Absa Group Limited (ABG) Earnings Call Transcript & Summary

Good morning, everyone, and thank you for joining us for Absa's interim results presentation. First of all, I hope that you and your loved ones are safe and well in these extraordinary times as COVID-19 continues to weigh heavily on us all. I will cover the substantial impact of COVID-19 on the economies in which we operate and our response to the pandemic so far, following which, I will update you on the completion of our separation from Barclays PLC, before commenting on our performance during the first half of 2020. Thereafter, Jason will dissect our numbers for the period, particularly details on our credit impairments, following which, I will provide some concluding remarks before Jason and I respond to any questions you may have. COVID-19 is generating health and economic challenges almost without modern precedent across the global, regional and domestic economy. Across the globe, policymakers have moved quickly with emergency economic support and critical public health initiatives of vast scope. These measures have provided some mitigation of the supply, demand and health shocks hitting economies, but it is clear that the impact of 2020's crisis will reverberate for many years to come. Notwithstanding the unprecedented policy response, as of mid-June, the International Monetary Fund was forecasting the global economy to shrink by 4.9% this year, more than 8 percentage points weaker than the outlook at the time of their January forecast. And for advanced economies to shrink by 8%, a swing in forecast of nearly 10 percentage points compared to the same forecast in January. Volatility, uncertainty and risks are likely to remain at levels that make medium-term planning difficult, until such time as effective vaccines are developed, comprehensively tested and distributed across the globe. In itself, this presents a scientific, economic and logistics challenge without easy historic comparison. South Africa's own experience of the pandemic and the associated economic challenges are perhaps even more stark. Particularly as the country entered the crisis already in a mild recession following several years of disappointing growth, with extremely high unemployment, a very weak fiscal position and already fragile business and consumer confidence. COVID-19 laid bare the economic vulnerabilities arising from failures to implement necessary structural reforms and show up confidence through policy certainty, forecast implementation and appropriate accountability frameworks. Fortunately, the South African Reserve Bank, the government, South African business organizations and broader civil society have all focused their recent efforts on mitigating the impacts of the pandemic on the country. However, it also needs to be noted that the countrywide lockdown was among the most far-reaching globally. And whilst this is likely to have helped ensure against a more aggressive spread of COVID-19 amongst the population, the direct impact on the economy is likely to have been severe. Just how long-lasting the economic damage is likely to be, remains highly uncertain. Our research team expects South Africa's real GDP to contract by 8.3% this year, a somewhat larger contraction than that currently forecast by the South African Reserve Bank or the market consensus. Positively, the figure reflects a modest upgrade of a forecast made in May. In context, however, the downturn is without modern precedent for the country. By example, the economy shrunk just 1.5% in 2009 during the global financial crisis. And one needs to go back to the early 1930s to find a contraction as large as 6%. For 2021, the bank's current forecast is for the economy to rebound by 2.4%. As further evidence of just how significant the current economic challenge is, our research team projects that South Africa could take 4 years or longer to regain the level of real economic activity witnessed in 2019. The impact of the health and economic crisis precipitated by the COVID-19 pandemic is not isolated only to South Africa. Across our African regional operations environment, economies have been impacted even if the direct prevalence of the pandemic so far appears much less severe than in South Africa. Commodity market gyrations, a sudden stop to global tourism and supply chain interruptions, together with the impact of domestic lockdown where they've been announced, have disrupted business activity to varying degrees across the region. Against a pre-COVID real GDP growth forecast for 2020 of 5.7%, our research team believes that our ARO countries could now grow just 0.9% this year on a GDP-weighted average. Within the mix, Botswana, Mauritius, Zambia and the Seychelles are expected to come under the most pressure, while Ghana, Kenya, Tanzania, Mozambique and Uganda are still expected to grow this year, although well below our previous expectations. Given the unprecedented nature of the current health and economic crisis, forecasting with confidence is particularly difficult currently, and scenarios play an even greater-than-normal role in ensuring appropriate risk management. We show a number of scenarios that we have considered in our results booklet. Since I covered our operational response to COVID-19 in our presentation in May, I won't go into a lot of detail on it again, besides updating you on some key numbers and recent developments. From the onset of this crisis, colleague safety and well-being was our immediate priority. And we quickly switched to a predominantly remote working model that enabled our colleagues to continue to work safely from home, while essential frontline colleagues worked under strict hygiene protocols that are still in place despite the decline in infections and gradual opening of the economy. Our technology capabilities enabled this change, including rapidly increasing our VPN accessibility, deploy remote working protocols and rolling out mobile versions of our HR and learning systems. Currently, 2/3 of our staff are working remotely or are on standby at home. In addition, we provided relief to commission-based staff, who could not operate during the lockdown. Supporting our customers through this difficult time has been a priority, from providing advisory and transactional services to offering payment and other relief programs. Even during South Africa's hard lockdown, over 40% of our branches stayed open to provide essential banking services including paying out social grants. At the moment, 83% of our branches are operating, and our frontline staff continue to observe stringent health and social distancing protocols. We have 11,000 staff on-site across branches, call centers and corporate offices. Our frontline staff have been phenomenal during the lockdown and have really lived our purpose in helping our clients to manage during difficult and uncertain times. As you know, we have the largest ATM network in the country, and despite operational challenges, we maintained high availability across it to meet the cash needs of Absa customers and the broader public. Moreover, our system stability has been excellent during this period. We have offered customers substantial payment relief. Retail and business banking in South Africa launched, what we believe, is the sector's most comprehensive relief program. Customers in good standing could opt-in for 3 months of payment relief across all our lending products. Take-up has been substantial. As of the 30th of June, we have provided ZAR 8.7 billion of relief on ZAR 154 billion worth of loans to 538,000 customers, including 20,000 businesses. That equates to 29% of RBB SA's customer loans. In addition, we approved ZAR 0.5 billion in business loans as part of the government loan guarantee scheme, which we expect to increase as the reopening of the economy accelerates, following the introduction of level-2 regulations. We also distributed ZAR 132 million to SMEs on behalf of the Oppenheimer South African Future Trust. CIB South Africa assisted clients on a one-to-one basis and granted payment relief on ZAR 37 billion of loans, 12% of their book. Lastly, Absa Regional Operations afforded customers payment relief on loans totaling ZAR 25 billion or 19% of their overall customer loans. We also waived various fees ranging from Saswitch fees when customers of other banks use our ATMs in