Você está na página 1de 10

Strategy and Competitive Position A YOUNG AND SMALL INSTITUTION EXPERIENCING RAPID GROWTH Although Capitec Bank is one

of the main players in the South African microlending industry1 and has an estimated 10% share of the market (40% share of the one-month loans market), it remains a very small institution even by local standards (total assets of USD 137mn as at February 2005, one-tenth the size of African Bank, the largest microlender). We do see possible risks in the development stage of a young institution growing at a rapid rate, but we take comfort from its good understanding of the microlending business, its careful risk management, prudent approach to liquidity, good information systems used to manage the risks and supervision by the SARB.2 TECHNOLOGY-DRIVEN, EFFICIENT PROVIDER OF BANKING SERVICES TO LOW-INCOME EARNERS We believe that Capitecs technology-driven business model is the right approach to serving the low-income-earning population. The bank has strong front-end information technology, including the paperless (no forms to fill, tasks are carried out electronically) and cashless (using ATMs and drop-safes) branches. By making use of magnetic strip and electronic smart cards (with embedded computer chip) that can be used not only in its own 208 ATMs but in all machines linked to Maestro, Capitec uses technology as its main distribution means. The bank is also able to use the distribution outlets of retailers; around 5% of customer cash withdrawals take place at retailers such as Pickn Pay and Shoprite, with whom the bank has business agreements. Capitec is also negotiating the opening of banking units in retailers premises and hopes to come to a funds-transfer arrangement with Shoprite to enable its customers to send funds to other areas in the country. 1. Microlending involves providing small unsecured loans to the low-income-earning population. The business is considered highrisk and the memories of the high-profilefailures of Saambou and Unifer in 2002 are still fresh. There are some 2,700 registered microlenders in South Africa including some retailers and the big banks.The size of the market is around ZAR 23bn, with the largest and most established microlender - African Bank accounting for around 26% share. 2. Capitec is supervised by the South African Reserve Bank and also reports to the Micro Finance Regulatory Council. 2 Moodys Analysis THE ABILITY TO PROVIDE FULL BANKING PRODUCTS AND SERVICES GIVES THE BANK AN EDGE OVER DIRECT COMPETITORS We believe that Capitec Banks retail banking capability represents a strength compared to its direct competitors. We do see risks in the banks transition from a microlender to a full service bank and believe that Capitec will need a few years to establish itself. During this time, the bank will focus on converting customers into full banking customers who transfer their salary to the bank and so can benefit from lower lending rates and more banking products. Simultaneously, Capitec will aim to lengthen the loan tenors from the predominant one- and three-month to 6 and 12 months. However, we believe that Capitecs transition is supported by a broad branch footprint (250 branches located where the customers work, live, shop or commute) that provides a good customer reach, while its representatives located at the branches are skilled in knowing their clients well and keeping close contact with them. The staff culture is closely aligned with the customer culture and this greatly improves acceptance. GOOD PROSPECTS TO GROW; MODERATE THREAT FROM COMPETITION We believe that Capitec has good growth prospects considering that there are an estimated 15 million unbanked South Africans (roughly one-third the countrys population) who may need low-cost banking services. Even allowing for the high unemployment levels, the portion with regular, albeit low-paying, employment would provide good numbers of potentially new customers. The needs of these customers are also being addressed by other microlenders, retailers, the mzanzi account providers and to a certain extent by the big banks, which still remain reluctant to make substantial commitments to this market sector. In general, we do not consider the competition as a serious threat to Capitecs margins or growth prospects. Capitecs rapid growth continues, with the bank almost doubling the number of customers between February and November 2005. The banks lending clients have increased from 140,000 to 230,000, while savings client numbers have jumped from 143,000 to 290,000, of which 116,000 have their salaries transferred to the bank. The banks systems have strong capacity to handle business growth, and indications are that strong growth will continue. THE NATIONAL CREDIT BILL3 WILL IMPACT THE OPERATIONS AND FINANCIAL PERFORMANCE OF ALL MICROLENDERS We believe that the National Credit Bill that is expected to be implemented during 2006 represents an important risk for the microlending industry. We expect that the interest rate cap to be introduced, coupled with a regulated pricing disclosure, will affect microlenders profit margins, and that earnings will be further hit by a VAT leakage which applies to non-interest income. Furthermore, the increased administration load, burden to ensure that customers do not become over-indebted and possible increased credit losses as a result of possible cover provided by the notion of reckless lending, are further areas for concern. A MODERATE LEVEL OF POSSIBLE SYSTEMIC SUPPORT IS IMPUTED INTO THE RATINGS We believe that Capitec is vulnerable to possible confidence crises. Although it is not considered a systemically important bank, we have imputed some systemic support into the ratings based on its importance in microlending, which is a politically important industry in South Africa. In a few years, we believe that Capitec will also become a much larger player in the sector, with a broader depositing and borrowing customer base, thus raising its value for the industry. 3. The National Credit Bill is expected to become legislation in 2006 and aims at making the industry more transparent and accountable, and protecting consumers from over-indebtedness and unlawful lenders. The Bill will replace all existing legislation (Usury Act, Credit Agreement Act) and will cover all credit providers and all credit transactions. It will possibly introduce an interest rate cap, require lenders to perform affordability assessments before granting loans and to make standard disclosures to customers in plain language. It will also require lenders to submit credit information to the national loans register and lead to the setting up of a National Consumer Tribunal and network of debt councillors. Moodys Analysis 3

