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SAPO GROUP Postbank PO ST O FFIC E SA V IN G S BANK

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SAPO GROUP. Financial Overview 2003-2004. Financial overview 2003/2004. Key achievements – Improved Financial Performance. 31 March 2003. Operating loss R170 million. 31 March 2004. Operating profit of R35.5 million . Target was R1.8 million. Improvement in operating profit. - PowerPoint PPT Presentation

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Page 1: SAPO GROUP

SAPO GROUP

Postbank POST OFFICE SAVINGS BANK

Page 2: SAPO GROUP

Financial Overview 2003-2004

Page 3: SAPO GROUP

Financial overview 2003/2004

SA POST OFFICE GROUP R'000

Operating income 4,352,474Operating expenses 4,316,946

Operating Profit 35,528

Page 4: SAPO GROUP

31 March 2003. • Operating loss R170 million.

31 March 2004.• Operating profit of R35.5 million.• Target was R1.8 million.

Improvement in operating profit.• R205 million.

Key achievements – Improved Financial Performance

Page 5: SAPO GROUP

Revenue growth of R261 million – 6.3 %. Increase in costs of only 1 %. Aggressively managing costs and

curtailing non value adding expenditure. Creative management of capital

expenditure through Partnerships Outright Purchase - Lease - Pay for use Decrease in staff numbers of 1 042 due to

voluntary packages. Reduction of fleet – 350 vehicles.

Key achievements – improved financial performance

Page 6: SAPO GROUP

Improvement in working capital.

Reduction of Post Office debtors days from 30 to 20 days.

Generation of approx R270m cash from operations.

Key achievements – improved financial performance

Page 7: SAPO GROUP

YTD MAR 2004 growth of R560 million in Postbank’s depositors book compared to 31 March 2003, 46 % growth.

Introduction of Thuso insurance product. Miracle 2000 – R38.6 million deposit. Introduction of new savings products

( term save, bonus save and group save). Growth of accounts 528 000 new

accounts, 28 % growth.

Key achievements - Postbank

Page 8: SAPO GROUP

Balance Sheet Improvements

Negative retained earnings R1.4b at March 2004.

To be resolved through• Reduction in post retirement medical aid liability R2.3b

(provided R1.1b)

• Postbank recapitalisation R750m

• Review of property values

• Sustainable profitable performance

Page 9: SAPO GROUP

Key projects for 2003/2004.

51 Post Offices have been installed with “New image”. / upgraded.

SAP upgrade. E-BDN. Fixed assets project. Server consolidation. Upgrade of Network. Biometrics Online private box renewals. Financial switch.

Page 10: SAPO GROUP

Operating profit

(350,522)

(170,196)

35,527145,536

220,612303,196

414,585

(400,000)

(200,000)

200,000

400,000

600,000

2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008

Page 11: SAPO GROUP

Subsidy

Page 12: SAPO GROUP

History

FY Carry B/F Subsidy Total UtilisedCarry

forwarded2001/2002 0 600,000 600,000 180,177 419,8232002/2003 419,823 300,000 719,823 505,607 214,2162003/2004 214,216 300,000 514,216 478,216 36,0002004/2005 36,000 300,000 336,000

Page 13: SAPO GROUP

2001/2002 SUBSIDY Human resources 78,241USO 89,259Re-engineering projects 12,678

180,177

USO50%

Re-engineering projects

7%

Human resources43%

Page 14: SAPO GROUP

2002/2003 SUBSIDY Human resources 308,288USO 113,982Infrastructure 21,797Re-engineering projects 51,373Other 10,167

505,607

Re-engineering projects

10%Other2%

USO23%

Infrastructure4%

Human resources61%