South Africa to certain digital transactions in ARO. We supported distressed bancassurance customers in South Africa by providing payment holidays on life premiums, while extending our credit cover to temporarily include a wider definition for loss of income events. Over and above this, in line with our commitment to be a force for good in the communities that we operate in, we mobilized our citizenship program as COVID-19 quickly evolved into a humanitarian crisis. Absa and its employees contributed over ZAR 71 million in support across the continent, including ZAR 7 million of donations from colleagues. To date, across our presence countries, we have contributed to the expansion of screening and testing, the provision of personal protective equipment for thousands of health workers, and humanitarian support to vulnerable communities. Working together with clients in various key sectors, we have not only delivered over 2 million meals to vulnerable households, we have also begun to focus our attention on supporting economic recovery and the rapid development of employment opportunities. Our efforts have garnered international attention, and we are very proud to have been recently recognized with Euromoney's Excellence in Leadership award in Africa for our integrated response to COVID-19. We were 1 of 6 banks globally recognized for our outstanding performance during this crisis. Moreover, we won 4 separate awards for Corporate Social Responsibility in Zambia, Ghana and the Seychelles. The manner in which colleagues have turned up over the past few months is remarkable. And we have remained resilient because of their determination and the quality of our crisis management. As our initial response to the crisis became more settled, we then began to establish concrete steps to recalibrate the business for the near term and future. During the second quarter, we began to pivot from a growth focus to prioritizing, protecting our balance sheet by preserving capital and ensuring we have sufficient liquidity buffers. Separating from Barclays successfully was one of our priorities for this year. And I am pleased to report that it is now substantially complete. This is a great achievement for Absa, since the project size and complexity were unparalleled in Africa. In fact, we understand that our 3-year separation is the largest of its kind globally. At its peak, nearly 1,300 colleagues and contractors were working on the 273 projects. As you would expect, COVID-19 delayed a few projects, in particular, those requiring on-site work. However, we completed 99% of the projects by the 5th of June, including the technical build for the 3 outstanding platinum projects. Of the 3, the ARO card issuing project was delivered early last month. CIB's new valuation system went live this month, while its FX products have also gone live, although client migration will extend into the fourth quarter of this year, which CIB mentioned at the Investor Day last November. It is important to highlight that during separation, many systems were enhanced rather than just replaced. The program has fundamentally improved Absa's resilience, systems and capabilities to the benefit of staff and customers alike. For example, we improved customer experience through greater stability and upgraded user interfaces in several countries across the continent. Separation also gave us the opportunity to refresh our Absa brand, which we had not invested in for many years. Moreover, we not only completed separation on time and on budget, but with over ZAR 1 billion of centrally held contingency remaining, which will supplement our capital position. Critically important and an outcome that will serve us very well going into the future is that during the process of separating, we have built business resilience and technical competence in managing complex projects, which were valuable as we planned and executed our response to COVID-19. For example, we quickly re-prioritized our book of work to focus on stability, digital and [ NEA ] benefit projects. We are able to deploy these changes and project management skills elsewhere across the group. Moving on to our results. As I indicated earlier, the severity of the COVID-19 crisis during this reporting period, particularly during the second quarter, is without precedent, certainly in our lifetime. Let me convey what I think are the 6 key messages for interims, beyond the substantial decline in our normalized headline earnings. First, our revenue showed resilience. Despite slowing significantly in the second quarter, it grew 3% year-on-year to over ZAR 40 billion, a respectable performance considering the significant revenue pressure banks faced during this period. Large policy rate cuts reduced our net interest income by ZAR 1.3 billion after our structural hedge. Moreover, COVID-19 lockdowns and the weak economy reduced our loan production and transaction volumes materially and sizable negative fair value adjustments dampened our noninterest income further. Second, operating expenses continued to be well managed, declining 2% year-on-year to ZAR 22 billion. Some of this was due to benefits from restructuring undertaken previously and far lower provisions for incentives, given the performance. This outcome also reflects appropriate management actions in response to COVID-19, such as implementing a hiring freeze and enforcing higher discipline when it comes to cost management. Third, given the positive operating jaws of 5%, our cost-to-income ratio improved materially to 54% and our preprovision profits grew by 9%. Fourth, the most prominent feature of our first half was the significant increase in our credit impairments, which were 4x higher year-on-year. Worsening delinquency trends and provisions for single-name exposures produced half of the increase, while management judgmental provisions due to the unprecedented deterioration in macroeconomic variables drove the rest. I'm comfortable that we have been disciplined and prudent in exercising that judgment. Jason will unpeg this charge in detail later, since we have front-loaded our provisions into this half. Fifth, we continue to benefit from having a diverse group both across geographies and activity. I will highlight certain areas that have showed great resilience. Lastly, we are focused on protecting our balance sheet over this period. This is evident in our solid core equity Tier 1 ratio of 11%, which remains within our Board target range and well above regulatory requirements. Our liquidity in both rand and foreign currency also remains solid. LCR and NSFR ratios are well above regulatory hurdles. As I mentioned, our preprovision profit grew 9% to over ZAR 18 billion, our strongest growth since the first half of 2016, when we benefited from a substantial currency tailwind. However, our credit loss ratio rose sharply to 2,77%, almost treble the top end of our through-the-cycle range. Much of the increase was judgmental overlays to build coverage. Absorbing these substantial provisions meant, our diluted normalized headline EPS decreased by 82% to ZAR 1.73. Consequently, our return on equity fell materially from 16.4% to 2.6% for the period, well below our cost of equity. Thus, our profit after regulatory capital charge, or PARCC, decreased to a negative ZAR 6.1 billion from a positive ZAR 1.3 billion in the first half of 2019. Nonetheless, our net asset value grew 6% to ZAR 131 per share, largely due to growth in our cash flow hedging and foreign currency translation reserves. As we guided in May, we felt it prudent not to declare an interim dividend. This is also in line with the prudential authorities' guidance note. Before handing over to Jason, I'll briefly comment on each of our 4 divisions. The earnings all fell materially year-on-year due to the significantly higher credit charges. However, all 3 generated both positive balance sheet and operating jaws for the period. And you can see they all posted solid preprovision profit growth, plus there are developments in each worth highlighting. Starting with retail and business banking in South Africa, normalized headline earnings fell 91% year-on-year to ZAR 0.4 billion due to far higher credit impairments. Within this, all of our lending businesses made losses, but the transactional franchises were resilient. Both relationship banking and retails, transactional