progress with the implementation of the new enterprise resource planning ( erp ) solution, which is expected to enhance the efficiency of internal processes. the erp will integrate the data and processes from various business units, and should offer numerous benefits to the bank, including the introduction of proven best practices and the decommissioning of more than 20 legacy systems that have become difficult to maintain. the erp should be fully implemented before the end of 2009. conclusion although the worst of the global downturn appears to be behind us, the recovery is expected to be slow and protracted. the domestic economy also appears set to recover somewhat in the coming months, and domestic inflation is expected to continue its moderating trend as a result of downward pressures from weak domestic demand and lower commodity prices. however, the rate of decline is being constrained by high and sustained administered price increases and wage settlements in excess of inflation. the bank will continue to strive to achieve price stability within a flexible inflation - targeting framework in the interest of sustainable economic growth. the recent global financial market turmoil has highlighted the need for the bank to maintain a commitment to financial stability. this includes the monitoring and supervision, where applicable, of the national payment system, the financial markets and the banking system. the domestic financial markets have come through the global banking crisis relatively unscathed. nevertheless, credit impairments have been increasing, which poses a threat to the profitability of banks, and these trends will be monitored closely. internally, the bank will continue to concentrate on staff development, and to implement measures to retain staff and boost staff morale through more appropriate performance management. emphasis will also be placed on enhancing the efficiency of the internal processes of the bank and the introduction of the new erp solution during the year is expected to contribute to this objective. acknowledgements i wish to thank the presidency, the government and parliament for their continued support. the good working relationship with the national treasury was maintained, facilitated by the system of bilateral committees. i wish to thank the previous and current ministers and deputy ministers of finance for their support and co - operation during the past year, as well as the director - general and staff in the national treasury. i also wish to thank the board of the bank for the work they have done in ensuring appropriate corporate governance in, and the smooth running of, the bank. mr daniel mminele joined the board of the bank following his appointment as deputy governor. i wish to take this opportunity to congratulate him on his appointment

on banking supervision. internal administration the annual report 2008 / 09 of the bank was distributed to shareholders before this meeting. the total assets of the bank show an increase from r300 billion at the end of march 2008 to r344 billion at the end of march 2009. the bank was not unaffected by the turmoil in the world ’ s financial markets. low yields on prime investments and the collapse in prices of many traded financial instruments caused a decline in net income after tax from r2, 5 billion in the previous financial year to r0, 9 billion in the 2008 / 09 financial year. operational expenditure is budgeted to increase by 22 per cent in the current financial year. this increase is due to an increase of 42 per cent in the production cost of currency ; stock building of currency for the 2010 fifa world cup tournament ; delivery of back orders of currency in respect of the previous financial year ; and significant repairs and maintenance to bank premises. the four subsidiary companies of the bank, namely the south african mint company, the south african bank note company, the south african reserve bank captive insurance company and the corporation for public deposits, achieved their objectives during the financial year. after a review of reports by their boards of directors, and internal and external auditors, the bank is satisfied that the subsidiaries have continued to be managed in accordance with their objectives and best corporate governance practice. the results of the subsidiaries are reported on a consolidated basis with those of the bank in the financial statements in the annual report 2008 / 09. the shares of the bank continued to trade through the over - the - counter trading facility. during the 2008 / 09 financial year, 40 transactions were concluded, representing 57 980 shares. the permanent staff complement of the bank increased by 34 in the year and totalled 1 930 at the end of the financial year. the overall staff turnover for the period was 6, 2 per cent ; slightly lower than in the previous year. in terms of overall employment equity, the percentage of black employees has increased by 2 percentage points to 60 per cent, compared with a target of 50 per cent for 2009. at management level an increase of 2 percentage points was also achieved. while the bank has made advances with regard to gender representation generally, female representation at the more senior levels remains a priority area. the bank consulted widely on employment equity, resulting in the implementation of a programme to educate and sensitise employees about disability issues. the bank completed its disability verification process in which employees were given the opportunity to