Wrap Text
Standard Bank Group interim unaudited results and dividend announcement for the six months ended 30 June 2013
Standard Bank Group Limited
Registration No. 1969/017128/06
Incorporated in the Republic of South Africa
JSE share code: SBK
ISIN: ZAE000109815
Standard Bank Group interim unaudited
results and dividend announcement
for the six months ended 30 June 2013
The condensed consolidated interim results for the
six months ended 30 June 2013 have not been
audited or independently reviewed by the Standard
Bank Group's (group) external auditors.
The results are presented on a normalised basis,
unless otherwise indicated as being on an
International Financial Reporting Standards (IFRS)
basis. Results are normalised to reflect the group's
view of the economics of its Black Economic
Empowerment Ownership (Tutuwa) initiative, the
group's share exposures entered into to facilitate
client trading activities and for the benefit of Liberty
Holdings Limited's (Liberty) 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 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 US dollar, Nigerian naira,
Kenyan shilling, Zambian kwacha and Ugandan
shilling. The pro forma constant currency information
has not been reviewed or independently reviewed by
the group's external auditors.
1H13 refers to the first half year results for 2013.
1H12 refers to the first half year results for 2012.
FY12 refers to the full year results for 2012.
Change % reflects 1H13 growth on 1H12.
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
15 August 2013.
Financial highlights
Headline earnings
- R8 149 million, up 11%
(1H12: R7 315 million)
- Headline earnings per share 506 cents, up 10%
(1H12: 460 cents)
- Return on equity 13.8%
(1H12: 14.3%)
- Tier I capital adequacy ratio 12.3%
(FY12: 11.2%)
- Net asset value per share 7 660 cents, up 16%
(1H12: 6 615 cents)
- Cost-to-income ratio 57.3%
(1H12: 59.3%)
- Credit loss ratio 1.17%
(1H12: 0.98%)
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 and Standard Bank Plc,
can be found.
Overview of financial results
Group results
In an environment where revenue generation is
becoming increasingly challenging, the group has
achieved good growth in total income of 13% and
has managed to offset the pressures of higher
credit impairments and costs affected by a weaker
rand. Headline earnings per share increased by
10% to 506 cents, net asset value per share
increased by 16%, and a dividend per share of
233 cents has been declared. The group's tier I
ratio under Basel III rules stands at 12.3%.
The group's positioning across the African continent
has been further validated in the period with 27%
growth in aggregate headline earnings for our
African subsidiaries, other than South Africa.
Underlying momentum in our businesses across the
continent is strong and we continue to build on the
foundation laid in previous years. We are
appropriately invested in key African countries and
are leveraging the group's strong South African
platform developed over many years to grow our
businesses and deliver value to our clients.
Operating environment
The operating environment in the first half of the
year remained challenging against an uncertain
global backdrop. While the US economy is looking
relatively healthier, concerns remain over subdued
growth prospects in the European Union (EU) and,
lately, China. The International Monetary Fund
(IMF) has revised its outlook for global growth
downwards on the back of increasingly softer
demand in key emerging market economies and a
more protracted recession in the EU. Global growth
is now seen by the IMF at 3.1% in 2013,
unchanged from 2012.
The downward adjustment in growth expectations
for China has already been reflected in weaker
commodity prices to which sub-Saharan Africa (SSA)
is particularly exposed. The region's largest
economies such as Nigeria and South Africa
continue to struggle with weaker external demand
coupled with internal growth constraints. According
to the IMF, growth in SSA will rise only modestly to
5.1% in 2013 from 4.9% in 2012.
The uncertain global outlook was reflected in
increased financial market volatility particularly in
May and June 2013. Talk of the potential tapering
of the US Federal Reserve's quantitative easing
sparked fears of a withdrawal of funds from
emerging markets. The rand was particularly hard
hit as the currency faced not only external
pressures but internally driven pressures too in the
form of lower growth, concerns over the fiscal
balance and continuing labour unrest, concentrated
mostly in the mining sector.
South African households continue to struggle with
high overall debt burdens coupled with sluggish
income growth and rising inflation. Growth in
household consumption expenditure slowed for the
fifth consecutive quarter during the first quarter of
2013 to 2.4%, broadly in line with the growth in
real disposable income. The moderation in spending
growth can be attributed to slowing growth both in
disposable income and in unsecured lending
extended to households as credit providers
tightened their lending practices. The stubbornly
high household sector debt has compromised the
ability of households to take on further debt.
Revenue
Total income grew by 13% over the period with net
interest income (NII) growing strongly by 20%, with
non-interest revenue (NIR) higher by a more
moderate 7%. The further depreciation of the rand
helped revenue growth and, on a constant currency
basis, total income was 10% higher than the prior
period.
NII growth of 20% (17% in constant currency) was
again a highlight for the group. Although balance
sheet expansion was moderate, continued pricing
improvement in secured lending portfolios, growth
in higher-yielding unsecured balances in Personal &
Business Banking (PBB), and favourable term
funding rates offset an expected decline in
endowment income from lower average interest
rates in South Africa and in the rest of Africa.
Net fee and commission income grew by 10%
compared with the six months to June 2012. PBB
achieved 8% growth in spite of forgoing any price
increase on transactional products in 2012 and
2013 as well as price decreases on certain products
in 2012 in South Africa to retain and grow its
customer base. Sharply increased activity occurred
through the mobile banking channels in South
Africa offset by slightly lower activity through the
group's ATM network. Corporate & Investment
Banking (CIB) grew fees and commissions by 11%
as good growth continued in transactional banking
across the African continent.
Trading revenue was 8% higher in a volatile
environment as a similar pattern observed in the
prior period of a strong first quarter partially offset
by weaker revenue in the second quarter was
experienced. A good performance from commodity
trading was offset by difficult conditions in fixed
income and foreign exchange trading. Trading
conditions continue to be affected by uncertainty
over when and at what rate the US Federal Reserve
will withdraw its liquidity support to financial
markets.
Other revenue benefited from the inclusion of a
fair value gain on a contingent interest in Troika
Dialog but was 9% lower than the prior period
which had contained substantial positive valuation
adjustments on listed and unlisted property
investments in South Africa.
Credit impairments
Total credit impairment charges grew 28% and the
credit loss ratio increased to 1.17% from 0.98% in
the prior period. PBB's credit charges were 32%
higher. Continued deterioration in the credit quality
of the inclusive personal loan portfolio and
higher-than-expected losses in higher margin
personal loans and small and medium enterprise
(SME) lending in the rest of Africa contributed to
the PBB credit loss ratio of 1.57% (1H12: 1.32%).
CIB's credit losses increased by 15% as its credit
loss ratio increased to 0.52% from 0.46% in the
prior period. A recovery received in respect of a
previously written-off exposure in CIB outside
Africa was more than offset by a small number of
high value credit impairments in South Africa and
the rest of Africa.
Non-performing loans in mortgages continued to
decrease in line with a slowly improving residential
property market in South Africa. Impairments in
personal unsecured lending increased by 69% to
R1 511 million from R896 million in the prior
period. The majority of these impairments originate
in the domestic personal term loans (PTL) portfolio,
known as the inclusive personal lending book, in
South Africa which has been affected over the last
year by higher living costs, limited growth in
disposable income and reduced credit supply. The
PTL book has reduced in size to R3,4 billion from
R3,7 billion at the end of 2012 due to lower levels
of new business written flowing from higher
scorecard thresholds. NII after accounting for credit
impairments has increased by 17% over the period,
reflecting the group's overall ability to price
appropriately for risk in chosen product segments.
Operating expenses
Operating expenses increased by 10% and by 5%
on a constant currency basis excluding the impact
of rand depreciation relative to the prior period.
Staff costs grew by 12% and by 7% on a constant
currency basis. Within staff costs, variable staff
costs increased by 31% mostly due to higher
current year incentive provisions off a low 1H12
base in CIB flowing from the improvement in its
profitability and the amortisation of prior year
deferred incentive awards. Excluding the impact of
the sale of the group's majority investment in
Argentina, staff numbers were 1% higher due to
continued investment within PBB in the rest of
Africa offset marginally by lower staff complement
in South Africa and outside of Africa.
Operating expenses excluding staff expenses
increased by 7% and by 2% on a constant currency
basis. The group's cost-to-income ratio improved to
57.3% from 59.3% in 1H12.
Loans and advances
Loans and advances to customers grew by 8% over
the prior period. PBB advances to customers grew
10% due mainly to strong growth of 42% in
personal unsecured lending and 16% growth each
in card and instalment sale and finance leases which
continued to benefit from higher vehicle sales over
the period. Mortgage loans grew by a more
moderate 5% with increased competitor activity
evident in the market. CIB loans to customers grew
at a slower rate of 6% in spite of the effect of a
weaker rand in line with its strategy to contain
growth in risk-weighted assets.
Capital, funding and liquidity
The group implemented Basel III on 1 January
2013 in line with the South African Reserve Bank
(SARB) regulations. This resulted in an increase of
R59,6 billion in risk-weighted assets, due mainly to
an increase in credit risk and risk-weighted assets
for investments in financial entities. The group's
tier I ratio declined to 11.2% on 1 January 2013
from the reported 11.7% tier I ratio at
31 December 2012 as a result of the adoption
of Basel III.
