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STANDARD BANK GROUP LIMITED - Interim results announcement and dividend declaration

Release Date: 14/08/2014 08:00
Wrap Text
Interim results announcement and dividend declaration

Standard Bank Group Limited
Registration number 1969/017128/06
Incorporated in the Republic of South Africa
Website: www.standardbank.com
Share and bond codes 
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 interim unaudited results and dividend announcement
                                  for the six months ended 30 June 2014

The Standard Bank Group Limited's (group)
condensed consolidated interim results for the
six months ended 30 June 2014 (results) are
prepared in accordance with the requirements of
the JSE Limited (JSE) Listings Requirements, the
requirements of International Financial Reporting
Standards (IFRS), as issued by the International
Accounting Standards Board, the South African
Institute of Chartered Accountants (SAICA) Financial
Reporting Guides as issued by the Accounting
Practices Committee and financial pronouncements
as issued by the Financial Reporting Standards
Council and the presentation requirements of
IAS 34 Interim Financial Reporting and the
requirements of the South African Companies Act
71 of 2008. The accounting policies applied in the
preparation of these condensed consolidated
financial statements 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 with the
exception of changes referred to on page 49.

The interim results have not been audited or
independently reviewed by the group's external
auditors. The group's 2013 annual financial
information has been correctly extracted from the
underlying consolidated annual financial statements.

The interim results are presented on a normalised
basis, unless otherwise indicated as being on an IFRS
basis. For further explanation, refer to page 10.

1H14 refers to the first half year results for 2014.
1H13 refers to the first half year results for 2013.
FY13 refers to the full year results for 2013.
Change % reflects 1H14 growth on 1H13.

The preparation of the group's results was
supervised by the group financial director, Simon
Ridley, BCom (Natal), CA(SA), AMP (Oxford).
The results were made publically available on
14 August 2014.

Contents                                                                
Overview                                                                
Financial highlights . . . . . . . . . . . . . . . . . . . .     1   
Overview of financial results. . . . . . . . . . . . .           2   
Declaration of dividends. . . . . . . . . . . . . . . .          8   
Normalised results . . . . . . . . . . . . . . . . . . . .      10   
Pro forma constant currency information . . .                   11   


Interim unaudited results in accordance with
IFRS

Financial statistics. . . . . . . . . . . . . . . . . . . . .   12   
Condensed consolidated statement of                                  
financial position. . . . . . . . . . . . . . . . . . . . . .   13   
Condensed consolidated income statement.                        14   
Headline earnings. . . . . . . . . . . . . . . . . . . . .      15   
Condensed consolidated statement of other                            
comprehensive income . . . . . . . . . . . . . . . . .          16   
Condensed consolidated statement of                                            
changes in equity . . . . . . . . . . . . . . . . . . . . .     17    
Condensed consolidated statement of cash                              
flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19    
Notes  . . . . . . . . . . . . . . . . . . . . . . . . . . . .  20    
Accounting policies and restatements                                  
Accounting policies and restatements . . . . . .                49    
Restatements of 30 June 2013                                          
financial results. . . . . . . . . . . . . . . . . . . . . . .  50    
Other information                                                     
Administrative and contact details. . . . . . . . .            ibc   

Financial highlights

  Headline earnings                                    Headline earnings — continuing operations

  R8 306 million,                                      R9 338 million
   1H13:
                          up 2%                         1H13:
   R8 149 million                                       R8 359 million

Headline earnings per share (HEPS)   Return on equity (ROE)                Tier I capital adequacy ratio

513 cents                            12.7%                                 12.7%
1H13: 506 cents                      1H13: 13.8%                           FY13: 13.2%


Dividend per share                   Cost-to-income ratio                  Credit loss ratio

259 cents                            55.3%                                 1.13%
1H13: 233 cents                      1H13: 55.5%                           1H13: 1.24%

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. Scan the barcode to
be taken there directly.

Overview

Overview of financial results

Group results
Group headline earnings increased by 2% to
R8 306 million and HEPS increased by 1% to
513 cents per share. Headline earnings from
continuing operations increased by 12% to R9 338
million. Net asset value per share increased by 8%
and group ROE decreased to 12.7% from 13.8%
in 1H13. An interim dividend of 259 cents per
share has been declared, an 11% increase on
1H13.

As a result of the intended sale of 60% of the
group's interest in the global markets business
outside Africa, as communicated to shareholders
on 29 January 2014, IFRS requires the results
from this business to be reflected as a single line
item in the group's income statement, being
profit/loss from discontinued operation. Prior
period comparatives have been restated
accordingly. The assets and liabilities for this
business for 1H14 and FY13 are each disclosed in
single line items in the statement of financial
position, being non-current assets/liabilities held
for sale. The commentary which follows refers to
the group's continuing banking operations and
hence excludes unless otherwise indicated, the
discontinued operation's results. Liberty's results
are discussed separately.

Total income and expenses grew by 12% while
credit impairments declined by 1% due to lower
corporate credit losses. Net income before
taxation grew by 20% and profit from continuing
operations was 15% higher after accounting for
the higher group tax rate. The net loss from
discontinued operations of R1 032 million
(1H13: R210 million loss) includes the valuation
adjustment described below.

As communicated on the Stock Exchange News
Service (SENS) of the JSE during June and July
2014, the group has commenced investigations
and legal proceedings against several parties with
respect to the group's rights to physical aluminium
held in bonded warehouses in China.

