Wrap Text
Audited results and dividend announcement for the year ended 31 December 2012
Standard Bank Group Limited
Registration Number 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
SBKP ZAE000038881 (First preference shares)
SBPP ZAE000056339 (Second preference shares)
JSE bond codes: SBS, SBK, SBN, SBR, ETN series
SSN series and CLN series (all JSE listed bonds
issued in terms of The Standard Bank of South
Africa Limited's Domestic Medium Term Note
Programme and Credit Linked Note Programme)
Standard Bank Group audited results and dividend announcement
for the year ended 31 December 2012
The Standard Bank Group Limited's (group) summary
consolidated annual financial statements (results) are
prepared in accordance with the requirements of the
JSE Limited Listings Requirements for provisional
reports, the requirements of the Companies Act
applicable to summary financial statements, the
framework, measurement and recognition requirements
of International Financial Reporting Standards (IFRS),
the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and the requirements
of IAS 34 Interim Financial Reporting. The accounting
policies applied in the preparation of the consolidated
financial statements from which the results have been
derived are in terms of IFRS and are consistent with the
accounting policies applied in the preparation of the
group's previous consolidated annual financial
statements.
The results for the year ended 31 December 2012 have
been audited by the group's external auditors KPMG
Inc. and PricewaterhouseCoopers Inc. Their unmodified
audit report is available for inspection at the company's
registered office.
The results are presented on a normalised basis, unless
otherwise indicated as being on an IFRS basis. Results
are normalised to reflect the group's view of the
economics of its Black Economic Empowerment
Ownership initiative, the group's share exposures
entered into to facilitate client trading activities and for
the benefit of Liberty Holdings Limited's policyholders
that are deemed to be treasury shares. The normalised
results reflect the basis on which management manages
the group and is consistent with that reported in the
group's segmental report.
The pro forma constant currency information disclosed
in these results (as referenced by*) is the responsibility
of the group's directors. The pro forma constant
currency information has been presented to illustrate
the impact of changes in currency rates on the group's
results and hence may not fairly present the group's
results of operations. In determining the change in
constant currency terms, the comparative financial
reporting period's results have been adjusted for the
difference between the current and prior period's
average exchange rates (determined as the average of
the daily exchange rates). The measurement has been
performed for each of the group's currencies, materially
that of the USD, Nigerian Naira and Kenyan Shilling.
The pro forma constant currency information has been
reviewed by the group's external auditors and their
unmodified review report is available for inspection at
the company's registered office.
Financial highlights
Headline earnings
R15 010 million, up 10%
(2011: R13 599 million)
Headline earnings
per share
941 cents
(2011: 857 cents)
Return on equity
(ROE)
14.2%
(2011: 14.3%)
Tier I capital
adequacy ratio
11.7%
(2011: 12.0%)
Net asset value
per share
7 092 cents
(2011: 6 453 cents)
Cost-to-income ratio
58.7%
(2011: 58.8%)
Credit loss ratio
1.08%
(2011: 0.87%)
The preparation of the group's results was supervised by the group financial director, Simon Ridley, BCom (Natal),
CA(SA), AMP (Oxford). These results were made publicly available on 7 March 2013.
Investors are referred to www.standardbank.com/reporting where a detailed analysis of the group's financial
results, including an income statement and a statement of financial position for The Standard Bank of South Africa
Limited (SBSA) and Standard Bank Plc, can be found.
Overview of financial results
Operating environment
Global macroeconomic conditions remained weak
during 2012, especially in the major advanced
economies. Emerging market economies continued
to show superior growth rates, with the IMF
estimating GDP growth of 5.3% in 2012, compared
to 1.3% in advanced economies. The slowdown in
global trade has, however, contained the growth in
emerging economies.
African economic growth rebounded in 2012 after
popular uprisings and political unrest in North Africa
brought overall growth down to 3.4% in 2011.
Although the continent is still recovering from the
global financial crisis of 2008, strong growth is likely
despite the difficult external environment and
renewed global uncertainty. Africa's high population
growth and rapid rate of urbanisation, as well as its
resource wealth and deepening financial sector, are
some of the main pillars providing structural support
for this counter-cyclical growth pattern.
The South African economy struggled in 2012,
affected by the persistently sombre global
conditions. The external pressure combined with
domestic difficulties weighed on GDP growth, which
remained weak. Household consumption, which
accounts for almost 60% of GDP, declined during the
year. The bulk of South African consumer spending
in the aftermath of the 2008 crisis has come as a
result of personal income growth, but this support is
dissipating despite above-inflation salary increases.
Increases in transport costs and utility tariffs have
eroded purchasing power and consumers have grown
more dependent on credit to cover their monthly
expenses, evident in a higher household
debt-to-disposable income ratio.
South African CPI inflation averaged 5.7% in 2012
and interest rates were cut by a further 50 basis
points (bps) in July. The rand was highly volatile,
against a backdrop of weak domestic growth and
labour unrest.
Our results
The global banking industry is facing the twin
challenges of more stringent regulatory requirements
and a fragile global macroeconomic environment.
Notwithstanding the difficult environment, the
group's financial performance has been sound and
demonstrates good momentum in our businesses.
The group delivered a 10% growth in headline
earnings to a record R15 billion, and a 23% growth
in attributable earnings to R16,5 billion, the
difference largely due to the R1,5 billion profit
realised on the sale of a majority stake in Standard
Bank Argentina (SBA) during the year.
The group's results for 2012 reflect divergent themes.
On the one hand, they indicate the considerable
challenges the group has faced in scaling down areas
of the group which are no longer part of the strategy
and these are evident in Corporate & Investment
Banking's (CIB's) results, with headline earnings down
13% from 2011. On the other hand, the exciting
prospects of our Africa-centred strategy are beginning
to show in performance across our business units.
Overall, the growth areas aligned to our strategic
focus did very well, and the areas that we are in the
process of scaling down have performed worse
than expected.
Highlights in 2012
Our focus on maintaining our position in South Africa
and growing in our chosen markets in the rest of
Africa paid off in 2012. Revenues from the group's
banking activities increased by 17% and in the rest
of Africa revenues were up an impressive 38%. This
was the result of our consistent efforts over the last
few years to gain new customers, win new mandates
and increase our reach, underpinned by our
significant investment in systems and people.
A major focus area for 2012 was on driving
transactional banking revenues. In CIB, Transactional
products and services (TPS) revenue grew 32%. In
Personal & Business Banking (PBB), transactional
banking revenues grew 14%, despite holding prices
flat for personal market customers and, in some
instances, reducing prices in South Africa.
Transactional banking revenues now make up more
than 40% of the group's banking revenues.
Income growth far exceeded cost growth in the rest
of Africa, resulting in a lower cost-to-income ratio for
the region, and allowing excellent revenue growth to
translate into even better headline earnings growth
of 68%.
Liberty results were particularly strong with headline
earnings up 42% as a result of favourable investment
markets and steady performance from its retail
insurance business in South Africa.
