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(REGISTRATION NUMBER 1969/017128/06)
INTERIM RESULTS AND DIVIDEND ANNOUNCEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2000
HEADLINE EARNINGS 26% UP
COST-TO-INCOME RATIO 60,3%
RETURN ON EQUITY 22%
COMMENTARY
ACCOUNTING POLICIES
THE ACCOUNTING POLICIES ADOPTED FOR PURPOSES OF THIS INTERIM REPORT COMPLY, IN
ALL MATERIAL RESPECTS, WITH SOUTH AFRICAN STATEMENTS OF GENERALLY ACCEPTED
ACCOUNTING PRACTICE, AS WELL AS WITH APPLICABLE LEGISLATION. THESE ACCOUNTING
POLICIES ARE ALSO CONSISTENT WITH THOSE OF THE PREVIOUS YEAR, WITH THE
EXCEPTION OF GOODWILL WHICH IS NOW TREATED IN ACCORDANCE WITH THE ACCOUNTING
STATEMENT ON BUSINESS COMBINATIONS THAT CAME INTO EFFECT IN THE CURRENT YEAR.
IN TERMS OF THIS STATEMENT, GOODWILL ARISING ON ACQUISITION WILL BE RECOGNISED
AS AN ASSET AND AMORTISED ON A SYSTEMATIC BASIS OVER ITS USEFUL LIFE.
COMMENT
THE HOSTILE TAKE-OVER ATTEMPT BY NEDCOR IS BEHIND US. THE PERIOD OF UNCERTAINTY
CREATED BY THIS WAS A DIFFICULT ONE FOR STAFF MEMBERS AND AN UNCERTAIN ONE FOR
CUSTOMERS. THEY ARE ALL TO BE COMMENDED AND THANKED FOR THEIR UNWAVERING
COMMITMENT AND SUPPORT. THE GROUP IS AGAIN TOTALLY FOCUSED ON OPERATIONAL
ISSUES AND ON ACHIEVING THE EARNINGS AND PERFORMANCE FORECASTS THAT WERE MADE
DURING THE BID PROCESS. A NEW CULTURE EMBRACED BY STAFF MEMBERS AT EVERY LEVEL
IS TAKING ROOT IN THE BANK. THIS CULTURE PLACES HEAVY EMPHASIS ON CUSTOMER
SERVICE AND ON PERFORMANCE EXCELLENCE. THE BANK HAS OVER THE YEARS GARNERED
NUMEROUS ACCOLADES FROM INDEPENDENT BANKING SURVEYS. WE ARE NEVERTHELESS VERY
AWARE OF THE SIGNIFICANT SCOPE THAT EXISTS FOR IMPROVEMENT IN ALMOST EVERY
ASPECT OF OUR BUSINESS. WE ARE DETERMINED TO BETTER OUR PERFORMANCE, IMPROVE
OUR SERVICE TO CUSTOMERS AND RAISE THE LEVEL OF RETURN TO SHAREHOLDERS.
EARNINGS
THE GROUP ACHIEVED GOOD OVERALL RESULTS FOR THE SIX MONTHS, IN A BUSINESS
ENVIRONMENT CHARACTERISED BY SUBDUED GROWTH AND HESITANCY ON THE PART OF
CUSTOMERS TO INCREASE THEIR LEVEL OF DEBT EXPOSURE. HEADLINE EARNINGS OF R1 646
MILLION WERE 26% HIGHER THAN THE PREVIOUS PERIOD. HEADLINE EARNINGS PER SHARE
GREW BY 25% WITH A SLIGHTLY HIGHER NUMBER OF SHARES IN ISSUE. THE ANNUALISED
RETURN ON SHAREHOLDERS' FUNDS OF 22,1% WAS 1,9 PERCENTAGE POINTS HIGHER THAN
THAT ATTAINED IN THE COMPARABLE PERIOD.
INTEREST INCOME
TOTAL NET INTEREST INCOME OF R3 480 MILLION WAS 4% UP ON THE PREVIOUS PERIOD
WITH THE NET MARGIN ON AVERAGE TOTAL ASSETS DECLINING TO 3,7% FROM 4,0%. THE
SLUGGISH GROWTH IN LOANS AND ADVANCES OF 4% IS INDICATIVE OF UNDERLYING
CONSUMER SENTIMENT IN RESPONSE TO THE HIGH INTEREST RATES OF THE PREVIOUS YEAR.