Since the beginning of the year, the group has
made further progress in the building of its
common equity tier I and tier I capital levels and is
well on track to meet the rising ratios required by
the SARB through to 2016 by the careful
allocation of available resources. The group's 30
June 2013 Basel III common equity tier I ratio
increased to 11.8% from the pro forma Basel III
ratio of 10.7% recorded in 31 December 2012.
The effect of the weaker rand boosted
shareholders' equity by approximately R4,4 billion
and increased qualifying common equity tier I
capital by 4% in the period.
The group's overall liquidity position remains
strong with appropriate liquidity buffers in
excess of prudential requirements amounting to
R174,1 billion at 30 June 2013 (excluding cash
reserving across the group of an additional
R59,3 billion). These significant levels of liquidity
are appropriately conservative given the group's
liquidity stress testing philosophy and in view of
potential change in regulatory requirements.
The group continues to maintain a robust ratio
of long-term funding at 22.6% of liabilities.
Retail priced deposits in PBB showed strong
growth, up 18% from June 2012, with
contributions to this growth from both South Africa
and in the rest of Africa helping to continue the
strong growth profile over the last few years. CIB
benefited from good growth in negotiable
certificates of deposit, up 38%, demand for which
was mostly generated by insurers and asset
managers, and current accounts which increased by
35% due mainly to corporate support in the rest of
Africa. A reduction in term deposits in CIB was
partially offset by 21% growth in call deposits as
clients preferred to retain liquidity in order to
manage cash flows in the subdued economic
environment.
The Basel Committee on Banking Supervision
(BCBS) previously proposed the two liquidity ratios,
namely the liquidity coverage ratio (LCR) and net
stable funding ratio (NSFR), as part of the Basel III
regulations. Following a series of quantitative
impact studies, industry comment letters and
discussions with banks, the BCBS published a set of
revisions to the LCR in January 2013. The SARB
confirmed that the proposed revisions to the LCR
will be adopted by the South African banking
industry and that a committed liquidity facility will
also be made available, at a fee, to assist banks in
meeting this ratio. The banking industry still
expects to face some challenges in meeting the
NSFR requirements and continues to engage with
the relevant authorities in this regard. Further
NSFR guidance is expected from the regulatory
authorities towards the end of 2013.
Overview of business unit performance
Headline earnings by business unit
Change 1H13 1H12 FY12
% Rm Rm Rm
Personal & Business Banking 14 3 655 3 197 7 342
Corporate & Investment Banking 25 3 515 2 803 4 423
Central and other (>100) (34) 124 490
Banking activities excluding earnings from
Argentina 17 7 136 6 124 12 255
Argentina (72) 89 315 673
Banking activities 12 7 225 6 439 12 928
Liberty 5 924 876 1 990
Standard Bank Group 11 8 149 7 315 14 918
Personal & Business Banking
PBB reported headline earnings growth of 14% to
R3 655 million in the period, driven mainly
by strong NII growth of 20% offset by
higher credit impairments in both South Africa and
the rest of Africa. PBB South Africa grew headline
earnings 17% while PBB in the rest of Africa
reported a loss after a disappointing credit
performance. PBB's return on equity declined to
16.8% from 18.0% in 1H12.
Within mortgages, profitability continued to
improve in the period through more appropriate
pricing on new business and further reduction in
non-performing loans. Although the level of new
business written is similar to the prior period, total
revenue increased by 26% and headline earnings,
which were positively impacted by 11% lower
impairments, increased by 85% to R567 million.
Non-performing loans declined by a further
R3,2 billion compared with the prior period,
reflecting the gradual but steady improvement in
the housing market in South Africa over the
past year.
Instalment sale and finance leases had a satisfactory
period in which higher vehicle sales, particularly in
the retail market, supported an increase in total
income of 14%. Good loan growth was experienced
in certain countries in the rest of Africa and
although higher specific impairments were required,
the credit losses were within risk appetite and
expectations. Headline earnings increased by 38%
to R135 million.
Good advances growth was again recorded within
card products due to higher activity flowing from
account acquisition and credit limit increases and
upgrades. Total income increased by 14%,
supported by improved net interest margin and
success in acquiring high value corporate
merchants. As expected, credit card impairments
were materially higher at R460 million and the
credit loss ratio increased to 3.75% from a low loss
ratio base of 2.16% in the comparative period.
Headline earnings increased by 13% to
R602 million notwithstanding the more normalised
credit losses.
In spite of a modest improvement of 6% in total
revenue, headline earnings from transactional
products declined by 13% to R1 060 million. The
unit was adversely affected by lower endowment
income as interest rates declined in South Africa and
in a number of other African countries. Banking fees
in personal markets have not increased during 2012
and 2013, and customer pricing was materially
reduced in April 2012, which flowed through fully
during the period. Higher operating expenses driven
by an increased footprint and a larger staff
complement, primarily in west Africa, contributed to
the decline in earnings.
Lending products delivered 13% growth in headline
earnings due to appropriate risk pricing and higher
overdraft and revolving credit plan balances offset
by increased impairments required in the PTL
portfolio. New origination of unsecured lending in
South Africa slowed markedly during the period
given a tightening of risk appetite initiated from
June 2012 and lower consumer demand.
In bancassurance and wealth, satisfactory growth in
the active policy base in core banking products as
well as higher market penetration enabled good
growth in total income of 23%. Higher insurance
profits in certain African countries, single-digit
growth in expenses and higher earnings in the
Offshore Group supported the 28% growth in
headline earnings to R901 million.
Corporate & Investment Banking
CIB's 25% growth in headline earnings to
R3 515 million reflects the strong position it
occupies in its chosen markets across the African
continent. Income growth of 15% outpaced
expense growth of 7% with the cost-to-income
ratio declining to 59.0% from 63.3% and, although
credit impairments were 15% higher, pre-tax profit
increased by 31% over the comparative period.
CIB's improved profitability and heightened focus
on limiting capital usage has enabled it to increase
its return on equity to 14.7% from 12.6% in the
period to June 2013. Rest of Africa now accounts
for 36% of CIB's total revenues, a substantial
increase on the 27% and 31% in the first half of
2011 and 2012 respectively.
The transactional products and services business
grew revenues by a pleasing 22% mainly through
higher volumes in cash management and investor
services in South Africa and in the rest of Africa.
Countering this was the sharply lower endowment
income in South Africa and other African countries
due to lower average interest rates in the period.
Trade finance experienced increased client activity
for guarantees and confirmations for a mix of new
and existing clients. Credit impairments were higher
but satisfactory headline earnings growth of 9%
was achieved.
Global markets grew revenues by 10% in a
period that was once again characterised by a
strong first quarter performance offset by
challenging conditions internationally in the
second quarter. Fears that monetary conditions in
the US would tighten through the removal of
quantitative easing caused a substantial
liquidation of positions during June 2013. The
resultant lack of liquidity affected both fixed
income and foreign exchange trading but
commodities trading generated higher revenues
from increased client flow and price volatility.
Revenues grew within the rest of Africa as the
business continued to experience a positive
trading environment with high levels of activity,
although this was partly offset by difficult
operating conditions within South Africa. The
restructuring undertaken in our international
operations in 2012 assisted in costs falling by
2% over 1H12 and, as a result, headline earnings
increased by 70%.
Investment banking increased revenue by 20%
during the period in spite of the high base in the
prior period. NII benefited from improved margins
and measured loan book growth, and fee income
was buoyed by increased client activity in mining,
energy and infrastructure sectors. Credit
impairments remained disappointingly elevated
above expected levels due to a small number of
large provisions required, and costs grew 13% in
support of the revenue growth generated. Headline
earnings growth of 19% reflects a satisfactory
performance overall.
Real estate and principal investment management
revenues fell primarily due to the non-recurrence
of prior period gains on Turkey's principal
investment management business, but headline
earnings rose 14% due to tax credits received in
the current period.
Central and other
Headline earnings declined to R55 million from
R439 million in the prior period which had included
the contribution of R431 million from the group's
75% investment in Standard Bank Argentina, the
majority of which was sold in the last quarter of
2012. The attributable income from the 20%
investment that the group retains in Argentina
amounted to R89 million in the current period. The
non-recurrence of the secondary tax on companies
(STC) charge partly offset this adverse effect.
Liberty
The financial results reported are the consolidated
results of our 54% investment in Liberty.
Bancassurance results are included in PBB.
Liberty's headline earnings for the six months to
30 June 2013 increased by 5% to R1 704 million
of which R924 million was attributable to the group.
Liberty continued to produce a high return on
equity and further growth in sales and assets under
management, while producing positive experience
variances in its long-term insurance business and
successfully managing the volatility in the markets
seen in May and June 2013. This performance has
been supported by innovative new products,
acceptable new business growth and reasonable
investment fund performance. Operating earnings
were 31% higher without any significant
assumption or modelling changes and despite a
volatile interest rate environment. Return on equity
of 21.8% for 1H13 is comparable to 22.3%
achieved for 1H12.
Long-term indexed insurance sales of
R3 122 million were up 12% on the prior half
year. This, combined with improved pricing,
produced a 32% improvement in the group
embedded value of long-term insurance new
business to R307 million at an overall margin of
1.8% (1H12: 1.5%). Margins were down from the
second half of 2012 mainly due to the higher risk
discount rate following the increased South African
bond market interest rates at 30 June 2013.