Challenges in 2012
Aligning our operations outside Africa to our
Africa-centred strategy requires that we simplify and
scale them optimally according to the revenue
generation opportunities we can reasonably expect
and capital required to produce those revenues.
During the year, we continued to right-size our
operations outside of Africa in a responsible and
deliberate manner.
Divestitures from Russia, Turkey and Argentina
completed during the year resulted in proceeds
exceeding USD800 million and significantly reduced
capital requirements outside Africa. Further, the
refocusing of our business model in Brazil has
reduced capital utilisation in that entity.
Our operations outside Africa were subject to intense
management action during the year. Given the narrowed
focus and the prevailing macroeconomic environment,
revenues from this operation were not sufficient to cover
specific credit impairments and the enlarged cost base of
a small investment bank in the new regulatory regime.
Standard Bank Plc incurred a headline loss of
USD351 million in 2012 after taking into account a
once-off restructuring charge, significantly impacting the
group's results. Of the loss incurred, only USD54 million
related to continuing operations.
The impact and expected benefit of the actions we
have undertaken to enhance the sustainability of our
international operations are outlined in the section
that follows.
- A restructuring process has been undertaken
in our operations outside Africa to secure a
sustainable reduction in costs of approximately
USD100 million a year.
- Investment banking assets and the related credit
risk have been transferred to The Standard Bank
of South Africa Limited (SBSA) balance sheet.
Since 2011, we have been systematically
reducing the risk carried on the Standard Bank
Plc balance sheet, particularly investment
banking credit risk, through a series of asset
transfers to SBSA and by restricting new assets
originated by Standard Bank Plc to the SBSA
balance sheet. The last of these risk transfers
took place in November 2012.
We are cognisant of the need to save costs and
reduce capital requirements in London without
materially affecting lines of business that generate
significant revenues for our CIB franchise. Between
2010 and 2012, capital utilisation outside Africa has
reduced from USD3 billion to USD1,5 billion.
A release of regulatory capital out of London is likely
to be a gradual process in consultation with the
relevant regulatory authorities and we continue to
look at opportunities to improve revenue production
given a relatively fixed international cost base.
Further to our numerous existing cooperation
initiatives with the Industrial and Commercial Bank of
China Limited (ICBC), we are jointly exploring areas
of greater cooperation, including global markets
and commodities where our respective presences
and strengths can be leveraged.
Income statement analysis
Our banking activities achieved pleasing top-line
growth of 17%, which is testament to our solid client
franchises. Credit impairments increased by 37%,
somewhat higher than we had anticipated due to
impairments on loans originated in prior years by our
London operation in activities which have since been
closed. Costs rose 15%, following last year's flat cost
growth, partially due to rand weakness and the
higher cost of additional regulatory compliance in
London. Excluding these effects, costs were up
10%*. Net income before restructuring was up
13%, but the once-off restructure charge restricted
headline earnings from banking operations to 7%
growth. Liberty had a very good year, lifting headline
earnings by 42%, and supporting the 10% growth in
the group's headline earnings.
Revenues
Net interest income (NII) increased 18% as a result
of 10% growth in average margin earning assets and
margin expansion of 31 bps. Good loan growth
recorded in late 2011 which continued into 2012,
drove the momentum in NII growth. Margin
expansion was achieved through a combination of
enhanced risk-based pricing and a greater proportion
of higher margin unsecured loans in PBB. The
positive endowment effect on capital and
transactional balances in the rest of Africa due to
higher interest rates in East Africa outweighed the
negative endowment impact of the 50 bps cut in the
South African prime interest rate in July 2012.
Non-interest revenue increased 16%, with net fee
and commission revenue up 8%, trading revenue up
12% and other revenue significantly higher than
that of the prior year.
Growth in net fee and commission revenue of 8%
was achieved despite a small increase of 2% in
account transaction fees which was offset by healthy
volume-based increases in both card-based fees and
electronic banking fees. Higher commitment,
guarantee and structuring fees also assisted the
growth in net fee and commission income.
Trading revenue grew 12% off the back of a strong
performance in the rest of Africa, which now
contributes almost 40% of the group's trading
revenues. Fixed income and currency (FIC) trading
grew 16% with forex and interest trading benefiting
from an increased client base and activity levels.
Commodity trading increased 13% following strong
activity levels in base metal trading. Equity trading
suffered from a provision raised on the pending
outcome of a counterparty dispute under arbitration.
Other revenue included the proceeds from realising
a number of listed investments during the year.
Insurance-related income benefited from a higher
policy base but incurred higher claims due to several
weather and fire-related claims in South Africa.
Credit impairments
Credit impairment charges of R8,8 billion were 37%
higher than the prior year, while gross average loans
and advances increased 10%. This resulted in the
group credit loss ratio rising to 1.08% from 0.87% in
the prior year.
The increase in impairment charges was largely due
to higher specific impairment provisioning against
exposures within CIB, particularly on Middle Eastern
exposures which are no longer aligned to current
strategy. This added 30 bps to CIB's credit loss ratio.
The overall impairment charge for mortgages
declined to 0.91% of the book (2011: 1.07%),
whereas the coverage ratio on non-performing loans
increased from 20% last year to 26%. Higher
specific impairments were raised within mortgage
lending in South Africa. During 2012, a review of
specific and portfolio impairment methodologies in
mortgage loans was undertaken. A consequence of
this was that more risk is now categorised under
specific impairments rather than under portfolio
impairments. This resulted in a release of
R748 million from portfolio impairments and an
increase of a similar amount under specific
impairments.
The impairment charge in personal unsecured lending
(excluding card) increased to R2,3 billion (2011:
R1,3 billion). This was a result of the increased
incidence of default in the R3,7 billion domestic
personal term loans book (loans to lower-income
customers known as the inclusive banking book) and
strong growth in the middle market segment in
South Africa and workplace banking in the rest of
Africa. Consequently the personal unsecured lending
credit loss ratio rose from 5.31% to 6.47%.
Scorecard thresholds for this type of lending have
been raised and there has consequently been very
little growth in the book since June 2012.
Operating expenses
Operating expenses were up 15% in 2012 and,
excluding the translation impact of a weaker rand,
were up 11%*.
Staff costs grew 16% for the year. Fixed remuneration
was up 11% due to annual salary increases and higher
non-permanent headcount in the branch network in
South Africa due to longer branch opening hours at
certain outlets. Variable staff costs were up 16%,
driven largely by increased amortisation of prior year
awards as incentive remuneration has been subject to
an increasing proportion of deferrals over recent years.
Headcount increased 1% with a 5% growth in the rest
of Africa. All other regions employed tight resource
management and natural attrition to restrict headcount.
The effect of the restructuring process on headcount
outside Africa will only be evident in 2013.
Other operating expenses increased 14% largely
due to higher depreciation, amortisation, premises
and marketing costs across the business, and a
significant increase in compliance-related costs in
our operations outside Africa. IT spending for the
group was up 19% a significant cost but crucial for
securing competitive advantage in customer service
and business efficiency.
