Page 26 - Capricorn IAR 2020

OUR STAKEHOLDERS AND HOW WE CREATE VALUE
• Capricorn Private Wealth was launched, and its customer contribution is ahead of what we aimed for.
• At Bank Gaborone, the growth in total loans and advances and total deposits is ahead of the industry.
• Six Sigma drove a material improvement in customer activation processes:
− Bank Windhoek reduced the turnaround time for instant card issuing from three days to seven minutes
− Bank Windhoek improved customer experience by reducing the client acquisition cycle time from 90 to 35 minutes
− Bank Windhoek reduced the number of application forms for client and product acquisition from four forms to one, and the number of pages per application decreased from 11 to three
− A cloud-based automated workflow solution was implemented in the legal collections department to reduce turnaround time by at least 50%, significantly reducing errors and the workload of employees
− BankGaboronelaunchedtwokeyprojectstoreducethe turnaround time on personalised card issuing from two weeks to three days and to reduce the average days for unsecured lending disbursement from five to two working days
− Bank Gaborone implemented Six Sigma enhancements in our customer service optimisation programme to have a single customer onboarding document to reduce the number of legal pages
− Customers of Bank Gaborone can now obtain an instant card and transact at points of sale and ATMs immediately following the in-branch roll-out since October 2019
• Six Sigma analyses were used as input into many other process improvement initiatives. We will continue to invest in Six Sigma as a capability and will expand our process optimisation competency to the benefit of our clients, internal customers and ultimately, shareholders. To become a customer-led organisation, the Six Sigma capability will greatly improve
our ability in future to identify defects associated with
customer delivery.
• We acquired a 55.5% shareholding in Entrepo and a 30.0%
shareholding in Paratus Group Holdings.
• New products included smartphone mobile banking
applications such as EasyWallet and SPENN, credit cards and targeted accounts.
Lessons learned from our previous strategy cycles
• Be more deliberate about implementation and shared
accountability for execution
• Focus on both strategy metrics and targets as well
as on change management to drive execution
(The Capricorn Way)
• Over communicate on strategy
GROUP CEO’S REPORT FINANCIAL DIRECTOR’S REVIEW
• We opened an in-house client contact centre in June 2018 providing a 24-hour inbound service for all three banks
The outsourced service provider contract was up for renewal in July 2018. By insourcing the solution, we saved N$2 million in fees over a five-year period, while also expanding our service offering with the same number of employees.
• We refreshed the Group brands in line with the monolithic brand architecture.
Compared to the previous strategy cycle from 2014 to 2017, we improved our ability to achieve better throughput and faster delivery of our strategic projects. COVID-19 came as an accelerator. Many of the tools we introduced in terms of Agile have become key in tracking actions and monitoring progress during this time. COVID-19 was an igniter of taking Agile further.
A focus of the 2018-2020 strategy cycle was to improve our execution abilities. We adopted Agile methodologies and built eight execution platforms to assist, among others, with strategy execution; these platforms proved to be effective – for both strategy and non-strategy projects.
The new AsOne2023 strategy features our strategic choices and a refreshed, focused purpose statement. Read more in the strategy section from page 41.
Operational performance
Capricorn Group’s response to a challenging year showed resilience and sustainability. Profit from continuing operations contracted by only 2.2% to N$1.01 billion, which compares favourably to results announced by other financial institutions in the SADC region. We are proud of the performance delivered by our business units and associates.
Bank Windhoek
Bank Windhoek delivered strong results; however, profitability was under pressure towards the end of the financial year due to the systemic measures taken by the Bank of Namibia in support of the economy post the outbreak of COVID-19. The key action that affected Bank Windhoek was the significant reduction in the Namibia repo rate by 225 bps. Profit after tax decreased by 9.8% to N$721 million (2019: N$800 million). We had to consider short-term trade-offs to ensure the bank’s long-term sustainability, especially given Bank Windhoek’s role as a systemically important player in the financial ecosystem of Namibia. The bank’s focus was on ensuring stability through business continuity and prudent credit and liquidity management.
Business activity and transaction volumes decreased significantly during the lockdown period, and the bank extended COVID-19 assistance in various forms:
• An investment to protect employees while operating as an essential service
• Clients were assisted on a case-by-case basis through loan deferments and fees and charges were reduced in certain instances
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