The aluminium represents the group's collateral
held for a series of commodity financing
arrangements, otherwise referred to as reverse
repurchase agreements (repos). There is emerging
evidence that the financing arrangements were
impacted by fraudulent activities in respect of
the physical aluminium. The exposure on
the group's statement of financial position as at
30 June 2014 in respect of the repos is USD167
million, against which USD210 million of
aluminium collateral is held and is subject to this
legal process. As at 30 June 2014 the group
recognised a valuation adjustment of USD80
million (R854 million) against the repos
representing management's best estimate of the
risk adjustment required in determining the fair
value of the group's net exposure. The adjustment
was recognised within the discontinued operation
line in the income statement.

Operating environment
Global growth moderated from an annual rate of
3.7% in the second half of 2013 to 2.7% in the
first quarter of 2014. In the US, the inventory
overhang at the end of 2013 turned out to be
larger than expected, leading to a correction
exacerbated by a harsh winter. In other emerging
market economies, weaker-than-projected growth
resulted both from weaker external demand,
notably from the US and China, and, in a number
of cases, softer domestic demand with weaker
investment growth. With euro area inflation in
April below expectations, the European Central
Bank cut its policy rate and deployed other easing
measures at its June meeting. However, leading
indicators point to the global recovery having
regained strength in the second quarter
of 2014.

In South Africa, GDP growth in the first quarter
of 2014 slowed to 1.6% and was affected by lost
output in the mining sector due to prolonged
industrial action. Private consumption expenditure
growth slowed to 1.8% in the first quarter of
2014, the slowest quarterly growth rate since the
third quarter of 2009. The South African Reserve
Bank (SARB) hiked the repo rate unexpectedly in
January this year by 50bps and followed up with
another 25bps increase at its July meeting as
inflation moved outside the target band for three
consecutive months. Consequently the ratio of
household debt-to-disposable income trended
sideways during the period.

Strong growth in sub-Saharan Africa continued
into 2014 supported by foreign direct investment
flows in the resource sectors, public investment in
infrastructure, and improved agricultural production.
Growth of approximately 5% is expected by the
International Monetary Fund for 2014, similar to
the growth rate attained for 2013, accompanied by
a positive inflation outlook.

Revenue
Total income grew by 12% in 1H14, with net
interest income (NII) increasing 14% primarily due
to margin expansion of 14bps that benefited from
higher South African interest rates, and growth in
deposits and advances in the rest of Africa.

Non-interest revenue (NIR) grew by 10%
with fees and commissions 12% higher than in
1H13 due to good growth in the rest of Africa
that was assisted by a fall of the average value in
the rand relative to most African currencies.

Trading revenue increased by 17% due mainly to a
strong performance in fixed income and currency
(FIC) trading, while other revenue fell by 16% due
to the non-recurrence of a 1H13 fair value gain
on a contingent interest held in Troika.

Credit impairments
Total credit impairments declined by 1% to
R4 952 million and the credit loss ratio decreased
to 1.13% from 1.24% in the prior period. Credit
impairments in Corporate & Investment Banking
(CIB) fell to R450 million from R917 million in the
prior period with its credit loss ratio improving to
0.25% from 0.57% due mainly to the non-
recurrence of a small number of high value
impairments on exposures originated outside of
South Africa.

In Personal & Business Banking (PBB), credit
losses increased from R4 083 million to
R4 502 million and its credit loss ratio increased
marginally to 1.58% from 1.57% in the prior
period. A significant reduction in the required
charge against the inclusive personal lending book
in South Africa due to reduced risk profile and
lower average lending was offset by increased
impairments in other portfolios in South Africa. In
particular, instalment sale and finance leases and
card debtors required higher provisioning due to
higher levels of customer default in the period.

Impairments in PBB's operations in the rest of
Africa fell due to a significantly lower level of
impairments in Tanzania off the high base in the
prior period with the credit loss ratio declining to
2.13% at 1H14 from 3.75% in 1H13.

Operating expenses
Operating expenses increased by 12% and by
8% on a constant currency basis relative to the
prior period and the group's cost-to-income ratio
improved to 55.3% from 55.5%. Staff expenses
increased by 7% while other operating expenses
increased by 19%, and by 15% on a constant
currency basis. Growth in other operating
expenses was affected by increased amortisation
of capitalised systems taken into production and
continued investment in information technology
platforms, an escalation in premises costs,
increases in both marketing costs and costs
associated with the group's UCount customer
loyalty programme which was launched in the
second half of 2013, and further investment
activity to support revenue growth in the rest of
Africa.

Loans and advances
Gross loans and advances to customers grew by
6% from 1H13 to 1H14. PBB balances with
customers grew by 7% and CIB balances grew by
7%. Marginal growth was recorded in secured
lending with 2% growth in residential mortgages
and 4% in instalment sale and finance leases.
Higher growth of 13% was recorded in card
debtors while lower growth in term loans was
offset by higher demand, mainly in CIB, for
overdraft and other demand loans.

Capital, funding and liquidity
The group's tier I and total capital levels remain
strong at 12.7% (FY13: 13.2%) and 15.2%
(FY13: 16.2%) respectively. Required regulatory
capital levels will rise through to 2016 and the
group is in a good position to meet the
progressively higher requirements as prescribed
by regulatory authorities across all presence
markets.

