by Stanbic IBTC Nominees Limited (‘SINL’) to ₦2.3 trillion. In addition, SINL continued to set the pace within the custody industry; successfully running a pilot of an industry first securities lending product.
Our asset management subsidiary, Stanbic IBTC Asset Management Limited (‘SIAML’) successfully launched our first Exchange Traded Fund (Stanbic IBTC ETF 30), which is expected to track the movement of the 30 most capitalised equity securities listed on the floor of The Nigerian Stock Exchange.
As an indication of our leadership in our focus sectors, we were awarded with several accolades during the year including some listed below:
• Best investment bank in Nigeria by Euromoney award of excellence 2014
• Best SME Bank – Nigeria 2014 at the International Finance Magazine award
• Best Bank overall in Nigeria Euromoney Real Estate Award 2014
• Best Dealing member firm at The Nigeria Stock Exchange
• 8th LEAD Africa 2014 – Pension Administrator of the Year
The achievement of these milestones was due to the hard work and dedication of our staff as well as the loyalty of our esteemed customers.
In 2014, we recorded successes through an unrelenting focus on cost control, deposit mobilisation and responsible asset growth. We plan to leverage on these efficiencies in 2015 to ensure that we continue to grow our capacity to provide end-to-end financial solutions to our customers in a sustainable manner.
Despite the economic, regulatory and political headwinds our outlook for the year is positive as we leverage on our competencies to provide best-in-class service to our customers while concurrently creating value for our shareholders.
04 February 2015
The downward revision reflected weaker
growth particularly in China, Russia, and a number of other key
emerging markets including Brazil and Mexico. The expected
rebound in US growth materialized at the back end of 2014,
growth in China, Russia, Brazil and Mexico remained anaemic
and were joined by poor growth performance in the EU and Japan.
The US economy continued to grow at a steady pace in 2014, without any clear signs of impending price pressures. It is reasonably plausible that lower oil prices should lift growth and cut inflation in 2015. This economic backdrop meant that the Federal Reserve Bank (FED) remained very patient in tightening monetary conditions. It did however take important steps towards removing the monetary stimulus in 2014, first by ending asset purchases (quantitative easing) in October 2014 and second by dropping the pledge to hold rates low for a ‘considerable time’ and replaced it with a commitment to be ‘patient’ in removing accommodation. The FED warned that rate increases will be governed by economic data, not the calendar.
Meanwhile, the Eurozone economy continued to underperform with little hope of significant recovery in 2015. Deflationary risks persisted with headline inflation skirting dangerously around the zero level. Inflation stood at a meagre 0.5% year- on-year (YoY) in 2014 and the European Central Bank (ECB) forecasts that it will remained subdued at 0.7% YoY in 2015. Economic growth also remained sluggish in 2014 reaching 0.8% and the ECB’s forecast for 2015 is now set at 1.0% from 1.6% earlier proposed. All these, essentially pushed the ECB into ‘promising’ further monetary easing in the first quarter of 2015.
In emerging markets and developing economies growth is expected to ease further, slowing to 4.4% in 2014, from 4.7% in 2013, and 5.1% in 2012, on the back of poorer economic performances in Russia and China, at 0.6% and 7.4%, respectively (from 1.3% and 7.8% respectively in 2013). Sub-Sahara Africa’s growth remained flat in 2014 compared to 2013, reaching 5.1%.
Commodity prices exhibited a year of two halves, with moderate appreciation in the first half of 2014 and a reversal of this in the second half. Indeed, as most commodities are denominated in dollars, it was no coincidence that the reversal in prices of aggregate commodities occurred in line with a sharp reversal in value of the dollar (generally against most other currencies). The abundance of global crude oil was a major contributory factor to the sharp decline in oil prices, as the US has been able to ramp-up production to record levels, while OPEC failed to cut production quotas at its November 2014 meeting. The sharp move lower in front month Brent crude prices was closely correlated with the strength of the dollar (a trend which is expected to continue in the near term).
