Good morning, ladies and gentlemen. It's for me a great privilege to present Capitec's results for the year 2021. I think if we look at the year that's gone past, I think the two words that's come out in the Capitec way is agility and digital. It's been an interesting year. I think nobody predicted the year, nobody thought the year's going to end the way it's ended. I think overall, Capitec had a very good year, and to share with that, we will share that with you during the whole full presentation. Just at the end, we will allow you to ask questions. So if you've got a particular question on a particular slide, just post your question to that particular email address, so that myself and André will answer it at the end. We're going to share a video with you which we've done, which is, I think is a very good summary of the year that's gone by. 2020 saw Capitec unlocking its full potential with a range of exciting new products while remaining true to our 20-year legacy of simplified banking and a dedication to improving our clients' financial lives so they can live better. We focused on defining our culture, building brand love, and becoming future fit. By March 2020, our new head office was completed, and some of our teams started moving in. The global COVID-19 pandemic hit South Africa. As a bank, we had to quickly adapt to new ways of work. Branch employees donned masks and face shields, disinfectant in hand, as we offered clients personalized service in a time when smiles were hidden behind masks. Half our branches remained open and operated at 50% capacity. Our campus-based employees were required to quickly adapt to working remotely despite connectivity issues and occasional bouts of load shedding. Bank from home was our immediate response to the pandemic, informing our clients of the safest way to bank. Blue skies and the rainbow plays. We saw an opportunity to create hope in these uncertain times and collaborated with artists including J'Something and K.O. to create a song of hope entitled "Rainbow", which shot to the top of the charts. Our commitment to developing and aiding our communities remained strong during the pandemic. Monthly Live Better Talks were streamed to our employees, providing them with insight and inspiration. After reporting a loss of ZAR 404 million for the quarter ended 31 May 2020, a strong recovery of over ZAR 1 billion in the second quarter resulted in headline earnings of ZAR 650 million for the first six months of the financial year. Capitec is always looking to the future, we were able to reprioritize and introduce new products that fit a COVID world. Our House of Credit campaign showcased our credit card, the Access Facility for which clients can apply online, and introduced our new home loan offer to the market. We added a Scan to Pay functionality, a virtual card, and a disruptor in the share portfolio market, EasyEquities, as a widget on our new app, making it easy and affordable for our clients to start building and managing their own investments. Remote onboarding, which offers the option to open an account by taking a selfie, was also recently added. When COVID hit, all banks offered their clients three-month payment holidays. Capitec also introduced a rebate which helped our clients by refunding them this interest, paying out more than ZAR 211 million to those clients. We once again showcased our Live Better benefit partners, DStv, Greyhound, GetSmarter, Educate24, Hello Doctor, JOOX, and Shell, to help our clients live better. Lockdowns eased, we started coming back into the office, developing a hybrid work environment that incorporates remote working and planned office collaborations. We were able to ensure the job security of our employees, paying full salaries and granting annual increases during a time when many people were retrenched or had to take salary cuts. In spite of the difficult year, we still created new job opportunities and continued to appoint people to the Capitec family. Our commitment to financial health continued with a Budget Champs card game, financial health podcasts, the launch of the Live Better Academy, and a new focus on our successful Livin' It Up game. Capitec became the proud sponsor of The Insider SA, a perfect platform to share all the initiatives and products that we offer existing and future clients. Brand Finance, a global brand research group, ranked Capitec as the strongest banking brand in South Africa and the third strongest banking brand in the world for the second year in a row. Something we can all be proud of. COVID also brought new opportunities with it, such as helping our clients move to digital banking. At the end of the financial year, our digital banking clients had increased by 25% to 8.6 million, doing over 86 million transactions in the last month of the year. Our full year earnings decreased by 27% in the wake of COVID, with the second half showing strong recovery of 18% growth compared to the same period the previous year. At the end of the financial year, we had 15.8 million clients calling Capitec my bank, and we celebrated 20 years of simplified banking. What a journey it has been. For the next 20 years, let the work begin. I need the slide. Yeah, I think it's been actually a very interesting year, but a very good year. Actually, the video ended up with us celebrating our 20 years. That 20 years was a big occasion. To celebrate that, we were over 40 people that actually were there, that actually was there from day one. It was actually quite an experience to have all of the people there. If I look at the year, the year basically for us consists of two halves, March - August. I remember March when COVID started. I was actually in Joburg, and a friend of mine actually phoned me and said to me, "What are you going to do with people that's overseas and if they come back?" At that stage, we didn't have a policy. We didn't know what we're going to do. André and myself quickly sat down. We decided on a policy there within an hour or two. The COVID actually started. I think the biggest priority for us at that stage was our clients and then our staff. What do we do with our staff? I still remember we were thinking, how are we going to get people to work at the office? Suddenly, two weeks later, everyone was working from home, and a complete new work environment