Deposits from customers increased by 11% from
1H13 to 1H14 with the majority of the increase
sourced from retail priced deposits which grew
strongly by 17%, much of this growth being from
customer current accounts. More expensive
wholesale deposits grew by just 3%.

The group's liquidity position remains resilient,
with contingent liquidity in excess of specific
prudential requirements amounting to
R169,3 billion as at 1H14 (FY13: R154,2 billion).
As at 1H14, the group's long-term funding ratio
was 19.1% (FY13: 19.4%). The group's long-term
funding ratio declined slightly over the first half of
2014 but has now stabilised over the last few
months. Notwithstanding the reduction of the
long-term funding ratio, the overall balance sheet
liquidity mismatch position is stable with sufficient
term lending capacity.

The liquidity coverage ratio (LCR) proposed by the
Basel Committee on Banking Supervision (BCBS) is
due to come into effect on 1 January 2015. SARB
has confirmed that a committed liquidity facility
will also be made available, at a fee, to assist
banks in meeting this ratio. This is in the process
of being finalised ahead of the LCR
implementation on 1 January 2015. Following a
two-year observation period, the BCBS issued a
consultative document on 12 January 2014
proposing modifications to the net stable funding
ratio (NSFR) calculation. It remains the intention
of the BCBS to implement the NSFR, including any
revisions, as a minimum standard by 1 January
2018. Notwithstanding the changes, further term
funding will have to be raised by all South African
banks to fully meet the proposed Basel III liquidity
regime in South Africa and other emerging markets.

Overview of business unit performance                                             
Headline earnings by business unit                                                
                                              Change      1H14    1H13     FY13   
                                                   %        Rm      Rm       Rm   
Personal & Business Banking                       13     4 193   3 700    8 363   
Corporate & Investment Banking – continuing                                       
 operations                                        1     3 853   3 809    6 974   
Central and other                               >100       271    (74)       65   
Banking activities – continuing operations        12     8 317   7 435   15 402   
Liberty                                           10     1 021     924    2 211   
Standard Bank Group – continuing operations       12     9 338   8 359   17 613   
Discontinued operation – Global markets                                           
 outside Africa                               (>100)   (1 032)   (210)    (419)   
Standard Bank Group                                2     8 306   8 149   17 194   


Personal & Business Banking
PBB recorded headline earnings of R4 193 million,
13% higher than in the prior period. This was
assisted by good growth of 14% and 13%
respectively in NII and NIR, and slightly lower
growth in credit impairments of 10%. PBB's
cost-to-income ratio declined marginally to 59.7%,
while ROE declined to 16.0% from 16.9% in the
prior period due to higher capital allocated.
PBB South Africa headline earnings grew by 6%,
impacted by the difficult economic conditions
affecting personal customers. PBB rest of Africa
recorded headline earnings of R53 million from a
loss of R201 million in 1H13 supported by
broad-based improvement across most of its
African operations.

Transactional products grew headline earnings by
11% over the prior period to R1 195 million. Good
balance growth in savings, transactional and
investment portfolio balances and the effect of
higher domestic interest rates and higher
transaction volumes, particularly in business
banking, supported income growth.

Mortgage lending headline earnings grew by 16%
to R900 million, supported by moderate growth in
new business registrations, tight concession
management and resilient NIR growth that helped
total income grow by 12%. Credit impairments were
9% higher in the period due mainly to higher losses
on accounts written off and limited opportunity to
renegotiate customer accounts. Non-performing
loans increased by 3%, broadly in line with total
portfolio growth.

Instalment sale and finance leases recorded
a headline loss of R29 million in spite of
growing revenue by 14% to R1 585 million.
Substantially higher impairments of R727 million
(1H13: R388 million) reflects a decline in the
quality of the lending portfolio within personal
markets and was the major reason for the fall in
performance in this product.

Card product headline earnings grew by 5% to
R615 million. Good income growth of 14% was
supported by higher average balances and higher
interest rates as well as increased activity by card
holders and merchants. Higher non-performing loan
formation in this product led to a 47% increase in
credit impairments that affected an otherwise good
operating performance.

Lending products headline earnings more than
doubled to R510 million mainly due to credit
impairments declining significantly as risk appetite
in the low income segment of the unsecured loan
market was reduced. Total revenue increased by
11%, supported by higher business lending,
overdraft and revolving credit balances and lower
credit impairments. Inclusive personal term loans
have declined significantly due to reduced risk
appetite in that market. The blended lending
product credit loss ratio fell to 2.24% from
3.26% in 1H13.

Bancassurance and wealth delivered headline
earnings of R1 002 million, 10% up year-on-year,
and driven by growth in total income of 16%.
The value of insurance new business has improved
against prior year and the introduction of higher
benefit funeral plans boosted revenue. The
significant growth in assets under management in
Nigeria's pension fund business further assisted
revenues. Underwriting margins came under
sustained pressure due to claims arising from
adverse weather conditions but was partially offset
by good control over operating expenses.

