estatus SBM e newsletter issue 09 august 2011 contents Service Recovery 01 Late Afternoon Talk SBM Talk 02 Inflation - Faqs 03-04 CSR Marketing 05-07 Events 08 Delighting customers Customer satisfaction is deeply rooted in SBM s philosophy and that of its staff. Some clients have expressed their appreciation of the service they received from us. We are pleased to share with you below customer feedback that makes us really proud: edito Dear Valued Customer, Welcome to this 9 th edition of estatus! We are once again very pleased to take you through the different happenings at our Bank that have occurred over the past few months. In this issue, you will discover some of the feedback being given by our clients for the service we provided to them. SBM has rolled out quite a few Marketing initiatives with very interesting tie-ups for various projects. One of our core projects is without doubt the launch of SBM Ecoloan to provide financing solutions to clients willing to acquire and install solar photovoltaic systems. On the cards side, the Bank has also revamped its Merchant Discount Programme to delight you, our customers, with even more discounts at our merchant partners. As usual, SBM has once again been very active on the CSR side for the benefit of the community and we were all pleased to see that we are able to help the needy through our actions and commitment to laudable causes. Enjoy your reading! Editorial Team Fast and efficient service The customer we will here refer to is one who has been very thankful to the bank for the outstanding service she received from one employee when she applied for a loan. She wrote the message below to the bank: I want to place on record my deep appreciation of your employee, Miss Muriel Bru. Her professional and courteous attitude and patience in handling my specific issues were beyond my expectations. I was delighted to know that I was a valued customer. Her expert knowledge in the matter helped in answering all my queries. Service like yours is rare in business these days and I did not want my appreciation to go unstated. Customer satisfaction Going out of our way to address customers need This customer sent a thank you mail to the Bank via Vikash Bheemsingh, Team Leader Customer Service, who had addressed his complaint promptly and turned the complaint into an opportunity. Extract of another letter from a customer, very happy about the rapid service received from SBM Royal Street: We have to thank you for your prompt intervention. The message was transmitted within the least possible time Personally, we never expected that you would follow the fast track of modern system of management for which we are proud of being a long standing client of the bank. We wish SBM to flourish and flourish not only in Mauritius but all parts of the world where you have a branch.the blessing of the population is with you all. I would like to convey my deepest appreciation and thanks for the efficient work performed by the SBM Royal staff. I was in need of a home loan and (...) the SBM - Royal staff were more than attentive to my request All legal procedures took place at record time and the loan was disbursed within two weeks. I am very happy to have approached the bank and I will for sure consider it as my first bank in the near future.
late afternoon talk Vishal Joyram présente «Trading International et ETFs» Troisième édition de la conférence organisée par la SBM pour ses clients, le jeudi 9 juin 2011 à la SBM Tower, Port Louis. Ce «Late Afternoon Talk», a été menée par Vishal Joyram, team leader Wealth Management & Private Banking, en présence de nombreux acteurs économiques et chefs d entreprises. M. Vishal Joyram, Team Leader du département Wealth Management & Private Banking de notre banque, était l intervenant principal du SBM Late Afternoon Talk. Le département Wealth Management & Private Banking de la SBM offre un service adapté aux clients privés et aux institutions locales et internationales, pour la gestion de portefeuilles et l allocation d actifs. La SBM a lancé le Trading International qui offre l opportunité aux Mauriciens d accéder aux bourses étrangères et d acquérir des actions comme Apple et Microsoft. Vishal Joyram a aussi présenté le concept des ETFs (Exchange Traded Funds). Ces fonds liquides reproduisent fidèlement la performance d un indice boursier comme le FTSE 100, indice des 100 plus grandes capitalisations boursières sur la Bourse de Londres. Ces indices présentent un large éventail d investissements, et peuvent aussi être achetés et vendus sur plusieurs marchés, y compris la Russie ou l Inde à un prix plus attrayant qu en utilisant les investissements traditionnels comme les SICAV (Mutual Funds). Les ETFs offrent l avantage d une grande transparence et d un investissement minimal, hormis les commissions. Les cours sont accessibles sur Internet ou à travers SBM Securities. Les ETFs peuvent être échangés comme des actions pendant les heures ouvrables des marchés sur lesquels ils sont traités. Il existe aujourd hui plus de 2,900 ETFs à travers le monde et la demande ne cesse