uniCredit

GHANA LIMITED

2018 BUDGET & STRATEGY

SESSION

RETAIL BANKING
 3

OUTLINE
1. Review of Key Initiatives in 2017

2. Strategic Focus for 2018

 Deposit Mobilisation
 Revenue Growth
 Achieving Operational Excellence
 Cost Cutting
 PAR & Recoveries
 Service, Leadership & Culture

3. Financial Projections for 2018

4. Our Structure & Resource Requirements

2018 BUDGET AND STRATEGY FOR 2018
Review of Key Initiatives in 2017

Strategic Focus for 2018

Financial Projections for 2018

Our Structure & Resource

Requirements

2018 BUDGET AND STRATEGY FOR 2018

2018 BUDGET AND STRATEGY FOR 2018
Review of Key Initiatives in 2017

Strategic Focus for 2018

Financial Projections for 2018

Our Structure & Resource

Requirements
2018 BUDGET AND STRATEGY FOR 2018
2018 BUDGET AND STRATEGY FOR 2018
Review of Key Initiatives in 2017

Deposit Product Analysis &Performance

Operational KPI’s

Remittance Performance

Disbursement Trends

2017 strategy key highlights/review

2018 BUDGET AND STRATEGY FOR 2018

 DEPOSIT PRODUCT ANALYSIS AND PERFORMANCE
PRODUCT END OF DECEMBER 2016 END OF OCTOBER 2017 VARIANCE % GROWTH

CURRENT ACCOUNT 60,720,804.65 64,671,054.91 3,950,250.26 7%

SAVINGS ACCOUNTS 55,522,169.73 62,055,570.77 6,533,401.04 12%

SUSU ACCOUNTS 30,604,360.28 44,739,574.85 14,135,214.57 46%

PPA 335,587.89 5,348,043.01 5,012,455.12 1494%

UKID 1,256,448.95 1,479,230.07 222,781.12 18%

FIXED DEPOSITS 161,023,694.92 208,972,763.36 47,949,068.44 30%

TOTA DEPOSIT 307,871,029.58 380,438,963.89 72,567,934.31 24%

2018 BUDGET AND STRATEGY FOR 2018

 OPERATIONAL KPI’S

END OF OCTOBER
PARAMETER ACTUAL TARGET VARIANCE % ACHIEVED

ACCOUNT OPENING 23,829 45,986 (22,157) 51.8

SMS ALERT SUBSCRIPTION 8,800 42,130 (33,330) 21

ATM REQUEST 7,195 25,980 (18,785) 28

2018 BUDGET AND STRATEGY FOR 2018

 REMITTANCE PERFORMANCE
ALL PLATFORMS

MTH NO. VOLUME TARGET S VARIANCE % ACHIEVED

JAN 5,104 6,685,848.35 6,380,974.64 303,291.82
104.78
FEB 5,392 7,827,103.03 6,671,589.37 1,182,830.23
117.32
MAR 6,870 10,486,501.52 6,975,881.84 3,451,810.85
150.33
APR 6,577 9,100,283.70 7,294,510.00 1,809,240.00
124.76
MAY 6,919 9,457,953.24 7,628,165.00 1,829,722.00
123.99
JUNE 6,879 9,755,882.64 7,977,570.75 1,460,944.25
122.29
JUL 6,813 9,421,795.00 8,343,486.46 1,078,308.54
112.92
AUG 7,600 10,736,430.00 8,726,709.09 2,009,720.91
123.03
SEP 6,596 9,167,500.00 9,154,179.82 13,320.18
100.15
OCT 7,069 10,529,415.23 10,098,458.70 430,956.53 104.26

TOTAL 58,750 93,168,712.71 79,251,525.67 13,917,187.04 117.56

2018 BUDGET AND STRATEGY FOR 2018

 DISBURSEMENT TRENDS
MONTH DISBURSEMENT (ACTUAL) TARGET % ACHIEVED

JAN 6,757,136.27 14,570,000.00 45

FEB 6,140,300.00 14,820,000.00 41

MAR 13,142,695.46 15,420,000.00 85

APRIL 8,836,937.18 17,200,000.00 51

MAY 8,251,829.66 18,550,000.00 44

JUNE 8,597,304.01 18,950,000.00 45

JULY 10,287,612.09 19,850,000.00 50

AUGUST 13,807,039.62 20,450,000.00 68

SEPTMBER 10,508,632.59 21,050,000.00 50

OCTOBER 9,496,869.67 22,500,000.00 42

TOTAL 95,826,356.55 183,360,000.00 52

2018 BUDGET AND STRATEGY FOR 2018

 2017 strategy key highlights/review
Strategic Key Actions Initiatives Challenges Status/Gaps KPI /
Objective Targets