started. The whole COVID. How big is the potential of COVID? What is the impact of COVID? How many jobs is going to be lost? We spent hours and hours and hours trying to understand the impact. I remember the first forecast we did for this year said that we will make a profit of just over ZAR 1 billion. That was quite a shocker. It was interesting times just to understand the COVID taking a high road, medium road, low road. Then we started in May, and we said, we need to look at our strategies. We need to rebudget. I think there we did well because the message out to our team was, go in, go hard, that we finish it, and then we know exactly where we are, and then we can focus. Then the second half actually started with when we said we're going to focus on growth. We need to make certain that we satisfy our client needs. We need to be able to work flexible from home and from the office. Then we started to produce new products, and it's actually quite remarkable in a COVID period. We actually introduced six new products in the latter part of the year. I think the important thing for me was in the middle. We maintained service delivery throughout the years by opening branches, closing branches, adjusting the whole time, and being agile the whole time. I think overall, a very good set of the results. If I look at the results itself, I think everyone has seen it now. 17% ROE, profit of ZAR 3.9 billion in the last six months. When we communicated to the market in September, we still said, what we're aiming for is that we'll make the same profit in this six months than what we would do the last six months. That was the aim. As you could see, we've come in with 18% stronger, and I'll unpack that. I think the other important thing is, if you look at our ROEs, at 30% ROE in the latter part. It's around about that 27%-28% ROE that we've achieved. If I unpack the year, you can see there's the year, we're down 27%. If I look at that last column, because that impacts the last six months, you can see on the credit side, we're down ZAR 222 million, and that's purely because we've cut back on the credit side. In the beginning, we were down about 30% of our credit appetite, where we've cut back. On the transactional side, that's done extremely well. We've always said that we need to be diversified. We need to have other income streams. I think given the tight year on credit, our transactional side came very strong in at ZAR 950 million up. Funeral. We were up ZAR 650 million, or the profit of funeral was ZAR 650 million. Interesting, in the last six months, we were actually down ZAR 6 million, and that's purely due to death claims here in December, January, February. It's normalized, and it's coming back to track. The impact of the provisionings. You can see the movements in the provisionings, and then the OpEx that come in at a 10% growth. I think what is important is that in the last six months, Mercantile was in for four months. For the whole year, Mercantile is in for a full year, so you don't do a full comparison. If we do on our key performance indicators, the two that stands out for me is where our transactional income and funeral income cover our OpEx. We've always said we want to be at 100%. On group level, we're at 99%, but for retail, we're at 102%. We covered basically all our OpEx with our transactional income. On the transactional income versus the credit income or the net income, our transactional side, 61% of our income is coming from transactional side, and it's purely because of the growth that we've seen in that particular area. On the credit side that we've pulled back as well as on the provisioning side. Cost to income at 40%, 100% in line with where we are. Capital adequacy, I think a very impressive 37%. As you know, we didn't pay a dividend last year, so your retained earnings was kept. We had very strong growth in our deposit side, and we invested in government bonds. I think a very good performance on the capital adequacy. Overall, if you look at all the key indicators, a very strong performance. We spent the last three, four years, a tremendous amount of time on culture, because we believe culture enables us to drive our performance. It's also interesting, when COVID actually took place and we actually said, "How are we going to manage COVID? What are we going to focus on?" We quickly decided it's the three components. We need to focus on our clients, we need to focus on our people, and we need to be focused on how do we deliver to them. The whole time, whenever we were deciding on some things, we were actually focusing and saying, "What is happening to our client? What is happening to our people? And what's happening to our delivery side?" I think that passion for our client, what can we do for our client? What can we do better? How can we do things completely different to satisfy his needs? I think the big focus is there, simplicity and transparency. Making certain that the client fully understand what he's experiencing. Then people, I think people was very interesting during this time. I'll share the next slide with you to see what we've done on the people side. The first thing is, we've frozen all appointments for the first up to June, July, and then we've opened up. In total, we've appointed 820 people. It's quite easy to say you appoint 820 people. As people all know, we've got a firm foundation. A firm foundation is that where every single person that gets appointed in the country gets flown down and actually comes to the Pretoria hotel here at the back, and then we spend two weeks with the person here. We couldn't do it. Suddenly we had to do it virtually. That was our adaptation in the very short period of time, to adapt everything that we're doing to a virtual component. You can see there 54,000 training engagements that we've done. Also to enhance our leadership of our senior managers, 182 attended different Harvard Mentor programs to develop them, to lead them, and to enable them to manage their people. We've also have engaged with Duke University. 