Financial Fundamentals ASSET QUALITY IS ACCEPTABLE, GIVEN THE INDUSTRY RISKS Although bad debt levels are typically high for microlending businesses which involve unsecured lending to lowincome earners, Capitecs asset quality ratios are acceptable. Loan classification and provision standards are adequate, but we note that NPL ratios are difficult to interpret because most of the loans have one month tenor. Loans go into arrears if a payment is missed. All 90-day past-due one month loans are written off and the account is transferred from the branch to the head office for centralised collection procedures and handed over to collection agents. General provisions are created against six- and twelve-month loans and full specific provisions are taken for 90-day past-due balances. In practice, the bank recovers almost one-third of 90-day past due loans. Provision reserves seem to be adequate for the current level of delinquencies, but going forward we believe that the bank needs to bolster its provisioning levels. We believe that the banks close monitoring of the client base has enabled it to manage well the repayment of loans even though its credit granting-criteria are currently simplistic (based on an assessment of affordability of the loan and as yet incomplete assessment of the creditworthiness of the client) and decision making is at branch level. We believe that without a credit/behavioral scoring system (planned to be in place by 2007) and a database of customer credit history, a transition to longer-term loans and bigger volumes may hide risks. This transition will be further complicated by the need to possibly reduce the credit granting autonomy of the branches. HIGH PROFITABILITY, BUT REGULATORY CHANGES WILL HAVE A NEGATIVE IMPACT Capitec displays impressive earning power based on its wide profit margins. Currently, its P&L shows a huge interest margin and very low fee income. This picture is distorted by the fact that for reasons of simplicity, the bank quotes and charges an all-inclusive interest on the one-month loans which ranges from 15% to 21.5% per month. Interest income actually includes all loan origination and administration fees. Capitecs high cost-to-income ratio reflects the large investments made in developing a retail banking infrastructure and high staff training costs. We believe that this infrastructure, and the fact that the bank can offer full banking services, will enable it to grow its business volumes, loans and deposits, thus supporting its revenue growth dynamics. This should also help bring the cost-to-income ratio to more acceptable levels. We believe that the National Credit Bill will reduce the margin on loans, and that strong business growth will be required to drive profitability. The Bill is likely to introduce an interest cap (expected to be 60% per year) and will enable the bank to charge fees separately (estimated to amount to two thirds of the current interest charged). Of greater significance could be the VAT leakage which is applied to non-interest income. We believe that these changes will impact Capitecs earning margins, but that strong business growth will enable it to show good returns. Interest margins will also reduce as the bank shifts towards longer-term lending where interest rates will range from 9% to 12%. Only banking clients (those clients who have their salary transferred into an account with Capitec) are eligible for twelve month loans.Nevertheless, we see opportunities to grow the fee income base as the bank starts to charge fees for the banking services it provides. Capitec also has scope to leverage its balance sheet as it currently has low levels of loansto-asset levels.THE BANK FACES THE CHALLENGE OF GROWING ITS CLIENT BASE, BUSINESS VOLUMES AND STABLE CUSTOMER DEPOSITS IN ORDER TO BUILD CRITICAL MASS: In order to achieve optimum results from its business model, the bank needs to grow its client base and business volumes and build a critical mass. A large loyal customer base that earns the bank strong transactional income would be the key to sustainable profits. For this to happen, the bank needs time to reach a more mature lending phase. We also believe that Capitec needs to build a stable customer deposit base in order to fund its business on an ongoing basis a state that is also conditional on the bank gaining the confidence of depositing customers.

