Governance

The Board exercises effective control over the Group and gives strategic direction to the Bank’s management.

The Board of Directors has a collective responsibility to create and deliver sustainable value for our stakeholders in a manner that is supported by the right culture, values and behaviour throughout the Group. To support our role in determining the strategic objectives and policies of the Group, there exists a well-defined corporate governance framework. We aim to achieve long-term and sustainable value and it is our responsibility as the Board to ensure that management delivers effectively on short-term objectives, while promoting the long-term growth of the Group.

In addition, we have further responsibility for ensuring that management maintains both an effective system of internal control and an effective risk management and oversight process. In carrying out these responsibilities, we consider the Group’s business and reputation, the materiality of risks that are inherent in the business and the relevant costs and benefits of implementing controls. The Group’s internal control system provides assurance of the effective operation of adequately designed internal financial and operational controls, compliance with legislation and regulation and efficient operations.

The Board is the decision-making body for those matters that are considered of significance to the Group owing to their strategic, financial or reputational implications or consequences. To retain control of these key decisions, certain matters have been identified that only we as the Board can approve and there is in place a formal schedule of powers reserved to the Board. Directors act in accordance with the Group’s constitution and only exercise powers for the purposes for which they have been conferred. These matters include the approval of Group strategy, interim and full-year financial statements and any major acquisitions, mergers, disposals or capital expenditure. Specific responsibilities have been delegated to Board Committees and each committee has its own terms of reference.

The Board comprises Non-Executive and Executive Directors with different skills, professional knowledge and experience, with independent Non-Executive Directors comprising the majority on the Board, ensuring that no individual director has unfettered powers of decision-making.

Susan Louise Botha B.Econ (Hons)
Chairman

Santie is the chairman of Curro Holdings and Famous Brands. She serves as a non-executive director on the board of Telkom. She serves on the Advisory Council of the Africa Leadership University, Mauritius.

Previous positions include chancellor of Nelson Mandela University (2011-2017), non-executive director of Liberty Holdings (2013-2019) Imperial Holdings (2011-2013), Tiger Brands Holdings(2004-2017) and executive director of MTN Group (2003-2010), ABSA Bank (1996-2003) and Unilever, London, UK (1991-1996). She won a number of awards, including Top 100 Most Reputable Africans in 2018, 2010 Businesswoman of the Year from the Businesswomen’s Association of South Africa, Marketer of the Year in 2002 and Young Business Person of the Year in 1998.

Santie was appointed to Capitec and Capitec Bank’s boards on 1 June 2019 and serves as the Chairman of the Board of Capitec Bank Holdings Limited and Capitec Bank Limited. Santie was appointed to Mercantile Bank’s board on 29 November 2019.

Karl Rainer Kumbier
Chief Executive Officer

Karl holds a B. Compt degree from the University of South Africa and a PGDA from the University of Cape Town. He is a Chartered Accountant (SA) and a Chartered Financial Analyst (CFA Institute). Before joining Mercantile, he worked for the Standard Bank group for nine years in various positions, including provincial director: Western Cape, and chief operating officer of Stanbic Bank Ghana Limited. Karl joined Mercantile in 2010 and was appointed as CEO of Mercantile with effect from 1 April 2013. He is also a member of the board and the board executive committee (as the chief executive representing the independent banks) of the Banking Association of South Africa.

Maria Emilia Lavandeira Teixeira
Finance Director

Emilia holds a BCom (Hons) degree from the University of Pretoria and is a Chartered Accountant (South Africa). Emilia joined Mercantile as the Head of Finance in January 2006 and was promoted to Chief Financial Officer in April 2013. In June 2018, Emilia was appointed as the Group’s Financial Director. She has over 21 years’ experience in the financial services sector and had served as the General Manager: Group Finance and Administration at Sasfin Bank Limited, as the Head of Accounting and Risk Control at Commerzbank AG and as a Senior Bank Supervision Analyst at the South African Reserve Bank, prior to joining Mercantile. Emilia is responsible for the overall Finance, Human Resources, Electronic Services, Treasury and asset and liability management functions with Mercantile.

Gerhardus Metselaar Fourie BComm (Hons), MBA
Executive Director

Gerrie was head: operations at Capitec Bank from 2000 until his appointment as chief executive officer of Capitec and Capitec Bank effective 1 January 2014. He started his career at Stellenbosch Farmers’ Winery in 1987 in the financial planning department and was later appointed as the area general manager of KwaZulu- Natal and later Gauteng. He serves on the Mastercard MEA advisory board as well as on the board of Cream finance.