In 2014 political/election process heightened as earlier in the year, a new PDP faction was formed to oppose the incumbent President’s bid in the elections, while a critical number of governors and members of the National Assembly joined the opposition APC party. The year culminated in the PDP ratifying incumbent President as its sole presidential candidate, while the APC elected a former Head of State, as its presidential candidate.
The limited success in dealing with the security challenges in 2014 persisted and continued to hurt the public’s perception of the current administration. The APC’s appeal seems to have been bolstered by the attempt to put a former Head of State and a seasoned technocrat forward. The pair is perceived as a non-religious team capable of delivering an anti-corruption and reformist agenda.
Nigeria’s real economy grew reasonably in 2014, with real GDP growth reaching 6.23% YoY from 5.5% YoY in 2013. The GDP growth in 2014 reflects the negative influences of the Boko Haram insurgency in the North East and the impact of the Ebola epidemic on consumer confidence. The economy continues to be driven by non-oil growth, growing by 6.4% YoY in the fourth quarter of 2014 (from 7.5% YoY in the third quarter).
The oil sector continued to be a drag on the economy, especially as production levels remained subdued and prices plummeted. Indeed, in the fourth quarter of 2014, oil sector GDP growth reached 1.2% YoY, after a decline of 3.6% YoY in the third quarter. The sector continued to contribute an average of around 10.0% of GDP in 2014.
Meanwhile, the share of agriculture to GDP remains at 20.2% (post-rebasing) from an estimated 34.7% in 2013 under the old GDP series. Real agricultural GDP growth in the fourth quarter of 2014 stood at 3.6% YoY, up by 0.62% from the corresponding period of 2013 but lower by 0.83% from the rate recorded during the third quarter of 2014. Crop production was the main driver of growth in the fourth quarter of 2014, contributing 12.6% of overall GDP growth.
The finance and insurance sector continued to grow at a steady rate, with real growth reaching 8.1% YoY in the fourth quarter of 2014, from 8.6% YoY in the third quarter. Financial institutions drove growth in the fourth quarter, growing by 16.7%. Finance and insurance contributed 2.9% to the total real GDP in the fourth quarter of 2014.
The arts, entertainment and recreation segment of the economy grew by 15.6% YoY (in real terms) in the fourth quarter of 2014, up by 0.5% when compared to the preceding quarter. The contribution of arts, entertainment and recreation to GDP in real terms was 0.18% in the fourth quarter of 2014 with the potential to drive economic growth more significantly in the medium term.
All through 2014, the prospect of significantly lower oil revenues continued to raise questions around the sustainability of Nigeria’s fiscal position. The Federal Ministry of Finance (FMF) recently presented the 2015 Federal Government budget proposal to parliament, where it projects that the budget deficit will remain unchanged at levels below 1.0% of GDP. The plan is to finance the NG₦755 billion deficit through the issuance of local currency debt: net issuance of government securities is set to reach NG₦570 billion, from NG₦530 billion in 2014. The balance will be financed from the stabilisation fund in the Sovereign Wealth Fund (SWF). Federal expenditure is proposed to decrease to NG₦4.3 trillion, from NG₦4.72 trillion budgeted in 2014. The FMF opted to adjust the budget mainly by cutting capital expenditure. The budget projects a nominal increase in recurrent expenditure (59% of budgeted expenditure) of 7% over the 2014 figure to NG₦2.62 trillion. However, capital expenditure was cut markedly by 43%. Capital expenditure is generally below budget with only 54% of planned capital spending being achieved in the first half of 2014. Other components of the expenditure include statutory transfers that are broadly flat at NG₦412 billion and NG₦943 billion for debt service, compared to NG₦712 billion appropriated for 2014.
Revenue is estimated to decline marginally to NG₦3.6 trillion from NG₦3.7 trillion in 2014. Oil revenue is seen at NG₦1.9 trillion (9.0% lower than 2014), while non-oil revenues are set at NG₦1.68 trillion from NG₦2.0 trillion in 2014. The Finance Minister noted that the focus of the budget is to diversify the economy by raising non-oil revenue through improved tax collections, limiting exemptions, and charging levies on certain luxury products (the Finance Ministry expects this to contribute NG₦10.6 billion in 2015).