A restructure charge of R758 million was incurred
during the year. The charge includes retrenchment
costs, office lease termination costs and software
intangible asset write-offs mainly in London as well
retrenchment costs relating to rationalisation in
Brazil undertaken earlier in the year.
Including this charge, total operating expenses were
up 17% for the year and the cost-to-income ratio
ended the year at 58.7%, slightly lower than the
prior year.
Attributable earnings
The group experienced several large gains in
earnings attributable to shareholders in 2012, which
were excluded from headline earnings. The largest
was the profit on the disposal of our controlling stake
in Argentina of R1 525 million. Gains of R700 million
were realised on the disposal of private equity
investments as well as equity stakes in a credit card
processing company and a commodities exchange.
Offsetting these items was an impairment of goodwill
in African countries of R777 million (the largest
being in Nigeria) and the impairment of software
assets following the restructuring process in our
operations outside Africa, of R220 million.
Loans and advances
Loans to customers grew 5% year-on-year, and by
9% on a daily average basis. The 5% growth
resulted from PBB growing advances to customers
by 11% and CIB reducing its lending to customers
by 2%.
Within PBB, mortgage lending grew 5% and
instalment sale and finance leases rose 17%. Credit
card balances and other personal unsecured loans
were up by 16% and 48%, respectively. Business
lending grew by 7%. Other personal unsecured
lending includes a small book of unsecured lending to
customers who earn less than R8 000 a month
(referred to as our inclusive banking loans book),
which has grown to R3,7 billion (2011: R2,0 billion).
It also includes a book of revolving credit loans to
middle market customers of R19,1 billion
(2011: R12,4 billion) which grew strongly over
the year.
In CIB, average loans to customers were up 5%
year-on-year although they shrank 2% on year-end
balances, due to strong loan growth in the second
half of 2011 that was not repeated in 2012.
Overview of business unit
performance
Headline earnings by business unit
Change 2012 2011
% Rm Rm
Personal & Business
Banking 27 7 476 5 872
Corporate &
Investment Banking (13) 4 784 5 521
Discontinued
operation (Argentina)(1) 47 673 457
Central and other 44 321
Banking activities 7 12 977 12 171
Liberty 42 2 033 1 428
Total 10 15 010 13 599
(1) In November 2012, the group finalised the disposal of its
controlling stake in SBA to ICBC. The transaction resulted
in a profit of R1 525 million, which is not included above
as it is accounted for outside of headline earnings.
Up until November 2012 the group's 75% investment in
SBA was classified as a discontinued operation and the
earnings for the 11 months are recognised above.
Personal & Business Banking (PBB)
PBB's headline earnings of R7,5 billion were 27%
higher than the prior year driven mainly by strong
risk-adjusted NII and good cost control. An ROE of
20.0% was achieved, a slight improvement on the
19.2% posted in the prior year. PBB in South Africa
delivered an excellent performance with headline
earnings of R7,6 billion up 25%, and PBB in the rest
of Africa reported a loss, albeit smaller than in the
prior year, despite the good momentum in revenue
growth.
The mortgage business continued to perform well
and generated headline earnings of R985 million
(2011: R420 million). In South Africa, the mortgage
business continued to grow as we took the
opportunity to favourably price new business and
optimise our mortgage loan portfolio. New home
loans of R34,5 billion were registered during the
year, assisting asset growth of 5%. We remain
cognisant of future funding pressures that are likely
due to Basel III and continue to price new business
appropriately to accommodate estimated future
regulatory impacts. The average lending rate for new
mortgage business improved to 84 bps above the
prime interest rate (prime) compared to 11 bps
above prime in the prior year. The level of
non-performing mortgage loans declined a further
R3,4 billion during the year to R15,7 billion and the
credit loss ratio for mortgages reduced to 0.91%
from 1.07%.
Revenues in instalment sale and finance leases grew
by 15% to R2,6 billion as a result of asset growth in
South Africa. The growth in new business was
primarily in non-motor assets, where payouts were
up 23% year-on-year. Our market share in South
Africa increased to 19.1% at the end of 2012,
compared with 18.4% at the end of 2011. The write
back of portfolio provisioning in 2011 did not recur
and a credit loss ratio of 0.85% was incurred for
2012, compared to 0.72% in the prior year. Headline
earnings in South Africa improved 14% to
R408 million. However, business expansion and the
higher cost of funding resulted in a headline loss for
instalment sale and finance leases in the rest
of Africa.
Card products recorded a commendable increase in
headline earnings to over a billion rand for the first
time, 46% higher than in the comparable year. The
number of credit card accounts in South Africa grew
7%, and the overall credit card debtors' book grew
16% to R24,1 billion, partly attributable to new
account growth and improved limit utilisation on
existing accounts. Increasing the number of
point-of-sale devices within high-value corporate
merchants in South Africa contributed to the higher
sales. Fraud losses decreased as a result of improved
fraud detection and prevention measures. The credit
loss ratio improved to 1.73%, compared to 1.90% in
the prior year, as a result of focused
collection strategies.
Total income from transactional products improved
by 14%, mainly driven by customer acquisition in a
very competitive environment coupled with
increased online banking volumes. The number of
current accounts in South Africa grew 11% and
other transactional and savings accounts grew
18%. Our strategy to grow our deposit base proved
effective with retail-priced deposit and current
account year-end balances increasing to
R248 billion, 9% higher than in the prior year.
Growth in the business segment was mainly as a
result of public sector account acquisitions as well
as an increased focus on account acquisitions
through Bizlaunch.
Total income from lending products increased 27%
to R6,7 billion in 2012. This was as a result of
improved margins from higher pricing as well as
strong balance growth in overdrafts and revolving
credit facilities. Loans to inclusive banking customers
grew off a low base but slowed towards the end of
the year as we reduced our risk appetite for this
lending. Term loans to our business banking
customers grew 9% with more customers using
structured working capital facilities. Good income
growth was offset by an increase in credit impairment
charges following strong balance growth, mainly in
personal unsecured lending off a low base. The
credit loss ratio weakened to 2.92% in 2012,
compared to 1.91% in the prior year. Overall,
headline earnings from lending products was down
33% to R557 million from R837 million in the
prior year.
Bancassurance and wealth comprises insurance-related
businesses across the African continent as well as
wealth businesses in the Isle of Man and Jersey.
As in prior years we continued to forge closer
operational ties with Liberty to deliver growth in
bancassurance volumes. This resulted in a 30%
increase in headline earnings to R1,4 billion, with
short-term underwriting and broking activities as the
main contributors to this result. We continued to
grow simple embedded products and short-term
insurance policies in line with our focus on increasing
the penetration of insurance products in our existing
suite of banking products. Bancassurance in the rest
of Africa continued to do well and we saw positive
traction from the bancassurance product roll out in
countries where bancassurance agreements have
been finalised.
Corporate & Investment Banking (CIB)
CIB had a mixed year in 2012, as a difficult operating
environment placed pressure on earnings. Despite
the business delivering strong revenues, with income
up 20% on the prior year, this was more than offset
by cost growth and several large impairment charges.