Gerrie was appointed to Mercantile Bank’s board on 29 November 2019.

André Pierre du Plessis BComm (Hons), CA(SA)
Executive Director

André joined Capitec Bank in 2000 as the executive: financial management. He has extensive experience in business advisory services, financial consulting and strategic and financial management. He was the chief executive of financial management for Boland PKS and NBS Boland Group from 1996 to 2000. He was a partner at Arthur Andersen, where he was employed from 1986 to 1996. He serves on the boards of Creamfinance, Praelexis and a non-profit organisation, Community Keepers.

André was appointed to Mercantile Bank’s board on 29 November 2019.

Jean Pierre Verster BCompt (Hons), CA(SA), CFA, CAIA
Non-Executive Director

Jean Pierre is currently an equity portfolio manager at Fairtree Capital. Previous positions include investment analyst at 36ONE Asset Management and analyst and portfolio manager at Melville Douglas Investment Management. Prior to entering the investment management industry, he fulfilled various roles within the Standard Bank Group, including that of credit and corporate research analyst in the bank’s Global Markets Research division, where he analysed the financial position of companies from a credit perspective. In 2005, he started his career as a financial manager in the insurance services environment. In 2006, he gained experience as an internal auditor in the retail banking environment. Jean Pierre was appointed to Capitec and Capitec Bank’s boards on 23 March 2015 and serves as the Chairman of the Capitec Audit Committee. Jean Pierre was appointed to Mercantile Bank’s board on 29 November 2019.

John David (Jock) McKenzie BSc (Chemical Eng), MA
Non-Executive Director

Chairman of the risk and capital management committee and lead independent director Jock serves on the boards of a number of companies. He was the chairman and chief executive officer of Caltex Petroleum Corporation until 2001. He was extensively involved in the merger of Caltex, Chevron and Texaco and was president – Asia, Middle East and Africa – of Chevron-Texaco until 2004. Between 1997 and 2003 he was a member of a number of advisory boards in Singapore, including the American Chamber of Commerce. He was the founding president of the South Africa–Singapore Business Council and a member of the Singapore Economic Development Board. Since 2004 he has served as a consultant to the Energy Market Authority and Temasek Holdings in Singapore and acted as the chairman of the Commission of Inquiry into the Singapore Electricity and Gas Supply Systems. In South Africa, he has consulted for, among others, Sasol, the South African Petroleum Industry Association’s investigation into the impact of the global economic crisis on the South African oil industry and other related topics. He currently serves on the boards of Coronation Fund Managers, Sappi and Zululand Distilling Company and is the chairman of the UCT Foundation, the Carleton Lloyd Educational Trust and the Rondebosch Schools Education Trust.

Jock was appointed to Capitec and Capitec Bank’s boards on 1 March 2012 and to Mercantile Bank’s board on 29 November 2019.

Chris Adriaan Otto BComm LLB
Non-Executive Director

Chris has been an executive director of PSG Group since its formation and has served as a non-executive director since February 2009. He is also a director of Distell Group, Kaap Agri and Zeder Investments. Chris was appointed to Capitec and Capitec Bank’s boards on 6 April 2000. Chris was appointed to the Mercantile Bank board on 5 February 2020.

Kabelo Makwane BComm
Non-Executive Director

Kabelo is the managing executive, Cloud, Hosting and Security for Vodacom Business Africa. Previously he was the managing director for Accenture, Africa and prior to that the managing director of Microsoft, Nigeria (2013–2016), which he successfully developed into a stand-alone subsidiary of Microsoft Corporation. He gained extensive experience in IT and sales during his career at Storgate Africa (2001), Datacentrix (2001–2003), Unisys (2004), Cisco Systems (2004–2009) and Microsoft South Africa (2009–2013). Kabelo was appointed to Capitec and Capitec Bank’s boards on 6 April 2017. Kabelo was appointed to the Mercantile Bank board on 5 February 2020.

