FNB CEO: How we plan to stay ahead of the competition

FNB, one of South Africa's leading banks, has managed to increase its profits despite the challenging economic landscape. The bank's fee and commission income grew by 5%, driven mainly by increased volumes in its digital and electronic channels. This growth comes at a time when the rate of volume growth is slowing due to customers' constrained disposable incomes, competitive pressures, and certain fee concessions. FNB CEO, Jacques Celliers, credits the resilience of the bank's employees and the loyalty of its 8 million customer base for the positive results. He highlights the importance of unlocking value within the existing customer base through upselling and cross-selling of products. Additionally, the bank's focus on digital platform migrations has led to increased efficiencies and a boost in transactional activity. Celliers emphasizes the importance of staying competitive in the market, particularly in terms of pricing strategies and loyalty programs. Despite the challenging environment, FNB has reported growth in transactional volumes and deposit franchises, showcasing the bank's ability to adapt to changing market conditions. Celliers acknowledges the tough competition in the banking sector, with new entrants and digital innovations posing a threat to traditional players. He mentions the tie-up with Time Bank and ZCC as a potential competitive challenge that FNB is prepared to face head-on. Celliers addresses the issue of impairments and increased operational challenges, highlighting the bank's efforts to manage and mitigate risks associated with loan impairments. He stresses the importance of supporting clients through difficult times and helping them reconfigure their businesses to navigate the current economic uncertainties. The CEO also discusses the impact of external factors like the COVID-19 pandemic and global market volatilities on FNB's business and its clients. While the bank does not have significant exposure to the oil and gas sector, Celliers emphasizes the need for resilience and preparedness in the face of market uncertainties. In conclusion, Celliers calls for collaboration and support within the banking sector and the broader economy to stimulate growth and drive recovery. Despite the challenges ahead, FNB remains committed to its customers and is prepared to weather the storm and emerge stronger.