Group asset management net cash inflows of
R9 billion were significantly higher than the
R5 billion cash inflows for 1H12 despite a
drawdown of R7 billion of assets under a
government mandate in east Africa. Stanlib's South
African business had a particularly good half year
attracting R14 billion of net cash inflows of which
R13,5 billion went into higher margin non-money
market retail and institutional mandates. Assets
under management across the group grew by 7%
from 31 December 2012 to R566 billion.
Strategic update
Further progress has been made across the African
continent to develop the group's franchise in our
chosen business lines and the 27% growth in
headline earnings in this period by our African
businesses supports our Africa-centric strategy.
The return on equity delivered by the combined
African subsidiaries rose to 18.2% (including
goodwill) from 17.7% for the six months to
June 2012.
During the second half of 2012, the group
undertook a painful but necessary restructuring
process within CIB's operations outside of Africa.
This has resulted in a more focused balance sheet
and lower cost base for these operations and has
enabled the financial performance to improve over
the first six months of the year. Although the
stand-alone returns delivered by these operations
are not at a satisfactory level, these operations
remain important components of our strategy to
access global skills and investor demand for the
benefit of our CIB customers across Africa. The
group will continue to evaluate and refine the
appropriate business model for these operations
within the compliance framework required by the
relevant regulatory authorities.
Prospects
The global economic recovery remains weak and
operating conditions across Africa are being
influenced by softer commodity prices and
uncertainty over economic stability in developed
economies as well as lower expected growth in
large emerging market economies.
We continue to build our franchises and invest in
our people and robust operating systems for
long-term benefit.
While we expect that cost pressures will continue in
the second half of the year given the weaker rand,
we remain confident in our ability to grow revenues
in the challenging environment. Substantial
progress has been made in increasing our presence
and profile in our main business lines on the African
continent but we continue to be mindful of difficult
conditions affecting our clients and price
appropriately for risk. We are adequately capitalised
in terms of the Basel III requirements and our
strong liquidity profile reflects the confidence that
depositors and counterparties have in us. We
remain focused on improving returns and delivering
economic value to shareholders through the
remainder of 2013.
Ben Kruger Sim Tshabalala
Joint chief executive Joint chief executive
Fred Phaswana
Chairman
14 August 2013
Declaration of dividends
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 an
interim gross cash dividend of 233,00 cents per
ordinary share (the cash dividend) to ordinary
shareholders recorded in the register of the
company at the close of business on Friday,
13 September 2013. The last day to trade to
participate in the dividend is Friday, 6 September
2013. Ordinary shares will commence trading
ex-dividend from Monday, 9 September 2013.
No STC credits were utilised as part of the ordinary
dividend declaration.
The salient dates and times for the cash dividend
are set out in the table that follows.
Ordinary share certificates may not be
dematerialised or rematerialised between Monday,
9 September 2013, and Friday, 13 September
2013, both days inclusive. Ordinary shareholders
who hold dematerialised shares will have their
accounts at their Central Securities Depository
Participant (CSDP) or broker credited or updated
on Monday, 16 September 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 interim
distributions:
- 6,5% first cumulative preference shares
(first preference shares) dividend No. 88 of
3,25 cents (gross) per first preference share,
payable on Monday, 9 September 2013, to
holders of first preference shares recorded in
the books of the company at the close of
business on the record date, Friday,
6 September 2013. The last day to trade to
participate in the dividend is Friday, 30 August
2013. First preference shares will commence
trading ex dividend from Monday, 2 September
2013. No STC credits were utilised as part of
the dividend declaration in respect of the first
preference shares.
- Non-redeemable, non-cumulative,
non-participating preference shares (second
preference shares) dividend No. 18 of
324,56 cents (gross) per second preference
share, payable on Monday, 9 September 2013,
to holders of second preference shares recorded
in the books of the company at the close of
business on the record date, Friday,
6 September 2013. The total STC credits
utilised as part of the declaration amount to
R4 884 521,49 and consequently the STC
credits utilised per share amount to 9,219 cents
per second preference share. Second
preference shareholders will, therefore, receive
a net dividend of 277,25885 cents per second
preference share. The last day to trade to
participate in the dividend is Friday,
30 August 2013. Second preference shares will
commence trading ex dividend from Monday,
2 September 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, 2 September 2013 and Friday,
6 September 2013, both days inclusive. Preference
shareholders (first and second) who hold
dematerialised shares will have their accounts at
their CSDP or broker credited on Monday,
9 September 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.
The relevant dates for the payment of dividends are as follows:
Non-redeemable,
6.5% non-cumulative
cumulative, non-participating
preference shares preference shares
Ordinary (First (Second
shares preference shares) preference shares)
JSE Limited
Share code SBK SBKP SBPP
ISIN ZAE000109815 ZAE000038881 ZAE000056339
Namibian Stock Exchange (NSX)
Share code SNB
ISIN ZAE000109815
Dividend number 88 88 18
Gross distribution/dividend per
share (cents) 233,00 3,25 324,56
Last day to trade in order to be Friday, Friday, Friday,
eligible for the cash dividend 6 September 2013 30 August 2013 30 August 2013
Shares trade ex the cash dividend Monday, Monday, Monday,
9 September 2013 2 September 2013 2 September 2013
Record date in respect of the cash Friday, Friday, Friday,
dividend 13 September 2013 6 September 2013 6 September 2013
Dividend cheques posted and
CSDP/broker accounts credited/ Monday, Monday, Monday
updated (payment date) 16 September 2013 9 September 2013 9 September 2013
The above dates 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 is 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.
In terms of the Income Tax Act, 58 of 1962, 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
198,05 cents per ordinary share, 2,7625 cents per
first preference share and 277,25885 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 issued share capital of the company, as at
declaration date, is as follows:
- 1 617 970 942 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 and registration number is
1969/017128/06.
Normalised results
With effect from 2004, the group's results
reported under IFRS have been normalised to
reflect the group's view of the economics and legal
substance of the following arrangements
(normalised results):
- Preference share funding for the group's
Tutuwa transaction is deducted from equity and
reduces the shares in issue in terms of IFRS.
- Group company shares held for the benefit of
Liberty policyholders 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 its normal trading operations, a group
subsidiary offers to its clients trading positions
over listed shares, including its own shares. To
hedge the risk on these trades, the group buys
(sells short) its own 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.
A common element in these transactions relates to
shares in issue which are deemed by IFRS to be
treasury shares. Consequently, the net value of the
shares is recognised in equity and the number of
shares used for per-share calculation purposes is
materially lower than the economic substance,
resulting in inflated per-share ratios. The normalised
adjustments reinstate the shares as issued,
recognise the related transaction in the statement
of financial position as an asset or liability
(as appropriate) and recognise changes in the value
of the related transaction (together with dividend
income) within the income statement.
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 normalised adjustments have been made within
Liberty, and central and other. The results of the
other business units are unaffected.
The result of these normalised adjustments is shown in the table below:
Normalised headline earnings
Weighted
average
number of Headline Growth on
shares earnings 1H12
'000 Rm %
Disclosed on an IFRS basis 1 546 914 8 046 13
Tutuwa initiative 58 343 126
Group shares held for the benefit of Liberty
policyholders 6 964 (19)
Share exposures held to facilitate client trading
activities (1 139) (4)
Normalised 1 611 082 8 149 11
Interim unaudited results in
accordance with IFRS
Financial statistics
for the six months ended 30 June 2013
Change 1H13 1H12(1) FY12(1)
% Unaudited Unaudited Unaudited
Number of ordinary shares in issue (000's)
End of period 5 1 586 514 1 518 175 1 535 917
Weighted average 2 1 546 914 1 516 484 1 521 510
Diluted weighted average 2 1 594 734 1 567 447 1 573 168
Cents per ordinary share
Headline earnings 11 520,1 468,8 957,2
Continuing operations 16 520,1 448,1 912,9
Discontinued operation (100) 20,7 44,3
Diluted headline earnings 11 504,5 453,6 925,8
Continuing operations 16 504,5 433,5 882,9
Discontinued operation (100) 20,1 42,9
Dividend 10 233,0 212,0 455,0
Net asset value 15 7 712 6 703 7 232
Financial performance (%)
Return on equity 14.0 14.4 14.2
Net interest margin on continuing operations 3.09 2.90 3.07
Credit loss ratio on continuing operations 1.17 0.98 1.08
Cost-to-income ratio 57.4 59.5 59.1
Capital adequacy ratios (%)
Basel III
Tier I capital 12.3 11.2(2)
Total capital 15.4 14.3(2)
Basel II
Tier I capital 11.1 11.8
Total capital 13.6 14.7
1 Restated refer to pages 33 to 40 for further explanation. In addition, FY12 unaudited results include previously reported
audited results and the unaudited restatements.