• Develop Market by Pitching Tent • A week pitch the

Campaigns at Government tent done at GBC in
Institutions and Agencies the month of April
Total
deposit
grew by
24% as at
Oct. ending
• Quarterly Institutional marketing
at “branch zero locations”-Broaden PPA
our base by getting on board new increased
prospects (cash cows). by 1494% as
Aggressive Market at October
• Run till end of year ending
CASA Deposit Storming •
• Monthly market storming by
Mobilisation Activities Branches
All deposit
indicators
• Target institutional welfare funds were
positive
 2017 strategy key highlights/review
Strategic Key Actions Initiatives Challenges Status/Gaps KPI /
Objective Targets

• Jan- (29) (4.45m)

• Focus a team member to generate • Feb- (29) (2.15m)
• Set up and demand • Mar- (68) (5.47m)
Drive foreign • Apr- (80) (7.27m)
transfers • Revive inactive / dormant account • May- (60) (5.16m)
holders who are importers • Jun- (62) (3.83m)
• Jul – (48)(4.01m)
• To prospect for new importing • Aug - (68)(4.37m)
customers • Sept – (60)(4.6m)
Aggressive • Oct- (47) (3.6m)
CASA Deposit
Mobilisation

• Introduction
of other • Re-launched airtel money • Done
mobile • Vodafone cash
money/
remittance • MTN mobile
platform • unityLink
 2017 strategy key highlights/review
Strategic Key Actions Initiatives Challenges Status/Gaps KPI /
Objective Targets

• An increase of 75%
sms subscriber base Target of
• Set targets on all E-Banking (11,654 in 2016 to 20,000 by
products to be driven in the 20,454 in Oct 2017 close of Q4
Branches (i.e: ATM Card, SMS
Aggressive • E-Banking Alert)
CASA Deposit products to
Mobilisation boost CASA
• Target individual account holders to • ATM Card sale
drive the sale of ATM cards /SMS improved from
alert 8,009 – 15,204
• (90% growth
achieved)
 2017 strategy key highlights/review
Strategic Key Actions Initiatives challenges Status/Gap KPI /
Objective Targets
•Pursue selective lending, focusing on
short-long term cash collateralized
facilities

•Liaise with business units for • Increased the loans

promotion of loans, esp. consumer portfolio from GH¢
loans (Improve TAT) 110.3 million in Dec. Q1 – Q4
2016 to GH¢ 156 million
Quality Loan Manage Growth and •Avoiding exposures to business as at Oct ending.
Bookings and Improve Quality of segments and sectors with high risk (Growth rate of 42%)
Recoveries Loan Portfolio

•Ensure strict adherence to credit

policies and procedures
 2017 strategy key highlights/review
Strategic Key Actions Initiatives challenges Status/Gap KPI /
Objective Targets

•Ensure all accounts are tagged to the Implemented and On-

respective RO’s going

•Place emphasis on monitoring and

identifying early warning signals to NPL target of
improve NPL’s 19% by Dec, 17
PAR stood at 23% end
•Implement the repayment alert with of October
IT (Expected repayment report
Quality Loan generation)
Improve Quality of Risk
Bookings and
Assets
Recoveries
•Ensure actions from the CAC are
implemented to the latter.

•Ensure rescheduling and refinancing

applications are done on time with the
appropriate cash flows

•Database on all cases with TOC to

be updated and monitored by SM’s
 2017 strategy key highlights/review
Strategic Key Actions Initiatives challenges Status/Gap KPI /
Objective Targets

• Automation of 100% • Controller loans and

“cash-backed” susu loans
Quality Loan
facilities, Controller • Liaise with IT and Credit Risk automated
Bookings and
loans and Susu departments for implementation
Recoveries
loans less than GH
¢5,000.00
Strategic 2017 strategy
Key Actions key highlights/review
Initiatives Challenges Status/ KPI /
Objective Gaps Targets
• Recycling of used-papers • Shredded papers will be sent to a • Pending 2018
tissue production company in return
for tissue or other stationeries
Low-cost
Strategy • Efficient use of • Solar panel to power our light and • Pending
resources/amenities ATM machine during the night
(Power Outages)

Fees Collection/Utility Initiate and officially outdoor collection • Ongoing- 2018

Payment point for utilities companies (ECG, ECG is
Ghana Water, DSTV), NLA almost
complete

• Mobile Money • Pending 2018

Business • Link accounts to the various mobile

Innovation money platforms
2018 BUDGET AND STRATEGY FOR 2018
Review of Key Initiatives in 2017

Strategic Focus for 2018

Financial Projections for 2018

Our Structure & Resource

Requirements
2018 BUDGET AND STRATEGY FOR 2018
2018 BUDGET AND STRATEGY FOR 2018
Strategic Focus for 2018

