Update on the group's performance for the four months to 30 April 2014 and capital adequacy disclosure at 31 March Standard Bank Group Limited Registration No. 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” or “the group”) Update on the group's performance for the four months to 30 April 2014 and capital adequacy disclosure at 31 March 2014 1. Update on the group's performance for the four months to 30 April 2014 At the annual general meeting to be held later today, group chief executives Sim Tshabalala and Ben Kruger will refer to this update regarding the group's performance for the first four months of 2014 in comparison with the equivalent period for 2013. Banking activities Good growth overall has been recorded in total income, with continued improvement in margin largely due to higher endowment benefits from increased domestic interest rates. Higher growth in fees and commissions has been offset to an extent by subdued trading conditions in fixed income, currency and equity markets resulting in steady growth in non-interest income. Credit impairments have increased moderately due mainly to a tougher domestic environment for our customers, but loss ratios remain within expectations. Non-staff cost growth continues to be impacted by the fall in the average value of the rand, but the group’s cost-to-income ratio remains broadly in line with the same period in the prior year. Liberty Holdings Limited (“Liberty”) Shareholders are referred to the Liberty operational update on 23 May 2014 wherein, referring to the first quarter of 2014, the following comments were included: “The performance of the group for the three months to 31 March 2014 continues to reflect the benefits of product innovation and effective distribution partnerships. Investment markets were relatively subdued for the quarter resulting in lower earnings from the Shareholder Investment Portfolio compared to the equivalent 2013 period.” 2. Basel III capital adequacy disclosure at 31 March 2014 In terms of the Basel III requirements under Regulation 43(1)(e)(ii) of the regulations relating to banks, minimum disclosure on the capital adequacy of the group is required on a quarterly basis. This announcement is in accordance with the reporting requirement for quarterly disclosure in terms of Pillar 3 of the Basel III capital accord. Standard Bank Group SBG remained well capitalised as at 31 March 2014 with a total capital adequacy ratio of 15.6% and tier I capital adequacy ratio of 13.0%, exceeding minimum regulatory requirements. March 2014 Rm Ordinary share capital and premium 18 161 Ordinary shareholders' reserves1 110 323 Qualifying common equity tier I non-controlling interest 4 119 Regulatory deductions against common equity tier I capital (27 122) Common equity tier 1 capital 105 481 Unappropriated Profit 8 601 Common equity tier 1 capital excluding unappropriated profit 96 880 Perpetual preference shares 4 396 Qualifying tier I non-controlling interest 112 Tier I capital excluding unappropriated profit 101 388 Tier II subordinated debt 20 403 General allowance for credit impairments 1 007 Tier II capital 21 410 Total qualifying capital excluding unappropriated profit 122 798 Total minimum regulatory capital requirement2 84 398 Credit Risk 53 953 Counterparty credit risk 4 932 Equity Risk 1 577 Market Risk 6 980 Operational Risk 11 640 Other risk 5 316 Capital Adequacy Ratio (excl unappropriated profit) Total capital adequacy ratio (%) 14.5 Tier I capital adequacy ratio (%) 12.0 Common equity tier I capital adequacy ratio (%) 11.5 Capital Adequacy Ratio (incl unappropriated profit) Total capital adequacy ratio (%) 15.6 Tier I capital adequacy ratio (%) 13.0 Common equity tier I capital adequacy ratio (%) 12.5 Note: 1 Ordinary shareholders' reserves include unappropriated profits. 2 Total minimum capital requirement calculated at 10% is comprised of Pillar 1 at 8% and Pillar 2a at 2% and excludes bank specific add-ons. The Standard Bank of South Africa Limited and its subsidiaries (“SBSA”) SBSA remained well capitalised as at 31 March 2014 with a total capital adequacy ratio of 15.6% and tier I capital adequacy ratio of 12.3%, exceeding minimum regulatory requirements. March 2014 Rm Tier I capital1 56 428 Tier II capital 16 158 Total qualifying capital 72 586 Unappropriated Profit 3 419 Total minimum regulatory capital requirement2 48 841 Credit Risk 35 976 Counterparty credit risk 1 629 Equity Risk 1 236 Market Risk 1 596 Operational Risk 6 631 Other risk 1 773 Capital Adequacy Ratio (excl unappropriated profit) Total capital adequacy ratio (%) 14.9 Tier I capital adequacy ratio (%) 11.6 Capital Adequacy Ratio (incl unappropriated profit) Total capital adequacy ratio (%) 15.6 Tier I capital adequacy ratio (%) 12.3 Note: 1 Tier I capital excludes unappropriated profits. 2 Total minimum capital requirement calculated at 10% is comprised of Pillar 1 at 8% and Pillar 2a at 2% and excludes bank specific add-ons. The information contained in this announcement has not been reviewed by or reported on by Standard Bank Group's external auditors. Johannesburg 29 May 2014 Lead sponsor The Standard Bank of South Africa Limited Independent sponsor Deutsche Securities (SA) Proprietary Limited Date: 29/05/2014 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.