PROVISION FOR CREDIT LOSSES
THE PROVISION FOR CREDIT LOSSES OF R661 MILLION WAS 31% LOWER THAN THE CHARGE
FOR THE PREVIOUS PERIOD AND HAS REDUCED FROM 1,7% OF AVERAGE LOANS AND ADVANCES
IN 1999 TO 1,1%. THIS REDUCTION REFLECTS THE HIGH LEVEL OF DOMESTIC
PROVISIONING IN THE PREVIOUS PERIOD AND IMPROVEMENT IN THE LEVEL OF ARREARS IN
THE CURRENT PERIOD. GROSS NON-PERFORMING LOANS AS A PERCENTAGE OF AVERAGE LOANS
AND ADVANCES HAVE REDUCED FROM 5,5% AT DECEMBER 1999 TO 5,0% AT JUNE 2000.
NON-INTEREST INCOME
NON-INTEREST INCOME OF R3 576 MILLION WAS 14% HIGHER AND COMPRISED 51% OF TOTAL
INCOME COMPARED TO 48% FOR THE PREVIOUS PERIOD. FEES AND COMMISSIONS WERE 19%
UP, MAINLY DUE TO HIGHER BUSINESS VOLUMES AND THE INTRODUCTION OF ADDITIONAL
SERVICES TO CUSTOMERS. TRADING INCOME WAS 8% HIGHER WITH THE AMOUNT FOR THE
COMPARABLE PERIOD BOLSTERED BY THE STRONG RECOVERY IN EMERGING MARKETS IN 1999.
OPERATING EXPENSES
OPERATING EXPENSES FOR THE PERIOD OF R4 310 MILLION WERE 8% HIGHER. THE OVERALL
COST-TO-INCOME RATIO OF 60,3% REFLECTED A 1,1 PERCENTAGE POINT IMPROVEMENT OVER
1999. THE GROUP IS COMMITTED TO ACHIEVING A 60% RATIO FOR THE FULL YEAR AND
GOOD PROGRESS IS BEING MADE TOWARDS THIS TARGET.
EXPENSES IN DOMESTIC OPERATIONS WERE RESTRICTED TO AN INCREASE OF ONLY 5%
MAINLY AS A RESULT OF RESTRUCTURING OF BUSINESS ACTIVITIES AND OVERALL
OPERATIONAL IMPROVEMENTS. EXPENSES IN STANBIC AFRICA WERE 33% HIGHER DUE TO THE
EFFECT OF ACQUISITIONS MADE IN THE PREVIOUS YEAR. IN STERLING TERMS, EXPENSES
IN INTERNATIONAL OPERATIONS WERE 12% UP, BUT IN RAND TERMS WERE ADVERSELY
AFFECTED BY THE DECLINE IN THE EXTERNAL VALUE OF THE CURRENCY.
THE TAXATION CHARGE FOR THE PERIOD OF R655 MILLION WAS 42% UP, WITH AN
EFFECTIVE RATE OF 31,8% COMPARED TO 30,3% FOR THE PREVIOUS PERIOD.
THE EXCEPTIONAL LOSS OF R23 MILLION WAS IN RESPECT OF FURTHER COSTS INCURRED
IN REJECTION OF THE TAKE-OVER BID. COSTS INCURRED IN RESPECT OF THE BID
TOTALLED R77 MILLION.
LIBERTY GROUP
ATTRIBUTABLE EARNINGS FROM LIBERTY GROUP OF R211 MILLION HAVE BEEN INCLUDED IN
THE GROUP'S HEADLINE EARNINGS FOR THE PERIOD. THE UNDERLYING CORE INSURANCE
ACTIVITIES HAVE PERFORMED WELL, WITH TOTAL PREMIUM INCOME 14% UP AND THE VALUE
OF NEW BUSINESS WRITTEN 23% HIGHER. ON A COMPARABLE BASIS, EXCLUDING THE
EFFECTS OF SHARE UNBUNDLINGS COMPLETED BY LIBERTY IN THE SECOND HALF OF 1999,
ATTRIBUTABLE EARNINGS WERE 9% HIGHER. THIS MODEST GROWTH WAS MAINLY DUE TO WEAK
EQUITY MARKETS AND THE EFFECT OF THESE ON THE LIFE FUND OPERATING SURPLUS,
WHICH REFLECTED A DECLINE OF 1% FOR THE PERIOD.