Corporate & Investment Banking
CIB's continuing operations delivered headline
earnings of R3 853 million, 1% higher than the
comparative R3 809 million achieved in the prior
year. The discontinued operation, including the fair
value adjustment on repo positions relating to
aluminium financing in China described earlier,
recorded a headline loss of R1 032 million. Total
income grew 8% with good NII growth of 16% and
moderate fee and commission and trading income
growth, which was partly offset by a fall in other
income due to the non-recurrence of a fair value
gain on a contingent interest in Troika in the prior
year. Credit impairment charges were substantially
lower as expected but costs increased by 13%
including 7% as a result of the weaker rand and
strategic investment to protect and grow the
franchise.

Transactional products and services business
delivered another excellent performance, growing
earnings 29% to R1 387 million off revenue growth
of 16%. Good revenue growth was experienced
across the main product areas of cash management,
trade finance and investor services with particularly
strong growth in the rest of Africa that was assisted
by average rand depreciation over the prior period.
Significant client mandates were won during the
period reflecting the benefit to clients of our
positioning across the continent.

Global markets' continuing operations grew
earnings by 5% over the prior period to
R1 585 million off an overall increase of
13% in revenue to R5 270 million. Continued
strong revenue growth in the rest of Africa
was moderated by somewhat lower growth in
South Africa. Good FIC trading was offset by
difficult conditions in commodities.

Investment banking total revenue fell by 6% off the
high base generated in 1H13, resulting in a
reduction in credit risk from the de-risking of
off-strategy assets and reduced advisory fees from
lower client activity and extended time to deal
closure. Although the effect of this was somewhat
offset by lower credit impairments, the effect of
higher expenses inflated by rand depreciation and
the need to develop the franchise in the rest of
Africa impacted short-term profitability and headline
earnings declined by 25% from the prior period.

Real estate and principal investment management
(PIM) revenue declined 33% on prior year due to
lower property revenue and losses in the PIM
investment portfolio. The PIM portfolio and private
equity activity continues to be wound-down with
minimal remaining distressed debt net exposure.

Central and other
Headline earnings of R271 million improved from
the loss of R74 million recorded in the prior period.
The improvement was largely due to the
attributable income from the 20% associate
investment that the group retains in Argentina
amounting to R275 million compared with
R88 million in 1H13.

Liberty
The financial results reported are the consolidated
results of our 54% investment in Liberty Holdings
Limited. Bancassurance results are included in PBB.
Liberty's headline earnings for the six months to
30 June 2014 increased by 10% to R1 881 million
of which R1 021 million was attributable to the
group.

Liberty's long-term insurance operations indexed
new business grew 10% to R3 437 million,
supported by very strong single premium
investment sales. Net customer cash inflows were
R4,5 billion, including a R912 million contribution
from the recently launched retail linked investment
services platform. Corporate business customer
flows of R0,9 billion were positive for the first time
since 2007. New business margin at 1.8% has been
negatively impacted by a 25bps increase in the risk
discount rate and reflects the typical lower first half
sales seasonality. The business continues to manage
within the long-term actuarial expense and
policyholder behaviour assumptions.

LibFin Markets produced a strong result, due to the
ongoing build of the credit book and a positive
asset liability management contribution which
benefited from low realised volatility in equity and
interest rate markets. The group asset management
operations have attracted net external customer
cash inflows of R11,6 billion which are 29% up
compared to 1H13, over R7,5 billion of which were
invested in its money market offerings. Assets
under management across the group grew by 5%
from FY13 to R639 billion.

Prospects
Global economic growth in 2014 is likely to improve, albeit
only modestly, rising from around 3.2%
in 2013 to 3.4% in 2014. Growth is expected to be
influenced by developed market countries, while
emerging markets are expected to struggle to
match the growth rates achieved in 2013. While
the US is expected to grow in 2014, momentum in
the Eurozone economy is still weak. Global monetary
policy is expected to tighten relative to 2013.

Sluggishness in the South African economy is
expected to persist for the remainder of 2014 which
is likely to hamper domestic revenue growth and may
affect the confidence of our customer base. 
However, the group's positioning in South Africa 
is strong and our selected exposure to expanding 
economies in sub-Saharan Africa provides a robust 
platform on which to maintain the operational and 
financial momentum in our continuing operations. 
We remain firmly committed to delivering improved 
returns on equity to shareholders over the medium 
term while investing in our people and systems to 
meet the demands of a rapidly evolving environment.


Sim Tshabalala              Ben Kruger
Group chief executive       Group chief executive

Fred Phaswana
Chairman

13 August 2014

Declaration of dividends

Shareholders of Standard Bank Group Limited
(the company) are advised of the following dividend
declarations out of income reserves 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 No. 90 of 259,00 cents
per ordinary share (the cash dividend) to ordinary
shareholders recorded in the register of the
company at the close of business on Friday,
12 September 2014. The last day to trade to
participate in the dividend is Friday, 5 September
2014. Ordinary shares will commence trading
ex dividend from Monday, 8 September 2014. 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,
8 September 2014, and Friday, 12 September
2014, 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, 15 September 2014.

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. 90 of
    3,25 cents (gross) per first preference share,
    payable on Monday, 8 September 2014, to
    holders of first preference shares recorded in
    the books of the company at the close of
    business on the record date, Friday,
    5 September 2014. The last day to trade to
    participate in the dividend is Friday,
    29 August 2014. First preference shares will
    commence trading ex dividend from Monday,
    1 September 2014. 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. 20 of
    340,58 cents (gross) per second preference
    share, payable on Monday, 8 September 2014,
    to holders of second preference shares recorded
    in the books of the company at the close of
    business on the record date, Friday,
    5 September 2014. The last day to trade to
    participate in the dividend is Friday,
    29 August 2014. Second preference shares will
    commence trading ex dividend from Monday,
    1 September 2014. No STC credits were utilised
    as part of the dividend declaration in respect of
    the second preference shares.