The improved revenue performance reflects our
focus on strengthening our capabilities and improving
coordination to better serve our clients across Africa
and selected emerging markets.
TPS was the outstanding performer, with revenues
up 32%. This is a very promising result given the
core role TPS plays across the wider CIB franchise,
being critical to our wholesale client franchise and
African growth ambitions. Cash management, trade
and investor services posted good growth in South
Africa. In the rest of Africa, a strong performance
was achieved as we continued to build the corporate
banking platform across the continent, and was
supported by the positive endowment effect in the
first half of the year due to higher interest rates in
East Africa and Nigeria. We continued to invest in
key electronic platform capability in Africa.
Within Global markets, difficult market conditions for
the international activities offset a good performance
across Africa. Higher volumes and increased margins
benefited the foreign exchange and money market
desks in Malawi, Mozambique and Kenya. In South
Africa, the foreign exchange desk had a strong first
half but trading slowed in the second half in an illiquid
event-driven market with some large swings in the
USD/ZAR rate. Revenues from the international
commodities business grew, aided by a strong base
metal performance, but regulatory requirements
negatively impacted income as a result of the costs
associated with holding larger liquidity asset buffers.
Investment banking revenues were up 11%,
reflecting NII earned on a large loan book and
healthy levels of activity in Africa. A number of
strategically important deals were closed in the year
despite difficult market conditions, and a significant
effort has been made to develop our pipeline of
deals across the continent. NII was well ahead of the
prior year due to a larger loan book and improved
interest margins.
Credit impairments rose significantly from
R1,0 billion to R2,3 billion, with a credit loss ratio of
63 bps. This was as a result of a small number of
large specific credit impairments on the Middle
Eastern portfolio. Impairments as a percentage of
total gross loans increased from 0.91% in 2011 to
1.46%, and the balance sheet remains healthy.
Costs in CIB grew 17%, excluding the charge of
R758 million arising from the restructure of our
international operations. Operational cost growth in
key parts of our business in the rest of Africa, primarily
driven by our investment in people and technology in
high inflation environments, as well as the costs of
regulatory compliance incurred outside Africa, were
the main contributors to this cost growth. CIB reported
headline earnings of R4 784 million, down 13% on
the prior year. Excluding the restructure charge,
headline earnings were down 4% to R5 322 million.
ROE declined to 10.4% (2011: 13.0%).
Liberty
The financial results reported are the consolidated
results of our 54.4% investment in Liberty Holdings
Limited. Bancassurance results are included in PBB.
Liberty's normalised headline earnings for the year
ended 31 December 2012 were R3 768 million, of
which R2 033 million was attributable to Standard
Bank Group (2011: R1 428 million). Liberty's 2012
financial performance was positive across many
indicators. All Liberty's business units are performing
in line with or ahead of expectation and Liberty now
has a stable platform off which to drive its strategy
for growth. The 2012 performance also reflects
Liberty's more cohesive nature as it begins to
leverage new and current capabilities to support
other businesses through innovation, risk
management and knowledge sharing.
Normalised headline earnings were positively
impacted by the investment performance of Liberty's
shareholder capital represented by the low risk
balanced shareholder investment portfolio. The
operational earnings reflect a 2% increase after
adjusting for investment market performance.
However, the 2011 base contains a once-off positive
impact of an actuarial assumption change. After
adjusting for this, other once-off changes and the
increase in new business strain in 2012, operating
earnings increased by 15%. Assets under
management across the Liberty group grew by 16%
to R528 billion.
Equity value per share of R115 was 15% up on
2011 and reflected R5,9 billion of equity value
profits, or a 21% return on equity value. This is not
only a function of the positive investment markets,
but reflects the growth in value of new business, the
strong operational business unit performances and
LibFin's ability to add value through its credit
origination business.
Capital management
The group maintained strong Basel II capital ratios
during the year under review, due to internal capital
generation and corporate actions, specifically the
completion of the sale of Troika in January 2012 and
the divestiture of the group's majority stake in SBA
in November 2012. At 31 December 2012, our core
tier I capital ratio was 11.0%, our tier I capital ratio
was 11.7% and our total capital ratio was 14.6%.
We achieved our objective to strengthen SBSA's
capital position in the second half of 2012. This was
done through risk-weighted asset optimisation
initiatives and utilising internal sources of surplus
group capital, mainly the proceeds from the sale of
SBA, to support the use of SBSA as the primary
balance sheet of the group. Additionally, SBSA
successfully placed a record R9,2 billion of
subordinated debt qualifying as Basel II compliant
tier II instruments in the domestic bond market.
In December 2012, the South African Reserve Bank
published the amended Basel III regulations relating
to banks after a consultative process. Our analysis of
the regulations implies a reduction in the group's
capital adequacy ratios under the proposed
framework, but the group will remain adequately
capitalised to meet the new Basel III requirements.
Dividend
A final dividend of 243 cents per share has been
declared, resulting in a total dividend for the year of
455 cents per share, an increase of 7% and the dividend
cover ratio was increased from 2.0 to 2.1 times. The final
dividend has been declared as a cash distribution but
with an opportunity to elect capitalisation shares to
provide flexibility for shareholders, given recent changes
to dividend tax in South Africa.
Funding and liquidity
The group's overall liquidity position remains strong
with liquidity buffers held for potential stressed
conditions amounting to R144 billion at
31 December 2012 (excluding cash reserves across
the group of an additional R43 billion). These levels
of liquidity are prudent given the group's liquidity
stress-testing philosophy and pending regulation.
We continue to maintain a robust ratio of long-term
funding at 24.3% of funding-related liabilities.
The group's most stable funding source, retail
deposits from PBB customers, was 9% higher than
the prior year as the bank maintained market share
in South Africa and continued growing its franchise
in the rest of Africa. CIB also demonstrated its ability
to attract transactional banking customers with
current accounts and cash management deposits
increasing by 12% compared to December 2011.
A number of key debt capital market and term loan
funding transactions were executed, taking advantage
of pockets of relatively well-priced liquidity as investor
appetite for capital markets issuance remained robust.
SBSA successfully placed R10 billion of senior debt in
the domestic bond market and raised USD1,9 billion
in syndicated loans through the EMTN programme
from the international bank loan and capital markets,
including USD1,35 billion in a single three-year loan
in May 2012.
Directorate
Cyril Ramaphosa is, in terms of the memorandum of
incorporation of the company, due to retire from
office by rotation at the company's annual general
meeting to be held on 30 May 2013. He has advised
the company that he will not be standing for re-
election.
Prospects
Our core franchise is healthy and our customer base
is strong. Across sub-Saharan Africa, where GDP
growth for the region is expected to be 5% in 2013,
we are allocating resources to businesses which
consume less capital and, at the same time, deliver
strong revenue growth. Sub-Saharan Africa's trade
links with the developed world will mean that its
prospects will be impacted by any weakness in the
global economic recovery. We expect GDP growth of
between 2.5% and 3.0% in South Africa.