Total Assets (USD mn) Shareholders' Equity Total Liabilities Interest Income Interest Expense Net Interest Income Operating Income Non Operating Income Pretax Income Taxes Net Income Minority Interests Net Income (Group share) Dividends

137 379 424 545 -17 528 533 -3 71 -21 50 -50 -16

76 345 160 399 -3 396 397 -2 64 -19 45 -45 -18

56 318 128 324 -3 3 320 320 0 45 -15 30 -30 -16

35 304 96 261 -31 263 264 0 56 -17 39 -39 --

33 92 161 21 -10 -7 --167 3 -164 --164 --Resilient Seat Butterfly Valves

Tower bypass Isolation Central plant equipment FEATURE FUNCTION Provides bubble-tight shut off to 150 psi Drilled and tapped two-sided connection BENEFIT Reduces energy costs associated with media leakage Allows isolation and removal of downstream piping while system is pressurized Enables superior close off, while decreasing energy losses Lower torque requirements allow use of lower cost actuators Provides years of trouble-free service Requires lower torque and maintains precise alignment for positive close off Increases control and allows for various actuator configurations Allows full insulation of piping and maintains clearance for flanges Superior control and long life

Molded-in resilient seat Lugged body

Round polished disc

Provides 360 concentric seating, minimum flow restriction, lower torque requirement, and longer seat life

Upper and lower inboard bronze bearings Thru-stem design Extended neck Heavy duty corrosion resistant top bushing

Precisely aligns disk and reduces friction High strength and positive disk control, as well as standardized end connection Provides additional clearance Supports stem against side loads

599 Series Ball Valve Bodies-Two-way

Air Handling Units Unit ventilators Terminal boxes FEATURE FUNCTION Accommodates different actuator sizes BENEFIT Allows use of any sized OpenAir actuator on same valve body with no additional linkage

Universal mounting plate Flow optimizer

Generates equal percentage flow Provides linear heating response from control coil aids in proper characteristic for proper water coil loop control application Actuator mounting standoff and Provides a thermal barrier between actuator Allows actuator to be used in higher temperature applications thermally isolated bracket and valve Allows operator to manually operate valve in event of a power Manual override handle Enables hand operation of valve failure Less worry about close-off pressures; matches or exceeds Higher close-off 200 psi close-off for all line sizes competitors close-off pressure Provides more options for perfect matching Expanded Cv offering Better sizing of valves to the job requirements of valve with control loop Full port models available at Perfect for on/off applications Allows use of a consistent product line through all applications each line size Able to meet stainless steel specifications where required, while Stainless steel or chrome plated Provides performance and cost choices offering cost effective chrome plated option across entire product ball line GQD spring return actuators for Lower torque, lower priced actuator for Competitive performance and pricing and inch valves small valves Utilizes OpenAir Series of Provides quarter-turn (90) rotation of valve Proven actuation for precision control of ball valves direct-coupled actuators stem and ball Double O-ring blow-out proof Provides redundant leakage protection and Ensures long life and consistent performance in the most stem seal positively protects against blow-out demanding environments Actuator may be indexed into Actuator may be mounted to valve in 90 Provides flexibility in installation to adapt to space constraints four positions increments 599 Series Ball Valve Bodies-Three-way