SEGMENTAL REPORTING
THE CONTRIBUTION BY INDIVIDUAL BUSINESS COMPONENTS TO TOTAL INCOME AND HEADLINE
EARNINGS IS SET OUT IN THE FINANCIAL RESULTS. BANKING OPERATIONS ACHIEVED
HEADLINE EARNINGS OF R1 435 MILLION, 34% HIGHER THAN THE PREVIOUS PERIOD. THIS
STRONG PERFORMANCE WAS ACHIEVED IN THE FACE OF LOW GROWTH IN INTEREST INCOME
WHICH WAS MORE THAN COMPENSATED BY AN IMPROVEMENT IN THE QUALITY OF THE LOAN
BOOK WITH A RESULTING REDUCTION IN THE LEVEL OF DEBT PROVISIONING. DOMESTIC
BANKING REFLECTED A 50% INCREASE IN HEADLINE EARNINGS, WITH MAJOR CONTRIBUTORY
FACTORS BEING THE 30% REDUCTION IN THE LEVEL OF DEBT PROVISIONING AND A
RESTRICTION IN THE INCREASE OF OPERATING EXPENSES TO ONLY 5%. NET INTEREST
INCOME WAS IN LINE WITH THE PREVIOUS PERIOD DUE TO SLUGGISH DEMAND FOR LOAN
FINANCE AND A REDUCTION IN MARGIN. THESE TWO FACTORS WERE PARTICULARLY
PREVALENT IN RETAIL BANKING AND RESTRICTED THE INCREASE IN EARNINGS TO 11%.
SCMB ONCE AGAIN ENJOYED GOOD GROWTH IN TRADING INCOME AND ACHIEVED EXCELLENT
OVERALL RESULTS, WITH HEADLINE EARNINGS OF R395 MILLION, A 36% IMPROVEMENT ON
LAST YEAR. COMMERCIAL BANKING BENEFITED MOST FROM THE LOWER LEVEL OF CREDIT
PROVISIONING, AND HEADLINE EARNINGS FOR THE PERIOD OF R247 MILLION WERE 66%
HIGHER.
INTERNATIONAL OPERATIONS ACHIEVED A 26% INCREASE IN HEADLINE EARNINGS DUE TO
STRONG PERFORMANCE IN DEBT CAPITAL MARKETS AND CONTINUED ORGANIC GROWTH IN FEE
AND MARGIN INCOME. REVENUES FROM RESOURCE BANKING WERE SUBSTANTIALLY UP, WITH
ACTIVITIES IN PRECIOUS AND BASE METALS PARTICULARLY BUOYANT. DESPITE THE SOCIAL
TURMOIL EXPERIENCED IN A NUMBER OF COUNTRIES AND THE EFFECT OF THIS ON ECONOMIC
ACTIVITY, STANBIC AFRICA ACHIEVED EARNINGS OF R157 MILLION, AN INCREASE OF 21%
ON THE PREVIOUS PERIOD.
DIVIDEND
AN INTERIM DIVIDEND OF 22 CENTS PER SHARE (1999: 18 CENTS) HAS BEEN DECLARED TO
SHAREHOLDERS. IN TERMS OF A DIRECTORS' RESOLUTION IN RESPECT OF THIS INTERIM
DIVIDEND, SHAREHOLDERS WILL BE ENTITLED TO ELECT TO RECEIVE, IN RESPECT OF ALL
OR PART OF THEIR SHAREHOLDING, FULLY PAID ORDINARY SHARES AS A CAPITALISATION
AWARD, OR A CASH PAYMENT. THE INTERIM DIVIDEND IS IN ACCORDANCE WITH THE
GROUP'S POLICY OF DECLARING APPROXIMATELY ONE THIRD OF THE PREVIOUS YEAR'S
TOTAL DIVIDEND PER SHARE AT THE HALF YEAR.
BALANCE SHEET
TOTAL ASSETS AT THE HALF YEAR OF R261,6 BILLION WERE 9% HIGHER THAN THE
PREVIOUS PERIOD. BANKING ASSETS, EXCLUDING ASSETS OF LIBERTY GROUP, OF R192,3
BILLION WERE 10% HIGHER THAN AT JUNE 1999 AND 4% HIGHER THAN AT DECEMBER 1999.
