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SBK - Standard Bank Group Limited - Update on the group`s performance for the four months to 30 April 2011 and capital adequacy disclosure at 31 March 2011 Standard Bank Group Limited (Incorporated in the Republic of South Africa) (Registration number 1969/017128/06) South African Share Code: SBK Namibian Share Code: SNB ISIN: ZAE000109815 ("Standard Bank Group" or "the group") Update on the group`s performance for the four months to 30 April 2011 and capital adequacy disclosure at 31 March 2011 1. Update on the group`s performance for the four months to 30 April 2011 At the annual general meeting to be held later today, chief executive Jacko Maree will refer to this update regarding the group`s performance for the first four months of 2011 in comparison with the same period for 2010: For the four-month period to 30 April 2011, normalised headline earnings for the group were slightly lower than the relatively high base set in the first four months of 2010. The results of this four month period are however trending more positively than the second half of 2010. This reflects a relatively subdued operating environment, in which low interest rates continued to put pressure on margins but helped ease the debt servicing pressure on corporate clients and households. Banking activities Net interest income continued to be negatively impacted by the endowment impact of low interest rates on transactional balances and capital and remained flat on the comparative period. Net fee and commission revenue within non-interest revenue improved from the comparative period, in line with our transaction-led strategy. Trading revenues reflected a decline from the comparative period. Credit impairment charges decreased in Personal & Business Banking lending portfolios across all geographies and the credit quality of clients in the Corporate & Investment Banking portfolio continued to improve. The cost-to-income ratio was higher than that experienced over the first four months of 2010 given the pressure on revenues, but shows a declining trend from the 61.7% recorded at the end of 2010. We remain focused on our objective of keeping total costs flat in 2011 compared to 2010. Liberty Holdings Limited ("Liberty") Shareholders are referred to the Liberty market update on 13 May 2011 wherein, referring to the first quarter of 2011, the following comments were included: "The operational performance was satisfactory and capital levels remain well above minimum requirements. The intense focus on balance sheet management, investment performance and persistency in the insurance operations has now been embedded into the day to day activities as business as usual. Management continues to focus on generating sustained quality new business and managing its diversification initiatives to business case." 2. Basel II capital adequacy disclosure at 31 March 2011 In terms of the Basel II requirements under Regulation 43(1)(e)(ii) of regulations relating to banks, minimum disclosure on the capital adequacy of the group is required on a quarterly basis. This announcement meets the ongoing reporting requirement for quarterly disclosure in terms of Pillar 3 of the Basel II capital accord. Standard Bank Group Standard Bank Group remained well capitalised as at 31 March 2011 with a total capital adequacy of 15.1% and Tier 1 capital adequacy of 12.7%, significantly exceeding minimum regulatory requirements. March December
2011 2010 Note Rm Rm Ordinary share capital and 17 592 17 522 premium Ordinary shareholders` 1 69 150 69 551 reserves Minority interest 10 735 10 622 Regulatory deductions against (19 093) (18 316) primary capital Regulatory exclusions from (11 756) (12 482) primary capital Unappropriated profit 6 316 7 604 Preference share capital and 5 495 5 495 premium Primary capital 78 439 79 996 Subordinated debt 20 295 20 295 Secondary unimpaired reserve 1 339 1 088 funds Regulatory deductions against (6 914) (7 039) secondary capital Secondary capital 14 720 14 343 Tertiary capital - 466 466 Subordinated debt Total qualifying capital 93 625 94 805 Total minimum regulatory 3 58 838 58 906 capital requirement
Total capital adequacy ratio 2 15.1 15.3 (%) Primary capital adequacy 2 12.7 12.9 ratio (%) Note: 1. Ordinary shareholders` reserves include unappropriated profits net of dividends declared during the period. 2. Capital adequacy ratios include unappropriated profits. 3. Capital requirement calculated at 9.5% and excludes bank specific add-ons and capital floors. The Standard Bank of South Africa Limited ("SBSA") SBSA remained well capitalised as at 31 March 2011 with a total capital adequacy of 14.5% and Tier 1 capital adequacy of 11.1%, significantly exceeding minimum regulatory requirements. March December 2011 2010
Note Rm Rm Primary capital 1 41 922 42 172 Secondary capital 12 504 12 493 Tertiary capital - 300 300 Subordinated debt Total qualifying capital 54 726 54 965 Total minimum regulatory 3 35 687 34 985 capital requirement
Total capital adequacy ratio 2 14.6 14.9 (%) Primary capital adequacy 2 11.2 11.5 ratio (%) Note: 1. Primary capital includes unappropriated profits net of dividends declared during the period. 2. Capital adequacy ratios include unappropriated profits. 3. Capital requirement calculated at 9.5% and excludes bank specific add-ons and capital floors. The information contained in this announcement has not been reviewed by or reported on by Standard Bank Group`s external auditors. Johannesburg 26 May 2011 Lead sponsor Standard Bank Independent sponsor Deutsche Securities (SA) Proprietary Limited Date: 26/05/2011 08:00:11 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