11 of our senior managers is on executive program, where they will be working with Duke on international exposure and will have exposure with China and the East in the next year or two. That was all developed during this year. I think the one thing is if you are in a changing environment, uncertainty is very high. It's all about communicate, communicate. The one thing I've learned during COVID is make decisions and communicate. If it's the wrong decision, correct it and communicate again. We had 18 virtual Live Better Talks. That's where we actually brought our senior managers in and actually sat down for an hour, and we handled various topics, from digital to what's happening in the branches, what's happening with COVID, to enlightening our people. We've had all our ExCo people had monthly town halls. A town hall for us is where we actually bring all our people in a department together. It was all done on Teams, a particular agenda, and we discuss things and where the company is going, where the company is heading. I've addressed a big portion of our town halls. There could be easily 600, 700, 800 people in those town halls, attending it. We spend a lot of time on the employee wellbeing, because mentally it was tough just going through, "Am I going to be sick? What is going to happen?" Friends, family that's been affected. We spend a lot of time on our people side. I think on the community side, a very big plus, where we've actually said to our people, "Be involved in the community. If you're involved in a community project, you get three days extra leave off. Plus, if you contribute ZAR 1, the company will contribute ZAR 2. Quite a lot has happened in the community side and on the financial education side. This is the graph that actually, I think explains how we've moved from just being purely dependent on credit to digital and to transactional. What is quite interesting is five years ago, we had 7.3 million clients, of which 2.7 million was digital. Now we're sitting with 15.7 million, and we ended March with 15.9 million. We're probably now, any time now, over 16 million clients. It's quite interesting to see what it's actually done in the last two years, where we've increased our client numbers from 11.4 million to 15.7 million. That's 4.2 million extra clients that we actually brought in. You can see what it's done on that blue line on the digital side, where it's increased from 5.4 million to 8.6 million. You can clearly see the uptake that's taken in the last two years, the 5.4 million to 6.7 million, and then the 8.6 million. This gives us scalability. It gives us a lot of opportunities to grow. Then you can see in the banking clients how solid our banking clients is growing with that 5.9 million because they are actually driving the transactional side. 4 million of our clients are savings clients, fixed term savings clients. Then your credit clients is that 1 million, 1.1 million client. That's purely an effect of, if you look at the last couple of years, how we've cut back and with COVID we've cut back. That's a number that we actually need to grow going forward. Digital, what is happening in the digital space? I think the two components I want to highlight, on this graph as you can see, these are the volumes as at end of February. It's not the year volumes, but it gives you an indication how volumes has grown in two years. Digital has gone from 20.9 million to 86.4 million. It's about 4x more. Just to give you another indication is on digital, there was about 5 million people in February on our app. Over 6 million, close to 7 million people in March. As people are engaging more and more and more. You see that swap to card payments, Tap & Go, 24 million to 79 million. Cash still growing. You can start seeing we making a dent to the cash side. There's this perception that the app is actually there for the younger generation, people with higher incomes. You can clearly see what's the take-up actually, we're starting to see lower incomes, people earning less than ZAR 7,500 start using the app very strongly. We can see people over 40 years are starting to use the app very strongly. The acceptance of app and technology is a very positive trend. What's happened during COVID? Interesting, if you look at the green, you can clearly see when COVID hit, our card payments came down, and slowly but surely starting to come back to normal levels. You can see what's happened with digital. That blue line just kept on growing. That helped also the adoption of people moving to a digital platform. Cash slowly is growing, but it's fairly flat. This is number of transactions. I think if you work on value, then cash is still much stronger because you can see there on cash, we're talking ZAR 663 per transaction versus card of ZAR 304 a transaction. On funeral, we had a very good year on funeral. For me, very encouraging is the two market share stats. 37% of all new policies issued are now Capitec policies. Everything new in the market, we control now 37% of the market, and our market share in totality is 16%. What is quite interesting is our coverage per policy is ZAR 96,000 per policy. It's the highest in the industry. For every rand, we cover ZAR 530. That's 38% higher than anyone else in the market. That just shows again, are we offering value to our client? I remember when we worked with Sanlam, my brief to them was we need to differentiate, and we need to differentiate with 30%. It's interesting we're coming out there at 38%, so very close to that 30%. Policy sold, 1 million. Collection rate was 85%. It actually went up to 90%-92%. Then I've mentioned previously that the book persistency with COVID in October, November, December, we saw a uptick, but we're coming back to normal levels. Then on the deposit side, 18% growth, ZAR 207 billion. We've got now, if you include Mercantile, we've got now a 9.4% market share, close to a 10% market share. We've had very strong growth. I think the one thing that surprised all of us is the growth during the COVID period because everyone thought people will withdraw the money, they will live off the money. We actually saw the opposite. We actually saw more cash into the system. We saw very strong growth. Yeah, we're still offering very competitive rates. Even after the repo rate was reduced to 3%, we're still offering 2.25% on your call account, and we've paid over ZAR 4.1 billion out on interest. New products that we've launched. Send Cash. Send Cash was, last year, only available at Shoprite Checkers and Pick n Pay. Now it also available at our own ATMs as well as Pick n Pay and Massmart. You