TOTAL CAPITAL AND RESERVES OF R15,9 BILLION WERE 14% HIGHER THAN AT THE 1999
YEAR END.
THE GROUP'S REGULATORY CAPITAL BASE AT 30 JUNE 2000 WAS 12,4% OF
RISK-WEIGHTED ASSETS, WITH TIER ONE CAPITAL AT 10,3%. THE CAPITAL POSITION HAS
INCREASED BY RAISING R1,2 BILLION OF TIER TWO CAPITAL DURING THE PERIOD AND BY
HIGHER PROFIT RETENTIONS AS A RESULT OF A CAPITALISATION AWARD TO SHAREHOLDERS
IN LIEU OF THE FINAL DIVIDEND FOR THE 1999 YEAR. THE IMPLEMENTATION OF CHANGES
TO THE BANKS ACT REGULATIONS AFFECTING, INTER ALIA, STATUTORY CAPITAL, HAS BEEN
DELAYED AND IS NOW ONLY EXPECTED TO COME INTO EFFECT ON 1 OCTOBER 2000. THE
IMPLEMENTATION OF THESE NEW REGULATIONS WILL NOT HAVE A MATERIAL EFFECT ON THE
GROUP'S CAPITAL ADEQUACY POSITION.
LIBERTY INTERNATIONAL PLC
AS PREVIOUSLY COMMUNICATED TO SHAREHOLDERS, STANBIC AND LIBERTY GROUP HAVE SOLD
THE MAJORITY OF THEIR SHAREHOLDINGS IN LIBERTY INTERNATIONAL PLC FOR A COMBINED
NET CONSIDERATION OF APPROXIMATELY R5,4 BILLION, OF WHICH R1,5 BILLION IS
ATTRIBUTABLE TO STANBIC. THIS DISPOSAL WILL NOT HAVE A MATERIAL EFFECT ON THE
GROUP'S EARNINGS OR NET ASSET VALUE. PERMISSION HAS BEEN RECEIVED FOR THE
PROCEEDS TO BE MAINLY UTILISED BY STANBIC IN THE REPAYMENT OF OFFSHORE
BORROWINGS ORIGINALLY RAISED TO FINANCE INTERNATIONAL OPERATIONS, AND BY
LIBERTY GROUP PREDOMINANTLY IN MAINTAINING THE SECURITY RELATING TO THE LIBLIFE
INTERNATIONAL B.V. 6,5% CONVERTIBLE BONDS THAT MATURE IN SEPTEMBER 2004.
PROSPECTS
THE GROUP HAS COMMITTED ITSELF TO THE ACHIEVEMENT OF A 26% INCREASE IN HEADLINE
EARNINGS PER SHARE FOR THE FULL YEAR. AT THIS STAGE, DESPITE THE SLOWER THAN
EXPECTED RATE OF ECONOMIC GROWTH IN THE DOMESTIC ECONOMY, WE DO STILL
ANTICIPATE ACHIEVING THIS EARNINGS FORECAST.
C B STRAUSS, CHAIRMAN
J H MAREE, CHIEF EXECUTIVE
CAPITALISATION SHARE AWARD AND CASH DIVIDEND
THE DIRECTORS HAVE RESOLVED TO ISSUE FULLY PAID ORDINARY SHARES IN THE COMPANY
AS A CAPITALISATION SHARE AWARD TO ORDINARY SHAREHOLDERS REGISTERED IN THE
BOOKS OF THE COMPANY AT THE CLOSE OF BUSINESS ON 1 SEPTEMBER 2000. SUCH
SHAREHOLDERS WILL BE ENTITLED, IN RESPECT OF ALL OR PART OF THEIR SHAREHOLDING,
TO ELECT TO RECEIVE INSTEAD A CASH DIVIDEND OF 22 CENTS PER ORDINARY SHARE
("THE ELECTION"). NEW FULLY PAID ORDINARY SHARES IN THE COMPANY WILL BE ISSUED
ONLY TO THOSE ORDINARY SHAREHOLDERS WHO DO NOT ELECT IN RESPECT OF ALL OR PART
OF THEIR SHAREHOLDING ON OR BEFORE 29 SEPTEMBER 2000, TO RECEIVE THE
AFOREMENTIONED DIVIDEND. THE NUMBER OF CAPITALISATION SHARES TO WHICH
SHAREHOLDERS ARE ENTITLED WILL BE DETERMINED IN THE RATIO THAT 22 CENTS PER
ORDINARY SHARE MULTIPLIED BY 1,05 BEARS TO THE WEIGHTED AVERAGE PRICE OF
STANBIC'S ORDINARY SHARES ON THE JOHANNESBURG STOCK EXCHANGE ("THE JSE") FOR
THE FOUR BUSINESS DAYS ENDING 27 SEPTEMBER 2000. WHERE ENTITLEMENTS TO NEW
STANBIC ORDINARY SHARES RESULT IN FRACTIONS OF SHARES, THESE FRACTIONS WILL
RANK FOR A RESIDUAL CASH PAYMENT.