Our relationship with ICBC continues to translate into
joint initiatives to support the transactional and
corporate banking services we offer Chinese investors
into Africa and Chinese corporates operating within
Africa, as well as facilitating the flow of trade between
Africa and China. We look forward to this relationship
strengthening going forward.
We have made good progress in right-sizing our
operations outside Africa and Standard Bank Plc is
now a much smaller, lower risk entity which is fully
integrated with our South African operations.
As a bank servicing the real economy, we will
continue to provide our customers with the financial
services products and services they need to grow.
We will continue to manage the group for long-term
profitability by investing appropriately in our diverse
portfolio of businesses and in the capability and
wellbeing of our people, while applying a disciplined
and prudent approach to risk. We understand that
our primary aim to improve the returns we deliver to
our shareholders requires that we create lasting
value for all our stakeholders.
Stakeholders should note that any forward-looking
information in this announcement has not been
reviewed or reported on by the group's external
auditors.
Jacko Maree Fred Phaswana
Chief executive Chairman
6 March 2013
Declaration of dividends
Payment of a final cash dividend of 243,00 cents
per ordinary share to ordinary shareholders
with an election to receive capitalisation shares
instead of the cash dividend
Shareholders of Standard Bank Group Limited ("the
company") are advised of the following dividend
declarations in respect of ordinary shares and
preference shares.
Ordinary shares
Ordinary shareholders are advised that the board of
directors ("the board") has resolved to declare a
final gross cash dividend of 243,00 cents per
ordinary share ("the cash dividend") to ordinary
shareholders recorded in the register of the company
at the close of business on Friday, 19 April 2013, to
the extent that ordinary shareholders have not
elected to receive the capitalisation shares instead.
Ordinary shareholders will be able to elect to receive
ordinary shares of 10 (ten) cents each in the
company as capitalisation shares instead of the cash
dividend ("the capitalisation issue"), to be
determined by the ratio that 243,00 cents bears to
the volume weighted average price of the company's
ordinary shares on the exchange operated by the
JSE Limited ("JSE") during the five-day trading
period ending Thursday, 4 April 2013 ("the ratio").
No Secondary Tax on Companies ("STC") credits
were utilised as part of the ordinary
dividend declaration.
The cash dividend will be paid out of profits of the
company while the issue of new ordinary shares
pursuant to the capitalisation issue will be effected
from the company's share premium reserves.
Details of the ratio will be released on the Stock
Exchange News Service of the JSE ("SENS") by no
later than 11:00 on Friday, 5 April 2013 and
published in the South African and Namibian press
the following business day.
Trading in the Strate Limited environment does not
permit fractions and fractional entitlements.
Accordingly, where an ordinary shareholders'
entitlement to new ordinary shares calculated in
accordance with the above formula gives rise to a
fraction of a new ordinary share, such fraction of a
new ordinary share will be rounded up to the nearest
whole number where the fraction is greater than or
equal to 0,5 and rounded down to the nearest whole
number where the fraction is less than 0,5.
A circular relating to the cash dividend and the
capitalisation issue will be posted to ordinary
shareholders on or about Friday, 22 March 2013
and the salient dates and times are set out in the
table underneath.
The last day to trade to participate in the dividend is
Friday, 12 April 2013. Ordinary shares will commence
trading ex-dividend from Monday, 15 April 2013.
Ordinary share certificates may not be dematerialised
or rematerialised between Monday, 15 April 2013,
and Friday, 19 April 2013, both days inclusive.
Ordinary shareholders who hold dematerialised
shares will have their accounts at their CSDP or
broker credited or updated on Monday,
22 April 2013.
Where applicable, dividends in respect of certificated
shares will be transferred electronically to
shareholders' bank accounts on the payment date.
In the absence of specific mandates, dividend
cheques will be posted to shareholders.
Preference shares
Preference shareholders are advised that the board
has resolved to declare the following final
distributions:
- 6,5% first cumulative preference shares (first
preference shares) dividend No. 87 of 3,25 cents
(gross) per first preference share, payable on
Monday, 15 April 2013, to holders of first
preference shares recorded in the books of the
company at the close of business on the record
date, Friday, 12 April 2013. The last day to trade
to participate in the dividend is Friday,
5 April 2013. First preference shares will
commence trading ex-dividend from Monday,
8 April 2013. No STC credits were utilised as part
of the first preference dividend declaration.
- Non-redeemable, non-cumulative, non-participating
preference shares (second preference shares)
dividend No. 17 of 331,96 cents (gross) per
second preference share, payable on Monday,
15 April 2013, to holders of second preference
shares recorded in the books of the company at
the close of business on the record date, Friday,
12 April 2013. The total STC credits utilised as
part of the declaration amount to
R94 010 032,10 and consequently the STC
credits utilised per share amount to 177,44 cents
per second preference share. Second preference
shareholders will therefore receive a net dividend
of 308,782 cents per second preference share.
The last day to trade to participate in the
dividend is Friday, 5 April 2013. Second
preference shares will commence trading
ex-dividend from Monday, 8 April 2013.
The salient dates and times for the preference share
distributions are set out in the table that follows.
Preference share certificates (first and second) may
not be dematerialised or rematerialised between
Monday, 8 April 2013 and Friday, 12 April 2013,
both days inclusive.
In the absence of specific mandates, dividend
cheques will be posted to shareholders.
Preference shareholders (first and second) who have
dematerialised their share certificates will have their
accounts at their CSDP or broker credited on
Monday, 15 April 2013.
Salient dates and times for the ordinary and preference share distributions:
Non-redeemable,
6.5% non-cumulative
cumulative, non-participating
preference shares preference shares
Ordinary (First preference (Second preference
shares shares) shares)
JSE Limited
Share code SBK SBKP SBPP
ISIN ZAE000109815 ZAE000038881 ZAE000056339
Namibian Stock Exchange (NSX)
Share code SNB
ISIN ZAE000109815
Dividend number 87 87 17
Gross distribution/dividend per
share (cents) 243,00 3,25 331,96
Circular and form of election posted to Friday,
ordinary shareholders on or about 22 March 2013
Announcement of the ratio applicable
to the capitalisation shares, based on
the five-day trading period ending
Thursday, 4 April 2013, released on Friday,
SENS 5 April 2013
Announcement of the ratio applicable
to the capitalisation shares, based on
the five-day trading period ending
Thursday, 4 April 2013, published in Monday,
the South African and Namibian press 8 April 2013
Last day to trade in order to be
eligible for the cash dividend/
capitalisation shares Friday, Friday, Friday,
(cum distribution) 12 April 2013 5 April 2013 5 April 2013
Shares trade ex the cash dividend/ Monday, Monday, Monday,
capitalisation shares 15 April 2013 8 April 2013 8 April 2013
Record date in respect of the cash Friday, Friday, Friday,
dividend/capitalisation shares 19 April 2013 12 April 2013 12 April 2013
Share certificates and dividend
cheques posted and CSDP/broker
accounts credited/updated (payment Monday, Monday, Monday,
date) 22 April 2013 15 April 2013 15 April 2013
Ordinary share certificates may not be dematerialised or rematerialised between Monday, 15 April 2013, and
Friday, 19 April 2013, both days inclusive.