can see the number of transactions, how it increased. This gives you the capability to actually send cash to a friend, wherever that person is, and he gets a code and he goes into our ATM or a Pick n Pay or Shoprite, and he actually picks up the rand value that you've sent through to him. You can see we've moved ZAR 6.1 billion of value that was being created. The one that I'm very excited on is the Scan to Pay functionality on your app. What we've done is we've integrated Zapper, SnapScan, and Masterpass into one. Any one of those QR codes, if you see it, you can actually just open up your app and immediately Scan to Pay comes up and you can actually pay. That's a big focus for us. The whole QR digital payments are where we're going. Virtual card we launched in November. That's that capability to have a virtual card that you don't need to have your own card as well. As you do online shopping, you've got much more a secured environment. Also with the next one is with Remote onboarding we've launched in March. The person has remote onboarding by just downloading the app. We immediately take a facial recognition from yourself. We verify that with the Department of Home Affairs. We do a full FICA on you, and you're up and around and you can transact. As well as you've got a virtual card, you can do transactions. At this stage, you must still go and fetch your card at a branch. From May, we will actually remotely deliver your card to yourself. Capitec Home Loans. We always said we had that whole partnership with SA Home Loans. We are marketed as SA Home Loans product. We weren't happy with it, we changed everything and we actually created a Capitec Home Loan partnered with SA Home Loans. I think it's working very well. We had over 24,000 applications in the first three, four months. We've approved about over 300 loans. What is quite interesting is you can apply in four steps and within five minutes. Then you can track your whole process of when validation is done in your house, your bond is registered, et cetera. You can actually track the whole process on where you are, which is quite unique. I think what everyone is asking about is credit. I'll unpack all our different strategies and what we've done. If I look, the first thing is what has happened in the market. I was hoping that the NCR stats would come out for December, because this is until the end of October. Still not out. I think the repo reduction of definitely seeing a lot of people taking up mortgages and taking up vehicle finance. You can see mortgages up from ZAR 43 billion to ZAR 49 billion, and basically vehicles flat. Unsecured plus credit card and facilities, you can see how it actually has dropped. That's what we're seeing in the market. There's a perception in the market. I've read a couple of articles over the weekend and the last couple of weeks of debt counselors that's saying everyone is now suddenly taking up unsecured lending. That's not what we're seeing. We're still seeing everyone cautious, but people are slowly but surely starting to open up. If I look at our credit strategies, I think critical assessment has always helped us quite a lot, critically assessing daily on what is happening. We had a robust challenge with COVID and then agile implementation. I think those four words sum up the way we manage credit. What is interesting is, I think nobody predicted COVID. What we looked at was the economy that's going to be under pressure. We said we need to reduce risk. That's basically what we've done before COVID. For two years, we've actually moved away from high-risk areas, lower income levels, making certain that we are strong enough in an economy which is under pressure. The one thing we didn't understand completely is essential services. At the end of the day, when COVID happened, we had a 60%-65% book exposure to essential services. That actually helped us quite a lot. If I look at in the COVID, the first wave, that's basically what we've done, is the first thing we did is to say, what is our appetite? How are we going to grant? How are we going to evaluate all the different industries, employers, household incomes? We had to pull back. The first start at that in April or very early in April, we pulled back with about 30%, reacting very quickly and I think making very critical decisions. We said we had existing business, we need to protect our existing business. How are we going to help them? We had to bring in digital rescheduling and payment breaks options that had to come in, which we didn't have. We had to look at behavioral incentives. I think that's the one area that we were completely different to the market. Everyone was giving a payment break or some other form of structuring, while we actually said to our clients, "If you behave well, we will incentivize you," and I'll unpack that. Brave enough, we launched the Access Facility 1st of May. The whole purpose of Access Facility is the fact that the person will be assessed from a credit perspective. If he's up to date, he doesn't need to come to a branch again. That takes, again, the safety component into consideration. We've increased provisions. The big debate was in April, nobody wanted to reinsure us from a retention point of view. Everyone was scared, and we had to take it on the chin. We had to manage that process. We had to increase prices. In the second half, what we saw very clearly is, how is the payment breaks are performing. As I said in September, we saw very good performances coming through. We looked at the inflows, and I'll unpack that. We went to go and look and see how the behavioral incentives has performed and looked at retrenchment and death on that performance. I will unpack that with yourself in the next couple of slides. I think the question now is economic recovery, the outlook. I'll put those four components in there. Third wave. When is the third wave going to hit? I see with machine learning this morning, they say it's not going to hit us in the next two weeks. I think everyone speculates. Nobody really knows. If we look at the students in Stellenbosch, it's definitely going to hit us somewhere. If I look at the vaccine rollout, are we going to have, are we not going to have? I think everyone knows those questions. Very interesting enough, two weeks ago, for the first time during COVID, I