2 Pro forma Basel III.
Consolidated income statement
for the six months ended 30 June 2013
1H13 1H12(1) FY12(1)
Change Unaudited Unaudited Unaudited
% Rm Rm Rm
Continuing operations
Income from banking activities 14 36 541 32 191 68 375
Net interest income 20 18 809 15 688 34 015
Non-interest revenue 7 17 732 16 503 34 360
Income from investment management and life
insurance activities (4) 30 835 32 014 77 580
Total income 5 67 376 64 205 145 955
Credit impairment charges 28 5 065 3 945 8 800
Benefits due to policyholders (8) 21 593 23 428 58 739
Income after credit impairment charges and
policyholders' benefits 11 40 718 36 832 78 416
Operating expenses in banking activities 10 21 129 19 230 40 068
Staff costs 12 12 082 10 765 22 265
Other operating expenses 7 9 047 8 465 17 803
Restructure charge 758
Operating expenses in investment management and
life insurance activities 7 6 200 5 779 12 080
Net income before goodwill impairment and gains
on disposal of subsidiaries 13 13 389 11 823 25 510
Goodwill impairment 777
Gains on disposal of subsidiaries 188
Net income before equity accounted earnings 13 13 389 11 823 24 921
Share of profits from associates and joint ventures 57 260 166 701
Net income before indirect taxation 14 13 649 11 989 25 622
Indirect taxation 9 892 821 1 766
Profit before direct taxation 14 12 757 11 168 23 856
Direct taxation (2) 3 093 3 155 7 022
Profit for the period from continuing operations 21 9 664 8 013 16 834
Discontinued operation(2) (100) 431 2 435
Profit for the period from discontinued operation 431 910
Profit from disposal of discontinued operation 1 525
Profit for the period 14 9 664 8 444 19 269
Attributable to non-controlling interests 20 1 422 1 185 2 871
Continuing operations 32 1 422 1 077 2 644
Discontinued operation (100) 108 227
Attributable to preference shareholders 5 176 168 352
Attributable to ordinary shareholders 14 8 066 7 091 16 046
Basic earnings per share (cents) 12 521,4 467,6 1 054,6
Continuing operations 17 521,4 446,3 909,5
Discontinued operation (100) 21,3 145,1
Diluted earnings per share (cents) 12 505,8 452,4 1 020,0
Continuing operations 17 505,8 431,8 879,6
Discontinued operation (100) 20,6 140,4
1 Restated refer to pages 33 to 40 for further explanation. In addition, FY12 unaudited results include previously reported
audited results and the unaudited restatements.
2 The income and expenses relating to the group's investment in Standard Bank Argentina S.A. and two of its affiliates
(SBA) have been presented as a single amount relating to its after-tax profit for 1H12 and FY12.
Headline earnings
for the six months ended 30 June 2013
1H13 1H12(1) FY12(1)
Change Unaudited Unaudited Unaudited
% Rm Rm Rm
Profit for the period from continuing operations 19 8 066 6 768 13 838
Headline adjustable items (reversed)/added (36) 56 21
Goodwill impairment IAS 36 777
Transactions with associates IAS 28/IAS 36 (217)
Loss on net investment hedge reclassified on disposal
of associate IAS 39 130 130
Realised foreign currency translation profit on
foreign operations IAS 21 (117) (119)
Profit on sale of property and equipment IAS 16 (1) (16) (31)
Gains on the disposal of businesses and
divisions IAS 27 (188)
Impairment of intangible assets IAS 38 264
Realised (gains)/losses on available-for-sale assets
IAS 39 (35) 59 (595)
Taxation on headline earnings adjustable items (15) 13
Non-controlling interests' share of headline earnings
adjustable items 16 (14) 19
Standard Bank Group headline earnings
from continuing operations 18 8 046 6 795 13 891
Profit for the period from discontinued operation (100) 323 2 208
Headline adjustable items reversed (19) (1 547)
Loss on sale of property and equipment IAS 16 7 1
Realised gains on available-for-sale assets IAS 39 (26) (23)
Gains on the disposal of subsidiaries IAS 27 (1 525)
Taxation on headline earnings adjustable items 9 10
Non-controlling interests' share of headline earnings
adjustable items 2 2
Standard Bank Group headline earnings
from discontinued operation (100) 315 673
Standard Bank Group headline earnings 13 8 046 7 110 14 564
1 Restated refer to pages 33 to 40 for further explanation. In addition, FY12 unaudited results include previously reported
audited results and the unaudited restatements.
Consolidated statement of financial position
as at 30 June 2013
1H13 1H12(1) FY12(1)
Change Unaudited Unaudited Unaudited
% Rm Rm Rm
Assets
Cash and balances with central banks 73 56 041 32 413 61 985
Financial investments, trading and pledged assets 11 479 609 433 591 457 520
Non-current assets held for sale2 (100) 33 296 960
Loans and advances 12 910 332 814 292 811 171
Derivative and other assets 1 175 486 173 556 155 429
Interest in associates and joint ventures 19 20 197 16 979 18 731
Investment property 5 24 259 23 032 24 133
Goodwill and other intangible assets 22 16 594 13 606 14 687
Property and equipment 9 16 200 14 796 15 733
Total assets 9 1 698 718 1 555 561 1 560 349
Equity and liabilities
Equity 20 144 123 120 370 130 889
Equity attributable to ordinary shareholders 20 122 348 101 760 111 085
Preference share capital and premium 5 503 5 503 5 503
Non-controlling interest 24 16 272 13 107 14 301
Liabilities 8 1 554 595 1 435 191 1 429 460
Deposit and current accounts 10 996 124 902 743 915 950
Derivative, trading and other liabilities 11 286 101 258 029 245 278
Non-current liabilities held for sale(2) (100) 28 808
Policyholders' liabilities 11 241 414 217 252 236 684
Subordinated debt 9 30 956 28 359 31 548
Total equity and liabilities 9 1 698 718 1 555 561 1 560 349
1 Restated refer to pages 33 to 40 for further explanation. In addition, FY12 unaudited results include previously reported
audited results and the unaudited restatements.
2 The disposal of the group's investments in SBA and Standard Ünlü resulted in their respective assets and liabilities being
classified as held for sale as at 1H12. The 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 FY12. This associated interest was reclassified out
of held for sale during the six months ended 30 June 2013.
Contingent liabilities and capital commitments
as at 30 June 2013
1H13 1H12 FY12
Unaudited Unaudited Audited
Rm Rm Rm
Letters of credit and bankers' acceptances 19 113 16 556 14 218
Guarantees 48 557 45 973 45 247
Contingent liabilities 67 670 62 529 59 465
Contracted capital expenditure 2 034 2 779 2 153
Capital expenditure authorised but not yet contracted 8 469 6 527 8 832
Capital commitments 10 503 9 306 10 985
Consolidated cash flow information
for the six months ended 30 June 2013
1H13 1H12(1) FY12(1)
Unaudited Unaudited Unaudited
Rm Rm Rm
Net cash flows (utilised in)/generated from operating activities (6 455) 7 139 44 631
Net cash flows used in investing activities (602) (3 068) (16 191)
Net cash flows used in financing activities (3 285) (2 370) (3 820)
Effect of exchange rate changes on cash and cash equivalents 4 398 (435) 609
Net (decrease)/increase in cash and cash equivalents (5 944) 1 266 25 229
Cash and cash equivalents at the beginning of the period 61 985 36 756 36 756
Cash and cash equivalents at the end of the period 56 041 38 022 61 985
Comprising:
Cash and balances with central banks 56 041 32 413 61 985
Cash and balances with central banks held for sale 5 609
Cash and cash equivalents at the end of the period 56 041 38 022 61 985
1 Restated refer to pages 33 to 40 for further explanation. In addition, FY12 unaudited results include previously reported
audited results and the unaudited restatements.
Consolidated statement of other comprehensive income
for the six months ended 30 June 2013
1H13 1H12(1) FY12(1)
Non-
controlling
Ordinary interests
share- and
holders' preference Total Total Total
equity shareholders equity equity equity
Unaudited Unaudited Unaudited Unaudited Unaudited
Rm Rm Rm Rm Rm
Profit for the period 8 066 1 598 9 664 8 444 19 269
Other comprehensive income/
(loss) after tax for the period
continuing operations 3 574 1 128 4 702 (298) 1 070
Items that may be reclassified
subsequently to profit or loss:
Exchange rate differences on
translating equity investments
in foreign operations 4 383 1 129 5 512 (426) 544
Foreign currency hedge of net
investments (239) (239) 73 181
Cash flow hedges (54) (54) (268) (230)
Available-for-sale financial assets (34) (49) (83) 167 194
Items that may not be
reclassified to profit or loss:
Defined benefit fund adjustments (479) 11 (468) 168 383
Other (losses)/gains (3) 37 34 (12) (2)
Other comprehensive (loss)/
income after tax for the
period discontinued
operation (152) 615
Total comprehensive income
for the period 11 640 2 726 14 366 7 994 20 954
Attributable to non-controlling
interests 2 550 2 550 1 136 3 178
Attributable to equity holders
of the parent 11 640 176 11 816 6 858 17 776
Attributable to preference
shareholders 176 176 168 352
Attributable to ordinary
shareholders 11 640 11 640 6 690 17 424
1 Restated refer to pages 33 to 40 for further explanation. In addition, FY12 unaudited results include previously reported
audited results and the unaudited restatements.