The fiscal position has remained reasonably robust in the last couple of years. It is estimated (based on net Excess Crude Account flows and net government debt issuance) that the consolidated budget deficit was in the region of $12.6 billion (2.5% of GDP) in 2013 when the average oil price was $108 per barrel and $3.2 billion (0.7% of GDP) in 2014 when the average oil price stood at $99.44 per barrel.
Exchange rate and interest rate dynamics
2014 turned out to be a challenging year with regards the Nigeria exchange rate and interest rates, as the Central Bank of Nigeria (CBN) pursued policies to ensure exchange rate stability for most of the year, a position that was challenged given the rapid decline in global oil prices. However, in the first quarter of the year, portfolio flows turned negative (albeit stabilizing in the second quarter) as leadership changes within the CBN partially eroded investor confidence.
It was the sharp decline in oil prices that really put pressure on the Naira. In fact, the unit traded at an all-time intra-day high of ₦187.10 at the end of 2014. In response, the CBN introduced a number of directives (monetary policy and administrative measures) in a bid to curb the pressure.
First, the CBN instructed banks to no longer sell dollar intervention funds more than 10 kobo above the CBN sell rate. The move was intended to reduce the spread between the Retail Dutch Auction System (RDAS) and the interbank rate.
Second, the CBN issued prudential guidelines to manage FX risks, limiting FX borrowing to 75% of shareholder funds (SHF) from a previous 200%. While the move was positive for banking sector stability, the measure is likely to restrict the ability of the sector to bring additional dollar liquidity into the system if needed.
Third, the CBN restricted the qualification for accessing dollars at the RDAS window. The move was estimated to push around 60% of weekly FX demand from the RDAS into the interbank, making the CBN intervention cheaper. This window has subsequently been closed, with all demand now expected to go directly into the inter-bank market.
Fourth, the CBN placed a tight ceiling on commercial banks placing funds with them at the Standing Deposit Facility (SDF) window, with the idea of increasing financial intermediation. The resulting excess liquidity pushed the interbank overnight rate down into low single figures momentarily.
Following these administrative measures, the CBN at its November 2014 Monetary Policy Committee (MPC) meeting officially devalued the exchange rate at the RDAS window (from ₦155 to ₦168) and also widened the band around the new reference rate to +/- 5% from +/- 3%. The MPC also hiked the Monetary Policy Rate (MPR) by 100 bps to 13%, the Standing Deposit Facility (SDF) to 11% and the Standing Lending Facility (SLF) to 15%. Furthermore, the CBN also increased the cash reserve requirement (CRR) on private sector funds to 20%, after previously moving it to 15% from 12% in March 2014.
Additionally, after pressure on the exchange rate persisted the CBN reduced banks’ net open foreign exchange trading position (NOP) to 0% of shareholders’ funds, from 1% but has subsequently restored it back to 1%. Furthermore, funds purchased by banks or customers at the inter-bank FX market must be utilized within 72 hours from the date of purchase.
In a bid to ensure that the upward USD/NGN move was orderly, the monetary authorities allowed market rates to back up considerably by continuing to sterilize liquidity via open market operations (OMOs), even as 1-year Treasury bill yields hovered close to 20% with rates for longer dated bonds around 16%.
Inflation remained in single-digit territory throughout 2014, starting the year at 8.0% YoY and has remained quasi- stationary over the period.
The group delivered a pleasing result in 2014, despite the testing operating environment. Gross earnings increased by 17% to ₦130.6 billion from ₦111.2 billion recorded in 2013. The group’s profit after tax also improved to ₦32.1 billion from ₦20.8 billion in 2013 thus, representing a 54% growth.
Key factors that influenced the 2014 financial results and ratios were:
Continued pressure on margin
Further tightening of the monetary policy by the central banks in 2014 exerted more pressure on the bank’s margin. The Monetary Policy Rate was increased by 100 basis points to 13%, while the cash reserve requirement (CRR) for public sector and private sector deposits was increased from 50% to 75% and 12% to 20% respectively. Loan growth was constrained by the high lending rates, while funding continued to be influenced by the upward rate pressure. Despite the headwinds, our margin benefitted from growing loan book and improvement in deposit mix as considerable low cost deposits were gathered in the first half of 2014.
