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Update on the group's performance for the four months to 30 April 2015
Standard Bank Group Limited
Registration No. 1969/017128/06
Incorporated in the Republic of South Africa
JSE share code: SBK
ISIN: ZAE000109815
NSX share code: SNB
NSX share code: SNB ZAE000109815
(“Standard Bank Group” or “the group”)
Update on the group's performance for the four months to 30
April 2015 and capital adequacy, leverage ratio and liquidity
coverage ratio disclosure at 31 March 2015
1. Update on the group's performance for the four months to
30 April 2015
At the annual general meeting to be held later today,
group chief executives Sim Tshabalala and Ben Kruger will
refer to this update regarding the group's performance for
the first four months of 2015 in comparison with the
equivalent period for 2014.
Banking activities
Group income growth, boosted by good non-interest income,
has been satisfactory in spite of the challenging economic
conditions in several of the markets across the African
continent in which the group operates, particularly in
Nigeria. Expense growth remains within expectations but
slightly higher than income growth. The credit environment
in South Africa has largely been stable despite the low
growth environment. Group credit impairments for the four
months to April 2015 are slightly lower than in the
comparative period. In summary, the results of the group’s
banking operations for the year to date are in line with
the required growth to achieve the group’s medium term
target for return on equity of 15% to 18%.
Liberty Holdings Limited (“Liberty”)
Shareholders are referred to the Liberty operational
update on 21 May 2015 wherein, referring to the first
quarter of 2015, the following comments were included:
“The performance of the group for the three months to 31
March 2015 continues to broadly reflect the trends
demonstrated in the previous financial year of improved
operating earnings, positive momentum in retail insurance
single premium investment new business sales and stable
customer behaviour. Returns on the shareholder investment
portfolio for the period were in line with the benchmark
for 2015 and remain ahead of the three years’ cumulative
benchmark.”
2. Basel III capital adequacy, leverage ratio and liquidity
coverage ratio disclosure as at 31 March 2015
In terms of the requirements under Regulation 43(1)(e)(iii)
of the regulations relating to banks and Directive 4/2014
issued in terms of section 6(6) of the Banks Act (Act No. 94
of 1990), minimum disclosure on the capital adequacy of the
group and it's leverage ratio is required on a quarterly basis.
This disclosure is in accordance with Pillar 3 of the Basel
III accord.
Standard Bank Group capital adequacy and leverage ratio
March
2015
Rm
Ordinary share capital and premium 18 067
Ordinary shareholders' reserves1 119 042
Qualifying common equity tier I non-
controlling interest 5 013
Regulatory deductions against common equity
tier I capital (34 809)
Common equity tier I capital 107 313
Unappropriated Profit 15 838
Common equity tier 1 capital excluding
unappropriated profit 91 475
Perpetual preference shares 3 847
Qualifying tier I non-controlling interest 208
Tier I capital excluding unappropriated 95 530
profit
Tier II subordinated debt 18 614
General allowance for credit impairments 1 508
Tier II capital 20 122
Total qualifying capital excluding
unappropriated profit 115 652
Total minimum regulatory capital requirement2 85 968
Credit Risk 63 557
Counterparty credit risk 1 643
Equity Risk 1 476
Market Risk 4 450
Operational Risk 12 184
Threshold items 2 658
Capital Adequacy Ratio (excl unappropriated
profit)
Total capital adequacy ratio (%) 13.5
Tier I capital adequacy ratio (%) 11.1
Common equity tier I capital adequacy ratio
(%) 10.6
Capital Adequacy Ratio (incl unappropriated
profit)
Total capital adequacy ratio (%) 15.3
Tier I capital adequacy ratio (%) 13.0
Common equity tier I capital adequacy ratio
(%) 12.5
Leverage ratio
Tier I capital (excl unappropriated profit) 95 530
Tier I capital (incl unappropriated profit) 111 368
Total exposures 1 698 924
Leverage ratio (excl unappropriated profits)
(%) 5.6
Leverage ratio (incl unappropriated profits)
(%) 6.6
Note:
1 Including unappropriated profits.
2 The minimum capital requirement excludes any bank-specific
capital requirement and is reported at 10%.
The Standard Bank of South Africa Limited and its subsidiaries (“SBSA”)
capital adequacy and leverage ratio
March
2015
Rm
Tier I capital1 59 181
Tier II capital 16 257
Total qualifying capital 75 438
Unappropriated Profit 4 856
Total minimum regulatory capital
requirement2 55 132
Credit Risk 41 961
Counterparty credit risk 1 439
Equity Risk 1 243
Market Risk 2 837
Operational Risk 7 541
Threshold items 110
Capital Adequacy Ratio (excl unappropriated
profit)
Total capital adequacy ratio (%) 13.7
Tier I capital adequacy ratio (%) 10.7
Capital Adequacy Ratio (incl unappropriated
profit)
Total capital adequacy ratio (%) 14.6
Tier I capital adequacy ratio (%) 11.6
Leverage ratio
Tier I capital (excl unappropriated profit) 59 181
Tier I capital (incl unappropriated profit) 64 037
Total exposures 1 210 017
Leverage ratio (excl unappropriated profits)
(%) 4.9
Leverage ratio (incl unappropriated profits)
(%) 5.3
Note:
1 Excluding unappropriated profits.
2 The minimum capital requirement excludes any bank-specific
capital requirement and is reported at 10%.
Liquidity coverage ratio disclosure
In terms of the Basel III requirements in Directive 11/2014 issued
in terms of section 6(6) of the Banks Act (Act No. 94 of 1990),
minimum disclosure on the liquidity coverage ratio (LCR) of the
group and the bank is required on a quarterly basis. This disclosure
is in accordance with Pillar 3 of the Basel III liquidity accord.
The LCR is designed to promote short-term resilience of the 1 month
liquidity profile, by ensuring that banks have sufficient high quality
liquid assets (HQLA) to meet potential outflows in a stressed environment.
The LCR was phased in at 60% on 1 January 2015 and will increase by 10%
each year to 100% on 1 January 2019.
Standard Bank Standard Bank
Group of South
Consolidated Africa Solo
31 March 2015 31 March 2015
Rm Rm
Total high quality liquid
assets 152 888 107 942
Net cash outflows 173 351 135 551
LCR (%) 88.2 79.6
Minimum requirement (%) 60.0 60.0
Note:
1.Only banking and/or deposit taking entities are included and
the group data represent an aggregation of the relevant
individual net cash outflows and HQLA portfolios.
2.The above figures reflect the simple average of the month-
end values at 31 January 2015, 28 February 2015 and 31 March
2015, based on the regulatory submissions to the SARB.
The information contained in this announcement has not been
reviewed by or reported on by the group's auditors.
Johannesburg
28 May 2015
Lead sponsor
The Standard Bank of South Africa Limited
Independent sponsor
Deutsche Securities (SA) Proprietary Limited
Namibian sponsor
Simonis Storm Securities (Proprietary) Limited
Date: 28/05/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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