de croître, représentant un montant total sous gestion de plus de $1,3 trillions. Plus de renseignements sur les services SBM Securities en appelant le 2021437/1438/1429 (en semaine de 9h00 à 16h30). Les initiatives SBM SBM Securities offre un service boursier permettant aux clients un contrôle total sur leurs investissements. S appuyant sur des rapports de performance des titres boursiers de Maurice et à l international, SBM Securities propose notamment des actions cotées en Bourse de Maurice, des fonds gérés localement et des bons du Trésor. Le département Wealth Management & Private Banking de la SBM a récemment lancé le premier produit à capital garanti en roupies, dont la performance est liée aux pays émergeants. De plus, un résumé quotidien permet aux clients de suivre l activité boursière internationale et locale. Resources of the marine biodiversity SBM Talk The 24 th SBM Talk held on 8 June 2011 focused on Our Oceans...Our Future..., a subject elaborated by SBM guest speaker Mr. Vassen Kauppaymuthoo, a qualified Oceanographer. Mr. Kauppaymuthoo talked about the evolution of continents, the plate tectonics and the formation of the Indian Ocean and Mauritius. Talking about the wide diversity of ocean life, he mentioned that it hosts around one million species of which only 10% have been identified to date. The Indo-Pacific region is the highest in terms of biodiversity. The ocean is a rich source of oxygen and helps in balancing the earth s climate, while supplying food and raw materials abundantly. A rich source of protein, fish is becoming increasingly important in our diet. Our speaker highlighted the importance of marine biodiversity, giving examples on coral life degradation in Mauritius due to rise in seal level, coastal development and sea leisure activities. As a financial institution, SBM has an important role to play in the protection of marine environment he said. He also suggested that banks should be more careful on financing projects which harm our environment and should ask for expert advice to assess such risks prior to financing. Mr Vassen Kauppaymuthoo is the Director and main consultant of Delphinium ltd, specialised in environment and oceanography consultancy services. He was formerly Consultant of the UNDP for drafting of a Global Environment Facility (GEF) MSP document entitled: Partnerships for Marine Protected Areas in Mauritius and Rodrigues. He has been Project Officer for Physical Oceanography at the Mauritius Oceanography Institute. Mr Kauppaymuthoo holds an MSc in Oceanography from the University of Québec, Canada, and an MSc in Environmental Engineering from Ecole des Mines. 02
inflation Inflation FAQs 1. What is inflation? Inflation is defined as the general increase in the price of goods and services. It leads to a decline in the purchasing power of money. 2. How is inflation measured? The most commonly used indicator of price levels is the Consumer Price Index (CPI) which is compiled by the Central Statistics Office (CSO) on a monthly basis from the prices of a fixed basket of goods and services. This basket is updated every 5 years by the CSO according to general trends in consumption as depicted by the Household Budget Survey. An increase (or decrease) in the CPI indicates that the average price of the basket of goods and services is increasing (or decreasing). The inflation rate is computed as the percentage change in the CPI relative to a reference point. 3. What is the difference between year-on-year and headline inflation rates? In Mauritius, the two main measures of the inflation rate are the year-on-year and the headline rates. The year-on-year inflation rate for a given month is defined as the percentage change in the CPI with respect to the same month of the previous year. The headline or twelve-month average inflation rate is the percentage change in the average of the CPI during a twelve-month period as compared to the average level of the preceding twelve-month period. Due to the nature of the computation, the year-on-year inflation is more volatile than the headline inflation. The Government uses the headline rate for determining the annual salary compensation to be paid to employees while the Bank of Mauritius primarily monitors the year-on-year rate for monetary policy purposes. Calculation of year-on-year and headline inflation rates for May 2011 Year-on-year CPI (May 2010) 119.1 CPI (May 2011) 127.6 Year-on-year inflation for May 2011 100*(127.6-119.1)/119.1 = 7.1% Headline 12-month average CPI (ending May 2010) 118.0 12-month average CPI (ending May 2011) 123.7 Headline inflation for May 2011 100*(123.7-118.0)/118.0 = 4.8% 03