Preference share certificates (first and second) may not be dematerialised or rematerialised between
Monday, 8 April 2013 and Friday, 12 April 2013, both days inclusive.
All times provided in this announcement are South African local times. The above dates and times are subject
to change. Any changes will be released on SENS and published in the South African and Namibian press.
Tax implications
The cash dividend received under the ordinary
shares and the preference shares, or the election to
receive the capitalisation shares instead of the cash
dividend under the ordinary shares, are likely to have
tax implications for both resident and non-resident
ordinary and preference shareholders. Such
shareholders are therefore encouraged to consult
their professional tax advisers should they be in any
doubt as to the appropriate action to take with
respect to the election.
In terms of the Income Tax Act 58 of 1962 ("Income
Tax Act"), the cash dividend will, unless exempt, be
subject to Dividend Withholding Tax ("DT") that was
introduced with effect from 1 April 2012. South
African resident ordinary and preference
shareholders that are not exempt from DT, will be
subject to DT at a rate of 15% of the cash dividend,
and this amount will be withheld from the cash
dividend with the result that they will receive a net
amount of 206,55 cents per ordinary share,
2,7625 cents per first preference share and
308,782 cents per second preference share.
Non-resident ordinary and preference shareholders
may be subject to DT at a rate of less than 15%
depending on their country of residence and the
applicability of any Double Tax Treaty between South
Africa and their country of residence. The
capitalisation issue is not subject to DT in terms of
the Income Tax Act, but the subsequent disposal of
shares obtained as a result of the capitalisation issue
is likely to have Income Tax or Capital Gains Tax
("CGT") implications. Where any future disposals of
shares obtained as a result of the capitalisation issue
fall within the CGT regime, the base cost of such
shares will be regarded as nil in terms of the Income
Tax Act (or the value at which such shares will be
included in the determination of the weighted
average base cost method would be zero).
The issued share capital of the company, as at
declaration date, is as follows:
- 1 606 549 956 ordinary shares
- 8 000 000 first preference shares
- 52 982 248 second preference shares.
The company's tax reference number is
9800/211/71/7.
Normalised results
With effect from 2004, we have normalised the
group's results reported under IFRS to reflect the
group's view of the economics on the following
items:
- Preference share funding for the group's Black
Economic Empowerment Ownership initiative
(Tutuwa) transaction that is deducted from
equity and reduces the shares in issue in terms
of IFRS.
- Group company shares held for the benefit of
Liberty policyholders that result in a reduction
of the number of shares in issue and the
exclusion of fair-value adjustments and
dividends on these shares. The IFRS requirement
causes an accounting mismatch between income
from investments and changes in policyholders'
liabilities.
- The group also enters into transactions on its
own shares to facilitate client trading activities.
As part of the normal trading operations, a group
subsidiary offers to its clients trading positions of
listed shares, including its own shares. In order to
hedge the risk on these shares the subsidiary buys/
(sells) or sells short group shares in the market.
Although the share exposure on the group's own
shares is deducted/(added) from/(to) equity and
the related fair value movements are reversed in
the income statement on consolidation, the
client trading position and fair-value movements
are not eliminated, resulting in an accounting
mismatch. In addition to the two anomalies
described above, the group has adjusted for this
accounting mismatch resulting from the
application of IFRS in preparing the
normalised results.
The normalised results reflect the basis on which
management manages the group and is consistent
with that reported in the group's segmental report.
The result of these adjustments is shown in the table below:
Normalised headline earnings
Weighted
average
number of Headline Growth on
shares earnings 2011
'000 Rm %
Disclosed on an IFRS basis 1 522 177 14 664 9
Tutuwa initiative 63 479 246
Group shares held for the benefit of Liberty
policyholders 11 132 117
Share exposures held to facilitate client trading
activities (1 188) (17)
Normalised 1 595 600 15 010 10
Provisional audited results in
accordance with IFRS
Financial statistics
for the year ended 31 December 2012
Change
% 2012 2011
Number of ordinary shares in issue (000's)
end of period 1 1 535 917 1 514 097
weighted average 1 1 522 177 1 510 352
diluted weighted average 1 1 573 835 1 557 415
Cents per ordinary share
Headline earnings 9 963.4 887.2
continuing operations 7 919.1 857.0
discontinued operation 47 44.3 30.2
Diluted headline earnings 8 931.7 860.4
continuing operations 7 888.9 831.1
discontinued operation 46 42.8 29.3
Dividend 7 455.0 425.0
Net asset value per share 10 7 186 6 541
Financial performance (%)
Return on equity 14.4 14.6
Net interest margin on continuing operations 3.1 2.9
Credit loss ratio on continuing operations 1.1 0.9
Cost-to-income ratio 59.0 59.0
Capital adequacy (%)
Capital ratios (unaudited)
tier I capital 11.7 12.0
total capital 14.6 14.3
Consolidated income statement
for the year ended 31 December 2012
Change 2012 2011
% Rm Rm
Continuing operations
Income from banking activities 17 68 375 58 552
Net interest income 18 34 015 28 827
Non-interest revenue 16 34 360 29 725
Income from investment management and life insurance activities 55 75 716 48 835
Total income 34 144 091 107 387
Credit impairment charges 37 8 800 6 436
Benefits due to policyholders 68 56 878 33 799
Income after credit impairment charges and policyholders'
benefits 17 78 413 67 152
Operating expenses in banking activities 15 39 998 34 725
Staff costs 16 22 195 19 141
Other operating expenses 14 17 803 15 584
Restructuring costs 100 758
Operating expenses in investment management and life insurance
activities 15 11 952 10 410
Net income before goodwill impairment and gains on disposal
of subsidiaries 17 25 705 22 017
Goodwill impairment >100 777 61
Gains on disposal of subsidiaries 100 188
Net income before share of profits from associates and joint
ventures 14 25 116 21 956
Share of profits from associates and joint ventures >100 701 284
Net income before indirect taxation 16 25 817 22 240
Indirect taxation 28 1 766 1 384
Profit before direct taxation 15 24 051 20 856
Direct taxation 24 7 075 5 713
Profit for the year from continuing operations 12 16 976 15 143
Discontinued operation(1) >100 2 435 641
Profit for the year from discontinued operation 42 910 641
Profit from disposal of discontinued operation 100 1 525
Profit for the year 23 19 411 15 784
Attributable to non-controlling interests 32 2 913 2 213
Continuing operations 31 2 686 2 053
Discontinued operation 42 227 160
Attributable to preference shareholders 2 352 345
Attributable to ordinary shareholders 22 16 146 13 226
Basic earnings per share (cents) 21 1 060,7 875,7
Continuing operations 9 915,7 843,9
Discontinued operation >100 145,0 31,8
Diluted earnings per share (cents) 21 1 025,9 849,2
Continuing operations 8 885,6 818,3
Discontinued operation >100 140,3 30,9
(1) The income and expenses relating to the group's investment in SBA have been presented as a single amount relating to
its after-tax profit for 2011 and 2012.
