Standard Bank Group
Standard Bank Group CEO Jacko Maree says the 1999 hostile bid for the bank by local competitor Nedcor did not trigger a strategic rethink. Rather, he says, it rejuvenated the bank, forcing Standard Bank to do things “simpler, better, faster”, as the bank’s advertising slogan goes. Standard Bank has not looked back since, gobbling up market share from its rivals and entrenching its market leadership in terms of assets. In 2003, assets were up 37% while net profits were up 23% and return on equity improved to 22.8%. The judges took note of Standard Bank’s enviable balance between retail and wholesale banking, which Mr Maree believes is the bank’s main differentiation from local competitors, ensuring a healthy mix in earnings. A nationwide campaign to improve service and create a more vigorous sales culture showed results in 2003: new card sales were up 66%, home loan grants were up 32% and branch lending with facilities was up 42%. Since 1999, 70% of senior and middle management has changed, often seeing younger, more dynamic individuals thrust into key roles. Mr Maree was also at the forefront of leading the industry in negotiations on the Financial Service Charter, a voluntary commitment to black economic empowerment. Intensified competition in South Africa – HSBC received its full banking licence this year – and narrowing margins have forced South African banks to venture into the rest of Africa. Standard Bank is leading this charge.