actually went out to the branches. I spent a lot of time in Pretoria, Soweto, and the Vaal Triangle. Just a couple of scary thoughts. The first one is talking to our branch managers, the pressure that the government is because they haven't got laptops and infrastructure for their people to actually really work from home. Secondly, all their process is predominantly paper-based. It's extremely difficult to operate in this particular function. I think that's a nice challenge for them and a worry. I must say from a positive side, I spent a whole day in Soweto, and I was extremely impressed with the neatness, the vibe, the economy, the informal sector. Talking to the people, I saw a very positive vibe in the Soweto area. Then the Vaal Triangle, that's the area that's economically always under pressure. Clearly, the branch managers, all of them gave me indications. People are getting full salaries. People are being paid bonuses. We're starting to employ. I've picked up something else in the market. Are people as this weak in the market? It will be interesting to see what happens in this period. What did we see with COVID? The blue is actually just our balance at risk. If I look at government, at 45%, government parastatals, municipalities, and in travel and leisure, only 2% of our books. That gives you the book exposure. I think let's use manufacturing. Our PD estimates is what would our PDs be higher due to COVID. If you look at when we did it in April, we said for manufacturing, we would be 22% higher on our PDs. In August, we did a reevaluation. We do this actually every month. We dropped to 17%, and now we're at 8%. You can clearly see how the economy is picking up and how we're reading things. We're adjusting our models, and then we opening up and making certain that we utilize the market opportunities there is. You can see on travel how those PDs has actually gone up given the stress that there is in those particular areas. This will be an interesting slide. What has happened with the income levels? This is our credit clients. The flows that's coming through. You can see travel and leisure has taken a big beating. They're roughly 25% down. Government is basically flat at 100%. We all know that government has been fully paid. Then you can see all the other industries. You can see the impact in May, June, July, where they've been down to, let's say, 92%, and then coming back to a 98% level. We're seeing positive trends in our credit clients. Remember, this is credit clients, that's the 1 million clients out of the 15.6 million- 15.7 million clients. How has the payment relief been working? As I said, we've given ZAR 7.5 billion. I just want to get some water. We've given ZAR 7.5 billion in payment reliefs. Of that ZAR 7.5 billion, ZAR 3.9 billion is completely rehabilitated and is settled. That's that light gray bar. You can see the breaks we were given here in May, June, July, and now that the performance is actually coming through. The blue and the light blue is actually the ZAR 1.7 billion that's not yet rehabilitated. That light blue is ZAR 1.3 billion. Those are payment breaks that's again been rescheduled. One will have to see and monitor what their performance looks like. You're sitting with the red, and the red is what is in arrears or what is worse, have been written off. This is all built into our models to actually show you what's taking place. The question is the behavioral incentive working? In total, we're saying that we're going to pay out about ZAR 410 million out to our clients. It's 187 clients that's been helped. Maybe just, again, explaining the behavioral incentive. If you've been variable to reshuttle or payment break and you pay your first six months repayment, you get 50% off of your interest. If you pay for a full year, you get 100% off. This is just a comparison between historical reschedule performance and people on the behavioral incentive. You can clearly see there's a good 20%, 15% gap in the performance. We actually had, for the first time, people phoning our collection department and said, "Hey, you haven't collected, and you must please collect, because otherwise, I'm going to miss my incentive." You've changed the behavior around, that the client is actually taking responsibility to say, "But, hey, I need to make certain that I'm in front." There's our provisioning. I think the critical figure there is the ZAR 2.9 billion, which we see the forward-looking on COVID. That is what we're looking at the economy, the performance of our ZAR 7.5 billion or that ZAR 1.7 billion. We believe we've provided well enough, so we're quite happy. I think if you take that out, you can see what it's done to your credit loss ratios, where it is now 6.2% versus the 11.3% versus the 6.8%. Actually, strictly speaking, if you take COVID out, our book has actually performed quite well. Credit life insurance, just unpacking credit life insurance. I think that was the million-dollar question. What's going to happen with credit life insurance? If you look at our net premium written, that's actually increased from ZAR 1.5 billion to ZAR 2.5 billion. We've received an extra ZAR 400 million because we've increased our prices. When we saw there was extra risk, we've increased our prices. That's at ZAR 2.4 billion versus ZAR 2.8 billion. Our premiums paid to our reinsurance, that dropped with ZAR 400 million -ZAR 500 million. The claims paid. T he $1 million question, what's going to happen there? You can see that increase coming through of 85%. I think the net effect going through the whole year, basically, our income from credit life is actually flat, and I think that's a tremendous performance. There's what you can see what's happened on retrenchment and death. Our retrenchment is up 100% from ZAR 500 million to ZAR 1 billion. We've seen a spike in retrenchments taking place in June, July, August, September, and it's actually come down and is now in normal levels. It all is going to depend on what it's going to do with if there's going to be another wave three. We think it's fairly come back to normal levels. Interesting, always retrenchments were severely impacted in the last three, four, five years by the mines. As you all know, the mines are doing extremely well currently. On death, you can see that increase. That increase came through