Air Handling Units Unit ventilators Terminal boxes

BENEFIT Allows use of any sized OpenAir actuator on same valve Universal mounting plate Accommodates different actuator sizes body with no additional linkage Provides linear heating response from control coil aids Flow Optimizer insert Generates equal percentage flow characteristic in proper loop control Actuator mounting standoff and Provides a thermal barrier between actuator and Allows actuator to be used in higher temperature thermally isolated bracket valve applications Allows operator to manually operate valve in event of a Manual override handle Enables hand operation of valve power failure Blow-out proof stem High pressure sealing Withstands high pressure for safety Leak-tight ball and seal Closes off valve against high pressures Meets ANSI Class IV leakage requirements for close off Utilizes OpenAir Series of directProvides quarter-turn (90) rotation of valve stem Proven actuation for precision control of ball valves coupled actuators and ball Handles media temperatures from Allows hot or chilled water as well as 50% glycol One valve can meet a variety of HVAC control 35F to 250F solutions to be controlled applications Full port models available at each line Allows use of a consistent product line through all Perfect for on/off applications size applications to 2 line sizes, Cvs ranging from Follows same regression of Cv values as Siemens Allows for ease in sizing and selection 0.4 to 250 globe valves 656 Series Globe Valves and Actuators-Miscellaneous

FEATURE

FUNCTION

Convectors Fan coil units Radiation Reheat coils FUNCTION Low force positive sealing Compatible with 90 connections and/or flared tube connections Provide legacy compatibility Replaceable packing, trim, and diaphragms BENEFIT Provides exceptional close off Ideal for fan coil cabinet and tubing installations Perfect for pneumatic control systems Serviceable on-site for maintenance and repair Allows consistent use of product throughout a system and proper sequencing in pneumatic applications Easy installation and removal Allows product to be used in the most applications and environments

FEATURE Soft plug design Angled and SAE flare end connections Pneumatic actuators Fully serviceable

2-way (NC/NO) and 3-way Valves available for all applications Compact size Able to be installed in small service area

658 Series Globe Valves and Actuators-Miscellaneous

Unit ventilators

Fan coil units Induction units Reheat coils

FEATURE Soft plug design

FEATURE BENEFIT Low force positive sealing Provides exceptional close off Compatible with 90 connections and/or Angled and SAE flare end connections Ideal for fan coil cabinet and tubing installations flared tube connections Pneumatic actuators Provide legacy compatibility Perfect for pneumatic control systems Fully serviceable Replaceable packing, trim, and diaphragms Serviceable on-site for maintenance and repair Less worry about water pressure fluctuations affecting Large diameter diaphragm Precise control performance Provides positive closure of one system before other system is opened Available in sequencing and changeover configurations Built in dead band during sequencing and changeover Reduced mixing of media and lower energy cost Allows simple pneumatic changeover between heating and cooling with a single pneumatic signal Powermite 599 Series Globe Valve Bodies-Two-way and Three-way

Air Handling Units Terminal boxes Unit ventilators Baseboard heating VAV reheat coils FEATURE FUNCTION BENEFIT Higher pressures in the forging process Smoother, not as heavy as cast Bronze valves for same ANSI align the grains of metal 250 pressure class rating No tools required to install Fewer parts to order, install, and maintain Simpler product selection Easy Pneumatic to Electronic interchange Reduces installation time Allows high performance flow control with minimal product size

Forged Brass valve body

Only hand tightening required Standard actuator connection Eliminates separate actuator-to-valve linkage

Standard stroke-5.5 mm

Precise balance of stroke vs. performance

Spring range built-in to valve (1/2 to 1 Allows single part number for actuator Reduces selection complexity and inventory for service parts line sizes only) for pneumatic actuator 2-way (Normally Open/Normally Valves available for all applications Allows consistent use of product throughout a system

FEATURE Closed) and 3-way (Mixing)