Strong growth in lending
Gross loans and advances grew by 36%, benefitting from growing customer relationships in the corporate and retail businesses. Income from lending activities accounted for 63% of the group’s interest income. The key sectors of the economy which benefitted from the growing loan book were manufacturing, oil and gas, communication and agriculture. Corporate loan book witnessed increasing customer preference for foreign currency loans with the resultant reduction in margin.
Growth in transaction volumes
Significant growth in transactional banking volumes and growth in retail loans. activities were recorded in 2014 driven by the growing number of customers and improvement in operating platform and services. Increased transaction volumes were also recorded in our non-banking business in wealth, investment banking and stockbroking, with positive impact on the group’s revenues.
Well positioned trading book
Trading revenue benefitted from increased customer 350 transaction volumes and correct reading of market 300 movements in interest rates and the foreign exchange. The foreign exchange market witnessed volatility in the first and fourth quarters of 2014 due to the sudden change in the central bank’s leadership in the first quarter and the devaluation of naira in the fourth quarter.
Increase in non-performing loans and credit impairment charges
The high interest rate environment exert strains on 0 customer‘s cash flows and ability to repay loans as and when due. This resulted into increased non-performing loans and credit impairment charges. Non-performing loans increased by 33% or ₦4.5 billion, while credit impairment charges grew by 21% or ₦0.6 billion. However, impairment charges benefitted from enhanced rehabilitation and recovery capability as well as releases of specific creditimpairments held against a number of exposures in the business banking and corporate market.
Balance sheet analysis
The group’s total assets grew by 24% to close at ₦944.5 billion at the end of 2014. The growth is driven chiefly by loans and advances and liquid assets. The balance sheet is funded mainly from deposits from customers, which represented 52% of total assets.
Loans and advances
Loans and advances represent the largest asset class on the group’s balance sheet. This asset class provides the group with its largest source of revenue in the form of interest income and creates cross-selling opportunities in the form of transactional fees and other related revenues. Growth in loans and advances within the risk levels accepted by the group is therefore essential to increasing revenue.
Strong growth in loans and advances to customers was recorded in 2014. The loan book grew by 36% to ₦413.4 billion on the back of 46% growth in corporate loans and 25% growth in retail loans.
The group’s enterprise risk management practice is the bedrock of its commitment to continually enhance shareholders’ value in strict adherence to the risk appetite as set by the Board whilst considering the wider interest of other stakeholders amongst who are depositors and regulators.
The Board sets the tone for a responsive and accountable risk management culture and this cascades through the organisation to each business manager and independent risk officer.
Risks are managed according to set risk governance standards, which are implemented across the group and are supported by appropriate risk policies and procedures. The Bank and other subsidiaries within the group have each adopted the Enterprise Risk Management (ERM) framework with an independent control process that provides an objective view of risk taking activities across all business and risk types at both an individual and aggregated portfolio level.
The group seeks to achieve the right balance between risk and reward in its businesses, and limits adverse variations in earnings by appropriately managing its capital within specified risk appetite levels.
Key achievements in 2014
Amidst randomly unfolding regulatory guidelines and market uncertainty which accompanied the change in the Central Bank of Nigeria (CBN) Governor earlier in the year as well as the volatile market conditions which characterised the latter part of the year, the Group was able to distinguish itself in the industry by the quality and robustness of its risk management practices and outcomes. Some specific achievements include:
• strengthened business continuity management capabilities and roll out of measures to support business operational resilience in the event of any disruption;
• embedded a more robust revised operational risk framework to facilitate the planned implementation of the Advanced Measurement Approach (AMA) for managing operational risks;
• effectively implemented a preventive response plan for Ebola Virus Disease (EVD) outbreak in Nigeria. The standards achieved were eventually used as the benchmark for other Standard Bank operations in the Rest of Africa (ROA);
• reinforced existing structures for continuous business monitoring of operational risk exposures against risk appetite on a regular basis and the implementation of risk acceptance processes that drives risk awareness in a forward looking manner; and
• facilitated Business Impact Analysis (BIA) reviews for the head office units and across the network (including points of representation). This formed the basis for the review of business recovery plans across the group.