and deposits made over ZAR 1 billion for the half despite reduced fee income due to COVID-19 and the weak economy. The insurance clusters earnings grew 21% to over ZAR 0.7 billion, demonstrating the benefits of repositioning it within RBB and exiting from the volatile agricultural crop and commercial lines of business. RBB SA's operating expenses fell 8%, in part due to reduced variable costs on lower volumes, although this also reflects the benefits of restructuring that started in the second half of 2018. The operational benefits, such as reduced bureaucracy, improved customer primacy and market share gains were less evident from the second quarter given the disruption from COVID-19. Nonetheless, as I mentioned earlier, RBB SA's good business continuity plans allowed us to support customers during this difficult time. The cost initiatives leverage digital to improve operating inefficiencies and customer experience. RBB SA has made progress on its digital journey, starting with refreshing its platform architecture and building resilience, while substantially improving the quality and speed to market on new functionalities. We are seeing benefits across our digital estate, including consistently being the highest-rated banking app on both the App store and Google Play store. Our digitally active customers grew 12% from December to over 1.7 million. Our new end-to-end digital onboarding system in vehicle finance has reduced turnaround time from hours to minutes. And we recently launched Activate a digital-only short-term insurance offering. While in life insurance, we have partnered with a fintech to provide a digital SME group life offering. It is worth mentioning that RBB SA completed the sale of its Edcon store card book in the first quarter, which freed up over ZAR 8 billion of risk-weighted assets. Lastly, RBB SA's credit charge was 4x higher year-on-year as we took substantial provisions against future expected credit impairments. Corporate and Investment Banking's total normalized headline earnings dropped 43% year-on-year to ZAR 1.6 billion, although it was our largest division by earnings. Importantly, the CIB has completed the separation from Barclays, which has freed up some management resources, which had been tied up for the past 3 years. CIB's revenue increased 15% to over ZAR 10 billion. Importantly, this growth was broad-based. Markets revenue in South Africa rebounded off a low base, while ARO continued its strong growth and has doubled since the first half of 2016. Commercial Property Finance also grew strongly. Corporate Banking maintained its double-digit revenue growth, largely due to ARO as South African activity slowed, given the more severe lockdowns and macro backdrop plus low business confidence. CIB's deposit growth was strong, an area where it had disappointed in the past. Its deposits rose 19% year-to-date, with core deposits up more. During the first half, CIB completed an acquisition of SocGen's local custody business worth ZAR 113 billion of assets under custody and trustee, which will help CIB grow deposits. CIB's credit impairments were 7x higher year-on-year off a relatively low base, particularly in ARO. The large increase reflect single-name charges and macroeconomic variable charges. Lastly, Absa Regional Operations earnings fell 67% year-on-year to ZAR 0.6 billion. Completing its separation from Barclays was a major milestone for this business, the bulk of which we acquired from Barclays in 2013. ARO separation involved the largest single data and systems migration in Africa, as customers in 9 countries were switched to a new, enhanced online banking system. Moreover, our rebranding outside South Africa has been very successful and has improved staff morale while providing an opportunity to engage with customers. We rebranded over 340 branches and corporate offices, over 860 ATMs, over 17,000 point-of-sale terminals, over 1.2 million customer cards and thousands of staff uniforms and stationery. ARO's strong digital growth is worth highlighting with increased adoption across intelligent ATMs, mobile and Internet banking. The number of digitally active customers grew by 28%, resulting in digital transactional volumes rising 77% and transactional values 43%. Growth in mobile lending also increased strongly. For instance, it was extended to Ghana, where 210,000 loans were disbursed in just 4 months. We also launched NovoFX in Zambia and Botswana, allowing customers to send money across borders for immediate payments into recipients' accounts. Automation and digitalization have allowed us to optimize on ARO's branch network. ARO continues to benefit from its well-diversified portfolio, both by activity and geography. For example, although RBB made a small loss, the investment bank grew earnings 14% year-on-year off a relatively high base, a very credible performance. Similarly, certain countries performed strongly to offset some that were weaker. While ARO's operating expenses grew 17%, this included restructuring costs to rightsize the business, higher incremental run costs after the separation from Barclays, IT investment and the weaker rand. Excluding these, cost growth in constant currency was sub-inflation, reflecting various initiatives. As with the other divisions, however, credit impairments dominated ARO's first half performance as its credit charge was 5x higher compared to the same period a year ago. Those are the points I wanted to pull out of our 4 divisions, some of which were masked by the significantly lower earnings because of higher credit impairments. I will now hand you over to Jason, who will take you through our first half financial performance in more detail.

Well, thanks, Daniel, and good morning, everybody. I'm going to cover the main features of our first half performance and will provide guidance for the rest of 2020. As usual, throughout the presentation, I'll talk to our normalized financials, which adjust for the consequences of separating from Barclays and better reflects our underlying performance. We reconcile these with the reported IFRS results in our booklet. Daniel highlighted the unprecedented operating environment, which is evident across our financials. Our first half was a story of 2 quarters. Although our first quarter was somewhat impacted by COVID-19 towards the end of March, revenue growth was high single digits with mid-teen growth in customer loans and deposits. Combined with continued cost management, this produced strong preprovision profit growth. Our ROE was only slightly lower year-on-year, given increased credit impairments as we started to see the impact of COVID-19 towards the end of the quarter. However, in the second quarter as the pandemic deepened, our presence countries went into lockdown and their economy stalled. Loan production and transaction volumes slowed materially. This was particularly evident in April given South Africa's hard lockdown. Significant policy rate cuts also reduced our net interest margin despite protection from our structural hedge. Later, I'll show how volumes recovered from April to June and into July. As a result, revenue growth for the half slowed to 3%. Net interest income was more resilient, up 6% to ZAR 24 billion, despite noticeable margin compression. Noninterest revenue declined 2% to ZAR 16 billion as 8% lower fee and commission income outweighed solid insurance premium growth and a strong rebound in global markets revenue. Our total revenue grew 3% to ZAR 40 billion for the half. Currency translation effects of a 12% weaker rand during the period increased both our reported revenue and costs by 3%. As you'd expect of us in the current environment, operating expenses were again very well controlled and responded to the crisis. Costs declined 2% year-on-year or 5% in constant currency to almost ZAR 22 billion. Credit impairments increased significantly and were 4x higher year-on-year at almost ZAR 15 billion, which I'll cover later in considerable detail. The 38% increase in other reflects higher VAT and a large decline in income from associates and joint ventures. The effective tax rate decreased slightly to 26%, which I've previously indicated is a sustainable level. Noncontrolling interest fell 29% as far lower minorities offset higher AT1 coupons. Normalized headline earnings decreased 82% to just below ZAR 1.5 billion