The past year has proved challenging and turbulent for global markets. Declining market and consumer confidence, rising agro- and fuel inflation, and volatility in the global housing markets are some of the factors that have caused uncertainty and raised central bank concerns about liquidity, risks and other regulatory considerations. Although South African banks were largely unaffected by the sub-prime crisis, the global markets proved challenging.
As a result of our concern about the risks of our exposure to the troubled world markets (and as evidenced by RMB’s Equities Trading losses of $200 million up to December 2007) we embarked on a process of de-risking and portfolio liquidation.
Notwithstanding the local and global economic slowdown, we continue to deliver value. Our success is due to our recognition that sustainable business practices remain even more important than ever in times of uncertainty. We continue to apply traditional yet innovative principles throughout our business – from ethics and best practice to nurturing talent and embracing transformation. We produced excellent results in our Investment Banking, Private Equity and FiCC (treasury) operations. Although local trading conditions may continue to weaken, our ability to provide innovative solutions to our clients, leveraging off our reputation, track record and depth of human talent, ensures that we remain valuable to all our stakeholders.
We continue to invest in our strategic client relationships and technology platforms, introducing programmes to transform our operating systems, providing us with a further competitive advantage. We also ensure that our current and future talent enjoy an environment that frees them up to focus on our clients and other revenue generating activities.
With the global imperative to reduce humanity’s environmental impact, we voluntarily undertook our second carbon footprint audit, with the assistance of PriceWaterhouse Coopers. This reinforced our view of the areas in which we may further reduce our environmental impact. Through FirstRand Ltd, we are also considering the legal implications relating to project financing and the environmental and linked financial impact.
More than ever, corporate assistance to communities can help bring about a fundamental positive change to society. RMB provided R 20 million to community investment (CSI and employee volunteer) projects. Underlying some of South Africa’s skills concerns is a national lack of maths competency. We are focusing on investing in the development of maths literacy and maths teachers, as a primary CSI initiative.
We believe in the sustainable balance of doing good business and good work, and we continually strive to remain relevant to our shareholders, our clients, our staff, our communities and broader society.