DOCUMENTATION DEALING WITH THE CAPITALISATION SHARE AWARD AND ELECTION WILL
BE POSTED TO SHAREHOLDERS ON OR ABOUT 8 SEPTEMBER 2000. IN ORDER TO BE VALID,
COMPLETED ELECTION FORMS WILL NEED TO BE RECEIVED BY STANBIC'S TRANSFER
SECRETARIES BY NO LATER THAN 12:00 ON 29 SEPTEMBER 2000. ELECTION FORMS IN
ENVELOPES POSTMARKED ON OR PRIOR TO 29 SEPTEMBER 2000 WILL BE ACCEPTED ONLY IF
RECEIVED BY NO LATER THAN 12:00 ON 4 OCTOBER 2000. SUBJECT TO THE APPROVAL OF
THE JSE, A LISTING FOR THE NEW ORDINARY SHARES TO BE ISSUED PURSUANT TO THE
CAPITALISATION SHARE AWARD WILL COMMENCE ON 6 OCTOBER 2000. ON THIS DATE IT IS
ALSO EXPECTED THAT:
- SHARE CERTIFICATES WILL BE POSTED TO SHAREHOLDERS;
- WHERE APPLICABLE, DIVIDENDS AND/OR FRACTIONAL ENTITLEMENTS WILL BE
TRANSFERRED ELECTRONICALLY TO SHAREHOLDERS' BANK ACCOUNTS. IN THE ABSENCE OF
SUITABLE MANDATES, CHEQUES WILL BE POSTED TO SHAREHOLDERS; AND
- A FURTHER ANNOUNCEMENT WILL BE MADE REPORTING ON THE RESULTS OF THE ELECTION
BY ORDER OF THE BOARD,
K D CURR
GROUP SECRETARY
16 AUGUST 2000
CONSOLIDATED INCOME STATEMENT
SIX MONTHS ENDED YEAR ENDED
30 JUNE 30 JUNE 31 DECEMBER
2000 1999* 1999*
% R MILLION R MILLION R MILLION
CHANGE UNAUDITED UNAUDITED AUDITED
STANDARD BANK OPERATIONS
INTEREST INCOME (11) 10 022 11 223 21 255
INTEREST EXPENSE (17) 6 542 7 874 14 524
NET INTEREST INCOME BEFORE
PROVISION FOR CREDIT LOSSES 4 3 480 3 349 6 731
PROVISION FOR CREDIT LOSSES (31) 661 957 1 527
NET INTEREST INCOME 18 2 819 2 392 5 204
NON-INTEREST INCOME 14 3 576 3 133 6 440
TOTAL INCOME 16 6 395 5 525 11 644
EMPLOYEE COMPENSATION AND
BENEFITS 9 2 277 2 090 4 329
OTHER OPERATING EXPENSES 7 2 033 1 893 3 819
OPERATING EXPENSES 8 4 310 3 983 8 148
OPERATING PROFIT 35 2 085 1 542 3 496
INCOME FROM
ASSOCIATED UNDERTAKINGS 10 10 10
EXCEPTIONAL ITEMS (23) (20) (207)
INCOME BEFORE TAXATION 35 2 072 1 532 3 299
TAXATION 42 655 461 1 035
INCOME AFTER TAXATION 32 1 417 1 071 2 264
ATTRIBUTABLE TO OUTSIDE AND
PREFERENCE SHAREHOLDERS 5 6 13
STANDARD BANK INCOME ATTRIBUTABLE
TO ORDINARY SHAREHOLDERS 33 1 412 1 065 2 251
LIBERTY OPERATIONS
INCOME BEFORE TAXATION (10) 1 029 1 143 2 471