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, 1 September 2014 and Friday,
5 September 2014, both days inclusive. Preference
shareholders (first and second) who hold
dematerialised shares will have their accounts at
their CSDP or broker credited on Monday,
8 September 2014.

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                                     90                   90                   20   
Gross distribution/dividend per                                                                    
 share (cents)                                  259,00                 3,25               340,58   
Last day to trade in order to be               Friday,              Friday,              Friday,   
 eligible for the cash dividend       5 September 2014       29 August 2014       29 August 2014   
Shares trade ex the cash dividend              Monday,              Monday,              Monday,   
                                      8 September 2014     1 September 2014     1 September 2014   
Record date in respect of the cash             Friday,              Friday,              Friday,   
 dividend                            12 September 2014     5 September 2014     5 September 2014   
Dividend cheques posted and                                                                        
 CSDP/broker accounts credited/                Monday,              Monday,               Monday   
 updated (payment date)              15 September 2014     8 September 2014     8 September 2014   


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 220,15000 cents per
ordinary share, 2,76250 cents per first preference
share and 289,49090 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:

-   1 618 210 308 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 economic 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, 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 normalisation 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 the changes
in the value of the related transaction (together
with dividend income) in 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,
where 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

for the six months ended 30 June 2014                                             
                                        Weighted average   Headline   Growth on   
                                        number of shares   earnings        1H13   
                                                    '000         Rm           %   
Disclosed on an IFRS basis                     1 585 915      8 230           2   
Tutuwa initiative                                 27 726         63               
Group shares held for the benefit                                                 
 of Liberty policyholders                          7 100         61               
Share exposures held to facilitate                                                
 client trading activities                       (1 973)       (48)               
Normalised                                     1 618 768      8 306           2   


Pro forma constant currency information
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 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 material currencies, being the US dollar, Nigerian naira, Kenyan shilling, Zambian kwacha and
Ugandan shilling.

The following average exchange rates were used in the determination of the pro forma constant currency
information.

                                         Nigerian     Kenyan   Zambian    Ugandan   
                             US dollar      naira   shilling    kwacha   shilling   
1H14 average exchange rate       10,70       0,07       0,12    0,0018     0,0042   
1H13 average exchange rate        9,22       0,06       0,11    0,0017     0,0035   

Interim unaudited results in
accordance with IFRS

Financial statistics

for the six months ended 30 June 2014                                                                 
                                                        Change        1H14     1H13(1)         FY13   
                                                             %   Unaudited   Unaudited      Audited   
Number of ordinary shares in issue (000's)                                                            
End of period                                                0   1 588 000   1 586 514    1 584 449   
Weighted average                                             3   1 585 915   1 546 914    1 566 694   
Diluted weighted average                                     2   1 621 109   1 594 734 1 606 782(2)   
Cents per ordinary share                                                                              
Headline earnings                                          (0)       518,9       520,1      1 084,2   
Continuing operations                                        9       584,0       533,7      1 110,9   
Discontinued operation                                    >100      (65,1)      (13,6)       (26,7)   
Diluted headline earnings                                    1       507,7       504,5      1 057,1   
Continuing operations                                       10       571,3       517,7      1 083,2   
Discontinued operation                                    >100      (63,6)      (13,2)       (26,1)   
Dividend                                                    11       259,0       233,0        533,0   
Net asset value                                              8       8 333       7 712        8 138   
Financial performance (%)                                                                             
ROE                                                                   12.7        14.0         14.2   
Net interest margin on continuing banking operations                  3.75        3.60         3.67   
Credit loss ratio on continuing banking operations                    1.13        1.24         1.12   
Cost-to-income ratio on continuing banking operations                 55.2        55.6         56.8   
Capital adequacy ratios (%)                                                                           
Basel III                                                                                             
Tier I capital                                                        12.7        12.3         13.2   
Total capital                                                         15.2        15.4         16.2   

(1) Restated. Refer to pages 49 to 51.
(2) Updated to reflect diluted weighted average shares as reported in the group's 2013 annual financial statements.

Condensed consolidated statement of financial position
as at 30 June 2014

                                                                  1H14     1H13(1)        FY13   
                                                    Change   Unaudited   Unaudited     Audited   
                                                         %          Rm          Rm          Rm   
Assets                                                                                           
Cash and balances with central banks                  (17)      46 786      56 041      53 310   
Financial investments, trading and pledged assets        1     498 449     494 697     457 018   
Non-current assets held for sale(2)                    100     189 032                 183 284   
Loans and advances                                     (3)     886 615     910 332     839 620   
Derivative and other assets                           (53)      82 536     175 486      90 634   
Interest in associates and joint ventures             (33)       3 422       5 109       4 797   
Investment property                                      6      25 645      24 259      27 299   
Goodwill and other intangible assets                    19      19 719      16 594      18 085   
Property and equipment                                 (1)      16 073      16 200      16 882   
Total assets                                             4   1 768 277   1 698 718   1 690 929   
Equity and liabilities                                                                           
Equity                                                   9     157 110     144 123     152 648   
Equity attributable to ordinary shareholders             8     132 332     122 348     128 936   
Preference share capital and premium                             5 503       5 503       5 503   
Non-controlling interest                                18      19 275      16 272      18 209   
Liabilities                                              4   1 611 167   1 554 595   1 538 281   
Deposit and current accounts                           (1)     976 348     989 319     921 738   
Derivative, trading and other liabilities             (33)     197 129     292 906     193 579   
Non-current liabilities held for sale(2)               100     137 016                 134 504   
Policyholders' liabilities                              16     278 898     241 414     263 944   
Subordinated debt                                     (30)      21 776      30 956      24 516   
Total equity and liabilities                             4   1 768 277   1 698 718   1 690 929   

