Rebosa Launch - FNB Presentation

In partnership with FNB
Rebosa Launch | July 2012 | Slide No. 1
First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20).
Challenges of a ‘post-boom’
Property Market
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Integrity under threat
Costs perceived to be too high
Huge inefficiencies
Tough economic cycle
Consumers under pressure
Competition is not always healthy
Rebosa Launch | July 2012 | Slide No. 2
Consumers under pressure
Downscaling due to Financial Pressure vs
Upgrading
35%
30%
% of Total Sales
25%
20%
20%
15%
10%
5%
0%
Q1-2008
Q3-2008
Q1-2009
Q3-2009
Q1-2010
Q3-2010
Q1-2011
Q3-2011
Percentage of total sellers downscaling due to financial pressure
Percentage of sellers selling in order to upgrade
Rebosa Launch | July 2012 | Slide No. 3
Consumers under pressure
25
23
80
74.621
19
70
17
15
60
13
11
50
9
7
40
5
1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
Household debt-to-disposable income ratio (Left Axis)
Rebosa Launch | July 2012 | Slide No. 4
Prime Rate
%
%
Household Debt to Disposable Income
Ratio vs Interest Rates
Huge inefficiencies
Proportion of properties sold at less than
asking price
20
90
16
15.6
88
70
12
%
Weeks and Days on the Market
Average time that a property
is on the market
8
50
30
4
0
2005
2006
2007
2008
2009
2010
2011
Weeks and days that the average property is on the market before being sold
10
2012
2004
Smoothed
2005
2006
2007
2008
Percentage of properties sold at less than asking price
Average Percentage Drop in Asking Prices
-4%
-6%
2010
2011
2012
-8%
-10%
-12%
-14%
-11%
-11%
-12%
-12%
-11%
-11%
-12%
-13%
-13%
-16%
-18%
Rebosa Launch | July 2012 | Slide No. 5
2009
Average percentage drop in asking price by sellers required to drop their price to make the sale
2010
2011
2012
Smoothed
Unhealthy market balance
75
FNB Valuers Residential Market Strength
Indices
Index Scale 0 to 100
70
65
60
55
50
45
40
35
30
25
Jan-01
Jan-03
Jan-05
Jan-07
Jan-09
Jan-11
FNB Valuers' Market Strength Index (Scale 0 to 100 where 50 indicates a balanced market)
Demand rating (scale 0 to 100)
Supply rating (scale 0 to 100)
Rebosa Launch | July 2012 | Slide No. 6
Non-existent capital return
FNB vs Absa Real House Price Growth
40%
30%
20%
10%
0%
Jan-02
-10%
2.0%
Jan-04
Jan-06
Jan-08
Jan-10
Jan-12
-8.7%
-20%
FNB Real House Price Index - year-on-year percentage change
Absa Real Average House Price (CPI adjusted) - year-on-year percentage change
Rebosa Launch | July 2012 | Slide No. 7
Be with FNB, the MORE
GIVE bank
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Rebosa Launch | July 2012 | Slide No. 8
eWallet
Pay2cell
Cardless Cash withdrawals
Geopayments
FNB Facebook Voucher
FNB Connect
FNB.mobi
dotFNB
Instant Accounting
FNB Banking App
Biometrics with Home Affairs
Fuel Rewards
eBucks
FNB Smartphone/Tablet Deal
Wholesale Online Life insurance
Smart Chip and Pin cards
Property Barometer
Twitter as a banking channel
The future of banking
Rebosa Launch | May 2012 | Slide No. 9
The future of banking
Rebosa Launch | July 2012 | Slide No. 9
Quick Sell
• The most successful innovations
address the needs of the customer
• Often, a partner is needed to fulfil
those needs
• Hence, the success of Quick Sell
is achieved through successfully
partnering with the experts
Mar-12
5,800
Jan-12
Nov-11
Sep-11
Jul-11
May-11
Mar-11
Jan-11
Nov-10
Sep-10
Jul-10
May-10
Mar-10
Rebosa Launch | May 2012 | Slide No. 10
Jan-10
Nov-09
Sep-09
Jul-09
May-09
Mar-09
Number of Properties Sold through
Quick Sell from FNB
Property Leader
Preapprovals
Valuations
Area and property info
Advice
Finance
Rebosa Launch | July 2012 | Slide No. 11
In partnership with FNB
Education
• Assist with eLearning (Host, facilitate and contribute to
education of the business owner and his/her employees)
Governance
• Accreditation and endorsement of Real Estate Businesses
and Estate Agents Partnerships with the industry
• Quick Sell, Property Leader
Rebosa Launch | July 2012 | Slide No. 12
Thank you,
Clinton Martle
Property Leader Manager
Western Cape
Ewald Kellerman
Head of Sales
First National Bank Home Loans
Twitter @EwaldKellerman
Rebosa Launch | July 2012 | Slide No. 13