Headline earnings
for the year ended 31 December 2012
Change 2012 2011
% Rm Rm
Profit for the period from continuing operations 9 13 938 12 745
Headline adjustable items added/(reversed) (91) 21 231
Goodwill impairment IAS 36 >100 777 61
Profit on sale of property and equipment IAS 16 50 (31) (62)
Impairment of property and equipment IAS 36 (100) 29
Impairment of non-current assets held for sale IAS 36 (100) 37
Realised foreign currency translation profit on
foreign operations IAS 21 (100) (119)
Gains on the disposal of subsidiaries IAS 27 (100) (188)
Transactions with associates IAS 28/IAS 36 (>100) (217) 22
Impairment of intangible assets IAS 36 >100 264 109
Realised (gains)/losses on available-for-sale assets IAS 39 (>100) (595) 35
Loss on net investment hedge reclassification on disposal of
associate IAS 39 100 130
Taxation on headline earnings adjustable items >100 13 (33)
Non-controlling interests' share of headline earnings adjustable items 100 19
Standard Bank Group headline earnings
from continuing operations 8 13 991 12 943
Profit for the period from discontinued operation >100 2 208 481
Headline adjustable items reversed (>100) (1 547) (49)
Loss/(Profit) on sale of property and equipment IAS 16 >100 1 (1)
Realised gains on available-for-sale assets IAS 39 52 (23) (48)
Gains on the disposal of subsidiaries IAS 27 (100) (1 525)
Taxation on headline earnings adjustable items (41) 10 17
Non-controlling interests' share of headline earnings adjustable items (75) 2 8
Standard Bank Group headline earnings
from discontinued operation 47 673 457
Standard Bank Group headline earnings 9 14 664 13 400
Consolidated statement of financial position
as at 31 December 2012
Change 2012 2011(1) 2010(1)
% Rm Rm Rm
Assets
Cash and balances with central banks 94 61 985 31 907 28 675
Financial investments, trading and pledged assets 15 444 217 385 881 366 465
Non-current assets held for sale(2,3) (97) 960 34 085
Loans and advances 1 811 171 801 308 710 722
Derivative and other assets (12) 154 088 174 569 169 203
Interest in associates and joint ventures 24 17 246 13 935 10 533
Investment property 3 24 133 23 470 21 521
Goodwill and other intangible assets 15 14 687 12 754 10 383
Property and equipment 5 15 733 14 920 14 907
Total assets 3 1 544 220 1 492 829 1 332 409
Equity and liabilities
Equity 11 130 173 117 533 103 198
Equity attributable to ordinary shareholders 11 110 370 99 042 87 073
Preference share capital and premium 5 503 5 503 5 503
Non-controlling interest 10 14 300 12 988 10 622
Liabilities 3 1 414 047 1 375 296 1 229 211
Deposit and current accounts 5 918 533 878 922 786 494
Derivative, trading and other liabilities (3) 227 282 235 116 221 701
Non-current liabilities held for sale3 (100) 27 939
Policyholders' liabilities 13 236 684 208 565 197 878
Subordinated debt 27 31 548 24 754 23 138
Total equity and liabilities 3 1 544 220 1 492 829 1 332 409
(1) 2011 and 2010 figures restated.
(2) The intended disposal of the group's associated interest in RCS Investment Holdings Proprietary Limited resulted in the carrying
value being classified as held for sale as at 31 December 2012.
(3) The intended disposal of the group's investment in SBA resulted in the assets and liabilities being classified as held for sale as
at 31 December 2011.
Contingent liabilities and capital commitments
as at 31 December 2012
2012 2011
Rm Rm
Letters of credit and bankers' acceptances 14 218 15 345
Guarantees 45 247 36 307
Contingent liabilities 59 465 51 652
Contracted capital expenditure 2 153 2 846
Capital expenditure authorised but not yet contracted 8 832 7 901
Capital commitments 10 985 10 747
Consolidated cash flow information
for the year ended 31 December 2012
2012 2011
Rm Rm
Net cash flows from operating activities 42 954 24 605
Net cash flows used in investing activities (14 514) (10 138)
Net cash flows used in financing activities (3 820) (8 388)
Effect of exchange rate changes on cash and cash equivalents 609 2 002
Net increase in cash and cash equivalents 25 229 8 081
Cash and cash equivalents at the beginning of the period 36 756 28 675
Cash and cash equivalents at the end of the period 61 985 36 756
Comprising:
Cash and balances with central banks 61 985 31 907
Cash and balances with central banks held for sale 4 849
Cash and cash equivalents at the end of the period 61 985 36 756
Consolidated statement of other comprehensive income
for the year ended 31 December 2012
2012 2011
Non-
controlling
Ordinary interests
share- and
holders' preference Total Total
equity shareholders equity equity
Rm Rm Rm Rm
Profit for the period 16 146 3 265 19 411 15 784
Other comprehensive income after tax
for the period continuing operations 523 164 687 4 856
Items that may be reclassified
subsequently to profit or loss:
Exchange rate differences on translating equity
investment in foreign operations 523 21 544 5 531
Foreign currency hedge of net investment 181 181 (279)
Cash flow hedges (221) (9) (230) 61
Available-for-sale financial assets 43 151 194 (538)
Items that may not be reclassified to
profit or loss:
Other (losses)/gains (3) 1 (2) 81
Other comprehensive income after tax
for the period discontinued operation 509 106 615 162
Total comprehensive income for the period 17 178 3 535 20 713 20 802
Attributable to non-controlling interests 3 183 3 183 3 068
Attributable to equity holders of the parent 17 178 352 17 530 17 734
Attributable to preference shareholders 352 352 345
Attributable to ordinary shareholders 17 178 17 178 17 389
Consolidated statement of changes in equity
for the year ended 31 December 2012
Ordinary Preference Non-
shareholders' share capital controlling Total
equity and premium interest equity
Rm Rm Rm Rm
Balance at 1 January 2011 87 073 5 503 10 622 103 198
Total comprehensive income for the period 17 389 345 3 068 20 802
Transactions with owners, recorded directly
in equity (5 420) (345) (702) (6 467)
Equity-settled share-based payment transactions 336 30 366
Deferred tax on share-based payment
transactions (83) (83)
Transactions with non-controlling shareholders (89) (98) (187)
Issue of share capital and share premium and
capitalisation of reserves 142 142
Net decrease in treasury shares 309 237 546
Net dividends paid (6 035) (345) (871) (7 251)
Balance at 31 December 2011 99 042 5 503 12 988 117 533
Balance at 1 January 2012 99 042 5 503 12 988 117 533
Total comprehensive income for the period 17 178 352 3 183 20 713
Transactions with owners, recorded directly
in equity (5 850) (352) (1 455) (7 657)
Equity-settled share-based payment transactions 282 46 328
Deferred tax on share-based payment
transactions 69 69
Transactions with non-controlling shareholders (74) (970) (1 044)
Issue of share capital and share premium and