for the half. The normalization items are shown on the right. Separation-related operating expenses of ZAR 1.4 billion was the largest item, which was higher than a low base in the first half of 2019 due to ARO rebranding costs and higher amortization and technology build costs this year. We also deducted almost ZAR 300 million of revenue. At a headline earnings level, we added back ZAR 900 million. Our IFRS reported headline earnings fell 93% year-on-year to ZAR 559 million. Balance sheet momentum continued in the first quarter as gross loans were up 16% year-on-year. However, moving into the second quarter in April and May, our gross loans declined during national lockdowns, while June increased marginally. So at the end of the half, total gross loans grew 7% year-on-year to ZAR 975 billion or 9% excluding reverse repurchase agreements, and annualized first half growth was 6%, all from the first quarter. RBB South Africa, our largest book, grew 4% year-on-year or 5% adjusting for the disposal of the Edcon store card portfolio in the first quarter as our market share increased slightly to 21.5%. CIB South Africa's gross loans rose 6% year-on-year to ZAR 308 billion with reasonable growth in commercial property finance and foreign currency loans, while overdrafts, overnight finance and reverse repurchase agreements declined. ARO's gross loans increased 25%, with almost 2/3 of this due to the weaker rand as RBB grew 26% and CIB 25%. Looking at RBB's loan growth in South Africa on the right-hand side, all the books grew despite considerably weaker second quarter production. Home loans rose 4% to ZAR 245 billion as its share of new business increased to 22% from 21%. Vehicle and asset finance grew 7% to ZAR 88 billion as our market share improved slightly to 20%. Personal loans grew 10% and credit cards 9%, excluding the Edcon store card disposal, given strong growth in the second half of 2019 and in the first quarter this year. Lastly, relationship banking rose 3% with 13% growth in agri and term loans, while commercial asset finance was flat due to the tough economic environment. Given the substantial impact of COVID-19, RBB South Africa's annualized first half loan growth came in at just 1%, even as the runoff of the back book slowed due to the substantial payment relief granted. This slide illustrates the substantial impact of South Africa's COVID-19 lockdown on our new loan production in our 2 largest retail books. On the left, home loans production was up 20% in the first quarter. However, production dried up during the hard lockdown in April. Production rebounded in May and June, although the second quarter was still down 72% year-on-year. Total industry registrations fell 39% during the first half, and we declined 31%. July's production improved, but we're still 27% lower year-on-year. And while volumes have picked up, perhaps due to low interest rates, there are still operational challenges with the deeds office processing transactions when they closed for precautionary safety measures related to COVID-19. The trends were similar for vehicle finance, although the recovery was stronger. First half production fell 19% year-on-year compared to the 42% decline in the market for total new and used vehicles financed during the period. Personal loans production dropped by more than 3/4 in the second quarter. Despite improving, it remained about 2/3 down year-on-year in July, as we tightened risk appetite with a large reduction in approval rates. Growing core deposits is a key focus, and it's an important sign of the health of our franchise. Total deposits growth improved to 15% year-on-year or 17% excluding reverse repos, with average first half deposits at a similar amount. Adding ZAR 122 billion in deposits produced strong balance sheet jaws with gross customer loans up ZAR 64 billion year-on-year. Customer deposits increased to 76% of our total funding mix from 74%. RBB South Africa grew 12% to ZAR 392 billion or 43% of our total deposits excluding reverse repos, given strong growth in notice deposits and savings and transmission deposits. Deposit margins declined reflecting competitive pricing and a shift to low-margin deposits. Within RBB South Africa, retail deposits rose 12% to ZAR 240 billion, improving our market share slightly to 22%. Growth in investment products was strong, although transactional deposits also grew 11% as customers preserved liquidity. Relationship banking rose 13% to ZAR 150 billion, with strong growth in savings and investments due to new products, while transactional deposits declined slightly, largely in the public sector. Deposits are also a priority for CIB South Africa and grew 17% to ZAR 243 billion or 25% excluding reverse repos, with the Absa Access deposit note launched last year performing very well. ARO's deposits increased 26% or 11% in constant currency. Within that, RBB's deposits rose 26% or 13% in constant currency, largely driven by current account growth. CIBs grew 24% or 8% in constant currency due to improved products and a greater focus on key clients in target sectors. Moving to our net interest margin. Benchmark rates were reduced in most of our presence countries in the half, with large cuts in several countries. South Africa's repo rate dropped 275 basis points during the period. Lower policy rates were the reason our net interest margin narrowed to 4.23% from 4.52%, as average interest bearing assets rose 13% to over ZAR 1.1 trillion, and net interest income grew 6%. Lower rates reduced our net interest income by ZAR 1.3 billion in the half. Our lending margin widened by 7 basis points. Pricing improved in home loans and investment banking in South Africa, while slower growth in home loans versus overall group loans had a positive mix effect that was partially offset by disposing of the high-margin Edcon store card portfolio. Our deposit margin declined by 5 basis points due to competitive pricing in Retail Business Bank South Africa, while stronger growth in loan margin deposits had a negative composition effect of 2 basis points. Lower policy rates reduced the endowment income on lazy deposits and equity in South Africa, lowering our group margin by 18 basis points. We continue to hedge structural balances of 13% of our South African capital and liabilities. Our structural hedge released just over ZAR 900 million to the income statement, which was 11 basis points more than the comparative period. The program's cash flow hedging reserve increased materially to ZAR 4.5 billion after tax at 30th of June 2020, which is indicative of the current extent of protection available in future periods as the hedges amortize, should all other factors remain the same. Endowment on equity and liabilities after hedging had a negative contribution of 7 basis points due to slower growth in endowment balances relative to group's overall interest-bearing assets. The negative reset impact following the fall in prime rates in South Africa during the half was a 16 basis points drag on the margin. ARO reduced the group margin by 4 basis points as lower policy rates in these markets and competitive pricing offset a positive mix impact from its strong loan growth. Balance sheet growth and a focus on growing our customer base and improving primacy was starting to translate into better noninterest income, with 8% year-on-year growth in the first quarter. However, noninterest income slowed materially in the second quarter due to COVID-19 lockdowns and an unprecedented reduction in economic activity. Thus, for the first half, noninterest income declined 2% year-on-year to ZAR 16 billion or 40% of total revenue. At a divisional level, RBB South Africa's noninterest income was most impacted, falling 7% year-on-year, although it remains the largest contributor by far. Within this, however, the insurance cluster was very resilient, increasing 9% year-on-year, while transactional and deposits declined 6% and relationship banking fell 13%. Cards decreased 15% or 7% excluding Edcon. CIB South Africa's noninterest income rose 1% as strong global markets and solid corporate growth were dampened by ZAR 570 million of negative fair value adjustments mainly on the noncore private equity portfolio, which are one-off in nature. ARO grew 14% or 4% in constant currency, as RBB increased 3% and CIB 25% on strong global markets growth. The graph on