inflation 4. Why do prices continue to increase even when inflation goes down? Declining but positive inflation means that prices are still rising but at a slower pace. Negative inflation, or deflation, occurs when prices fall. 5. What are the causes of inflation? Inflation is dependent on a number of factors including demand and supply fundamentals, costs of production of firms, the growth in money supply in the economy, and on exchange rate movements for an economy that is dependent on imports. Demand-pull inflation occurs when the demand for goods and services exceeds supply as a result of economic boom and/or low unemployment. On the other hand a contraction in demand exerts downward pressure on prices. An increase in costs of production (higher wages or raw materials) reduces the profit margins of producers leaving them with the option of increasing their selling price that causes inflation (cost-push inflation). The growth in money supply, that is the amount of money available in the economy, is linked to inflation over the long term. An excessive expansion of money supply in the economy is inherently inflationary. The rate of exchange of the domestic currency relative to the currency paid for imported goods also influences the domestic inflation rate to some extent. A stronger rupee is expected to dampen the effect of any increase in the prices of goods imported. On the other hand, a depreciation of the domestic currency would lead to inflation, as imports would become costlier. 6. How does the inflation rate reflect changes in my personal expenses? The consumption of goods and services are specific to the individual and therefore do not entirely match with the CSO s fixed basket. As a result, changes in the CPI and hence inflation would be different from individual to individual but the official rate still reflects general trends. 7. How does inflation affect my standard of living? The main consequence of a positive inflation rate is a decline in your purchasing power if your income grows at a slower rate. Inflation has a negative impact on savings in two ways: it leads to lower savings as expenses get higher and also means that the amount saved would be able to purchase less in the future. 8. How can inflation be brought under control? The Bank of Mauritius (BOM) has the dual mandate of maintaining price stability and ensuring orderly and balanced economic development. The BOM can affect inflation levels through raising or lowering the key Repo Rate (KRR) or by increasing or reducing the amount of reserve requirements of commercial banks. If, during its assessment of the economy, the BOM foresees a possible deterioration in the inflation rate ahead as a major threat, it may decide to intervene by increasing the KRR. The increase in interest rate in turn has a dampening effect on consumer spending that would prevent to certain extent further price increases with a time lag. An appreciation of the rupee is also expected to partly counter inflationary pressures by making the costs of imported goods cheaper. 9. Is there a desirable rate of inflation? There is no specific inflation target in Mauritius. In the UK and in the Euro area, monetary authorities have defined price stability as achieving an inflation target of 2 per cent (measured using the year-on-year methodology) over a given period of time. Price stability is deemed essential to achieving sustainable growth in output and employment. 10. What is stagflation? Stagflation is when the economy experiences slow GDP growth combined with high inflation. Under normal conditions, a slowing economy dampens demand and reduces inflationary pressures. An example which could trigger stagflation is an oil price shock affecting an importing country. The resulting high inflation would in turn cause further deceleration in the economy. Stagflation can also be the result of inappropriate fiscal or monetary policies. For example, an excessive supply of money in the economy by the central bank could lead to high inflation. FAQs prepared by Pravesh Bacorisen Analyst SBM Strategic Planning & Research Team 04
CSR 3,000 ordinateurs pour les élèves nécessiteux du tertiaire Initiative sans précédent dans le domaine de la responsabilité sociale! 3000 ordinateurs ont été mis à la disposition d élèves nécessiteux du tertiaire, dans le cadre d un projet mené par la SBM, en collaboration avec le E-Inclusion Foundation. La banque a investi plus de 60 % de ses fonds de responsabilité sociale dans cette initiative intitulée IT Project with E-Inclusion Foundation, qui est le plus grand projet de responsabilité sociale et informatique jamais réalisé à Maurice. Etant donné l importance croissante des nouvelles technologies dans le développement du pays, la SBM a donc apporté son aide aux jeunes qui, faute de moyens, ne peuvent accéder à un ordinateur, afin qu ils soient partie prenante de la mouvance de progrès. Le projet vise les élèves issus de familles dont les revenus ne dépassent pas 100 bourses d étude avec le SBM Scholarship Scheme La SBM a renouvelé son engagement en faveur de l éducation en offrant une centaine de bourses d études universitaires aux jeunes étudiants brillants et nécessiteux. L an dernier 57 bourses (dont 5 pour Rodrigues) avaient été offertes à travers ce SBM Scholarship Scheme. Cette hausse reflète la volonté de la SBM de rendre l éducation tertiaire accessible à un plus grand nombre et affirme aussi sa conviction dans une société égalitaire et dans l éducation comme pilier essentiel de réussite. Le SBM