Daniel Petrus Meintjes BPL Hons (Industrial Psychology), AMP
Non-Executive Director

Danie served as chief executive officer of the Mediclinic group from 2010 up to his retirement on 1 June 2018. He currently serves as a non-executive director on the board of Mediclinic International. Danie joined the Mediclinic group in 1985 as a hospital manager. He was appointed as a member of Mediclinic’s executive committee in 1995 and as a director in 1996. He was seconded to serve as a senior executive of the Mediclinic group’s operations in Dubai in 2006 and appointed as chief executive officer of Mediclinic Middle East in 2007. He served as a non-executive director of Spire Healthcare Group from 2015 up to his retirement in May 2018. Danie was appointed to Capitec and Capitec Bank’s boards on 28 November 2018. Danie was appointed to the Mercantile Bank board on 5 February 2020.

Petrus Johannes Mouton BComm (Maths)
Non-Executive Director

Piet is the chief executive officer of PSG Group. He serves as a director on the boards of various PSG Group companies, including Curro Holdings, PSG Konsult and Zeder Investments. He has been active in the investment and financial services industry since 1999. Piet was appointed to Capitec and Capitec Bank’s boards on 5 October 2007. Piet was appointed to the Mercantile Bank board on 5 February 2020.

Nkosana Samuel Mashiya MComm (Economics)
Executive Director

Executive: risk management Nkosana joined Capitec Bank on 1 November 2015. He was the deputy registrar of banks at the SARB since 2011. He was responsible for the policy framework to guide the prudential supervision and regulation of the financial conglomerates in South Africa since 2014 and was acting managing director of the Co-operative Banks Development Agency since 2011. Previously he worked at the National Treasury as chief director: international finance (2010 to 2011), chief director: financial sector development (2006 to 2010) and director: banking development (2002 to 2006). Nkosana started his career as a lecturer at the University of Johannesburg (1998 to 2001). He later moved to the University of Natal as a lecturer (2001 to 2002) before joining National Treasury. Nkosana has served on the Capitec Holdings and Capitec Bank’s boards since 1 June 2016. Nkosana was appointed to the Mercantile board on 14 February 2020.

Michiel Scholtz du Pré le Roux BComm LLB, DComm (hc)
Non-Executive Director

Michiel was Capitec Holdings and Capitec Bank’s chairman from 2007 until 31 May 2016 when he stepped down. He continues to serve on the board as a non-executive director. He was the bank’s chief executive officer until 2004. Michiel was appointed to Capitec’s board on 1 March 2001 and to Capitec Bank’s board on 6 April 2000.

Emma Mashilwane CA(SA), RA, MBA
Non-Executive Director

Emma is a seasoned chartered accountant and is the co-founder and CEO of MASA Risk Advisory Services Proprietary Limited. Her industry exposure includes Logistics, Mining, Financial Services (including Insurance), Real Estate Management, Healthcare and Pharmaceuticals.

Emma serves as a Non-Executive Director on the boards of three listed entities, namely, Tiger Brands, Murray & Roberts and Famous Brands. Her board roles include serving on Audit and Risk Committees as well as Investment Committees. She is the chairperson of the Tiger Brands Audit Committee and is the Chairperson of the Famous Brands Remuneration Committee. She is a member of the South African Institute of Chartered Accountants, Independent Regulatory Board of Auditors, Institute of Internal Auditors and Institute of Risk Management of South Africa. Emma recently completed a Master of Business Administration degree at the Wits Business School in addition to her BCom Honours (University of KwaZulu Natal) and BCompt (UNISA) degrees. In 2015, Emma completed the Global Executive Development Programme through GIBS.

Emma was a Finalist in the Business Women’s Association of South Africa, 2017 Gauteng Regional Business Achiever Awards (Professional Category). Emma was appointed to the Mercantile board on 6 March 2020.

Group Secretary: T Singh
Registered office
1st Floor
Mercantile Bank
142 West Street Sandton 2146
Sandown 2196