the left shows RBB South Africa's fee and commission income, which grew 2% year-on-year in the first quarter. However, it declined sharply in April during the hard lockdown, and although it recovered in May and June, it remained below pre-COVID-19 levels, and the second quarter was down 20% year-on-year. On the right, our debits and credit card turnover halved in April. And despite improving into July, it remains below first half 2019 levels, particularly credit cards. While our card-acquiring volumes fell almost 40% in April, they recovered relatively quickly, and by June, they exceeded first quarter levels and were 15% higher year-on-year. Global markets revenue increased 42% to ZAR 3.2 billion, our strongest performance in 5 years. ARO grew 34% or 21% in constant currency, off a high base due to continued product and geographic diversification, and now accounts for 43% of our total global markets revenue. South African markets revenue rebounded, growing 49% year-on-year off a low base to ZAR 1.8 billion, given significant growth in fixed income and foreign exchange revenues in part due to increased volatility, while equities declined. The South African franchise revenues are almost back to the levels we printed before Barclays exited, which disrupted our global markets business materially. The split part top on the right shows the resilience of the corporate franchise and strong growth in institutional client flows, plus a significant turnaround in the revenues generated from client facilitation risk compared to last year. Moving on to costs. Our operating expenses declined 2% year-on-year or 5% in constant currency to ZAR 22 billion. The reduction reflects the benefits from our restructuring efforts over the past 2 years, particularly in RBB South Africa, plus management actions in response to COVID-19 and lower variable costs on the back of lower activity due to national lockdowns. Staff costs decreased 5% year-on-year or 8% in constant currency to ZAR 12 billion, but remained the largest component at 55% of the total. Salaries increased 1% year-on-year, mostly due to the sustainable benefits in this period of restructuring costs in the base, which together with a hiring freeze, reduced head count by 2,000 year-on-year. The provision for bonuses fell 87%, in line with the group results, while deferred cash and share-based payment provisions decreased by 29%. Nonstaff costs increased 1% year-on-year, although these were down 1% in constant currency. Incremental run costs after separating from Barclays were ZAR 830 million up from ZAR 650 million in the base. Property-related costs grew 11%, largely due to spending ZAR 75 million on protecting colleagues and customers from COVID-19 with no increase in the underlying cost base and in line with the previous periods. Technology costs rose 7%, reflecting continued investment and post-separation incremental run costs. Our total IT spend, including staff, amortization and depreciation grew 7% to ZAR 5 billion or 22% of group expenses. Amortization of intangible assets grew 22% due to a 14% increase in software assets to ZAR 5.7 billion. Depreciation rose 3% or 1% in constant currency. Professional fees grew 25%, given higher investments to improve digitization across our estate. The 13% decline in cash transportation costs is a good example of lower variable costs due to the COVID-19 lockdowns and reduced economic activity. Management actions include reducing marketing spend and communication costs, plus a substantial decline in travel and entertainment spend within other. Other also includes lower fraud losses and 51% lower administration fees after disposing off the Edcon store card portfolio. In this tough operating environment, you would expect us to continue to manage costs very tightly, especially during the crisis. We see further structural cost-saving opportunities in operations and technology, and through digitization, while continuing to reduce discretionary costs. Despite moderate revenue growth, lower cost produced positive jaws resulting in a 54% cost income ratio, our lowest in many years. Given the significant build in first half credit impairments, I will spend much more time than usual on credit today. Credit impairments of almost ZAR 15 billion were 4x higher year-on-year, reflecting the impact of IFRS 9 accounting, in particular, incorporating estimations regard forward-looking assumptions around macroeconomic variables and the cliff effect of stage migrations. All caused by the substantial strain COVID-19 placed on our customers and the weak economic outlook. While the bulk of the increase came from RBB South Africa, it grew by less than both CIB South Africa and ARO. Our credit loss ratio increased from 79 basis points to 277, almost 3x the top of our expected through-the-cycle range of 75 to 100 basis points. RBB South Africa's credit loss ratio rose to 377 basis points from 112, which was at the bottom of it through-the-cycle range of 110 to 155 basis points. Although home loans credit charge was 12x higher year-on-year off a very low base, its 143 basis point credit loss ratio was well below the first half of 2012 levels when we experienced a significant impairment build in that portfolio. Within Everyday Banking's ZAR 5.1 billion credit impairment, card and personal loans credit loss ratios increased to 13% and 15%, respectively. Relation to banking's charge also increased materially off a low base. CIB South Africa's credit loss ratio rose from a low 18 basis points to 93, over 3x the top end of it through-the-cycle range. ARO's credit loss ratio increased materially year-on-year off a low base, particularly in CIB. Unpacking the substantial increase in our credit impairments, there were basically 3 drivers. Half the increase or ZAR 5.5 billion came from management judgmental provisions based on an unprecedented deterioration in macroeconomic variables. Worsening delinquency trends added ZAR 3.7 billion to our charge, while the period also included ZAR 1.8 billion of provisions for single-name exposures. The single-name provisions were for numerous clients across our CIB and business banking books in South Africa and ARO. There was not one particularly large exposure, and the industries that operate and vary, although some are in cement. Our direct exposure to industries that have been significantly impacted by COVID-19 is relatively low. However, these are big in absolute terms, and clearly, the specific names within each is crucial. The graph shows the aggregate exposure to each sector across RBB and CIB in South Africa and ARO. CIB South Africa constitutes the bulk of our lending, although RBB South Africa has quite large exposures to commercial property finance, manufacturing and construction. While ARO has more lending to nonfood retail, manufacturing and hospitality in particular. Commercial property, predominantly in South Africa, is the biggest exposure, while still relatively modest in the context of our overall lending book. While parts of the property sector are under pressure, our CPF portfolio is well diversified. We've improved its risk profile in recent years, and its LTV is low at around 50%. Manufacturing and nonfood retailers are the next largest, and these books are well diversified. Our loans to the hospitality industry and construction sector are relatively small in the group's context. As I said in our May update, the construction sector in South Africa has been distressed for some time, which COVID-19 has exacerbated, whereas hospitality and hotels were in reasonable shape before the pandemic. Oil and gas is small for us at less than 1% of our group loans, plus clients in that sector have responded to the crisis and are shoring up their balance sheets and have hedged their oil and currency positions. Our exposure to automotive dealers, health care and aviation are all small and our total exposure to South African Airways is backed by government guarantee. Given weak and volatile equity markets, I should add that within RBB South Africa, wealth share back lending has declined materially in recent years to just ZAR 720 million now, which has good levels of collateralization and has stood up well to price volatility. Finally, our SME portfolio is relatively small at ZAR 12 billion. Despite substantial payment relief measures, the delinquency profile in nonperforming