TAXATION 6 318 301 863
INCOME AFTER TAXATION (16) 711 842 1 608
ATTRIBUTABLE TO
OUTSIDE AND PREFERENCE
SHAREHOLDERS 500 600 1 136
NET INCOME BEFORE
INVESTMENT (DEFICIT)/SURPLUS (13) 211 242 472
NET INCOME FROM CONTINUING
OPERATIONS 9 211 194 420
NET INCOME FROM UNBUNDLED
OPERATIONS - 48 52
INVESTMENT (DEFICIT)/SURPLUS (150) (39) 173
LIBERTY INCOME ATTRIBUTABLE
TO ORDINARY SHAREHOLDERS 61 203 645
GROUP INCOME ATTRIBUTABLE
TO ORDINARY SHAREHOLDERS 16 1 473 1 268 2 896
HEADLINE EARNINGS
GROUP INCOME ATTRIBUTABLE TO
ORDINARY SHAREHOLDERS 1 473 1 268 2 896
INVESTMENT DEFICIT/(SURPLUS) 150 39 (173)
ADJUSTED FOR: 23 20 207
-RESTRUCTURING COSTS - 70 138
-NET SURPLUS ON THE SALE OF
INVESTMENTS - (50) (52)
-GOODWILL WRITTEN OFF - - 67
-COSTS ASSOCIATED WITH THE
TAKE-OVER PROPOSAL 23 - 54
LESS:TAXATION ON THE ABOVE ITEMS - (17) (38)
HEADLINE EARNINGS 26 1 646 1 310 2 892
*INCOME FROM THE ALIGNMENT OF REPORTING PERIODS OF R194 MILLION HAS BEEN
EXCLUDED FROM EXCEPTIONAL ITEMS IN ORDER TO FACILITATE COMPARISON WITH THE
CURRENT PERIOD.
CONSOLIDATED BALANCE SHEET
30 JUNE 30 JUNE 31 DECEMBER
2000 1999 1999
R MILLION R MILLION R MILLION
UNAUDITED UNAUDITED AUDITED
ASSETS
STANDARD BANK OPERATIONS 192 280 174 937 184 308
CASH AND SHORT-TERM FUNDS 32 592 26 588 33 925
INVESTMENT AND TRADING SECURITIES 15 074 12 943 12 892
LOANS AND ADVANCES 119 208 114 323 112 445
OTHER ASSETS 22 249 18 080 21 796
INTEREST IN ASSOCIATED UNDERTAKINGS 63 52 65
FIXED ASSETS 2 680 2 567 2 756
CUSTOMERS' ACCEPTANCE LIABILITIES 414 384 429
LIBERTY OPERATIONS 69 331 64 734 69 214
CURRENT ASSETS 7 232 3 551 3 908
INVESTMENTS 61 746 60 895 64 990
INTANGIBLE ASSETS 22 - -
GOODWILL 10 - -
FIXED ASSETS 321 288 316
TOTAL ASSETS 261 611 239 671 253 522
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
SHARE CAPITAL 138 135 136
SHARE PREMIUM 1 527 785 1 000
RESERVES 14 192 12 442 12 808
TOTAL CAPITAL AND RESERVES 15 857 13 362 13 944
MINORITY INTEREST 6 362 11 078 6 410
LIABILITIES
STANDARD BANK OPERATIONS 179 147 163 982 173 123
DEPOSIT AND CURRENT ACCOUNTS 156 880 147 129 155 536
OTHER LIABILITIES AND PROVISIONS 20 653 16 382 17 123