Consolidated statement of changes in equity(1)
for the six months ended 30 June 2013
Ordinary Preference Non-
shareholders' share capital controlling Total
equity and premium interest equity
Rm Rm Rm Rm
Balance at 1 January 2012 as previously
reported (audited) 99 042 5 503 12 988 117 533
Restatement of opening equity balances 408 (44) 364
Balance at 1 January 2012 restated
(unaudited) 99 450 5 503 12 944 117 897
Total comprehensive income for the period 6 690 168 1 136 7 994
Transactions with owners, recorded directly
in equity (4 380) (168) (647) (5 195)
Equity-settled share-based payment transactions 65 19 84
Deferred tax on share-based payment transactions 41 41
Transactions with non-controlling shareholders (239) (228) (467)
Issue of share capital and share premium and
capitalisation of reserves 105 105
Net decrease/(increase) in treasury shares 111 (4) 107
Net dividends paid (4 463) (168) (434) (5 065)
Unincorporated property partnerships capital
reductions and distributions (91) (91)
Disposal of property partnership (235) (235)
Balance at 30 June 2012 restated (unaudited) 101 760 5 503 13 107 120 370
Balance at 1 July 2012 restated (unaudited) 101 760 5 503 13 107 120 370
Total comprehensive income for the period 10 734 184 2 042 12 960
Transactions with owners, recorded directly
in equity (1 409) (184) (758) (2 351)
Equity-settled share-based payment transactions 217 27 244
Deferred tax on share-based payment transactions 28 28
Transactions with non-controlling shareholders 165 (742) (577)
Issue of share capital and share premium and
capitalisation of reserves 20 20
Net decrease in treasury shares 160 249 409
Net dividends paid (1 999) (184) (292) (2 475)
Unincorporated property partnerships capital
reductions and distributions (91) (91)
Disposal of property partnership 1 1
Balance at 31 December 2012 restated
(unaudited) 111 085 5 503 14 301 130 889
1 Restated refer to pages 33 to 40 for further explanation. In addition, FY12 unaudited results include previously reported
audited results and the unaudited restatements.
Consolidated statement of changes in equity
for the six months ended 30 June 2013 (continued)
Preference
Ordinary share Non-
shareholders' capital and controlling Total
equity premium interest equity
Rm Rm Rm Rm
Balance at 1 January 2013 (unaudited) 111 085 5 503 14 301 130 889
Total comprehensive income for the period 11 640 176 2 550 14 366
Transactions with owners, recorded directly
in equity (377) (176) (502) (1 055)
Equity-settled share-based payment transactions 218 20 238
Deferred tax on share-based payment
transactions 63 63
Transactions with non-controlling shareholders (19) 57 38
Issue of share capital and share premium and
capitalisation of reserves 2 2
Net decrease in treasury shares 301 38 339
Net dividends paid (2 618) (176) (617) (3 411)
External refinancing of Tutuwa transaction 1 676 1 676
Unincorporated property partnerships capital
reductions and distributions (77) (77)
Balance at 30 June 2013 (unaudited) 122 348 5 503 16 272 144 123
Segment report
for the six months ended 30 June 2013
1H13 1H12(1) FY12(1)
Change Unaudited Unaudited Unaudited
% Rm Rm Rm
Revenue contribution by business unit
Personal & Business Banking 15 23 016 20 079 42 512
Corporate & Investment Banking 15 13 957 12 158 25 914
Central and other (>100) (335) 61 281
Banking activities 13 36 638 32 298 68 707
Liberty (4) 30 836 32 209 77 738
Standard Bank Group normalised 5 67 474 64 507 146 445
Adjustments for IFRS 68 (98) (302) (490)
Standard Bank Group IFRS 5 67 376 64 205 145 955
Profit or loss attributable to ordinary shareholders
Personal & Business Banking 14 3 660 3 203 7 514
Corporate & Investment Banking 27 3 536 2 774 4 598
Central and other (89) 49 444 2 259
Banking activities 13 7 245 6 421 14 371
Liberty 6 924 875 2 029
Standard Bank Group normalised 12 8 169 7 296 16 400
Adjustments for IFRS 50 (103) (205) (354)
Standard Bank Group IFRS 14 8 066 7 091 16 046
Total assets by business unit
Personal & Business Banking 12 549 092 488 618 518 458
Corporate & Investment Banking 10 863 816 786 548 760 428
Central and other (>100) (18 884) 22 511 (4 652)
Banking activities 7 1 394 024 1 297 677 1 274 234
Liberty 17 307 104 262 655 290 567
Standard Bank Group normalised 9 1 701 128 1 560 332 1 564 801
Adjustments for IFRS 49 (2 410) (4 771) (4 452)
Standard Bank Group IFRS 9 1 698 718 1 555 561 1 560 349
Total liabilities by business unit
Personal & Business Banking 12 503 307 449 686 474 684
Corporate & Investment Banking 10 812 408 737 550 713 330
Central and other (>100) (48 105) 3 123 (29 572)
Banking activities 6 1 267 610 1 190 359 1 158 442
Liberty 17 287 055 244 923 271 092
Standard Bank Group normalised 8 1 554 665 1 435 282 1 429 534
Adjustments for IFRS 23 (70) (91) (74)
Standard Bank Group IFRS 8 1 554 595 1 435 191 1 429 460
1 Restated refer to pages 33 to 40 for further explanation. In addition, FY12 unaudited results include previously reported
audited results and the unaudited restatements.
Private equity associates and joint ventures
The following table provides disclosure of those private equity associates and joint ventures as at 30 June 2013
that are equity accounted in terms of IAS 28 Investments in Associates and Joint Ventures and have been
ring-fenced in terms of the requirements of Circular 3/2012 Headline Earnings, issued by the South African
Institute of Chartered Accountants (SAICA) at the request of the Johannesburg Stock Exchange (JSE). On the
disposal of these associates and joint ventures held by the group's private equity division, the gain or loss on the
disposal will be included in headline earnings.
1H13 1H12(1) FY12(1)
Unaudited Unaudited Unaudited
Rm Rm Rm
Cost 110 126 162
Carrying value 565 491 543
Fair value 451 436 454
Loans to associates and joint ventures 18
Equity accounted income 3 35 94
Other income 6 3 11
1 Restated to reflect comparability with the current and prior interim period (where applicable). FY12 unaudited results
include previously reported audited results and the unaudited restatements.
Tutuwa initiative refinancing
The group concluded its Tutuwa initiative in October
2004 when it sold an effective 10% interest in its
South African banking operations to a broad-based
grouping of black-owned entities. The group
subscribed for 8.5% redeemable, cumulative
preference shares that were issued by special
purpose vehicles, including Tutuwa Strategic
Holdings 1 Proprietary Limited (Tutuwa 1) and
Tutuwa Strategic Holdings 2 Proprietary Limited
(Tutuwa 2) that used the funds to acquire shares in
the group. These two vehicles were in turn acquired
by Shanduka Group Proprietary Limited and Safika
Holdings Proprietary Limited, respectively. From an
IFRS perspective, all of the preference shares
subscribed for by the group were accounted for as a
negative empowerment reserve.
During the period ended 30 June 2013, Tutuwa 1
and Tutuwa 2 obtained third-party financing and
repaid in full their outstanding preference share
funding and accrued dividends thereon of
R668 million and R1 007 million respectively, to
the group.
In terms of IFRS, the redemption of the preference
share funding resulted in a release of the group's
negative empowerment reserve relating to Tutuwa 1
and Tutuwa 2 and resulted in 35,8 million ordinary
shares being recognised as issued shares during
May and June 2013.
Day one profit or loss
The table below sets out the aggregate net day one profits yet to be recognised in the income statement at
the beginning and end of the period with a reconciliation of changes in the balances during the period.
Derivative Trading Financial
instruments assets investments Total
Rm Rm Rm Rm
Unrecognised net profit 1 January 2013
(audited) 384 13 397
Additional net profit/(loss) on new
transactions 15 (7) 9 17
Recognised in the income statement during
the period (147) 3 (144)
Exchange differences (5) (5)
Unrecognised net profit 30 June 2013
(unaudited) 247 9 9 265
Fair value disclosures
In terms of IFRS, the group is either required to or
elects to measure a number of its financial assets
and financial liabilities at fair value, being the price
that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between
market participants at the measurement date.
The existence of quoted prices in an active market
represents the best evidence of fair value. Where
such prices exist, they are used in determining the
fair value of its financial assets and financial
liabilities. Where quoted market prices are
unavailable, the group establishes fair value using
valuation techniques that incorporate inputs that
are observable either directly (that is, as prices) or
indirectly (that is, derived from prices) for such
assets and liabilities. Where such inputs are not
available, the group makes use of unobservable
inputs in establishing fair value.
The group has established processes to
independently validate the inputs into all fair value
measurements. Independent price valuation
discrepancies are reported to the group's asset and
liability committees (ALCO) in order to ensure that
fair value measurements are within acceptable risk
tolerances and are fairly stated. The valuation
models and techniques used in determining fair
values are subject to independent validation and
approval by appropriate technical teams and
committees respectively and are reviewed on at
least an annual basis or more frequently if
considered appropriate.
Accounting classifications and fair values of financial assets and liabilities
The table below categorises the group's assets and liabilities as at 30 June 2013 between that which is
financial and non-financial. All financial assets and liabilities have been classified according to their
measurement category with disclosure of the fair value being provided for those items.
