BANKSETA ANNUAL REPORT 2023

CHAIRPERSON’S FOREWORD Introduction The banking sector continued to perform well in the face of a very sluggish South African economy. Employment in the sector remains at about 188 589 employees, based on the 2022 Workplace Skills Plans (WSP) data. Employment numbers in the sector impact directly on our levy income, and thus on our ability to fulfill our mandate. While the banking sector has remained relatively resilient and is one of the backbones of the economy, it is still difficult to predict whether the economy is at the bottom of its COVID downturn or is on an upward trend. These problems are not only limited to the South African scenario. Globally, the world economy remains under pressure, with economists divided as to whether a global recession is or is not likely in 2023. Indeed, the World Economic Forum concludes that the only certainty is uncertainty! Following the collapse of Silicon Valley Bank and two other USA lenders in early 2023, and a government-backed bail out of Switzerland’s Credit Suisse, a majority of economists surveyed by the Chief Economists Outlook expect further bank failures or other serious financial disruptions across the globe in 2023. Nearly 80% of them expect banks to face trade-offs between managing inflation and maintaining banking sector stability. High level overview of the BANKSETA strategy and performance BANKSETA is in its third year of the strategic period 2020 to 2025. For the reporting period we note good progress towards the attainment of the institutional outcomes. The following selected outcomes are on track. • The achievement of a 95% payout ratio for mandatory grants is well on track as we have consistently exceeded this ratio in the past three years. • We are at 90% towards achievement of our Strategic Outcome of Linking Education to Work with 4815 of the targeted 5300 enrolments achieved. Completions are also at 76% of the 5 year-target of 3180. • On the outcome to improve the skills of the South African workforce we are at 87% of the targeted 10 115 workers who need to complete programmes successfully. We believe the target would be achieved and exceeded in the remaining two years of the strategy.

Ms Nosipho ‘Mia’ Makhanya Chairperson of the Board

• We are on track to increase and produce occupations in high demand for the sector. Three years into the strategy we have achieved 62% (or 3475) of the planned target of 5580. Through this achievement we are also contributing to the outcomes of the 10-year National Skills Development Plan (NSDP) 2030. One of the principles of the NSDP is to support transformational and redress imperatives through a focus on Women, Blacks and People Living with Disability. Across the outcomes highlighted above we are on track for the Women and Black categories, but we are falling short and are behind in reaching the 5-year target of 4% for People Living with Disability. We are working on measures to catch up on this target through dedicated funding targeting only People Living with Disabilities. Strategic Relationships BANKSETA continued to enjoy healthy and beneficial relationships with stakeholders in the sector and beyond. All our efforts are stakeholder focused and we take time to measure the level of stakeholder satisfaction through the annual Stakeholder Satisfaction Survey. Our overall score of 4.1 against 5 indicates increasing levels of stakeholder satisfaction with our services and engagements. BANKSETA has forged various partnerships with Post School Education and Training (PSET) institutions to strengthen its delivery capacity for institutional training of unemployed beneficiaries on programmes relevant to the sector. For the year under review BANKSETA concluded 69 Memoranda of Understanding (MoUs) with universities as part of its bursary programmes. Equally MoUs were concluded with 24 Technical and Vocational Education and

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BANKSETA ANNUAL REPORT 2022/23