Deposit Mobilisation

Revenue Growth

Achieving Operational Excellence

Cost Cutting

PAR & Recoveries

Service, Leadership & Culture

2018 BUDGET AND STRATEGY FOR 2018

 Deposit Mobilization
Timelines/
Strategic Responsibiliti
Objectives Key initiatives Action/Items Outcome es
Profiling of Key • Create a database of our Key customers to enable Service • Full data of our key • January 2018 /
customer to provide Quality and sales team manage them better. customers in the branches. BM/SM/CS
esteem services to them. • Customer retention
• CASA mobilization

Financial Advisory • Listening to the customers and giving them tailored advise • Earn customer trust • Regularly-
Service • Understanding the customers business • Customer retention BM/SM/RS
Deposit • Periodic bulletins to branches on current market trends
Mobilization
Value Chain • Create a database of top customers and get to know all about • Referrals • Morning
Management their business cycle • Deposit retention showers – BM
• Propose mutually beneficial relationships with their • Account Opening-30 and RS
suppliers and customers accounts a month
• Partner with some merchants and get their account opened • Earn customer trust
to enable the success of the value chain. E.g - Tax officers, • Getting 100% of customer
Travel agents , DSTV etc business

Dormant Account • Target of 1-Account per day per branch to be set • To help activate 560 accounts • Monthly
Reactivation • MPR report to include dormant account reactivation monthly Target/BM
• New branches less than a year old to be sanctioned • Increase CASA
 Deposit Mobilization
Strategic Timelines/
Objectives Key Initiatives Actions/Items Outcome Responsibilities
• Mass Marketing • Mass marketing will be a quarterly activity for all • To help open 400 accounts • Quarterly-
branches with a report to RS • Increase CASA Branches/RS

• Creation of E-Products • Pre-paid cards, Mobile money and POS for merchants •Account opening • Tied to IT
that will generate •CASA generation projects/ IT and
Deposits Retail secretariat

• Remittance/ Money • Lead target to be given to tellers and the operations •Account opening • Daily- BOM , BM,
Deposit services/ 3rd party team •CASA generation Tellers and RS
Mobilization transactions

• Promotion of • Target to be set for every staff •Revenue generation • Monthly

BancAssurance • Staff to write quizzes periodically •CASA generation Target/BM/SM
• Special day/week to be set aside for promotion and RS
• Liaise with the underwriters to reward performing
staff
• Digital Selling • Liaise with marketing and IT to add a callback feature •Product sales • Regularly-CS,
on our website and other social media platforms •CASA generation MCC and RS
• Database to be created and customers to be called for •Account Opening
business relationship
 Revenue Growth
Strategic Key Initiatives Actions/Items Outcome Timelines/
Objectives Responsibilities
• Increase the monthly targets of all remittance products by • Increase revenue • 1st -4th qtr- RS and
50% Branches
• Increasing our • Increase Revenue
Controllable • All Retail staff will be allocated performance targets on
Revenue bancassurance and e-banking products which will form part •
(E-values, E-Banking Marketing the product
of their KPIs for the period. digitally to create
Transactions, Mobile
Money, Facility fees, awareness
Remittances & • Inculcate this products into our digital advertisement space
BancAssurance) • To increase facility fees
Revenue • Increase loan disbursements
Growth

• Instant issuance of • Working with stakeholders for the implementation of instant • Reduce the number of • Tied to IT projects
ATM cards ATM Card issuance in our Business offices. destroyed cards and also
enable the immediate
issuance of cards

• Foreign Transfer • With the help of DOMOPS strengthen our foreign transfer • Increase revenue
services
 Revenue Growth
Strategic Key Initiatives Actions/Items Outcome Timelines/
Objectives Responsibilities
• Call existing • Data on all customers without SMS alert to be spooled •Increase subscriber . RS
customers from the sms alert portal base Branches
without SMS
alert
(1ST Quarter)

• Partnerships • Partner with merchants such as big mobile money •Increase revenue
agents, Rural Banks, schools and other agents
•Increase channels for BM and RS
• Partner with Fintechs that can provide solutions that transactions
will enable us create products for customers that will • 5 good partners by 2nd RS and IT
involve revenue sharing quarter

• Avoidance of • Strict sanctions will be put in place •Avoidance of Regular reviews and checks will
Revenue reduction of revenue be done. HHC,HR, Rigour and
Leakages Audit

• Product • Develop products that will either generate charges at •Increase our revenue 1st Quarter -Product committee
Revenue Growth Development the end of the month lines and Retail secretariat
• Generate investment income due to deposit. •1 product per quarter