(1) Restated. Refer to pages 49 to 51.                                                         
(2) Refer to page 24 for further explanation.                                                  


Condensed consolidated income statement
for the six months ended 30 June 2014

                                                                             1H14   1H13(1)       FY13
                                                                 Change Unaudited Unaudited    Audited
                                                                      %        Rm        Rm         Rm
Continuing operations
Income from banking activities                                       13    39 838    35 303     73 406
Net interest income                                                  15    21 615    18 834     39 095
Non-interest revenue                                                 11    18 223    16 469     34 311
Income from investment management and life insurance activities      36    42 019    30 835     85 240
Total income                                                         24    81 857    66 138    158 646
Credit impairment charges                                            (1)    4 952     5 002      9 158
Benefits due to policyholders                                        46    31 579    21 593     63 295
Income after credit impairment charges and
  policyholders' benefits                                            15    45 326    39 543     86 193
Revenue sharing agreements with group companies                    >100        40        15        142
Income after revenue sharing agreements with
  group companies                                                    15    45 286    39 528     86 051
Operating expenses in banking activities                             12    22 222    19 776     42 055
Staff costs                                                           7    12 063    11 235     23 087
Other operating expenses                                             19    10 159     8 541     18 968
Operating expenses in investment management and life
  insurance activities                                               16     7 216     6 200     14 226
Net income before goodwill impairment and gains on
  disposal of subsidiaries                                           17    15 848    13 552     29 770
Goodwill impairment                                                 100         4
Gains on disposal of subsidiaries                                                                   64
Net income before share of profits from associates
  and joint ventures                                                 17    15 844    13 552     29 834
Share of profit from associates and joint ventures                   49       388       260        685
Net income before indirect taxation                                  18    16 232    13 812     30 519
Indirect taxation                                                    19     1 026       862      1 911
Profit before direct taxation                                        17    15 206    12 950     28 608
Direct taxation                                                      27     3 915     3 076      7 580
Profit for the period from continuing operations                     14    11 291     9 874     21 028
Discontinued operation(2)                                          >100   (1 032)     (210)    (1 022)
Profit for the period                                                 6    10 259     9 664     20 006
Attributable to non-controlling interests                            30     1 845     1 422      3 451
Attributable to preference shareholders                              (1)      175       176        349
Attributable to ordinary shareholders                                 2     8 239     8 066     16 206
Basic earnings per share (cents)                                     (0)    519,5     521,4    1 034,4
Continuing operations                                                 9     584,6     535,0    1 099,6
Discontinued operation                                             >100    (65,1)    (13,6)     (65,2)
Diluted earnings per share (cents)                                    0     508,2     505,8    1 008,6
Continuing operations                                                10     571,9     519,0    1 072,2
Discontinued operation                                             >100    (63,7)    (13,2)     (63,6)

(1) Restated. Refer to pages 49 to 51.
(2) Gains and losses relating to the group's global markets outside Africa business has been presented as a single amount
    relating to their after-tax profits.

Headline earnings                                                                                       
for the six months ended 30 June 2014                                      1H14     1H13(1)      FY13   
                                                             Change   Unaudited   Unaudited   Audited   
                                                                  %          Rm          Rm        Rm   
Profit for the period from continuing operations                 12       9 271       8 276    17 228   
Headline adjustable items (reversed)/added                                 (20)        (36)       350   
Goodwill impairment – IAS 36                                                  4                         
Loss/(profit) on sale of property and equipment - IAS 16                      6         (1)       (4)   
Realised foreign currency translation profit on foreign                                                 
 operations – IAS 21                                                                             (16)   
Gains on the disposal of businesses and divisions - IAS 27                                       (91)   
Impairment of intangible assets – IAS 36                                                          477   
Realised gains on available-for-sale assets - IAS 39                       (30)        (35)      (16)   
Taxation on headline earnings adjustable items                              (4)                  (88)   
Non-controlling interests' share of headline earnings                                                   
 adjustable items                                                            15          16      (85)   
Standard Bank Group headline earnings from                                                              
 continuing operations                                           12       9 262       8 256    17 405   
Loss for the period from discontinued operation                >100     (1 032)       (210)   (1 022)   
Headline adjustable item added                                                                          
Impairment of non-current assets held for sale – IFRS 5                                           603   
Standard Bank Group headline earnings from                                                              
 discontinued operation                                        >100     (1 032)       (210)     (419)   
Standard Bank Group headline earnings                             2       8 230       8 046    16 986   

(1) Restated. Refer to pages 49 to 51.                                                                