DEBENTURES 1 200 87 35
ACCEPTANCES OUTSTANDING 414 384 429
LIBERTY OPERATIONS 60 245 51 249 60 045
OTHER LIABILITIES 2 087 2 160 2 295
LIFE FUNDS 56 428 47 555 56 184
LONG-TERM LIABILITIES 1 730 1 534 1 566
TOTAL LIABILITIES 239 392 215 231 233 168
TOTAL EQUITY AND LIABILITIES 261 611 239 671 253 522
CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
CONTINGENT LIABILITIES
-LETTERS OF CREDIT 1 812 1 667 1 830
-GUARANTEES 13 153 12 416 11 619
CAPITAL COMMITMENTS
-CONTRACTED CAPITAL EXPENDITURE 148 442 165
-AUTHORISED BUT NOT YET CONTRACTED 121 19 4
ORDINARY SHAREHOLDERS' FUNDS
ADJUSTED FOR THE INCREASE IN
MARKET VALUE OVER THE CARRYING
VALUE OF SUBSIDIARIES, ASSOCIATES,
INVESTMENTS AND PROPERTY 18 630 17 095 17 431
CONSOLIDATED CASH FLOW INFORMATION
SIX MONTHS ENDED YEAR ENDED
30 JUNE 30 JUNE 31 DECEMBER
2000 1999 1999
% R MILLION R MILLION R MILLION
CHANGE UNAUDITED UNAUDITED AUDITED
NET CASH (OUTFLOW)/INFLOW
FROM OPERATING ACTIVITIES (888) 7 847 18 125
NET CASH OUTFLOW FROM
INVESTING ACTIVITIES (1 648) (9 613) (9 579)
NET CASH INFLOW/(OUTFLOW)
FROM FINANCING ACTIVITIES 1 022 1 585 (415)
FINANCIAL STATISTICS
STANBIC GROUP
SHARES IN ISSUE (MILLIONS)
NUMBER OF ORDINARY SHARES
IN ISSUE
BEFORE DEDUCTION OF TREASURY
SHARES:
- END OF PERIOD 1 399 1 373 1 375
- WEIGHTED AVERAGE 1 383 1 372 1 373
AFTER DEDUCTION OF TREASURY
SHARES:
- END OF PERIOD 1 301 1 277 1 279
- WEIGHTED AVERAGE 1 286 1 276 1 277
EARNINGS (CENTS)
EARNINGS PER ORDINARY SHARE 15 114,5 99,4 226,8
HEADLINE EARNINGS PER
ORDINARY SHARE 25 128,0 102,6 226,5
DIVIDEND PER ORDINARY SHARE 22 22,0 18,0 68,0
NET ASSET VALUE PER
ORDINARY SHARE 16 1 218,1 1 045,9 1 089,3
ADJUSTED NET ASSET VALUE
PER ORDINARY SHARE 7 1 431,8 1 339,0 1 362,5
FINANCIAL PERFORMANCE (%)
ROE 22,1 20,2 21,8
STANDARD BANK OPERATIONS
FINANCIAL PERFORMANCE (%)
ROE* 21,5 20,0 21,4
RETURN ON AVERAGE TOTAL
ASSETS* 1,6 1,3 1,5
OPERATING COSTS TO TOTAL
INCOME* 60,3 61,4 61,4
EFFECTIVE TAXATION RATE 31,8 30,3 31,5
CAPITAL ADEQUACY (%)
CAPITAL RATIO
- PRIMARY CAPITAL 10,3 9,7 9,6
- TOTAL CAPITAL 12,4 10,6 11,4
*CALCULATION EXCLUDES DEBT FUNDING COST OF THE LIBERTY ACQUISITION.