basically in the latter part of the year with Level 2, where we've picked up quite a lot of death claims, but that has also stabilized. I'll give you the number of claims paid. It's interesting to see that death as a number of claims is only up 27%, but the value has gone up 64%. This gives you an indication of the value per client that's claimed. Yeah, this is the granting side. What has happened in the granting side, you've seen our granting has come from ZAR 39 billion to ZAR 29 billion. Where we've cut back, but a big focus on quality clients or higher income clients. People earning more than ZAR 20,000 per month is now 55% of what we're granting. If we unpack that ZAR 10,000-ZAR 20,000, that drop is actually predominantly in the ZAR 10,000-ZAR 15,000. The ZAR 15,000-ZAR 20,000 is basically flat or slightly up. You can see in the lower income segments, we've cut back, and that's in line with our policy or our strategy that we've actually started in 2018. The new Access Facility. I think a wonderful product. We're extremely pleased with this product. It was launched in May. We've already sold limits of ZAR 8.6 billion. There's just over ZAR 6 billion that's been taken up. It's interesting, 54% of the sales that's going out is for people earning more than ZAR 15,000 a month. The nice thing about this product is for a term loan product, if you take that term loan product, you pay fully on that amount. If you take ZAR 100,000, you pay full interest on the ZAR 100,000. On the Access Facility, you only pay when you use it. If you don't use it, you don't pay any monthly fees. Your pricing is very competitive because it's priced at a facility rate, and it comes in around about 17%. Very strong growth in this product. I think the other big thing is it's actually taken us out of the traditional one to six-month market. That old one to six micro-loaning cash loan market, we're not in that market anymore, and we're actually operating only in the term loan market. Business Banking. If I look at Business Banking, what has happened, I think we thought we were going to build a bank after we've acquired the bank, and then you suddenly realized that you had to manage COVID. Basically, for the first six, seven, eight months, it was all COVID, and how is your SMEs performing. We assisted just over 1,000 business clients with payment breaks up to ZAR 4.2 billion. You can see of that, only 46 clients is in arrears with a balance of ZAR 3 million. Outstanding is ZAR 3.6 billion. Overall, it's actually performed extremely well, and we're happy with that performance. The SARB loan guarantee, I think that's the one question everyone is saying it's not been working. I think it's a question that the private sector or the banks were just too quick helping the clients with all the payment breaks, et cetera. If you look at our total contribution, it was over ZAR 12 billion that we assisted clients, if you take business banking and retail banking into consideration. I see it's been extended for another three months. I think we're focusing on saying, actually, how can we actually assist our clients ourselves, going forward. We believe, on a very conservative basis, with a provision coverage of 6%. Where are we? We've brought in Mercantile now as a division of a bank from the 1st of December. They haven't got a banking license anymore. We're basically focusing on two areas. One area is actually building a very unique client experience for our business clients and new credit models for them. You need to integrate the support services from an AML, fraud, accounting side. You need to bring that in. We're busy with those integrations and working that through. You can see we've appointed 134 new employees. That's predominantly in the building the bank side. We've seconded 81 retail people to build the bank. Maybe just come back to what I've said now is that to align our systems, as you know, we went live on SAP on the retail side last year, March. It's gone very well with our year-end. We actually celebrated SAP's first birthday about two, three weeks ago. They're going live now on SAP and half year should be fully on SAP. The big focus lies on the whole service model that we're building and the scalability. We're still on track. Like I said, we're still looking at Capitec Business Banking for next year. That whole process is taking place. Maybe the only thing that I need to highlight here is we've launched a franchise solution in the market. We've brought in about seven or eight people that's focusing on franchises. What we've seen is on the franchise side, you're picking up quite a lot of information. You've got quite a lot of history to actually support your strategy. If I look at the future, I think in the future, we can focus on those four area: people, scale, digital, and data. On people, I think that's where the biggest challenges and the biggest opportunities are. I'm not a fan of working from home the whole time. I think it's a combination. If I look at our ExCo team, we're probably 80% of the time in the office. We've just seen if you brainstorm, if you're creative, if you're innovative, you need to have people around you. You need to have those serious debates. We're really encouraging our people in a responsible manner to come and work from office. We're spending quite a lot of time. We're working on a lot of new models, where you've got complete scalability, flexibility, multi-skilling. To give you an example, with our systems and things that we've implemented, our direct lending business normally had only their people that was working in direct lending that could assist with loans. People in branches seamlessly can switch over and can assist. It's that cross-functional multi-skilling. I'm challenging the HR department and say, I think we need to throw away all job descriptions, and just think and say, what is the opportunity and let's go and do things. The human touch is still for us important. Everyone talks about branches and digital. I believe a very critical aspect of the Capitec winning recipe is those three sides. We've got a very strong branch infrastructure. We've got a very strong digital offer, and then a very strong client engagement side. That branch side is that human touch. If there's an issue, a problem, I want to understand the product better. I want to