Other Fair value
Other non-financial Total financial
Held-for- Designated Held-to- Loans and Available-for- amortised assets/ carrying assets and
trading(1) at fair value maturity receivables(2) sale cost(2) liabilities amount liabilities(3)
Rm Rm Rm Rm Rm Rm Rm Rm Rm
Assets
Cash and balances with central banks 56 041 56 041 56 041
Derivative assets 128 376 128 376 128 376
Trading assets 116 117 116 117 116 117
Pledged assets 6 728 1 759 1 652 10 139 10 139
Financial investments 184 302 675 14 540 12 501 23 340 353 240 354 509
Loans and advances to banks 3 142 1 562 155 222 159 926 162 189
Loans and advances to customers 667 5 931 743 808 750 406 750 325
Interest in associates and joint ventures 14 095 6 215 20 310 14 095
Other financial assets 27 087 27 087 27 087
Other non-financial assets 77 076 77 076
251 405 322 338 22 033 994 659 24 992 83 291 1 698 718
Liabilities
Derivative liabilities 133 751 133 751 133 751
Trading liabilities 51 065 51 065 51 065
Deposits from banks 2 887 159 563 162 450 162 936
Deposits from customers 38 113 795 561 833 674 848 893
Policyholders' liabilities 67 072 174 342 241 414 67 072
Subordinated debt 30 956 30 956 31 397
Other financial liabilities 36 316 9 480 45 796 45 796
Other non-financial liabilities 55 489 55 489
184 816 144 388 995 560 229 831 1 554 595
1 Includes derivative assets and liabilities designated as hedging instruments in hedge relationships.
2 Includes financial assets and financial liabilities for which the carrying value has been adjusted for changes in fair value
due to designated hedged risks.
3 Carrying value has been used where it closely approximates fair values, excluding non-financial assets and liabilities.
Fair value hierarchy
The tables below and to the right analyse the
group's financial assets and liabilities that are
measured at fair value at the end of the reporting
period, by level of fair value hierarchy as required
by IFRS. The different levels are based on the
extent to which observable market data and inputs
are used in the calculation of the fair value of the
financial assets and liabilities. The levels of the
hierarchy are defined as follows:
Level 1 fair values are based on quoted market
prices (unadjusted) in active markets for an
identical financial asset or liability. An active market
is a market in which transactions for the asset or
liability take place with sufficient frequency and
volume to provide pricing information on an
ongoing basis.
Level 2 fair values are calculated using valuation
techniques based on observable inputs, either
directly (that is, as prices) or indirectly (that is,
derived from prices). This category includes
financial assets and liabilities valued using quoted
market prices in active markets for similar financial
assets or liabilities, quoted prices for identical or
similar financial assets or liabilities in markets that
are considered less than active or other valuation
techniques where all significant inputs are directly
or indirectly derived or corroborated from
observable market data.
Level 3 fair values are based on valuation
techniques using significant unobservable inputs.
This category includes financial assets and liabilities
where the valuation technique includes unobservable
inputs that have a significant effect on the financial
asset or liability's valuation. This category includes
financial assets and liabilities that are valued based
on quoted prices for similar financial assets or
liabilities and for which significant unobservable
adjustments or assumptions are required to reflect
differences between the financial assets or
liabilities.
Financial assets measured at fair value
as at 30 June 2013
Level 1 Level 2 Level 3 Total
Rm Rm Rm Rm
Financial assets
Derivative assets 16 293 110 665 1 418 128 376
Trading assets 44 951 66 570 4 596 116 117
Pledged assets 6 379 3 760 10 139
Financial investments 124 359 197 706 4 134 326 199
Loans and advances to banks 674 2 468 3 142
Loans and advances to customers 3 604 60 667
Interest in associates and joint ventures 12 932 1 163 14 095
192 659 394 705 11 371 598 735
Comprising:
Held-for-trading 251 405
Designated at fair value 322 338
Available-for-sale 24 992
598 735
Financial liabilities measured at fair value
as at 30 June 2013
Level 1 Level 2 Level 3 Total
Rm Rm Rm Rm
Financial liabilities
Derivative liabilities 12 931 115 165 5 655 133 751
Trading liabilities 26 079 19 399 5 587 51 065
Deposits from banks 564 2 323 2 887
Deposits from customers 3 228 34 885 38 113
Policyholders' liabilities 67 072 67 072
Other financial liabilities 36 316 36 316
42 802 275 160 11 242 329 204
Comprising:
Held-for-trading 184 816
Designated at fair value 144 388
329 204
Fair value measurement disclosures
level 2 and level 3
The valuation techniques used in determining the
fair value of financial assets and liabilities classified
within level 2 and level 3 of the fair value
hierarchy include the discounted cash flow model,
Black-Scholes model, earnings multiple and
sustainable earnings valuation methods and other
valuation techniques commonly used by market
participants. Such models are populated using
market parameters that are corroborated by
reference to independent market data, where
possible, or alternative sources such as third party
quotes, recent transaction prices or suitable
proxies. The inputs used include discount rates
(including credit spreads), liquidity discount rates,
risk-free and volatility rates, risk premiums,
volatilities and correlations.
The fair value of level 3 financial assets and
liabilities is determined using valuation techniques
which incorporate assumptions that are not
supported by prices from observable current market
transactions in the same asset or liability and are
not based on available observable market data.
Changes in these assumptions could affect the
reported fair values of these financial assets and
liabilities. Where discounted cash flow analyses are
used, estimated future cash flows are based on
management's best estimates and a market-related
discount rate at the reporting date for a financial
asset or liability with similar terms and conditions.
Level 2 financial assets and financial liabilities
The following table sets out the group's principal valuation techniques as at 30 June 2013 used in
determining the fair value of its financial assets and financial liabilities that are classified within level 2 of
the fair value hierarchy.
Valuation basis/technique Main assumptions
Derivative instruments Discounted cash flow model Discount rate
Black-Scholes model Risk-free rate, volatility rate
Multiple valuation technique Valuation multiples
Trading assets Discounted cash flow model Discount rate
Black-Scholes model Risk-free rate
Financial investments Discounted cash flow model Discount rate, liquidity discount rate
Black-Scholes model Risk-free rate
Multiple valuation technique Valuation multiples
Pledged assets Discounted cash flow model Discount rate
Loans and advances to banks Discounted cash flow model Discount rate
Loans and advances to customers Discounted cash flow model Discount rate
Interest in associates and joint Quoted exit price adjusted for Discount rate
ventures notice period
Trading liabilities Discounted cash flow model Discount rate
Deposits from banks Discounted cash flow model Discount rate
Deposits from customers Discounted cash flow model Discount rate
Black-Scholes model Risk-free rate, volatility rate
Policyholders' liabilities Discounted cash flow model Discount rate, liquidity discount rate
Level 3 financial assets and financial liabilities
The following table provides a reconciliation of the opening to closing balance for all financial assets that are
measured at fair value and incorporate inputs that are not based on observable market data (level 3).
Loans
Interest in and
associates Financial advances
Derivative Trading and joint invest- to
assets assets ventures ments customers Total
Rm Rm Rm Rm Rm Rm
Balance at 1 January 2013
as previously reported
(audited) 3 397 6 344 5 303 215 15 259
Restatement of opening
balance IFRS 10 1 235 (1 235)
Balance at 1 January 2013
restated (unaudited) 3 397 6 344 1 235 4 068 215 15 259
Total (losses)/gains included in
profit or loss (1 817) (138) (83) 86 47 (1 905)
Trading revenue (1 817) (138) (22) 47 (1 930)
Other revenue 78 78
Investment (losses)/gains (83) 30 (53)
Total losses included in other
comprehensive income (2) (2)
Originations and purchases 3 492 410 82 987
Sales (148) (2 639) (399) (199) (27) (3 412)
Settlements(1) 8 (2) (133) (127)
Transfers out of level 3(2) (271) (13) (3) (37) (324)
Exchange movements 246 550 104 (5) 895
Balance at 30 June 2013 1 418 4 596 1 163 4 134 60 11 371
1 Derivative fair values represent the net present value of positive and/or negative future cash flows. Settlements may
increase or decrease the carrying value of derivative assets.
2 Transfers of financial assets between levels of the fair value hierarchy are deemed to have occurred at the end of the
reporting period. There were no significant transfers of financial assets between level 1 and 2 during the period under
review. During 2013, the valuation inputs of certain level 3 financial assets became observable. The fair value of those
financial assets was transferred into level 2.
The following table provides disclosure of the unrealised (losses)/gains for the period ended 30 June 2013
included in profit or loss for level 3 financial assets that are held at the end of the reporting period.
Interest in
associates Loans and
Derivative Trading and joint Financial advances to
assets assets ventures investments customers Total
Rm Rm Rm Rm Rm Rm
Trading revenue (1 209) (395) (9) (17) (1 630)
Investment (losses)/
gains (120) 8 (112)
Total (1 209) (395) (120) (1) (17) (1 742)
The following table provides a reconciliation of the opening to closing balance for all financial liabilities that
are measured at fair value and incorporate inputs that are not based on observable market data (level 3).
