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SBK - Standard Bank Group Limited - Update on the group`s performance for the four months to 30 April 2012 and capital adequacy disclosure at 31 March 2012 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 2012 and capital adequacy disclosure at 31 March 2012 1 Update on the group`s performance for the four months to 30 April 2012 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 2012 in comparison with the same period for 2011. Banking activities Net interest income for the first four months of 2012 benefited from good loan growth towards the end of 2011 and the ongoing improvement in new business lending margins. Non-interest revenue was boosted by good growth in trading revenues albeit off a lower base in the prior year. As anticipated, credit impairment charges reflect some increase as portfolio provisions are created in line with book growth and a more normal charge has been incurred in Corporate & Investment Banking compared to a net recovery in the prior period. The cost-to-income ratio for the four months was slightly higher than that achieved for the 2011 year but the group remains focused on reducing this ratio. Liberty Shareholders are referred to the Liberty market update on 18 May 2012 wherein, referring to the first quarter of 2011, the following comments were included: "the results reflect continued strong growth in Retail SA new business, positive client net cash inflows in both asset management and insurance operations, and a good operational performance. Returns on the shareholder investment portfolio were supported by the positive investment markets." 2 Basel II capital adequacy disclosure at 31 March 2012 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 2012 with a total capital adequacy of 13.5% and primary capital adequacy of 11.0%, significantly exceeding minimum regulatory requirements. March December 2012 2011 Note Rm Rm
Ordinary share capital and premium 17 933 17 735 Ordinary shareholders` reserves 1 78 926 81 307 Minority interest 13 101 12 988 Regulatory deductions against primary (17 951) (20 698) capital Regulatory exclusions from primary (15 537) (16 687) capital Foreign Currency Translation Reserve 2 2 785 1 331 Other regulatory exclusions (14 467) (12 611) Unappropriated Profit (3 855) (5 407) Preference share capital and premium 5 495 5 495
Primary capital 81 967 80 140 Subordinated debt 23 754 20 983 Secondary unimpaired reserve funds 1 992 1 560 Regulatory deductions against secondary (6 457) (6 412) capital Secondary capital 19 289 16 131 Tertiary capital - Subordinated debt 300 300 Total qualifying capital 101 556 96 571
Total minimum regulatory capital 3 74 364 67 519 requirement Credit Risk 53 824 49 575 Equity Risk 1 831 1 986 Market Risk 8 112 5 628 Operational Risk 10 597 10 330 Capital Adequacy Ratio (excl unappropriated profit) Total capital adequacy ratio (%) 13.0 13.6 Primary capital adequacy ratio (%) 10.5 11.3
Capital Adequacy Ratio (incl unappropriated profit) Total capital adequacy ratio (%) 13.5 14.3 Primary capital adequacy ratio (%) 11.0 12.0 Note: 1. Ordinary shareholders` reserves include unappropriated profits net of dividends declared during the period. 2. Movement due to currency translation gains arising from a weakening of the exchange rate. 3. Total minimum capital requirement calculated at 9.5% is comprised of Pillar 1 at 8% and Pillar 2a at 1.5% and excludes bank specific add-ons and capital floors. R3.9bn of the increase in capital requirement arose from the adoption of new regulatory rules relating to the scaling factor of 1.06 applied to credit internal ratings-based ("IRB") portfolios and stress value-at-risk ("VAR") in respect of market risk. The remaining R2.9bn of the increase is due to book growth in South Africa and the Rest of Africa. The Standard Bank of South Africa Limited ("SBSA") SBSA remained well capitalised as at 31 March 2012 with a total capital adequacy of 12.4% and primary capital adequacy of 9.3%, significantly exceeding minimum regulatory requirements. March December 2012 2011 Note Rm Rm
Primary capital 1 43 871 44 769 Secondary capital 14 754 11 770
Tertiary capital - Subordinated debt 300 300 Total qualifying capital 58 925 56 839 Unappropriated Profit 434 1 445 Total minimum regulatory capital 2 45 473 40 896 requirement Credit Risk 35 832 31 845 Equity Risk 1 433 1 498 Market Risk 2 085 1 427 Operational Risk 6 123 6 126
Capital Adequacy Ratio (excl unappropriated profit) Total capital adequacy ratio (%) 12.3 13.2 Primary capital adequacy ratio (%) 9.2 10.4 Capital Adequacy Ratio (incl unappropriated profit) Total capital adequacy ratio (%) 12.4 13.5 Primary capital adequacy ratio (%) 9.3 10.7 Note: 1. Primary capital excludes unappropriated profits and is net of dividends declared during the period. 2. Total minimum capital requirement calculated at 9.5% is comprised of Pillar 1 at 8% and Pillar 2a at 1.5% and excludes bank specific add-ons and capital floors. R2.6bn of the increase in capital requirement during the quarter arose from the application of the 1.06 scaling factor to credit IRB portfolios and stress VAR to the calculation of market risk. The remaining increase in capital requirement is mainly due to book growth. The information contained in this announcement has not been reviewed by or reported on by Standard Bank Group`s external auditors. Johannesburg 31 May 2012 Lead sponsor Standard Bank Independent sponsor Deutsche Securities (SA) Proprietary Limited Date: 31/05/2012 08:00:05 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.