engage. That's where the branch is critical. We see that when we launch a new product that's coming out. That understanding that human touch is critical. We've budgeted to appoint close to 500 people. All of those people are basically IT, digital, science, et cetera, coming through. It's a very strong focus on where we're going. On scale, I think it's quite nice to sit with 16 million clients. How do we leverage that client base? How do you optimize that client base? What products do you launch in that client base to make certain that you can optimize it, but with the focus of simplicity and efficiency and transparency? To create efficiencies. As you scale and as you grow, there's always opportunities for efficiencies and do things better. That will be a very strong focus. Partnerships. I think if you look at what we've done with SA Home Loans, Sanlam, et cetera. We'll continue looking for partnerships and working with people to create value for our clients. I think if you look at fintechs, it's critical that banks work with fintechs and that we partner and we solve those client solutions. Digital and data. Big focus areas is then the payment side, the QR side, changing the behavior from cash to payments, the whole digital e-commerce side, the whole ability to move everything to the cloud. Just interesting is that the business banking data infrastructure is all in the cloud, and we're seriously moving retail into the cloud. We'll probably complete that in the next year. All of that is that ability to actually understand your client better, to have better insights of your client, and to be able to react quicker. All it goes about is understanding your business, making decisions much quicker. To be able to do that, you need to have data available. That's a very big project for us. We're spending over ZAR 250 million on that in the next 12 - 18 months. Then protect our client data and trust. POPIA is coming in 1st of July. I think if I look at it, for me, it's not so much about POPIA, but where the world is going, with social media, et cetera, is you need to make certain that you create value for your client, because if you create value for your client, that client is going to say, "I'm going to trust you with my data." Then you can use that data to actually create value for himself. Our focus is not a compliance or regulatory focus, but more a client side, in so much as then we're adding value to the client. Business banking, I think I've actually addressed this. We're on track with the 24-month development plan for mid-next year. It's looking at all processes, client interactions on a digital basis, that we do it seamlessly. I must say, if I look at the future, on what we are busy for the next two to three years, I'm very excited. I think it's an exciting opportunity to actually sit with 16 million clients, close to 9 million digital clients, and you're setting up a business bank that you're building up. If you combine that, I think we've got a very strong future. Thank you very much. We will now hand over to Anton, that's going to handle the questions. I'll join André, you can ask any questions you want. Thank you very much. The first question we have this morning regards the number of the client growth rate. What is the current client growth rate if the average growth last year was 160,000 per month? Well, there was one month that had negative growth. That was right in the heart of COVID. Thereafter, bar for two months, we had a consistent growth in the growth of clients. At the moment it's roughly about 200 per month, 200,000. The next question relates to transaction fee income. What drove the increase in transaction fee income? People expected that the transaction activity was going to be lower during COVID. I think your biggest lever there is the number of clients. If you look at We've added 4 million clients in two years. We haven't increased prices for three years. We've grown very strongly in digital. Like I've shown in there, with COVID, the digital transactions kept growing. Even point-of-sale transactions kept growing later on. I think it's the fact that you're moving away from cash, but very strongly is the 4 million. Remember, if you look at two years, that 2 million didn't give you a full income for that year. It's partial. The 2 million they brought in this year is also not full. The full effect actually comes in the year after. Your ability to have that client base, I think is a big driver. Like I said, 80% of that growth is coming from number of clients. I actually specifically looked, and it's across the board, even in cash transactions. I have to say that the b usiness bank came in for 12 months, although it was only there for three months the previous year. Their numbers are very low compared to the Capitec number. The drive is really to move away from cash into point of sale. It could very well be that someone in the past could have taken one withdrawal, and now they do 10 point-of-sale transactions. Payment on digital. I think investors must always remember, if you move from branch to digital is ZAR 1 a transaction, branch is, let's say, ZAR 4, ZAR 5 a transaction. You need to do much more digital transactions to make up for that. That's just the client growth on the digital side that's coming through. What is the current demand for credit in business banking? Is the demand starting to pick up or is it still weak? Well, generally, there's always demand for credit. We do find that companies are very cautious at the moment. Even at the government loans that were supplied, a lot of companies did not want to take that, because they want to wait and see what happens in future. People are quite cautious at this point in time, especially for large developments. It's interesting if you look at the retail applications, because that we measure very clearly. In your retail applications in January and February was around 35%-40% down. Suddenly in March, we picked up very strong applications again. I don't know if people are starting to say they're looking for credit again, given the economy has opened up. Generally, on the retail side, we were for the year, or let's take it from July, we were about 20%-25% down on number of applications where people, I think, were just more cautious. Good. Moving on to the slides. We had a question around