Media

Statement
VBS Mutual Bank

Privacy of customer information sacrosanct at VBS Mutual Bank

Johannesburg, 13 September 2016 Andile Ramavhunga, chief executive officer of VBS
Mutual Bank, today said that the bank, like any other responsible financial institution, would
not release information about the business dealings of its clients under any circumstances.

As a responsible corporate citizen, the Bank abides by regulations pertaining to the privacy
of customer information, said Ramavhunga. However, following unprecedented public
interest, the VBS Mutual Bank wishes to highlight its long-standing, credible track record and
strict adherence to principles of sound corporate governance.

The business of VBS is focused specifically on traditional communities who own land. Home
loans are granted to individuals, partnerships, trusts, closed corporations, private companies
or prospective owners who wish to buy, improve or build their own fixed residential
property. Like any financial institution the bank lends to qualifying individuals only, explains
Ramavhunga.

In granting a loan the usual processes and conditions apply no matter who the client may
be. For example, the mortgage bond amount applied for cannot exceed the market value of
the property. Furthermore, the applicant must have a proven source of income to service
the required instalment repayments, which cannot exceed 30% of the gross income of the
applicant.

According to Ramavhunga, the bank has been granting Full Title and Permission To Occupy
(PTO) loans since its formation as a building society back in 1982. The fact that rural homes
tend to remain in families for several generations has resulted in our loan book being
consistently rated the best by the regulator in terms of low impairment levels. It is one of
few financial institutions, offering home loans in respect of land owned by traditional
authorities.

VBS Mutual Bank, applies proven and approved risk management processes, risk appetite
and credit policies, coupled with relevant legislations from banking regulators. This is what
guides all credit approvals irrespective of whom the applicant is, he adds.

It is important to note that the size of each banks balance sheet and its capital and reserves
ratio determines the size of loans that a bank can offer to individuals. This is aligned to the
guidelines issued in the Mutual Banks Act and other regulations relating to mutual banks
which VBS fully complies with.








Privacy of customer information sacrosanct at VBS Mutual Bank
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The Public Investment Corporation (PIC) has been a VBS shareholder since 1982. Prior to
1994, this shareholding was held through the Venda Pension Fund (VPF) vehicle. At the
dawn of South Africas democracy this shareholding was transferred directly to the PIC.

The PIC, as the largest pension fund and investor in the country has a varied shareholding in
almost all banks, as well as in a number of top listed and unlisted entities in the country.

While Dyambeu Investments has significant shareholding in the bank, it has no direct
involvement in the day-to-day running of VBS Mutual Bank. It also does not participate in
the governance structures of the Bank.

Ramavhunga pointed out that the highest decision making body within VBS is the board of
directors, who at all times act independently of the shareholders of the bank.

Ramavhunga concluded by stating that VBS Mutual Bank acts within the confines of its
banking licence terms and conditions in all its dealings and periodically seeks guidance from
the regulator where this is deemed necessary.

Ends

More about VBS Mutual Bank
VBS Mutual Bank was established in 1982. The Bank at present has four branches in
Thohoyandou, Makhado, Sibasa and Johannesburg. The corporate headquarters of the bank
is situated in Sandton, Johannesburg.

It is a mutual bank registered with and regulated by the South African Reserve Bank (SARB)
under license number 1051, and is governed by the Mutual Bank Act of 1993. The bank is an
Authorised Financial Services Provider with the Financial Services Board (FSB), in terms of
the Financial Advisory and Intermediary Act, 2002, and operates under FSP license number
30857.

The Bank is also registered with the National Credit Regulator in terms of the National Credit
Act, 2005, operating under license NCRCP2.


For media queries kindly contact:
Gugu Mthembu
Chief Marketing Officer
gmthembu@vbsmbank.co.za
011 234 3111

Privacy of customer information sacrosanct at VBS Mutual Bank
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