PO Box 782699
Sandton 2146

2018
Mercantile Bank Limited Financial Statements 2018
Mercantile Integrated Annual Report 2018
2017
Mercantile Bank Limited Financial Statements 2017
Mercantile Integrated Annual Report 2017
2016
Mercantile Bank Limited Financial Statements 2016
Mercantile Integrated Annual Report 2016
2015
Mercantile Bank Holdings Limited IAR 2015
Mercantile Bank Limited Annual Financial Statements 2015
2014
Mercantile Bank Holdings Limited - Integrated Annual Report 2014
Mercantile Bank Limited Annual Financial Statements 2014
2013
Mercantile Bank Holdings Limited - Integrated Annual Report 2013
Mercantile Bank Limited Annual Financial Statements 2013
2012
Mercantile Bank Holdings Limited Integrated Annual Report 2012
Mercantile Bank Limited Annual Financial Statements 2012
2011
Mercantile Bank Holdings Limited Condensed Audited Results for the year ended 31 December 2011
Mercantile Bank Holdings Limited Integrated Annual Report 2011
Mercantile Bank Holdings Limted Condensed unaudited interim results for the six months ended 30 June 2011
Mercantile Bank Limited Annual Financial Statements 2011
2010
Mercantile Bank Holdings Limited Annual Report 2010
Mercantile Bank Holdings Limited condensed Audited Results for the year ended 31 December 2010
Mercantile Bank Holdings Limited Condensed unaudited interim results for the six months ended 30 June 2010
Mercantile Bank Limited Annual Financial Statements 2010
2009
Mercantile Bank Holdings Limited Annual report 2009
Mercantile Bank Holdings Limited condensed Audited Results for the year ended 31 December 2009
Mercantile Bank Holdings Limited condensed unaudited interim results for the six months ended 30 June 2009
Mercantile Bank Limited Annual Financial Statements 2009
2008
Mercantile Bank Holdings Limited Annual Report 2008
Mercantile Bank Holdings Limited condensed Audited Results for the year ended 31 December 2008
Mercantile Bank Holdings Limited Unaudited interim results - for the six months ended 30 June 2008
Mercantile Bank Limited Annual Financial Statements 2008
2007
Mercantile Bank Holdings Limited Annual Report 2007
Mercantile Bank Holdings Limited Audited Results for the year ended 31 December 2007
Mercantile Bank Holdings Limited Unaudited Interim Results for the six months ended 30 June 2007
Mercantile Bank Limited Financial Statements 2007
2006
Mercantile Bank Holdings Limited - Annual Report 2006
Mercantile Bank Holdings Limited - Audited Results for the year ended 31 December 2006
Mercantile Bank Holdings Limited - Unaudited Interim Results for the six months ended 30 June 2006
Mercantile Bank Limited Annual Financial Statements 2006
2005
Mercantile Bank Holdings Limited - Annual Report 2005
Mercantile Bank Holdings Limited - Audited Results for the year ended 31 December
Mercantile Bank Holdings Limited - Unaudited Interim Results for the 6 months ended 30 June 2005
Mercantile Bank Limited Financial Statements 2005
2004
Mercantile Bank Limited Annual Financial Statements 2004
Mercantile Lisbon Bank Holdings Limited - Annual Report 2004
Mercantile Lisbon Bank Holdings Limited - Audited Results for the year ended 31 December 2004
Mercantile Lisbon Bank Holdings Limited - Unaudited Results for the 6 months ended 30 June 2004
2003
Mercantile Bank Limited Annual Financial Statements 2003
Mercantile Lisbon Bank Holdings Limited - Annual report 2003
Mercantile Lisbon Bank Holdings Limited - Results for the year ended 31 December 2003
Mercantile Lisbon Bank Holdings Limited - Unaudited Results for the six months ended 30 June 2003
2019
Quarterly disclosure - 30 November 2019
Quarterly disclosure - 30 September 2019
Quarterly disclosure - 31 March 2019
Unaudited Bi-Annual Disclosure 30 June 2019
2018
Unaudited Bi-Annual Disclosure 31 December 2018
Quarterly disclosure - 31 March 2018
Unaudited bi-annual disclosure 30 June 2018
Quarterly disclosure - 30 September 2018
2017
Quarterly Disclosure - 31 March 2017
Unaudited Bi-Annual Disclosure - 30 June 2017
Quartely Disclosure - 30 September 2017
Unaudited Bi-Annual Disclosure - 31 December 2017
2016
Quarterly Disclosure - 31 March 2016
Unaudited Bi-Annual Disclosure - 30 June 2016
Quarterly Disclosure - 30 September 2016
Unaudited Bi-Annual Disclosure - 31 December 2016
2015
Capital Adequacy Disclosure - 31 March 2015
Unaudited Bi-Annual Disclosure - 30 June 2015
Quarterly Disclosure - 30 September 2015
Unaudited Bi-Annual Disclosure - 31 December 2015
2014
Capital Adequacy Disclosure - 31 March 2014
Unaudited Bi-Annual Disclosure - 30 June 2014
Capital Adequacy Disclosure - 30 September 2014
Unaudited Bi-Annual Disclosure - 31 December 2014
2013
Capital Adequacy Disclosure - 31 March 2013
Unaudited Bi-Annual Disclosure - 30 June 2013
Composition of Capital Disclosure - 30 June 2013 (Annexure A and B)
Capital adequacy Disclosure - 30 September 2013
Unaudited Bi-Annual Disclosure - 31 December 2013
2012
Capital Adequacy Disclosure - 31 March 2012
Unaudited Bi-annual Disclosure - 30 June 2012
Capital Adequacy Disclosure - 30 September 2012
Unaudited Bi-annual Disclosure - 31 December 2012
2011
Unaudited Bi-annual Disclosure - 30 June 2011
Unaudited Bi-Annual Disclosure - 31 December 2011
2010
Unaudited Bi-annual Disclosure - 30 June 2009
Unaudited Bi-annual Disclosure - 31 December 2009
2009
Unaudited Bi-annual Disclosure - 30 June 2009
Unaudited Bi-annual Disclosure - 31 December 2009
2008
Unaudited Bi-annual Disclosure - 30 June 2008
Unaudited Bi-annual Disclosure - 31 December 2008