Policy-
Derivative Trading holders'
liabilities liabilities liabilities Total
Rm Rm Rm Rm
Balance at 1 January 2013 (audited) 2 335 5 021 10 7 366
Total losses/(gains) included in profit or loss
trading revenue 3 572 (284) 3 288
Originations and purchases 9 691 700
Settlements(1) (371) (655) (1 026)
Transfers out of level 3(2) (79) (79)
Net change in policyholders' liabilities (10) (10)
Exchange movements 189 814 1 003
Balance at 30 June 2013 (unaudited) 5 655 5 587 11 242
1 Derivative fair values represent the net present value of positive and/or negative future cash flows. Settlements may
increase or decrease the carrying value of derivative liabilities.
2 Transfers of financial liabilities between levels of the fair value hierarchy are deemed to have occurred at the end of the
reporting period. There were no significant transfers of financial liabilities between level 1 and 2 during the period under
review. During 2013, the valuation inputs of certain level 3 financial liabilities became observable. The fair value of these
financial liabilities was transferred into level 2.
The following table provides disclosure of the unrealised (gains)/losses for the period ended 30 June 2013
included in profit or loss for level 3 financial liabilities that are held at the end of the reporting period.
Derivative Trading
liabilities liabilities Total
Rm Rm Rm
Trading revenue (15) 19 4
Financial assets and liabilities
measured at fair value
Although the group believes that its estimates of
fair values are appropriate, changing one or more
of these assumptions to reasonably possible
alternative values could impact the fair value of its
assets and liabilities. The behaviour of the
unobservable parameters used to fair value level 3
financial assets and liabilities is not necessarily
independent, and may often hold a relationship
with other observable and unobservable market
parameters. Where material and possible, such
relationships are captured in the valuation by way
of correlation factors, though these factors are,
themselves, frequently unobservable. In such
instances, the range of possible and reasonable fair
value estimates is taken into account when
determining appropriate model adjustments.
The table on the next page indicates the
valuation techniques and main assumptions as at
30 June 2013 used in the determination of the fair
value of the level 3 financial assets and liabilities
measured at fair value on a recurring basis. The
table further indicates the effect that a significant
change in one or more of the inputs to a reasonably
possible alternative assumption would have on
profit or loss at the reporting date (where the
change in the input would change the fair value of
the asset or liability significantly). There were no
effects on other comprehensive income (OCI) at
the reporting date as a result of a significant
change in one or more of the inputs to a reasonably
possible alternative assumption. The changes in the
inputs that have been used in the analysis below
have been determined taking into account several
considerations such as the nature of the asset or
liability and the market within which the asset or
liability is transacted.
Effect on profit or loss(1)
Variance in Favou- (Unfa-
Valuation basis/ Main fair value rable vourable)
technique assumptions input Rm Rm
Derivative instruments Discounted cash
flow model Discount rate (1%) 1% 365 (365)
Black-Scholes model Risk-free rate,
volatility rate (2.5%) 2.5% 26 (26)
Earnings multiple Valuation multiples (1) 1 27 (27)
Trading assets Discounted cash
flow model Discount rate (1%) 1% 138 (138)
Financial investments Discounted cash Discount rate,
flow model liquidity discount
rate (1%) 1% 46 (41)
Earnings multiple Valuation multiples (1) 1 9 (8)
Multiple valuation Liquidity discount
technique rate (5%) 5% 105 (103)
Loans and advances to Discounted cash
customers flow model Discount rate (1%) 1% 3 (3)
Trading liabilities Discounted cash
flow model Discount rate (1%) 1% 159 (159)
878 (870)
1 The effect on profit or loss for changes in reasonably possible assumptions on interest in associates and joint ventures
is negligible.
Accounting policies and
restatements
Basis of preparation
The group's condensed consolidated interim
financial statements (results) are prepared in
accordance with the framework, measurement and
recognition requirements of IFRS as issued by the
International Accounting Standards Board (IASB)
and are prepared in accordance with the
requirements of the SAICA Financial Reporting
Guides as issued by the Accounting Practices
Committee, the presentation requirements of
IAS 34 Interim Financial Reporting and
requirements of the South African Companies
Act 71 of 2008.
The results are prepared in accordance with the
going concern principle under the historical cost
basis as modified by the fair value accounting of
certain assets and liabilities where required or
permitted by IFRS.
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, except for
changes as required by the mandatory adoption of
new and revised IFRS and, where applicable, as set
out below:
Adoption of new and amended
standards effective for the current
financial year
The adoption of the following new and amended
standards were, unless otherwise indicated, applied
retrospectively and resulted in the restatement of
the group's previously reported financial results
for the periods ended 30 June 2012 and
31 December 2012:
- IFRS 10, IFRS 11, IFRS 12, IAS 27R
and IAS 28R
On 1 January 2013 the group adopted IFRS 10
Consolidated Financial Statements (IFRS 10),
IFRS 11 Joint Arrangements (IFRS 11), IFRS 12
Disclosure of Interests in Other Entities
(IFRS 12), IAS 27 Separate Financial Statements
(2011 revised) (IAS 27R), and IAS 28
Investments in Associates and Joint Ventures
(2011 revised) (IAS 28R).
In terms of IFRS 10, control exists only if:
- the investor has power over the investee
- exposure, or rights to, variable returns from
its involvement with the investee, and
- the ability to use its power to affect those
returns.
The application of control will be applied
irrespective of the nature of the investee.
Investments in mutual funds that amounted to
between 20% and 50% of the total fund value
or voting rights were previously considered to
be interests in associates, and those greater
than 50% were previously considered to be
subsidiaries. As a result of the adoption of
IFRS 10 references in the accounting policies to
specific percentage holdings have been
removed.
The adoption of IFRS 10 resulted in the group
consolidating additional mutual funds,
classifying additional interests in mutual funds
as associates and reclassifications of interests
between these categories and financial
investments. The adoption of IFRS 10 required
restatement of the group's previously reported
financial results. The impact of this restatement
has been set out on pages 35 to 40.
Adjustments to previously reported IFRS per
share information, as a result of the recognition
of additional treasury shares, were also required.
IFRS 11 requires joint arrangements to be
classified as either joint operations or joint
ventures depending on the rights to assets and
obligations for the liabilities of the
arrangements. IAS 27R carried forward the
existing accounting and disclosure requirements
for separate financial statements, with minor
clarifications. IAS 28R carried forward existing
accounting requirements for separate financial
statements as well as the existing equity
accounting requirements for associates and joint
ventures, with minor amendments. The adoption
of IFRS 11 and IAS 28R did not have a material
impact on the group's previously reported
financial results.
- IAS 19R
On 1 January 2013 the group adopted IAS 19
Employee Benefits (revised 2011) (IAS 19R).
The most significant change as a result of the
adoption of IAS 19R is the elimination of the
'corridor' method under which the recognition
of actuarial gains or losses was deferred. In
terms of IAS 19R all unrecognised actuarial
gains have to be recognised in OCI on transition
to the new requirements.
The adoption of IAS 19R resulted in the group
restating its previously reported financial results.
The impact of this restatement has been set out
on pages 35 to 40.
- IFRS 7
On 1 January 2013 the group adopted IFRS 7
Disclosures Offsetting Financial Assets and
Financial Liabilities (December 2011
amendment to IFRS 7) (IFRS 7R). IFRS 7R
requires new disclosures with respect to the
offsetting of financial assets and financial
liabilities. The adoption of IFRS 7 did not affect
the group's previously reported results or
interim disclosures.
- IFRS 13
IFRS 13 Fair Value Measurement (IFRS 13)
defines fair value and describes in a single
standard a framework for measuring fair value
where its use is already required or permitted
by other standards. IFRS 13 also requires
enhanced fair value disclosures, which include
several required disclosures as presented in
these interim financial results. The group has
adopted IFRS 13 prospectively. The adoption of
IFRS 13, whilst requiring conforming changes to
the group's accounting policies, did not have a
material impact on the measurement of the
group's assets and liabilities.
Other restatement
Restatement trading liabilities and customer
deposits
Management previously classified certain deposits
as trading liabilities on the basis that such deposits
were used to fund trading positions. In accordance
with IFRS and group accounting policies, such
deposits should rather have been classified as part
of deposit and current accounts. The deposits have
accordingly been reclassified in previously reported
financial periods from trading liabilities to customer
deposit and current accounts to conform to the
classification of such deposits in the current
financial reporting. The restatement had no impact
on the group's reserves or profit and loss.