loans deteriorated noticeably during the half. Thus, excluding single names and before incorporating the change in macroeconomic variables, our credit impairments would have doubled year-on-year. As you can see, our level of stage 2 and 3 loans increased materially after having improved consistently for the previous 2 years since we adopted IFRS 9. Stage 2 increased as a result of higher early stage delinquencies and secure adjustments. Stage 3 growth included specific names in the wholesale portfolios that were impaired. Delays in the sale and execution process in home loans, which COVID-19 exacerbated and changing personal loans write-off period to 12 months from 6, also increased the stage 3 ratio. Our stage 3 loans are higher than peers, largely due to our more conservative Basel-based definitions, which we're updating as we redevelop those models medium term. As Daniel mentioned, we granted significant payment relief to customers in good standing at the end of February, who required short-term financial relief due to the COVID-19 pandemic. RBB South Africa's relief covers ZAR 154 billion of loans or 29% of its overall book, and 71% of the total relief we granted. Within this, home loans is the largest by value and cards, the largest by number of customers. A 1/3 of our home loans and VAF books were granted relief, while card was lowest at 18%. CIB South Africa granted payment relief on ZAR 37 billion of loans or 12% of its book. These ranged from providing bridging finance to deferring capital or interests or relaxing covenants on a temporary basis. It received 310 requests. The property sector represented half a portion of the requests by number rather than by value. ARO has granted payment relief on ZAR 25 billion of loans or 19% of its book. Within CIB ARO, the largest sector under relief by value was hotels and tourism. All these portfolios have been ring-fenced in order to ensure heightened monitoring post the expiry of the relief measures. The first tranche of RBB South Africa's payment relief lapsed this month, particularly mortgages and vehicle finance. Of these customers, a large majority paid their installment, while a portion chose to extend the payment relief, although a partial installment payment is required. We will have a better idea of how these books perform by the end of this quarter. Given the unprecedented impact of COVID-19 on the global economy, we updated the macroeconomic scenarios used in our credit models. While there is considerable uncertainty, you saw earlier how expectations for economic growth in our markets has decreased materially. In December, our baseline scenario for South Africa's real GDP was 1.5% growth this year and 1.7% next, which swung to a 9.7% fall this year, followed by a 3.1% growth next year. We use the latter assumptions in our first half expected credit loss calculations. Our latest expectation is that of a slightly smaller decline of 8.3% this year with a modest recovery of 2.4% in 2021. As the graph shows, we don't expect South Africa's real GDP to recover to 2019 levels by 2024. Given the significant forecast risk, we retain the 9.7% GDP fall scenario in our modeling for the half year macroeconomic variable estimations. We provide details of our various macro scenarios for South Africa and our 4 largest ARO countries in our booklets. Given the unprecedented operating environments, we made 2 further adjustments to our expected credit losses. We applied a scaler to RBB's probability of default and loss given defaults for each product based on qualitative factors, such as exposure to impacted industries and applied appropriate sense checks or qualitative assessments to the outcomes. PDs and LGDs for wholesale exposures were determined on a case-by-case basis and then stressed per industry. These PD and LGD scaling factors will be reassessed as the COVID-19 pandemic effects become known, and the level of customer distress becomes evident within the models and at each reporting period. Lastly, we considered whether a significant increase in credit risk event had occurred, resulting in migration from stage 1 using 12-month expected losses to stage 2 with lifetime-expected losses. Since our substantial payment relief measures mask arrears, making it harder to determine whether a [indiscernible] had taken place, we considered whether customers were experiencing short-term liquidity problems, the particular industry and expected arrears in a COVID-19 environment. On the right, the ZAR 5.5 billion of MEB management adjustments is spread across several areas, with RBB South Africa 2/3 of the total. The adjustment is more than half of our home loans credit impairments, given the large payment relief on that product. It was also a relatively large proportion of CIB South Africa's charge. Excluding the management adjustments, our first half credit loss ratio would have been 173 basis points, in line with our charge during the global financial crisis. Our balance sheet credit provisions have almost doubled over the past 5 years. There was a large increase in 2018 as we implemented IFRS 9 based on expected losses. The first half charge improved our total loan cover to 4.5%, almost 3x the level we entered the global financial crisis with 11 years ago. The rise in RBB South Africa's cover was even larger year-on-year than its increase when we adopted IFRS 9. We believe that our level of coverage is appropriate for the current operating environment as we provided early for the expected losses due to the COVID-19 pandemic based on current expectations. Going forward, we will utilize these provisions if and when delinquencies crystallize. Moving to our divisional performance. Normalized headline earnings declined materially across the board due to these substantial credit impairments. However, it was encouraging to see that all the divisions posted growth in preprovision profits. RBB South Africa, which usually generates about 60% of our earnings, fell 91% year-on-year to ZAR 415 million as losses in lending products on the back of large credit impairments outweighed more resilient performances in the transactional franchise and insurance. CIB South Africa dropped 47% year-on-year to ZAR 817 million despite strong preprovision profit growth. ARO's earnings decreased 67% to ZAR 569 million, given significantly higher credit impairments off a low base. Our first half divisional returns dropped sharply and were all well below the cost of our equity. Starting with RBB South Africa, the COVID-19 pandemic had a substantial impact on our largest business. In the first quarter, its multiyear strategy to regain leadership was on track with strong preprovision profit growth and new business production. However, in the second quarter, RBB South Africa shifted from strategy execution to preservation of capital and supporting customers. As mentioned, the pandemic reduced its loan production and fee income materially in the second quarter, while increasing its credit charge significantly. These were partly offset by 8% lower operating expenses that benefited from the successful execution of the restructuring in 2019 and reduced variable costs. Looking at its franchises, all group preprovision profits year-on-year, which was outweighed by higher credit impairments. Home loans revenue was resilient, growing 8% year-on-year, well above 3% cost growth. Despite 12% higher preprovision profits, home loans lost ZAR 320 million, given significantly higher credit impairments. Vehicle and asset finance revenue also held up increasing 6%, while costs decreased 11%, producing 27% higher preprovision profits. However, VAF's credit impairments were almost 4x higher resulting in ZAR 1 billion loss for the period. Our insurance cluster continues to benefit from integration into RBB. Although also impacted by COVID-19 in the second quarter, it performed extremely well, with earnings growing 21% to ZAR 709 million. SA Life earnings grew 20% due to 9% higher net premiums, partly offset by 10% higher claims as increased retrenchment claims outweighed lower mortality claims. Given the impact of COVID-19 on retrenchment claims and loan production, the embedded value of new business declined 18% year-on-year. SA's short-term earnings grew 8% as its underwriting margin improved to 13% given lower motor claims during the lockdown and no catastrophic