Standard Bank interim results June 2018
Total income for the interim period rose to R65.5 billion (R61.2 billion). Profit for the period attributable to ordinary shareholders jumped to R12.7 billion (R12.3 billion). In addition, headline earnings per share shot up to 793.9 cents per share (755.5 cents per share).
Declaration of dividends
Shareholders of Standard Bank Group (the company) are advised of the following dividend declarations out of income reserves in respect of ordinary shares and preference shares.
Ordinary shareholders are advised that the board has resolved to declare an interim gross cash dividend No. 98 of 430 cents per ordinary share (the cash dividend) to ordinary shareholders recorded in the register of the company at the close of business on Friday, 14 September 2018.
Preference shareholders are advised that the board has resolved to declare the following interim dividends:
* 6.5% first cumulative preference shares (first preference shares) dividend No. 98 of 3.25 cents (gross) per first preference share, payable on Monday, 10 September 2018, to holders of first preference shares recorded in the books of the company at the close of business on the record date, Friday, 7 September 2018.
* Non-redeemable, non-cumulative, non-participating preference shares (second preference shares) dividend No. 28 of 386.43 cents (gross) per second preference share, payable on Monday, 10 September 2018, to holders of second preference shares recorded in the books of the company at the close of business on the record date, Friday, 7 September 2018.
Whilst the global growth outlook for 2018 and 2019 is unchanged at 3.9%, the underlying growth is expected to be less even. Relative to expectations earlier in the year, the International Monetary Fund is expecting the US to grow slightly faster and UK, Europe and EM slightly slower. The broadly supportive EM capital inflows seen in recent periods could reverse if US monetary tightening is faster than expected. This would negatively impact EM currencies and capital markets.
Sub-Saharan Africa's recovery is expected to continue on the back of higher commodity prices. Growth is estimated to increase from 2.8% in 2017 to 3.4% in 2018 and rise further to 3.8% in 2019. Within our portfolio, we expect the macros in the West region to continue to improve, supported by higher average oil prices and the East region to continue to deliver GDP growth of 5 to 6%. More specifically, Kenya's credit growth could experience a recovery if the regulatory caps and floors, imposed in 2016, are amended or lifted. The South & Central region performance will be impacted by SA growth in 2H18.
In South Africa, while consumer confidence has improved, delays in resolving key policy issues remain an obstacle to business confidence, fixed investment and growth. Inflation is expected to remain inside the 3% to 6% target range, supporting a flat interest rate outlook for the rest of the year. The group has appetite to grow lending judiciously in South Africa. There is no doubt competitive pressures will continue to increase, however, we will fiercely protect our existing customer franchise and grow by partnering with third parties to build new, innovative offerings and revenue streams.
Our strategy is unchanged and actions being taken are positioning us to deliver contextually-relevant offerings to our customers, to compete effectively against both incumbents and new entrants and to grow our franchise in partnership with our clients, employees and business partners, in a sustainable way.
With revenue pressures expected to continue, operating expenses will be a focus area for 2H18 to ensure better full year jaws. More broadly, we will continue to balance growth, resilience and returns to deliver on our medium-term objectives of sustainable growth in earnings and delivering an ROE in our 18% to 20% target range.