The NATIONAL CREDIT ACT provides a consolidated set of rules for credit granting, reporting and monitoring. The Act has been introduced to put a new framework in place for every type of credit transaction in South Africa. The Act aims to prevent reckless lending and over-indebtedness, regulates lending practices, and establishes new and improved rights for credit consumers.

New regulations will govern a wide range of products and services including home loans and mortgages, bank overdrafts, personal loans, credit cards, retail credit, leasing and instalment sale. The regulations seek to improve transparency, prevent unfair lending practices, curb reckless granting of credit, assist consumers who are heavily in debt, regulate the information held by credit bureaux and create a central register of debt obligations.

Does it apply to you?

The NCA applies to credit agreements with all consumers, and to entities such as close corporations, companies, partnerships and trusts, whose asset value or annual turnover is below a prescribed threshold (currently R1 million).

Exemptions: The Act will not apply in respect of loans to the State or where a juristic person, who falls within the NCA, enters into a large transaction. Large transactions are defined as mortgage agreements and credit agreements above a prescribed threshold (currently R250 000).

NCA Institutions

Two new regulatory institutions have been established to administer the Act: The National Credit Regulator (NCR) is the administrative regulator dealing with issues such as research and policy development, registration of industry participants, investigation of serious complaints and will take responsibility for the enforcement of the Act. The National Credit Regulator will monitor credit providers and their compliance with the Act and regulations. The National Consumer Tribunal (NCT) will conduct hearings into complaints under the Act.

In terms of the NCA a Consumer is afforded certain rights and protections:

Protection from aggressive advertising

Negative option marketing is prohibited. (This occurs when goods or services are offered to you with the assertion that if you do not return the products or refuse the service within a certain time period you have 'purchased' them). Marketing of credit at the consumer's home or workplace is prohibited unless the visit is pre-arranged or the consumer invites the credit provider to visit for that purpose.

Protection from over-indebtedness

The credit provider must conduct a proper assessment of each consumer's ability to meet obligations, taking reasonable steps to investigate and evaluate the consumer's understanding and appreciation of the risks, costs and obligations of the proposed agreement; and ability to meet those obligations in a timely manner in terms of the consumer's existing financial means and debt repayment history. A credit agreement will be deemed to have been entered into recklessly if the credit provider failed to conduct the required assessment, or having conducted it, enters into an agreement with a consumer despite the fact that the consumer did not appreciate the nature of the risks, costs and obligations, or could not afford them. However, the onus is on the consumer to fully and truthfully answer any request by the credit provider for information as part of the assessment required. Failure to do so will be a defence against any allegation that the agreement is reckless. The consumer may make a claim of reckless lending through a debt counsellor, who needs to investigate and seek an order from a court or the Tribunal.

Pricing (Interest rates and fees)

All existing advances taken before 1 June 2007 will continue to be priced as agreed under the Usury Act, but all new lendings with effect from 1 June 2007 will be subject to the pricing provided for under the NCA. The Minister has established an interest cap and other cost controls, prohibiting any costs other than the principal sum borrowed, interest, an initiation fee, periodic or transaction based service fees, insurance premiums for credit insurance and collection costs. These fees, premiums and charges are subject to regulatory maximums or standards. Surcharges for insurance and incidental costs are prohibited.