Condensed consolidated statement of other comprehensive income
for the six months ended 30 June 2014

                                              1H14                             1H13       FY13
                                                         Non-
                                                  controlling
                                       Ordinary     interests
                                         share-           and
                                       holders'    preference      Total       Total     Total
                                         equity  shareholders     equity      equity    equity
                                      Unaudited     Unaudited  Unaudited   Unaudited   Audited
                                             Rm            Rm         Rm          Rm        Rm
Profit for the period                     8 239         2 020     10 259       9 664    20 006
Other comprehensive income
(OCI) after tax for the period            (847)          (41)      (888)       4 702     7 903
Items that may be reclassified
  subsequently to profit or loss:
Exchange rate differences on
  translating equity investments
  in foreign operations                   (753)          (12)      (765)       5 512     8 085
Foreign currency hedge of net
  investments                               112                      112       (239)     (176)
Cash flow hedges                           (42)          (22)       (64)        (54)       239
Available-for-sale financial assets           9           (2)          7        (83)        91
Items that may not be
  reclassified to profit or loss:
Defined benefit fund adjustments          (177)           (5)      (182)       (468)     (186)
Other gains/(losses)                          4                        4          34     (150)

Total comprehensive income
 for the period                           7 392         1 979      9 371      14 366    27 909
Attributable to non-controlling
 interests                                              1 804      1 804       2 550     5 149
Attributable to equity holders
 of the parent                            7 392           175      7 567      11 816    22 760
Attributable to preference
 shareholders                                             175        175         176       349
Attributable to ordinary
 shareholders                             7 392                    7 392      11 640    22 411

Condensed consolidated statement of changes in equity
for the six months ended 30 June 2014

                                                        Ordinary      Preference          Non-             
                                                   shareholders'   share capital   controlling     Total   
                                                          equity     and premium      interest    equity   
                                                              Rm              Rm            Rm        Rm   
Balance at 1 January 2013 (audited)                      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   
Redemption of preference shares                            1 676                                   1 676   
Net dividends paid                                       (2 618)           (176)         (617)   (3 411)   
Unincorporated property partnerships capital                                                               
 reductions and distributions                                                             (77)      (77)   
Balance at 30 June 2013 (unaudited)                      122 348           5 503        16 272   144 123   
Balance at 1 July 2013 (unaudited)                       122 348           5 503        16 272   144 123   
Total comprehensive income for the period                 10 771             173         2 599    13 543   
Transactions with owners, recorded directly                                                                
 in equity                                               (4 183)           (173)         (733)   (5 089)   
Equity-settled share-based payment transactions               24                            18        42   
Deferred tax on share-based payment                                                                        
 transactions                                                 13                                      13   
Transactions with non-controlling shareholders              (31)                          (53)      (84)   
Issue of share capital and share premium and                                                               
 capitalisation of reserves                                  163                                     163   
Share buy-back                                             (343)                                   (343)   
Net increase in treasury shares                            (278)                           (2)     (280)   
Net dividends paid                                       (3 731)           (173)         (696)   (4 600)   
Unincorporated property partnerships capital                                                               
 reductions and distributions                                                               71        71   
Balance at 31 December 2013 (audited)                    128 936           5 503        18 209   152 648   

                                                        Ordinary      Preference                           
                                                          share-           share          Non-             
                                                        holders'     capital and   controlling     Total   
                                                          equity         premium      interest    equity   
                                                              Rm              Rm            Rm        Rm   
Balance at 1 January 2014 (audited)                      128 936           5 503        18 209   152 648   
Total comprehensive income for the period                  7 392             175         1 804     9 371   
Transactions with owners, recorded directly                                                                
 in equity                                               (3 996)           (175)         (675)   (4 846)   
Equity-settled share-based payment transactions              326                            24       350   
Deferred tax on share-based payment transactions             183                                     183   
Transactions with non-controlling shareholders              (74)                          (72)     (146)   
Issue of share capital and share premium and                                                               
 capitalisation of reserves                                  283                                     283   
Share buy-back                                             (382)                                   (382)   
Net decrease in treasury shares                              468                             4       472   
Net dividends paid                                       (4 800)           (175)         (631)   (5 606)   
Unincorporated property partnerships capital                                                               
 reductions and distributions                                                             (63)      (63)   
Balance at 30 June 2014 (unaudited)                      132 332           5 503        19 275   157 110   


Condensed consolidated statement of cash flows
for the six months ended 30 June 2014

                                                                        1H14        1H13       FY13   
                                                                   Unaudited   Unaudited    Audited   
                                                                          Rm          Rm         Rm   
Net cash (outflow)/inflow from operating activities                    (863)     (6 455)     24 020   
Operational cash flows                                                 2 860     (2 418)     31 079   
Direct taxation paid                                                 (3 723)     (4 037)    (7 059)   
Net cash flows used in investing activities                          (4 693)       (602)   (17 345)   
Capital expenditure on property, equipment and intangible assets     (3 218)     (3 295)    (8 143)   
Other investing cash flows                                           (1 475)       2 693    (9 202)   
Net cash flows used in financing activities                          (8 691)     (3 285)    (9 238)   
Proceeds from the issue of share capital                                 283           2        165   
Share buy-back                                                         (382)                  (343)   
Release of empowerment reserve                                                     1 676      1 676   
Net subordinated debt cash flows                                     (1 906)     (1 499)    (1 890)   
Other financing cash flows                                           (6 686)     (3 464)    (8 846)   
Effect of exchange rate changes on cash and cash                                                      
 equivalents                                                             573       4 398      7 987   
Net (decrease)/increase in cash and cash equivalents                (13 674)     (5 944)      5 424   
Cash and cash equivalents at beginning of the period                  67 409      61 985     61 985   
Cash and cash equivalents at the end of the period                    53 735      56 041     67 409   
Comprising:                                                                                           
Cash and balances with central banks                                  46 786      56 041     53 310   
Cash and balances with central banks held for sale                     6 949                 14 099   
Cash and cash equivalents at the end of the period                    53 735      56 041     67 409   