Scholarship Scheme cible les étudiants dont le revenu familial ne dépasse pas Rs 15,000 par mois et désirant faire des études supérieures au sein d institutions tertiaires locales reconnues par la Tertiary Education Commission (TEC). Chaque bourse couvre les frais de scolarité, de bibliothèque, d examen, d adhésion à l union des étudiants et autres frais administratifs, jusqu à concurrence d un montant maximal de Rs 30,000 par an. Une allocation annuelle de Rs 5,000 est aussi accordée pour l achat de livres et autres matériels éducatifs. Les étudiants de Rodrigues et d Agaléga recevront un montant mensuel additionnel de Rs 5,000 pour leur hébergement à Maurice et un billet aller-retour. Les étudiants souffrant d un handicap sont aussi encouragés à postuler pour ce projet de bourses d études. Rs. 10,000 par mois. Les bénéficiaires sont soit ceux qui étudient déjà dans des institutions reconnues par la Tertiary Education Commission ou ceux qui entameront cette année leur première année d études dans ces institutions. Ils sont aussi désignés parmi ceux ayant reçu une bourse sous le Human Resources Development Knowledge and Arts Fund (HRDKAF) ou le SBM Scholarship Scheme for Bright and Needy Students, programme lancé l année dernière par la SBM. Lors du lancement de cette allocation d ordinateurs, M. Gautam Vir, Chief Executive de la SBM, a souligné que cette initiative accorde des chances égales aux étudiants issus de milieux modestes et les a encouragés à poursuivre leurs études ter tiaires pour se donner les meilleures chances. M. Vivian Serret, président de la E-Inclusion Foundation, a précisé que les ordinateurs étaient alloués aux bénéficiaires pour la durée de leurs études, mais demeuraient la propriété de la Fondation qui assurera leur maintenance et éventuellement leur recyclage. Blood Donation at SBM Tower In line with the World Blood Donor Day held on 14 June, the Marketing and Communications team organised the annual Blood Donation Campaign at SBM Tower on Friday 10 June. Blood donation is not only about saving lives, but is also good for the donor as it favors regeneration through replacing the lost blood with fresh new cells. Some 175 staff members attended the blood donation campaign and some 100 pints of blood were successfully collected. 05
CSR Marketing SBM 1:2 Matching Scheme A number of initiatives were undertaken by various SBM Service Units as actions of solidarity towards the disabled and the underprivileged. The profits collected were trebled under the SBM 1:2 Matching Scheme, with a contribution from the bank. Here are the recent projects carried out. DMU s contribution to the School for the Deaf Colleagues of the Data Management unit (DMU) organized a raffle to support the Society for the Welfare of the Deaf. A cheque of Rs 155,050 was remitted on Saturday 21 May to this organization in Beau Bassin. The funds will go towards the purchase of hearing aids and upgrading of two primary school classes at the Black River Unit. Supporting the Welfare of Disabled Persons A raffle, undertaken by Corporate Banking, International Banking & Global Business and Asset Finance teams brought a total amount of Rs 172,350 to cover for the purchase of adapted furniture and specialised equipment and upgrading of the premises at the Mille Soleil Association for the Welfare of Disabled Persons. Colleagues from the organizing departments also organized a day out with the children of the Association on Saturday 11 June, offering lunch and distribution of pedagogical materials, books and equipment. Successful initiative for Curepipe Service Unit SBM s Curepipe Service Unit undertook a praiseworthy fund raising initiative to help out two NGOs in the region of Curepipe. A total amount of Rs 54,000 was used for the purchase of equipment and upgrading of premises at the Centre Daniel Lagesse (working for the empowerment of women with physical disability) and for financing of studies of inmates at African Network for the Protection and Prevention of Child Abuse and Neglect (ANPPCAN) which runs a home for girls experiencing social difficulties. SBM Flacq fundraising for mentally handicapped children SBM Flacq Service Unit recently organised a raffle to raise funds in favour of mentally handicapped children. A total sum of Rs 121,575, was used to support the welfare of mentally handicapped children at the Centre d Education pour le Progrès des enfants Handicapés (CEPEH) and Association des Parents d Enfants Inadaptés de l île Maurice (APEIM) of Argy and Bonne Mère respectively. SBM ECOLOAN : pour une île Maurice plus écologique Soucieuse de soutenir les efforts pour la sauvegarde de l environnement, la SBM le prouve avec la SBM ECOLOAN, un produit écologique dédié aux clients individuels et aux Petites et Moyennes Entreprises (PMEs). SBM ECOLOAN cible les foyers désirant s équiper d un système solaire photovoltaïque (PV) afin de produire de l électricité pour leurs besoins personnels ou pour être revendue à la Central Electricity Board (CEB). Ce prêt écologique rend l accès au financement de projets environnementaux plus accessible