All costs must be advised in advance and the consumer has the right to arrange insurance directly, rather than pay the credit provider to do so, and to choose to arrange his or her own insurance policies.

Applying for credit under the NCA

Pre-agreement and quotation: The credit provider must provide the consumer with a pre-agreement, containing the main features of the proposed agreement and a quotation of the costs. This pre-agreement is valid for 5 days and gives consumers an opportunity to shop around for the best deal.

Credit assessment: The consumer will be required to provide detailed information to the credit provider. This may include a detailed statement of income and costs, a household budget and details of other credit commitments in order for the credit provider to assess affordability.

Consumer credit records and credit bureaux: The Act requires the credit provider upon entering or amending or terminating a credit agreement to report the transaction to a credit bureau.

Records of application: Credit providers will be required to keep records of all applications for credit and credit agreements for a prescribed time.

Payment of accounts: A consumer may pre-pay any amount owing at any time, and fully pay up the account at any time without penalty, except in the case of mortgage bonds or agreements in excess of R250 000, which are subject to a termination charge of not more than three months' interest.

Over-indebtedness and reckless lending

The Act aims to promote responsible credit granting and use. To achieve this, when a customer applies for credit, a credit provider is obliged to check whether the consumer can afford the credit. If the consumer cannot afford to repay the credit agreement, it could be alleged that the credit provider has granted the credit recklessly, which could have severe consequences for that credit provider.

What should you do if you feel that you may be over-indebted?

You may be over-indebted if – after deducting reasonable living expenses from your total income – you are, or will in the future be unable to repay your debts. In the case where a consumer gets into too much debt, the consumer should approach a debt-counselling service. As a registered credit provider, we fully support the National Credit Act (NCA), which came into effect on 1 June 2007, and have implemented the necessary policies and procedures to meet the requirements of the NCA. The NCA replaces the Usury Act and the Credit Agreements Act. Below are useful contact details should you require assistance.

Useful contact details:

Mercantile NCA Queries
Arrears Management - Ronell Visser

Telephone: 011 302 0658
Pre-Legal - Ron Brown
Telephone: 011 302 0532
Email: collections@mercantile.co.za

Mercantile Credit/Lending
Click here for Retail Banking products Contact Information
Click here for Commercial Banking products Account Executives

The National Credit Regulator and Debt Counsellors
Telephone: 0860 627 627
Email: info@ncr.org.za

Credit Bureaux
TransUnion ITC Credit Bureau
Telephone: 0861 482 482
Website: www.itc.co.za

Experien SA
Telephone: 0861 105 665
Website: www.experien.co.za

Xpert Decisions Systems (XDS)
Telephone: 011 645 9114
Website: www.xds.co.za

Compuscan
Telephone: 0861 514 131
Website: www.compuscan.co.za

Category Moody’s Rating 27 March 2019Moody’s Rating 5 October 2018Moody’s Rating 14 June 2017Moody’s Rating 24 May 2016Moody’s Rating 23 June 2015Moody’s Rating 22 December 2014Moody’s Rating 24 June 2014

Outlook

Stable

Stable

Stable

Stable

Stable

Negative

Negative

NSR Issuer Rating – Dom Curr

Baa1.za

Baa1.za

Baa1.za

Baa3.za

Baa3.za

Baa3.za

Baa3.za

NSR ST Issuer Rating Dom Curr

P-2.za

P-2.za

P-2.za

P-3.za

P-3.za

P-3.za

P-3.za

Mercantile’s ratings do not incorporate any parental support uplift, given the ongoing sale of the bank by its parent Caixa Geral de Depositos, S.A.(CGD; Ba1 stable/ba21) to Capitec Bank Ltd (unrated). At the same time, we do not incorporate any government support uplift for Mercantile, given the bank's relatively low systemic importance. Mercantile's issuer ratings reflect the bank's relatively high credit concentrations and the short contractual maturity profile of its funding. Further challenges for the bank include (1) expanding its customer deposit franchise in a highly competitive market, and (2) South Africa's (Baa3 stable) subdued economic growth environment. These challenges are, however, partially offset by the bank’s (1) robust asset-quality performance, (2) high net interest margin (NIM), supporting profitability, and (3) sound capitalisation and liquidity.