Update on the rationalisation of international operations 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 rationalisation of Standard Bank Group international operations As indicated at the time of releasing Standard Bank Group’s interim results in August, the group continues to right size its international operations in a responsible and deliberate manner. Standard Bank completes divestiture of control of Standard Bank Argentina The group has completed the transaction through which the group divested of controlling stakes in Standard Bank Argentina S.A. (“Standard Bank Argentina”) and its affiliated companies (collectively “SBA”) to Industrial and Commercial Bank of China Limited (“ICBC”). Standard Bank will retain a 20% shareholding and rights to board representation in each of the companies comprising SBA. Standard Bank Argentina will be rebranded as Industrial and Commercial Bank of China (Argentina) S.A. early in 2013. The final proceeds of and profit realised on the transaction will be determined based on the 30 November 2012 balance sheets of SBA. This information will be finalised and reviewed according to an agreed process in the near future. It is anticipated that there will be a minor upwards adjustment of the original expected net proceeds attributable to the group of USD400 million as published in August 2011, as the benefit of the strong profit performance of SBA is expected to have countervailed the effect of the devaluation of the Argentine peso and the transaction costs. The profit realised on the transaction is expected to be approximately R1.6 billion (USD180 million). This profit will be recognised outside of headline earnings and will be incremental to the group’s core equity tier 1 capital. The group’s tier 1 capital adequacy ratio of 11.2% at 30 September 2012 will, on a pro-forma basis, increase to 11.6%. It is planned that the proceeds of this divestiture will be largely deployed in The Standard Bank of South Africa Limited to support the group’s growth ambitions. Other rationalisation initiatives Conditions in our international operations remain very challenging and, as announced in a media release on Friday 9 November, we are currently taking action in respect of all aspects of the cost base in these operations so as to secure a sustainable reduction in costs of approximately USD100 million per annum. This process is proceeding according to plan and it is estimated that the once-off costs relating to this rationalisation exercise will be approximately USD80 million. These costs include estimated retrenchment costs, office lease termination costs and software asset write-offs and will be recognised as a restructuring charge in 2012. The information contained in this announcement has not been reviewed by or reported on by the group's auditors. Johannesburg 6 December 2012 Lead sponsor The Standard Bank of South Africa Limited Independent sponsor Deutsche Securities (SA) (Proprietary) Limited Date: 06/12/2012 07:05:00 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.