Restatement of 30 June 2012 financial results
Consolidated income statement
for the six months ended 30 June 2012
As previously
reported IFRS 10 IAS 19 Restated
Unaudited Unaudited Unaudited Unaudited
Rm Rm Rm Rm
Continuing operations
Income from banking activities 32 191 32 191
Income from investment management and life
insurance activities 31 261 771 (18) 32 014
Total income 63 452 771 (18) 64 205
Credit impairment charges 3 945 3 945
Benefits due to policyholders 22 646 782 23 428
Income after credit impairment charges
and policyholders' benefits 36 861 (11) (18) 36 832
Operating expenses in banking activities 19 175 55 19 230
Staff costs 10 710 55 10 765
Other operating expenses 8 465 8 465
Operating expenses in investment management
and life insurance activities 5 723 56 5 779
Net income before equity accounted earnings 11 963 (11) (129) 11 823
Share of profit from associates and joint ventures 166 166
Net income before indirect taxation 12 129 (11) (129) 11 989
Indirect taxation 821 821
Profit before direct taxation 11 308 (11) (129) 11 168
Direct taxation 3 190 (35) 3 155
Profit for the period from continuing
operations 8 118 (11) (94) 8 013
Profit for the period from discontinued operation 431 431
Profit for the period 8 549 (11) (94) 8 444
Attributable to non-controlling interests 1 215 (5) (25) 1 185
Continuing operations 1 107 (5) (25) 1 077
Discontinued operation 108 108
Attributable to preference shareholders 168 168
Attributable to ordinary shareholders 7 166 (6) (69) 7 091
Basic earnings per share (cents) 472,3 (0,2) (4,5) 467,6
Diluted earnings per share (cents) 457,0 (0,2) (4,4) 452,4
Consolidated statement of financial position
as at 30 June 2012
As previously
reported IFRS 10 IAS 19 Other Restated
Unaudited Unaudited Unaudited Unaudited Unaudited
Rm Rm Rm Rm Rm
Assets
Cash and balances with central banks 32 413 32 413
Financial investments, trading and
pledged assets 424 166 9 425 433 591
Non-current assets held for sale 33 296 33 296
Loans and advances 814 292 814 292
Derivative and other assets 171 768 141 1 647 173 556
Interest in associates and joint
ventures 14 991 1 988 16 979
Investment property 23 032 23 032
Goodwill and other intangible assets 13 606 13 606
Property and equipment 14 796 14 796
Total assets 1 542 360 11 554 1 647 1 555 561
Equity and liabilities
Equity 119 916 (82) 536 120 370
Equity attributable to ordinary
shareholders 101 268 (43) 535 101 760
Preference share capital and
premium 5 503 5 503
Non-controlling interest 13 145 (39) 1 13 107
Liabilities 1 422 444 11 636 1 111 1 435 191
Deposit and current accounts 906 481 (6 031) 2 293 902 743
Derivative, trading and other
liabilities 241 544 17 667 1 111 (2 293) 258 029
Non-current liabilities held for sale 28 808 28 808
Policyholders' liabilities 217 252 217 252
Subordinated debt 28 359 28 359
Total equity and liabilities 1 542 360 11 554 1 647 1 555 561
Consolidated statement of other comprehensive income
for the six months ended 30 June 2012
As previously
reported IFRS 10 IAS 19 Restated
Unaudited Unaudited Unaudited Unaudited
Rm Rm Rm Rm
Profit for the period 8 549 (11) (94) 8 444
Other comprehensive income after tax for
the period continuing operations (466) 168 (298)
Items that may be reclassified subsequently
to profit or loss:
Exchange rate differences on translating equity
investments in foreign operations (426) (426)
Foreign currency hedge of net investments 73 73
Cash flow hedges (268) (268)
Available-for-sale financial assets 167 167
Items that may not be reclassified to
profit or loss:
Defined benefit fund adjustments 168 168
Other losses (12) (12)
Other comprehensive income after tax for
the period discontinued operation (152) (152)
Total comprehensive income for the period 7 931 (11) 74 7 994
Attributable to non-controlling interests 1 141 (5) 1 136
Attributable to equity holders of the parent 6 790 (6) 74 6 858
Attributable to preference shareholders 168 168
Attributable to ordinary shareholders 6 622 (6) 74 6 690
Restatement of 31 December 2012 financial results
Consolidated income statement
for the year ended 31 December 2012
As previously
reported IFRS 10 IAS 19 Restated
Audited Unaudited Unaudited Unaudited
Rm Rm Rm Rm
Continuing operations
Income from banking activities 68 375 68 375
Income from investment management and life
insurance activities 75 716 1 849 15 77 580
Total income 144 091 1 849 15 145 955
Credit impairment charges 8 800 8 800
Benefits due to policyholders 56 878 1 861 58 739
Income after credit impairment charges and
policyholders' benefits 78 413 (12) 15 78 416
Operating expenses in banking activities 39 998 70 40 068
Staff costs 22 195 70 22 265
Other operating expenses 17 803 17 803
Restructure charge 758 758
Operating expenses in investment management
and life insurance activities 11 952 1 127 12 080
Net income before goodwill impairment and
gains on disposal of subsidiaries 25 705 (13) (182) 25 510
Goodwill impairment 777 777
Gains on disposal of subsidiaries 188 188
Net income before equity accounted earnings 25 116 (13) (182) 24 921
Share of profit from associates and joint ventures 701 701
Net income before indirect taxation 25 817 (13) (182) 25 622
Indirect taxation 1 766 1 766
Profit before direct taxation 24 051 (13) (182) 23 856
Direct taxation 7 075 (53) 7 022
Profit for the year from continuing
operations 16 976 (13) (129) 16 834
Profit for the year and from disposal of
discontinued operation 2 435 2 435
Profit for the year 19 411 (13) (129) 19 269
Attributable to non-controlling interests 2 913 (5) (37) 2 871
Continuing operations 2 686 (5) (37) 2 644
Discontinued operation 227 227
Attributable to preference shareholders 352 352
Attributable to ordinary shareholders 16 146 (8) (92) 16 046
Basic earnings per share (cents) 1 060,7 (0,1) (6,0) 1 054,6
Diluted earnings per share (cents) 1 025,9 (0,1) (5,8) 1 020,0
Consolidated statement of financial position
as at 31 December 2012
As previously
reported IFRS 10 IAS 19 Restated
Audited Unaudited Unaudited Unaudited
Rm Rm Rm Rm
Assets
Cash and balances with central banks 61 985 61 985
Financial investments, trading and pledged assets 444 217 13 303 457 520
Non-current asset held for sale 960 960
Loans and advances 811 171 811 171
Derivative and other assets 154 088 190 1 151 155 429
Interest in associates and joint ventures 17 246 1 485 18 731
Investment property 24 133 24 133
Goodwill and other intangible assets 14 687 14 687
Property and equipment 15 733 15 733
Total assets 1 544 220 14 978 1 151 1 560 349
Equity and liabilities
Equity 130 173 716 130 889
Equity attributable to ordinary shareholders 110 370 715 111 085
Preference share capital and premium 5 503 5 503
Non-controlling interest 14 300 1 14 301
Liabilities 1 414 047 14 978 435 1 429 460
Deposit and current accounts 918 533 (2 583) 915 950
Derivative, trading and other liabilities 227 282 17 561 435 245 278
Policyholders' liabilities 236 684 236 684
Subordinated debt 31 548 31 548
Total equity and liabilities 1 544 220 14 978 1 151 1 560 349
Consolidated statement of other comprehensive income
for the year ended 31 December 2012
As previously
reported IFRS 10 IAS 19 Restated
Audited Unaudited Unaudited Unaudited
Rm Rm Rm Rm
Profit for the year 19 411 (13) (129) 19 269
Other comprehensive income after tax for
the year continuing operations 687 383 1 070
Items that may be reclassified subsequently
to profit or loss:
Exchange rate differences on translating equity
investments in foreign operations 544 544
Foreign currency hedge of net investments 181 181
Cash flow hedges (230) (230)
Available-for-sale financial assets 194 194
Items that may not be reclassified to profit
or loss:
Defined benefit fund adjustments 383 383
Other losses (2) (2)
Other comprehensive income after tax for
the year discontinued operation 615 615
Total comprehensive income for the year 20 713 (13) 254 20 954
Attributable to non-controlling interests 3 183 (5) 3 178
Attributable to equity holders of the parent 17 530 (8) 254 17 776
Attributable to preference shareholders 352 352
Attributable to ordinary shareholders 17 178 (8) 254 17 424
Administrative and
contact details
Standard Bank Group Limited Share transfer secretaries in
Registration No. 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), Windhoek
Zola Stephen PO Box 2401, Windhoek
Tel: +27 11 631 9106
JSE independent sponsor
Head: Investor relations Deutsche Securities (SA) Proprietary Limited
David Kinsey
Tel: +27 11 631 3931 Namibian sponsor
Simonis Storm Securities (Proprietary) Limited
Group financial director
Simon Ridley JSE joint sponsor
Tel: +27 11 636 3756 The Standard Bank of South Africa Limited
Head office switch board Share and bond codes
Tel: +27 11 636 9111 JSE share code: SBK
ISIN: ZAE000109815
Directors NSX share code: SNB
TMF Phaswana (Chairman) NSX share code: SNB ZAE000109815
Hongli Zhang** (Deputy chairman) SBKP ZAE000038881 (First preference shares)
SJ Macozoma (Deputy chairman) SBPP ZAE000056339 (Second preference shares)
DDB Band, RMW Dunne#, TS Gcabashe, BJ Kruger* JSE bond codes: SBS, SBK, SBN, SBR, ETN series
(Chief executive), KP Kalyan, Yagan Liu**, SSN series and CLN series (all JSE listed bonds
Adv KD Moroka, AC Nissen, SP Ridley*, issued in terms of The Standard Bank of South
MJD Ruck, Lord Smith of Kelvin, Kt#, Africa Limited's Domestic Medium Term Note
PD Sullivan+, SK Tshabalala* (Chief executive), Programme and Credit Linked Note Programme)
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: 15/08/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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