aux clients et non clients de la banque et aide à promouvoir le PV dans chaque foyer mauricien. La SBM propose jusqu à 100 % de financement du coût d acquisition et d installation du système PV, incluant la TVA. Le prêt est assorti de taux d intérêt compétitifs, d un remboursement flexible jusqu à 7 ans et d une carte de crédit pré approuvée pour les individuels et PMEs. Des prix compétitifs sont également offerts par le partenaire de la banque pour ce projet, notamment Solar-Ernte- Technik Ltd (SETL) du Groupe Leal, dont les produits importés d Allemagne présentent une garantie au-delà de 25 ans. Le Dr Mukesh Sooknundun, directeur de la Clinique du Nord, un des premiers clients à contracter un tel emprunt, considère que le projet ECOLOAN contribuera à changer la vie des citoyens mauriciens et aidera à réduire des émissions de carbone à Maurice. 06
Marketing SBM BILLPAY rend la vie plus facile! Comptoirs dédiés aux PME Innovation de la SBM qui rend la vie encore plus facile pour le consommateur, le SBM BILLPAY a été lancé le 4 mai dernier. Cette facilité permet aux clients de la SBM de régler leurs factures d électricité (CEB) et de téléphone (Mauritius Telecom et Orange PostPay) avec leur carte de débit ou de crédit de la banque. Le règlement des factures s effectue 24h/24h* sur tous les ATMs de la SBM ou aux caisses des supermarchés Winners. Les clients désireux de bénéficier de ce service se voient offrir un enregistrement gratuit et simple qui peut se faire dans toutes ses succursales. SBM BILLPAY a fait l objet d une campagne de promotion dans les médias, sur le site Web, sur les ATMs et dans nos succursales. *Offre soumise à conditions Launching of the new SBM Discount Programme SBM now has a new Discount Programme for debit and credit cardholders with discounts of up to 50% at more than 250 partners. For more details, please refer to our online brochure on www.sbmgroup.mu/ discountprogramme. La SBM a organisé la mise en place de comptoirs dédiés aux Petites et Moyennes Entreprises (PME) dans certaines de ses succursales. Cette initiative qui suit le lancement du produit SMEase est devenue réalité à la SBM Tower (au 3 ème étage), à Rose Belle, Curepipe et Quatre Bornes. Rappelons que SBM SMEase réunit un ensemble de produits et services conçus spécialement pour les PME, leur permettant de se développer et de se professionnaliser grâce à des solutions innovatrices taillées sur mesure. Des spécialistes en PME sont à l écoute des entrepreneurs qui bénéficient de prêts à des taux compétitifs, de conseils en gestion, de garanties bancaires, de leasing, de compte en devises, de cartes de crédit ainsi que de terminaux de points de ventes et des avantages du Internet Banking et du Mobile Banking. Incredible tie-ups! A number of tie-ups were done with property promoters with marketing collaterals produced to promote the special offers to customers. These included special loan facilities for acquisition of a hotel unit or an apartment or iconic condominium in the centre of the island. Loans were available to foreigners and Mauritians with attractive rates and flexible repayment periods. The tie-ups were done with the Long Beach, Le Meritt Elipsis/Octagon and Domaine de Gris Gris projects as well as with St Geran (for SBM cardholders). Soft rolling out of our revamped SBM BOOST A personal loan of up to Rs 750,000 in less than 48 hours and without security! This is one of the main attractive features of SBM Boost, which has been re-launched in March 2011. The multipurpose loan offers numerous advantages such as loan value of up to 20 times the borrower s salary, flexible reimbursement over 7 years, competitive interest rate, free pre-approved credit card for the first year and insurance cover, among others. SBM at Madagascar Fair SBM had remarkable presence at the recent Madagascar Fair. SBM Madagascar SA displayed a range of corporate and promotional items at the fair, which made SBM s par ticipation a great success. 07
Events Consolidation des liens avec nos clients [ Vacoas / mesnil ] [ Flacq / Bel air / Lallmatie ] [ bambous ] La tradition des «Retail networking events» est maintenant bien ancrée à la SBM. Elle favorise l interaction entre les cadres de la banque et la clientèle et donne l occasion de remercier ces derniers pour leur fidélité et leur confiance en la SBM, tout en consolidant les liens avec les nouveaux venus et les par tenaires institutionnels. Ainsi des réceptions ont été organisées récemment dans les succursales de Bambous, Goodlands, Vacoas / Mesnil, Flacq / Bel Air / Lallmatie et Mahebourg / Plaine Magnien. Durant ces réceptions, notre Chief Executive a passé en revue la performance financière du groupe et a présenté les récentes initiatives en termes de services bancaires et de nouveaux produits. [ Mahebourg / Plaine Magnien ] [ Goodlands ] estatus SBM enewsletter issue 09 august 2011 PLEASE CONVEY YOUR SUGGESTIONS AND CONTRIBUTION TO : THE EDITORIAL TEAM - e STAT Us C/O Marketing & Communications Department Level 6 - State Bank Tower 1, Queen Elizabeth II Avenue, Port-Louis Email: www.sbmgroup.mu 08