capitalisation of reserves 125 125
Net decrease in treasury shares 212 196 408
Net dividends paid (6 464) (352) (727) (7 543)
Unincorporated property partnerships capital
reductions and distributions (182) (182)
Disposal of property partnership (234) (234)
Balance at 31 December 2012 110 370 5 503 14 300 130 173
Provisional audited results in accordance with IFRS continued
Segment report
for the year ended 31 December 2012
Change 2012 2011
% Rm Rm(1)
Revenue contribution by business unit
Personal & Business Banking 14 42 280 37 017
Corporate & Investment Banking 20 26 938 22 479
Central and other 31 (511) (745)
Banking activities 17 68 707 58 751
Liberty 55 75 861 48 806
Standard Bank Group normalised 34 144 568 107 557
Adjustments for IFRS (>100) (477) (170)
Standard Bank Group IFRS 34 144 091 107 387
Profit attributable to ordinary shareholders
Personal & Business Banking 31 7 648 5 839
Corporate & Investment Banking (7) 4 959 5 337
Central and other >100 1 813 821
Banking activities 20 14 420 11 997
Liberty 45 2 072 1 428
Standard Bank Group normalised 23 16 492 13 425
Adjustments for IFRS (74) (346) (199)
Standard Bank Group IFRS 22 16 146 13 226
Total assets by business unit
Personal & Business Banking 11 519 143 468 045
Corporate & Investment Banking 763 006 764 861
Central and other (>100) (9 066) 24 455
Banking activities 1 1 273 083 1 257 361
Liberty 15 275 590 240 069
Standard Bank Group normalised 3 1 548 673 1 497 430
Adjustments for IFRS 3 (4 453) (4 601)
Standard Bank Group IFRS 3 1 544 220 1 492 829
Total liabilities by business unit
Personal & Business Banking 10 475 299 434 053
Corporate & Investment Banking 715 683 717 394
Central and other (>100) (32 975) 1 214
Banking activities 1 158 007 1 152 661
Liberty 15 256 114 222 746
Standard Bank Group normalised 3 1 414 121 1 375 407
Adjustments for IFRS 33 (74) (111)
Standard Bank Group IFRS 3 1 414 047 1 375 296
(1) Where reporting responsibility for individual cost centres and divisions within business units changes, the segmental analysis
comparative figures are reclassified accordingly.
Private equity associates and joint ventures
as at 31 December 2012
2012 2011(1)
Rm Rm
Cost 159 287
Carrying value 540 613
Fair value 454 591
Loans to associates and joint ventures 6 195
Equity accounted income 94 83
(1) Comparative financial information restated to exclude banking activities ring-fenced associates that have been consolidated
at a group level.
Accounting policies and restatement
The accounting policies are consistent with those Restatement
adopted in the previous year except as noted below The comparative statement of financial position and
and are in terms of IFRS. income statement, where applicable, at 31 December
2011 and 31 December 2010 have been adjusted
Adoption of new standards and to reflect the presentation consequences of the
interpretations effective for the restatement below, with no impact on reserves.
current financial year
The group adopted the following IFRS prospectively Trading liabilities to deposits
as of 1 January 2012: Management previously classified certain deposits as
- IFRS 1 First-time Adoption of International trading liabilities on the basis that such deposits
Financial Reporting Standards (revised 2010) were used to fund trading positions. In accordance
- IFRS 7 Financial Instruments: Disclosures with IFRS and group accounting policies, such
Transfers of Financial Assets (revised 2010) deposits should rather have been classified as part of
deposit and current accounts. The deposits have
Early adoption of amended standards accordingly been reclassified in previously reported
and interpretations financial periods from trading liabilities to customer
The group has early adopted the following amended deposit and current accounts to conform to the
IFRS as of 1 January 2012: classification of such deposits in the current financial
- IAS 1 Presentation of Financial Statements reporting. The reclassification amounts to
(2011 Improvements to IFRS) R2 145 million in 2011 and R893 million in 2010.
- IAS 16 Property, Plant and Equipment (2011
Improvements to IFRS)
- IAS 32 Financial Instruments: Presentation
(2011 Improvements to IFRS)
- IAS 34 Interim Financial Reporting (2011
Improvements to IFRS)
- IFRS 1 First-time Adoption of International
Financial Reporting Standards (2011
Improvements to IFRS)
The revised IFRS did not have any effect on the
group's reported earnings or financial statement
position with no material impact on the group's
accounting policies.
Administrative and contact details
Standard Bank Group Limited Share transfer secretaries in
Registration Number 1969/017128/06 South Africa
Incorporated in the Republic of South Africa Computershare Investor Services
Website: www.standardbank.com (Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
Registered office PO Box 61051, Marshalltown, 2107
9th Floor, Standard Bank Centre
5 Simmonds Street, Johannesburg, 2001 Share transfer secretaries in Namibia
PO Box 7725, Johannesburg, 2000 Transfer Secretaries (Proprietary) Limited
4 Robert Mugabe Avenue,
Group secretary (entrance in Burg Street), Winkhoek
Zola Stephen PO Box 2401, Windhoek
Tel: +27 11 631 9106
JSE independent sponsor
Head: Investor relations Deutsche Securities (SA) (Proprietary) Limited
Linda Dodgen
Tel: +27 11 636 5039 Namibian sponsor
David Kinsey (from 1 April 2013) Simonis Storm Securities (Proprietary) Limited
Tel: +27 11 631 3931
JSE joint sponsor
Head: Central Finance Standard Bank
Richard Irvine
Tel: +27 11 631 7987 Share and bond codes
JSE share code: SBK
Group financial director ISIN: ZAE000109815
Simon Ridley NSX share code: SNB
Tel: +27 11 636 3756 NSX share code: SNB ZAE000109815
SBKP ZAE000038881 (First preference shares)
Head office switch board SBPP ZAE000056339 (Second preference shares)
Tel: +27 11 636 9111 JSE bond codes: SBS, SBK, SBN, SBR, ETN series
SSN series and CLN series (all JSE listed bonds
Directors issued in terms of The Standard Bank of South
TMF Phaswana (Chairman) Africa Limited's Domestic Medium Term Note
Hongli Zhang** (Deputy chairman) Programme and Credit Linked Note Programme)
SJ Macozoma (Deputy chairman)
JH Maree* (Chief executive)
DDB Band, RMW Dunne#, TS Gcabashe,
KP Kalyan, Yagan Liu**, Adv KD Moroka,
AC Nissen, MC Ramaphosa, SP Ridley*, MJD Ruck,
Lord Smith of Kelvin, Kt#, PD Sullivan+, EM Woods
*Executive director **Chinese #British
+ Australian
Please direct all customer queries and comments to:
information@standardbank.co.za
Please direct all shareholder queries and comments to:
InvestorRelations@standardbank.co.za
www.standardbank.com
Date: 07/03/2013 08:00:00 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.
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