the banking clients that total 4 million. How do we define a banking client? It's 5.6 million. The 4 million is the savings clients. It's the people that save with us. The 5.9 million is the, if I remember now correctly. The banking client is actually a client who actually deposits his salary with us. Okay. Well, we mentioned stable inflows, app usage, swipe usage, and debit orders. We've got various definitions within the bank in order to manage that. We are trying very hard to manage the behavior away from cash, and to use more digital and card transactions. Around the home loans, we had applications of 24,000, but approvals of 300. Why is that? It's just that, remember, you do application, it gets approved. You need to go and do evaluation of the house. You need to go through the bond registration process. It just takes much longer. Our bond office or deeds office was also not 100% capacity. It's just a normal process that takes place. What is the average value of the home loans granted? Do you have that? I think the average, and I'm talking a little bit out of recollection, was just under a million. It was about ZAR 950,000. Are we targeting a specific home loan book? Can this be as large as the unsecured book? Remember, this book is on SA Home Loans balance sheet. It's not on our balance sheet. We're not targeting a specific size. What we are doing is just offering value to our clients because Capitec never had a mortgage product. If a person joined us, let's say at 20, and he's now 30 years old and he wants to buy a house, he had to go to one of the four traditional banks. Now he can actually get a SA Home Loan, which is underwritten by SA Home Loans. It's not our product. It's not on our balance sheet. What is the key drivers for the cost growth, given that there was only a small increase in staff and lower branch numbers? There was a 10% increase on OpEx, and remember, Mercantile was only in the previous year for four months, and now it's in for 12 months. There was investment always on IT and digital. That's where the major investment is from, certainly the center, is to streamline IT and develop new products. Has there been any commission charged this year on loan originations? Yes, we do, but it's just a small charge that we do to effectively cover our cost for the initial capturing of the transaction. Very small. It's really very small. Yeah. What are the increasing costs for e-commerce distribution? Well, it's really the IT development. IT development and the app development. There's a full team that look at that. We make use extensively of machine learning, and that's all factored into that. It's not a physical cost. It's more on the development cost, and then to get clients to get used to it and roll it out. There's marketing cost attached to that as well. What would have been the NIR to OpEx retail coverage if we excluded funeral? Well, there's a huge fixed cost into the branches, and 86% of all funeral policies are actually sold in branch. I suppose one would have to look at it and say, if we did not have funeral, we would, in all probability, have been able to decrease the headcount in branches. It's not that straightforward. We've computed a specific amount, which we charge as part of the funeral cover. In future, the funeral cover will furthermore be moved to a fellow subsidiary of the bank. We'll do all our insurance products from there, and then we will have a charge to the bank. I don't believe that that's going to be that significant because, as I said, there's a huge fixed cost component in the branches. I think that's the nice thing what digital does to you. You create capacity in branch, so you can sell products out of branch. That gives us a major advantage because the fact that we've got over, let's say, 840 branches, gives us a very strong distribution footprint. The 15.7 million, 15.8 million clients gives you massive opportunities to bring out new products, and sell that properly. What is the strategy around wholesale funding? It looks like the book has been run off completely. Will Capitec remain active in the wholesale funding market? Well, the idea was always to have presence in the market. I would say fortunately for ourselves, but probably unfortunate for the wholesale providers, we just have so much funding. We've got significantly more money in our investment portfolio than in the retail and business book. The intention is to stay in the market and even start issuing some debt again in future. At this point in time, our need for wholesale funding is still quite low. We have a question around credit. 2021 financial year has been heavily distorted by the increased credit charge. In the first half, the pre-provision operating profit was up 11.5%, and then this decreased to 5% in the second half, giving a full year figure of 8%. Can you comment on the slowdown in the second half, and comment on the outlook for the next financial year? Well, to start with, as Gerrie said earlier on the growth of the book, we were obviously very cautious. There are some industries that are still having problems, like the travel industry. Obviously, we can't be bullish there at all. There's a lot of questions still on the third wave and maybe fourth wave. Generally, we are very cautious. There's been a very significant slowdown in the first half. As we said earlier on, gradually, we are increasing that as well, and also by providing good priced products and products like the Access Facility that clients really enjoy. We will see growth going forward. As for the provisions, we gave it our best shot in the first half of the year to make sure that we deal with it. As Gerrie said earlier on, we're updating that on a monthly basis. We do find pockets where we feel that the provisions are not required to be as severe as we thought about it in the first half. Hopefully, it will be so good that we can release all the provisions at this point in time, going forward. That's very unlikely. The one thing that we try to do is to deal with the pandemic, so that we don't linger on it forever. Even at this point in time, we spend hours and hours and hours again at year-end to make sure that our economic forecast and everything is in line with what we believe a reasonable number is going forward. That's it. No more questions. Thank you very much.