FUNCTION

BENEFIT

Single product family may be used in demanding performance situations and also be cost competitive in lower stress environments to 1 line size, 0.40 to 25 Cv Large range of end connection options Minimizes the need for reducers and ancillary pipe fittings Meet ANSI/FCI 70.2 Standard Class IV Valve seat leakage is less than 0.01% Tight shut-off of controlled device eliminates valve seat leakage specification of Cv at rated close-off pressure overheating/cooling and reduces energy consumption Provides accurate flow control curves Parabolic control plugs Best price/performance combination at an affordable price point Single packing for water applications Double O-ring packing construction One valve to stock 32F to 250F, 15 psig steam Long-life packing, lubricated for life of Minimize service time valve is disposable at end of service No-service stem packing valve life Basic FxF NPT valve is price competitive with all industry valves Union fitting options allow easy Choice of end connections service replacement of worn valve assemblies Fitting options allow for easy access to valve components by quickly removing valve from line Powermite 599 Series Globe Valve Actuators-Electronic and Pneumatic Choice of Brass (25 psi) or Stainless (50 Provides a range of performance and psi) trim cost Powermite 599 Series Globe Valve Actuators-Electronic

Air Handling Units

Terminal boxes Unit ventilators Baseboard heating FEATURE FUNCTION BENEFIT Fewer parts to order, install, and maintain Reduced time to install Simpler product selection Easy Pneumatic to Electronic interchange Allows for use in the widest range of OEM equipment and HVAC applications Assures process operation in case of power failure Eliminates need for additional manual bypass process piping

Direct-coupled interface

Eliminates separate actuator-to-valve linkage Reduces number of actuator types

360 swivel rotation

Able to fit in tight spaces where competitive valves will not

Manual override

Manually position valve in case of power loss

Fail-safe available (SQS/SSC) Choice of force Visual and electronic position indication Choice of control signals

Eases commissioning Returns to a fail-safe position in the event Provides a measure of protection against both coil freeze of a power loss and unwanted flow. Provides optimized close-off on all valves Price competitive Allows fast verification of valve position Aids in the troubleshooting of system issues and function Combination 0-10Vdc/4-20mA or 24Vac 3Easily match common industry control signals pos models available

FUNCTION BENEFIT Provides more accurate positioning of valve Position resolution >100:1 Increases system accuracy for better space control for precise flow control UL, cUL873 Listed, approved for plenum Meets North American agency approval Assurance that products meet North American safety space installation standards standards Valves are designed to operate with up to Provides a low cost alternative to traditional steam valves Steam applications 15 psig steam in low pressure steam applications Powermite 599 Series Globe Valve Actuators-Pneumatic

FEATURE

FEATURE

Liquid and steam service applications FUNCTION Eliminates separate actuator-to-valve linkage

BENEFIT Fewer parts to order, install, and maintain Simpler product selection

Direct-coupled interface Reduces number of actuator types All metal body Low profile Flame, chemical resistant Able to be installed in small service area

Easy Pneumatic to Electronic interchange Meets UL requirement for plenum space installation Easy installation and removal

Allows product to be used in the most applications and environments Two-inch diaphragm Provides 3.4 in.2 of effective diaphragm area Allows accurate positioning of valve and high close off ISO9002 Quality CertificationManufactured in ISO9002 approved factoriesAssurance that products meet world class quality standards 599 Series Zone Valve Bodies

Fan coil units,Radiators,Baseboard heating,Floor heating,Unit ventilators Feature

Function Benefit Provides smooth even stroke without rubber Proven stroke valve design Eliminates water-hammer effect flappers or paddles Meet ANSI/FCI 70.2 Standard Class Valve seat leakage is less than 0.1% of Cv at Tight shut-off of controlled device eliminates III valve seat leakage specification rated close-off pressure overheating/cooling and wasted energy Provides tight shut off meeting ANSI Class III Eliminates traditional rubber flappers that can harden and Metal-to-Metal seating surfaces specifications via globe stroke valve control chip over time causing leak paths and debris in the system High close-off up to 44 psi for Holds closed in higher pressure systems Higher close-off than competitors standard models making standard models without the need for actuator upgrades sizing and selection easier Choice of either Sweat or NPT end Allows for standard screwed connections or Able to handle more applications in site installed or OEM connections brazing equipment Compact size with rotate-able Able to fit in tight spaces where competitive Allows for use in the widest range of OEM equipment and