• Automation of •Increase our revenue By Q2- Rigour, IT and RS

Charges • Secretariat to liaise with key stakeholders lines and avoid
leakages
 Achieving Operational Excellence
Strategic Key Timelines/
Objectives Initiatives Actions/Items Outcome Responsibilities
• Review of • Review of KPI's to take all the strategic focus into consideration and •To be reviewed in other to January 2018- RS/HR
KPI weighted by the role of the staff get the accurate
performance management

• Process • Automate some of the major processes in the Branches to reduce TAT Processes such as By Q2- IT, Rigour
automation •Cash deposit and RS
•Registers
Achieving •Remittances
Operational
Excellence
• SLA for • Institutional SLA to be reviewed to reduce TAT, in conjunction with •To improve customer 1st qtr- RS,CS and
Customer Service Quality and Rigour service Rigour

• Audit • Audit review scoring to be inculcated into the KPI's of the BM's and After every audit and
Reviews BOMs appraisal session-
• Audit score to be the average score of all the staff appraisal in the Audit, RS and HHC
branch
• Work on the • Ensure that all Branch Managers are able to receive and send mails as January 2018-HR and
Go they are on the move considering that they are out of the office at all HIT
times

• Internal • Create a system for Head’s of department to train branches on a Majorly building the RS and HHC
Training regular base capacities of frontline staff
to fully handle customer
advisory services.
 Cost Cutting
Strategic Timelines/
Objectives Key Initiatives Actions/Items Outcome Responsibilities
• Cost cutting • Retail together with Finance to set cost cutting •Ownership of the cost • Monthly tagging-
measurement targets reduction strategy Finance, BM and BOM
• Staff cost • After every appraisal
reduction • Efficient and effective staff utilization •Staff cost reduction session
• Proper cash • This is to reduce overnight interest been paid at
Management our clearing bank. Vault management will be • Daily- BM,BOM and
system taken seriously •Reduction of interest expense RS
Cost Cutting
• Dilution of deposit • Ensure we improve on our CASA to reduce interest •Reduction of interest expense • Regularly- Business
mix to 50:50 expense team

• Paperless • Avoid the use of paper and encourage the use of •Reduction of stationary Daily – All staff
system/Automatio the mailing system as much as possible. If paper
n becomes necessary, it has to be front and back
• Create an opportunity to have meetings without •Reduction in transportation
• Skype for Business the cost of travelling around cost Tied to IT projects
• Stock will be purchased when necessary and a •Cost reduction
• Stock Reduction stock management policy would be put in place Monthly- BM, BOM and
and management and adhered to. Rigour
 PAR & Recoveries
Timelines/
Strategic Responsibilities
Objectives Key Initiatives Actions/Items Outcome

Oversee credit issues in the branches by

Creation of Retail
liaising with HCR and reporting to HRB 1st Quarter/Retail
Credit at secretariat Reduce credit lapses and TAT Operations Manager

Review of credit
policy
Liaise with HCR Bank “Acceptable” standards HR/HCS
PAR &
RECOVERIES

Reviving portfolio
Management to schedule arrears committee
review
with Branch officers at the Head Office • Bi-weekly
Proactive ROs •HCR/HR/HCS/SM/RO

Effective monitoring
 Service, Leadership and Culture

Strategic Timelines/
Objectives Key Initiatives Actions/Items Outcome Responsibilities
Definition of organizational culture- goals, Staff daily education through Staff to be abreast with 1st quarter 2018
mission and ethics to be channeled to all our morning showers the goals, mission of
staff the institution

Capacity building of staff Trainings and seminars Improve confidence 1st quarter
and knowledge of the
Empowerment of staff job HHD, HR, HCS
Service leadership &
Culture
Ensuring discipline and respect for Respect for clients and other Improve From 1st quarter
organizational culture staff to be made a priority in the professionalism
institution

Recognizing and rewarding good behavior Branch to set up an award Other staff to be 1st quarter 2018
scheme for best staff motivated to conform
to the institution’s
culture
2018 BUDGET AND STRATEGY FOR 2018
Review of Key Initiatives in 2017

Strategic Focus for 2018

Financial Projections for 2018

Our Structure & Resource

Requirements
2018 BUDGET AND STRATEGY FOR 2018
2018 BUDGET AND STRATEGY FOR 2018
Review of Key Initiatives in 2017

Strategic Focus for 2018

Financial Projections for 2018

Our Structure & Resource

Requirements
2018 BUDGET AND STRATEGY FOR 2018
 HEAD, RETAIL BANKING

RETAIL OPERATIONS MANAGER BUSINESS MANAGERS

RETAIL REMITTANCE, MOBILE RETAIL BANCASSURANCE AND RETAIL SALES AND M I S

MONEY AND FOREIGN TRANSFERS E-SALES

MONITORING OFFICERS

2018 BUDGET AND STRATEGY FOR 2018

CONCLUSION