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 • 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% 25% % of Total Sales 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 Household Debt to Disposable Income Ratio vs Interest Rates 25 23 80 74.6 21 19 70 17 15 % 60 13 11 50 9 7 40 5 Rebosa Launch | July 2012 | Slide No. 4
Huge inefficiencies Proportion of properties sold at less than Average time that a property asking price is on the market 20 Weeks and Days on the Market 90 88 16 15.6 70 12 % 50 8 30 4 0 10 2005 2006 2007 2008 2009 2010 2011 2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 Weeks and days that the average property is on the market before being sold Smoothed Percentage of properties sold at less than asking price Smoothed Average Percentage Drop in Asking Prices -4% 2010 2011 2012 -6% -8% -10% -11% -11% -11% -11% -12% -12% -12% -12% -13% -13% -14% -16% -18% Rebosa Launch | July 2012 | Slide No. 5 Average percentage drop in asking price by sellers required to drop their price to make the sale
Unhealthy market balance FNB Valuers Residential Market Strength Indices 75 70 65 Index Scale 0 to 100 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% 2.0% 0% Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 -8.7% -10% -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 • 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 Rebosa Launch | July 2012 | Slide No. 8
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 Number of Properties Sold through Quick Sell from FNB 5,800 Jul-09 Sep-09 Jul-10 Sep-10 Jul-11 Sep-11 Mar-09 May-09 Nov-09 n-10 Mar-10 May-10 Nov-10 n-11 Mar-11 May-11 Nov-11 n-12 Mar-12 a a a J J J Rebosa Launch | May 2012 | Slide No. 10
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
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