weather claims in the half. We're comfortable that the conservative approach we adopted over many years with regard to the actuarial valuation of insurance liabilities results in us not having to create a substantial COVID-19-related provision, based on current assumptions. We'd also disposed of our commercial lines business, and the group has not offered business interruption-type insurance products for some years. Relationship Banking's earnings decreased 38% to ZAR 1 billion as significantly higher credit impairments again outweighed solid preprovision profit growth. Revenue was resilient, declining slightly due to the lower noninterest income as transaction volumes fell during the second quarter. Operating expenses reduced 8% given restructuring costs in the base and volume-related savings in cash operations. While its ROE fell materially, it remained in line with our cost of equity. I'll cover Everyday Banking on the next slide. Everyday Banking incorporates transactional and deposits, card issuing and personal loans. While its earnings fell 93%, this reflects divergent performances across its businesses. Transactional and deposits earnings decreased 5% to ZAR 1.2 billion, a resilient showing considering the 6% decline in noninterest revenue due to the second quarter lockdown. Reduced operating costs produced positive jaws and higher preprovision profits, while credit impairments on its small overdraft book grew 52%. Our primary customer numbers declined to 2.9 million due to the drop in customer activity levels and income during the lockdown. Transactional accounts grew 1% to 6.2 million, and our overall customer base was stable at 9.7 million. The 2 lending business made losses due to significantly higher credit impairments. Cards preprovision profits grew 2% due to lower variable costs. However, its credit charge more than doubled to almost ZAR 3 billion, producing a ZAR 505 million loss for the half. Given solid 11% revenue growth, personal loans preprovision profits increased 16%. However, its credit impairment almost trebled to ZAR 1.9 billion, pushing it to a slightly larger loss than card. We would expect these 2 businesses to return to profitability in the second half. Moving on to CIB. I show all of its components in line with how it's run on a pan-African basis. CIB's first half earnings fell 43% or 46% in constant currency to ZAR 1.6 billion due to significantly higher credit impairments. Credit impairments were 7x higher increasing its credit loss ratio to 130 basis points from a low of 22 basis points last year. Revenue grew 15% or 10% in constant currency with strong 42% growth in global markets and 47% in commercial property finance, plus 12% higher corporate revenue, while negative fair value adjustments weighed on banking and private equity revenue. Noninterest revenue decreased to 35% of total revenue, while well below our 40% target for next year, when excluding the ZAR 570 million of negative fair value adjustments that we believe are one-off in nature, the proportion was 40%, given the strong rebound in global markets. Costs rose 5% or 2% in constant currency, with South Africa down 4%, largely due to lower provisions for incentives. ARO's costs increased 27% or 17% in constant currency, mostly due to incremental run costs after separating from Barclays that are now largely in the base. Given strong positive jaws, CIB's total preprovision profits grew 24% year-on-year. In South Africa, CIB's earnings declined 47% to ZAR 817 million as 4 higher credit impairments outweighed strong 28% growth in preprovision profits. Within this, SA corporate earnings fell 35% to ZAR 288 million. Revenue growth slowed to 4% as transactional volumes and deposit margins came under pressure, while credit impairments more than doubled. SA Investment Banking's earnings dropped 52% to ZAR 529 million despite strong preprovision profit growth. As I mentioned, global markets revenue rebounded with strong growth in institutional flows and improved client facilitation risk revenue. Banking revenue was flat, given negative fair value adjustments. Otherwise, it would have increased 15%. Commercial property finance continues to grow strongly off a low base. We still see growth potential in target areas and aim to win primary relationships to increase our transactional revenue and deposits. CIB ARO's earnings fell 37% or 49% in constant currency to ZAR 773 million. Credit impairments rose almost tenfold resulting in a credit loss ratio of 3.1%. Preprovision profits grew 21%, although much of this was due to the weaker rand. ARO's corporate earnings decreased 62% to ZAR 317 million due to significantly higher credit impairments and incremental run costs. Revenues grew 19%, reflecting strong net interest income growth driven by the weaker rand and solid constant currency loan and deposit growth. ARO's Investment Banking franchise was one of our best performers as earnings grew 14% year-on-year or 1% in constant currency off a relatively high base. Revenue grew 34% or 21% in constant currency given strong client hedging as we continue to build momentum in our franchise. Moreover, investment banking benefits from not having a loan book, so credit impairments weren't a factor. Given the strong performance, investment banking increased to almost 2/3 of our overall CIB earnings with ARO now just under half the total. Despite the difficult operating environment, ARO's overall revenue grew nicely at 16% year-on-year off a relatively strong base. Admittedly, it did benefit again from a weaker rand as constant currency growth was closer to 4% year-on-year. ARO's revenue growth in the past 2 years has enhanced our group growth, particularly since revenue in South Africa declined 1% year-on-year during this period following 3% in the first half of 2019. Thus ARO has increased its share from 21% to 26% of our group revenues. Despite this revenue growth, ARO's earnings decreased 67% or 77% in constant currency to ZAR 569 million. Before COVID-19, I flagged that we were cautious on ARO's earnings this year, given its low 2019 credit charge and higher incremental run costs after separating from Barclays. Clearly, COVID-19 exacerbated this by increasing credit impairments and dampening revenues. ARO's preprovision profits still grew 14% year-on-year despite slightly negative jaws, predominantly due to rand weakness. However, its credit impairments were almost 5x higher. I covered CIB ARO earlier, and despite strong preprovision profit growth, RBB ARO made a small loss for the period as its credit impairments trebled. While RBB's cost-to-income ratio improved slightly, we see considerable potential to reduce this from 69% medium-term as we reshape the franchise now that we've separated from Barclays. We also see scope to grow our CIB franchise across the continent. As I said in our May update, we focused on preserving capital and liquidity and protecting our balance sheet and client franchise rather than on growth during this period. With the separation of Barclays complete, a permanent difference between normalized and IFRS capital has arisen and thus, I'll show our group IFRS capital adequacy ratio, which remains within our Board target range and comfortably above our regulatory requirements. Our core equity Tier 1 ratio of 11% is at the bottom of the Board target range. It declined during the period, largely due to paying our final 2019 dividend of ZAR 5.2 billion and risk-weighted asset growth, which outweighed lower internal capital generation. The impact of phasing in IFRS 9 that will be complete next year was offset by the well-timed disposal of the Edcon store card portfolio. The main RWA growth came in CIB due to book growth, higher credit risks, increased market risk due to market volatility and currency weakening. ARO grew a strong deposit growth was invested in sovereign debt. RBB's growth was offset by impairments that took the risk to their P&L and reduced RWA. Prior to COVID-19, we ran an IMF bailout stress scenario at the beginning of the year, where credit impairments increased to double our experience in the global financial crisis. Under this stress scenario, which was then extended for a number of years, our group CET1 remained above regulatory requirements. Our ARO subsidiaries all have capital ratios well in excess of regulatory requirements and are expected to