Function Benefit valves will not HVAC applications Single packing for water applications 35F to Double O-ring packing construction One valve to stock 230F Minimize service time - valve is disposable at end of service No-service stem packing Long-life packing, lubricated for life of valve life Follows similar regression of Cv values as Complete range of Cv values Allows for ease in sizing and selection other Siemens globe valves Handles media temperatures from Allows hot or chilled water as well as 50% One valve can meet a variety of HVAC control applications 35F to 230F glycol solutions to be controlled All actuators fit all valve bodies Consistent engineering Able to easily change out actuators 599 Series Zone Valve Actuators actuator

Feature

Fan coil units,Radiators,Baseboard heating,Floor heating,Unit ventilators FEATURE FUNCTION

BENEFIT No tools required to install Reduces installation time Direct linear force provides consistent close off Provides 105N of linear thrust Positive force for complete close-off unlike swing type valves Available in 24V, 115V, 208V and 277V Products available to accept 24 Vdc, 24 Vac, 120 A solution for every application reduces the need Variants Vac, 208 Vac, and 277 Vac for additional transformers Assures process operation in case of electric/ electronic failure and eases commissioning Manually position valve in case of electric power, Manual override (SF.. and SS..) control signal or actuator failure Eliminates need for additional manual bypass process piping Returns to a fail-safe position in the event of a Provides a measure of protection against both coil Spring Return fail-safe (SF.. and ST..) power loss freeze and unwanted flow Normally Open (SFP) or Normally Closed Same valve body can be configured as either Allows reconfiguration of a valve without taking it (SFA) action determined by actuator Normally Open or Normally Closed. out of service or opening the water circuit Products available to accept on/off (2P), floating Provides a solution for every application and Multiple signal options (3P), proportional (0-10 vdc), or PWM signals. controller configuration UL, cUL873 Listed for plenum Assurance that products meet North American Meets North American agency approval standards installations (SF.. and SS..) safety standards Assurance that products meet world class quality ISO9002 Quality Certification Manufactured in ISO9002 approved factories standards Direct-coupled, screw-on connection Only hand tightening required

Valves and Valve Actuators Heres the latest product news from Siemens Now offering Two-way Ball Valves with stainless steel or chrome trim options which feature an expanded Cv range, higher close-off, better sizing with the reliability youve come to expect at a price you can afford! For use in schools, universities, medical facilities, office buildings and commercial properties.

599 Series Ball Valves and Actuators

Zone Valves and Valve Actuators

With line sizes ranging from to 1 (Cv ranging 1.0 to 7.0), Siemens 599 Series Zone Valves provide excellent control of fan coils, unit ventilators and other applications where on/off, floating or modulating control is required.

599 Series Zone Valves and Actuators

Globe Valves and Valve Actuators

With line sizes ranging from to 1 (Cv range from 0.4 to 10), Powermite 599 Series Globe Valves provide more choices for applications, featuring direct-coupled technology for connection of valve body and actuator without tools.

Powermite 599 Series Globe Valves and Actuators

With line sizes ranging from to 6 (Cv range from 1.0 to 400), the Flowrite 599 Series Globe Valves offer both threaded and flanged end connection are compatible with a variety of electronic and pneumatic valve actuators.

Flowrite 599 Series Globe Valves and Actuators

Magnetic Valves and Actuators

Siemens Magnetic Valve/Actuator combination use magnetic actuator to enhance response time and provide stability.

Magnetic Valve/Actuator Combinations

Ball Valves and Valve Actuators

With line sizes ranging from to 2 sizes (Cv ranging from 0.4 to 250), Siemens 599 Series Ball Valves can control hot or chilled water and up to 50% glycol solution in convectors, fan coil units, unit conditioners, radiation, and reheat coils.

599 Series Ball Valves and Actuators

Butterfly Valves

Available in sizes up to 20, Siemens Resilient Seat Butterfly Valves are excellent for isolation applications. Two- and Three-way Butterfly Valves provide two-position (On/Off), floating and modulating control and are available in a variety of configurations.

Resilient Seat Butterfly Valves

Miscellaneous Valves

Siemens Service Valves range from flared, angled, sequence to changeover valves deliver unique applications that are available for your replacement needs.

Miscellaneous Siemens Valves

Você também pode gostar