STATEMENT OF CHANGES IN SHAREHOLDERS' FUNDS
SIX MONTHS ENDED YEAR ENDED
30 JUNE 30 JUNE 31 DECEMBER
2000 1999 1999
R MILLION R MILLION R MILLION
UNAUDITED UNAUDITED AUDITED
SHAREHOLDERS' FUNDS AT
BEGINNING OF THE PERIOD 13 944 12 603 12 603
MOVEMENTS IN SHARE CAPITAL
AND SHARE PREMIUM 529 (695) (638)
SHARES ISSUED 529 3 012 3 035
WRITE-OFF OF GOODWILL - (2 735) (2 748)
CROSS-HOLDING ELIMINATION - (972) (925)
MOVEMENTS IN NON-DISTRIBUTABLE
RESERVES 17 (20) (209)
TRANSLATION OF FOREIGN ENTITIES 128 (101) (242)
SUBSIDIARIES AND EQUITY
ACCOUNTED UNDERTAKINGS (140) 81 (19)
CAPITAL SURPLUSES AND
OTHER MOVEMENTS 29 - 52
MOVEMENTS IN DISTRIBUTABLE
RESERVES 1 367 1 474 2 188
GROUP INCOME ATTRIBUTABLE
TO ORDINARY SHAREHOLDERS 1 473 1 268 2 896
COTERMINOUS EARNINGS - 194 194
ORDINARY DIVIDEND (286) (230) (870)
TRANSLATION OF FOREIGN ENTITIES 40 (54) (29)
SUBSIDIARIES AND EQUITY
ACCOUNTED UNDERTAKINGS 140 296 (7)
OTHER - - 4
SHAREHOLDERS' FUNDS AT END
OF THE PERIOD 15 857 13 362 13 944
SEGMENTAL REPORTING
SIX MONTHS ENDED YEAR ENDED
30 JUNE 30 JUNE 31 DECEMBER
2000 1999 1999
% R MILLION R MILLION R MILLION
CHANGE UNAUDITED UNAUDITED UNAUDITED
TOTAL INCOME
DOMESTIC BANKING 7 5 549 5 163 10 758
- RETAIL BANKING 2 3 336 3 267 6 568
- WHOLESALE BANKING 3 2 223 2 162 4 332
- SCMB 9 1 200 1 099 2 180
- COMMERCIAL BANKING (4) 1 023 1 063 2 152
- CENTRAL SERVICES (10) (266) (142)
INTERNATIONAL OPERATIONS 21 1 012 837 1 610
STANBIC AFRICA 33 606 456 984
CENTRALISED FUNDING (111) 26 (181)
STANDARD BANK OPERATIONS 9 7 056 6 482 13 171
LIBERTY EARNINGS (13) 211 242 472
STANBIC GROUP 8 7 267 6 724 13 643
HEADLINE EARNINGS
DOMESTIC BANKING 50 1 106 737 1 770
- RETAIL BANKING 11 464 419 880
- WHOLESALE BANKING 46 642 440 1 032
- SCMB 36 395 291 606
- COMMERCIAL BANKING 66 247 149 426
- CENTRAL SERVICES - (122) (142)
INTERNATIONAL OPERATIONS 26 244 193 455
STANBIC AFRICA 21 157 130 280
CENTRALISED FUNDING (72) 8 (85)
STANDARD BANK OPERATIONS 34 1 435 1 068 2 420
LIBERTY EARNINGS (13) 211 242 472
STANBIC GROUP 26 1 646 1 310 2 892
STANDARD BANK INVESTMENT CORPORATION LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTERED BANK CONTROLLING COMPANY)
(REGISTRATION NO. 1969/017128/06)
REGISTERED OFFICE
9TH FLOOR, STANDARD BANK CENTRE,
5 SIMMONDS STREET, JOHANNESBURG, 2001
P O BOX 7725, JOHANNESBURG, 2000
SHARE TRANSFER SECRETARIES
IN SOUTH AFRICA
MERCANTILE REGISTRARS LIMITED
7TH FLOOR, 11 DIAGONAL STREET, JOHANNESBURG, 2001
P O BOX 1053, JOHANNESBURG, 2000
IN NAMIBIA
TRANSFER SECRETARIES (PROPRIETARY) LIMITED
SHOP 12, KAISERKRONE CENTRE,
POST STREET MALL
WINDHOEK, 9000
P O BOX 2401, WINDHOEK, 9000
BOARD OF DIRECTORS
C B STRAUSS (CHAIRMAN)
D E COOPER (JOINT DEPUTY CHAIRMAN)
S J MACOZOMA (JOINT DEPUTY CHAIRMAN)
J H MAREE* (CHIEF EXECUTIVE)
R C ANDERSEN*
D D B BAND
E BRADLEY
A R EVANS
R M GODSELL
D A HAWTON
R J KHOZA
W S MACFARLANE
E A G MACKAY
B J M MASEKELA
R P MENELL
R A PLUMBRIDGE
P C PRINSLOO*
M RAPP#
A ROMANIS#
C L STALS
E P THERON
*EXECUTIVE DIRECTOR
#BRITISH
GROUP SECRETARY
K D CURR
THIS ANNOUNCEMENT, TOGETHER WITH A FINANCIAL PRESENTATION, IS AVAILABLE ON THE
STANDARD BANK WEBSITE AT: HTTP://WWW.STANDARDBANK.CO.ZA