• automation and deployment of a search portal to facilitate efficiency in conducting searches on corporate account customers in the group; and
• improved focus on effectively mitigating legal risk in the area of claims and costs from threatened and pending litigation relating to the administration of customers’ accounts.
• implemented the Visa Risk Manager (VRM), Fraud Risk Manager (FRM) which was subsequently replaced with ScoreBridge fraud solutions to detect and prevent credit and debit card fraud;
• deployment of a real-time fraud analysis solution (Intellinx) for alerting and notifying the bank’s fraud investigators of possible fraud losses/breaches to customers’ accounts. The behavioural monitoring module was also deployed on internet banking; and
• conducted 46 fraud awareness training/workshops groupwide.
• introduced automated Market Risk Report (MRR);
• implemented backtesting on the banking book; and
• commenced introduction of consolidated global Market Risk reporting system COMPASS in order to achieve a more efficient reporting.
• to deployed a new anti-money laundering (AML) solution (NICE ACTIMIZE) to improve the process of identifying, investigating and reporting suspicious transactions.
• deployed Trusteer Rapport and Trusteer Pinpoint, anti-phishing and threat detection solution that protects Internet Banking customers from compromising their personal and transactional information to fraudsters;
• integrated multi factor authentication on the core banking and electronic payment platforms to eliminate logon credential impersonation;
• completed stage one audit of the ISO/IEC 27001:2013 certification which is the international best practice standard for information security management system; and
• Facilitated Business impact analysis review for the head office units and 180 branches/operating locations.
• good growth in risk assets coupled with robust risk management and losses contained well within set budgets;
• implemented a CIB Credit risk appetite framework which will provide clear guidance for the responsible growth of the book;
• reduced Credit loss ratio despite the more challenging macro environment;
• strengthened the credit capabilities through up-skilling and onboarding of new talent; and
• conducted periodic stress testing and scenario analysis to proactively identify risks as well as opportunities for growth.
Focus areas for 2015
Against the backdrop of increasing regulatory requirements and the expected headwinds including austerity measures, effects of the declining oil price, fiscal challenges, outflow of foreign portfolio investments, Naira devaluation and others, focus areas for 2015 include:
• strengthening the group’s IT Disaster Recovery implementation in compliance with the CBN directive and the need to align with best practice standards;
• reinforcing and embedding the culture of managing operational risks across the group;
• pursuing the implementation of scenario analysis as a tool for managing operational risk in line with the stipulation of the Basel II framework;
• consolidating on the bank’s activities towards building business resilience on IT and work area to ensure continued operations in the events of unexpected disruptions or disaster;
• deploying scenario analysis in AMA for managing operational risk;
• strengthening coverage and capacity to support/manage risks in new strategic business areas e.g. non interest banking, electronic payment channels etc.;
• implementing a Basel II framework in line with the CBN guidelines;
• deploying additional modules of the Enterprise Fraud Prevention solution;
• continually monitoring exposures to all markets - equity, fixed income, foreign exchange etc.;
• obtaining the ISO/IEC 27001:2013 certification and the ISO/IEC 20000 certification;
• conducting a re-certification exercise to renew the bank’s Payment Card Industry Data Security Standard (PCI DSS) certificate;
• moving the equity market making business onto the Calypso platform for enhanced risk management;
• instituting daily dataroll process to ensure immediate reflection of changes in market volatilities and correlations;
• increasing focus on the automation of key Compliance activities for effectiveness;
• continued robust credit risk management in light of the persistent challenges and volatility in the Business environment. New deals to be rigorously tested against defined risk appetite and assessed in light of key risks on ground;
• diligent portfolio management with focus on early remedial actions through Watchlist and rehabilitation/recoveries strategies; and
• focus on ensuring that the data quality, processes and systems are optimal in terms of effective risk management and regulatory requirements so as to optimise risk-return and capital costs.