remain above these in a severe stress scenario. Our total capital adequacy ratio of 14.9% is in the middle of our Board target range. We redeemed ZAR 2.5 billion and issued ZAR 2.7 billion of Tier 2 capital in February. We have minimal redemptions for the rest of this year. In response to COVID-19, the South African Prudential Authority issued a directive temporarily reducing the Pillar 2A minimum CET1 by 50 basis points, Tier 1 by 75 basis points and total capital by 100 basis points. They've also made the capital conservation buffer of 250 basis points available for banks to utilize during the stress. Our liquidity position is strong. As I highlighted earlier, our deposits grew 15% year-on-year and 23% annualized year-to-date. As you can see, our sources of liquidity grew 46% year-on-year to ZAR 317 billion, and our LCR of 127% and NSFR of 117% are both strong and well above regulatory requirements. The SARB reduced the sector's minimum LCR requirement to 80% from 100% during the period, which, in our case, frees up capacity for about ZAR 20 billion in additional lending. It's very difficult to provide guidance for the rest of the year, given the significant uncertainty about the impact of COVID-19 and the economic outlook, which have a material impact on loan and transaction volumes and credit impairments, in particular. As mentioned, our latest estimate is for South Africa's real GDP to fall 8% and our ARO portfolio to grow 0.9%. We expect lower average policy rates for 2020 across the board. Based on these current assumptions and excluding further major unforeseen political, macroeconomic or regulatory developments, our guidance is as follows. Our net interest margin is still expected to decline noticeably this year, although we expect a slight improvement in the second half. We believe there could still be another 25 basis points rate cut in South Africa this year. Our annual sensitivity to further rate cuts in South Africa is a ZAR 250 million reduction per 50 basis points. Loan and deposit growth should slow in the second half, with deposits expected to grow faster than loans. Operating expenses are expected to decline year-on-year, resulting in preprovision profit growth. Our credit loss ratio is expected to be well above global financial crisis levels for the full year. The second half credit loss ratio is expected to improve significantly, but remain well above the through-the-cycle range of 75 to 100 basis points. This is based on our current estimates that a further build of macroeconomic variable reserves, in particular, will not be required and that the reserve will be utilized if and when delinquencies crystallize. Our core equity Tier 1 ratio is expected to remain resilient as capital generation improves in the second half and should remain broadly at first half levels. Our return on equity is expected to remain well below the cost of equity this year, although it's likely to improve in the second half. Finally, given our focus on preserving capital, we do not envisage declaring an ordinary dividend for 2020. Thanks very much for your attention. I'll now hand you back to Daniel.

Thank you, Jason. Please allow me to make a few closing remarks before we take your questions. The group has experienced significant challenges as a result of COVID-19, which has had a material impact on our operating environment, business activity levels and financial performance as we've just discussed. There's a growing consensus that when we emerge from this crisis, economic life, the business environment and indeed, social interactions and customer needs and preferences will have undergone a fundamental structural change. We need to make sure that we are correctly positioned for this with regard to ensuring that we have a relevant and competitive business model that will see us emerge from the crisis as a strong and resilient business for our colleagues, customers, clients and shareholders. In this regard, we have already instituted initiatives which will culminate in proposals being presented to our Board by year-end. They are around making strategic choices for the markets which we operate in, that include accelerating and refining our digital strategies, agility of organization, how we have tracked and retained leaders that will drive a more entrepreneurial culture, what skills and the capabilities we invest in and our approach to strategic partnerships. We will also continue to deepen our ESG activities, which have already seen upside becoming a founding signatory of the UN Principles for Responsible Banking, publishing our sustainability policy and standard on coal financing and being the first South African-listed company to voluntarily include a climate change resolution at our AGM in June, with the resolution being supported by almost 100% of our shareholders. Thank you for your attention. Jason and I will now take your questions.

Well, thanks, everybody. Just looking at Slido here, there are a few questions. I'll basically read them out and then -- they're largely in the areas of provisioning as we would have expected. The first one was an anonymous one. It says good morning. Thanks for the presentation. Concerning the relief payment plan, could you please confirm the split SME corporates for RBB South Africa? So firstly, with respect to Relationship Banking, we don't have corporate in that. That's more kind of commercial and business banking. The total loans under relief in that part of our business were ZAR 27 billion, about 20,000 customers. The SME book in total is ZAR 12 billion, as I mentioned in the presentation. So therefore, the portion as it relates to the SME book that is under relief would be a very small portion of the ZAR 27 billion. Then I've got one from Charles Russell and Harry -- so Charles Russell from Citi, Harry Botha from Avior. Very similar questions. The main theme of them is that they ask about provision coverage of our COVID-19 relief portfolios across RBB, CIB. Can we comment on customer levels in those portfolios relative to pre-COVID levels? And then Harry talks about loan coverage on debt relief for restructured loans in RBB. What proportion of the debt relief loans were in stage 1? So a similar theme there. In essence, in order to qualify for relief in the first instance, you needed to be in good standing with us at the end of February. So therefore, a fairly good quality stock coming into the crisis. Of course, much of that relief expires in periods ahead of us. We've had a small portion expire already. The portion that expired already, the vast majority made their payments. Some asked for rescheduling or further relief. And then with respect to those that asked for further relief, we've asked for a minimum or partial installments alongside the relief. So we're monitoring this very closely. As Daniel and I said in our presentations, we'll have probably more and better data by the end of the third quarter. On the macroeconomic variables and the allocation of debt within stages, as I said, stage 1 would have been kind of good quality lending coming into it, in that those accounts were in good standing with us. So where we could see data around modeled industry, so where we saw that someone was in an industry under stress, we did move them to stage 2. But it would be fair to say that the largest part of those accounts would still be in stage 1. And the reason for that is that the underlying data is, I guess, masked by the relief provided at this point. However, when we step back and you look at the list, like, Daniel and I have both said, we believe we've been prudent and decisive in our provisioning with respect to all stages, but in particular, stage 1, given the relief that we have granted. I've got Kevin Harding from Investec. Thanks for the presentation. The 11% CET1 ratio you disclosed, does this include fully loaded IFRS 9 impact? If not, what's the fully loaded CET1 ratio? Kevin, thanks for that. Yes, it's almost fully loaded. There's one period left next year for the transitional relief and it's very small. So it's not a material item in our overall capital stack. Daniel, colleagues, there aren't any further questions on Slido. On behalf of both of us, we're looking forward to seeing you in a virtual way, I imagine, over the coming days to engage with respect to the -- our interim results. So thanks very much.