Notes                                                                                  
Segment report                                                                         
for the six months ended 30 June 2014                                                  
                                                        1H14   1H13(1,2)     FY13(2)   
                                          Change   Unaudited   Unaudited   Unaudited   
                                               %          Rm          Rm          Rm   
Revenue contribution by business unit                                                  
Personal & Business Banking                   14      26 111      23 002      48 570   
Corporate & Investment Banking                 8      13 901      12 879      25 914   
Central and other                           (60)       (191)       (481)       (979)   
Banking activities                            12      39 821      35 400      73 505   
Liberty                                       37      42 163      30 836      85 406   
Standard Bank Group – normalised              24      81 984      66 236     158 911   
Adjustments for IFRS                          30       (127)        (98)       (265)   
Standard Bank Group – IFRS                    24      81 857      66 138     158 646   
Profit or loss attributable to ordinary                                                
shareholders                                                                           
Personal & Business Banking                   13       4 190       3 705       8 276   
Corporate & Investment Banking              (22)       2 815       3 620       6 488   
Central and other                           >100         289        (80)       (503)   
Banking activities                             1       7 294       7 245      14 261   
Liberty                                       10       1 021         924       2 153   
Standard Bank Group – normalised               2       8 315       8 169      16 414   
Adjustments for IFRS                        (26)        (76)       (103)       (208)   
Standard Bank Group – IFRS                     2       8 239       8 066      16 206   
Total assets by business unit                                                          
Personal & Business Banking                   10     603 132     549 092     571 583   
Corporate & Investment Banking               (1)     853 503     863 816     805 204   
Central and other                           >100    (42 392)    (18 884)    (18 930)   
Banking activities                             1   1 414 243   1 394 024   1 357 857   
Liberty                                       16     356 391     307 104     335 826   
Standard Bank Group – normalised               4   1 770 634   1 701 128   1 693 683   
Adjustments for IFRS                         (2)     (2 357)     (2 410)     (2 754)   
Standard Bank Group – IFRS                     4   1 768 277   1 698 718   1 690 929   
Total liabilities by business unit                                                     
Personal & Business Banking                    9     546 354     503 130     522 583   
Corporate & Investment Banking               (1)     802 829     813 438     757 473   
Central and other                             46    (71 427)    (48 958)    (55 360)   
Banking activities                             1   1 277 756   1 267 610   1 224 696   
Liberty                                       16     333 484     287 055     313 615   
Standard Bank Group – normalised               4   1 611 240   1 554 665   1 538 311   
Adjustments for IFRS                           4        (73)        (70)        (30)   
Standard Bank Group – IFRS                     4   1 611 167   1 554 595   1 538 281   


(1) Refer to pages 49 to 51.
(2) Where responsibility for individual cost centres and divisions within business units change, the comparative figures are
    reclassified accordingly.

Contingent liabilities and capital commitments                                
as at 30 June 2014                                                            
                                                             1H14      FY13   
                                                        Unaudited   Audited   
                                                               Rm        Rm   
Letters of credit and bankers' acceptances                  9 482    17 303   
Guarantees                                                 38 398    50 287   
Contingent liabilities                                     47 880    67 590   
Contracted capital expenditure                              4 774     1 315   
Capital expenditure authorised but not yet contracted       8 796    11 411   
Capital commitments                                        13 570    12 726   


Private equity associates and joint ventures

The following table provides disclosure of those private equity associates and joint ventures 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 2/2013 Headline Earnings, issued by SAICA at the request of the 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.

                                                             1H14      FY13   
                                                        Unaudited   Audited   
                                                               Rm        Rm   
Cost                                                           88       150   
Carrying value                                                559       631   
Fair value                                                    559       579   
Attributable income before impairment                           1        92   
               

Equity securities
During the year the group issued nil shares (FY13: 10 281 204 shares) as a scrip dividend distribution,
allotted 3 008 952 shares (FY13: 4 304 866 shares) in terms of the group's share incentive schemes and
repurchased 2 642 773 shares (FY13: 2 877 768 shares). The total equity securities held as treasury
shares at the end of the period was 2 483 491 shares (FY13: 5 669 530 shares).

Subordinated debt
During the period the group issued nil (FY13: R1 billion) and redeemed R1,9 billion (FY13: R1,9 billion)
subordinated debt instruments.

Related party transactions
The group entered into the following transactions
with related parties:

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 structured
entities, 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 entities 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 2013,
Tutuwa 1 and Tutuwa 2 obtained third party
financing and repaid their outstanding preference
share funding in full 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 by IFRS as
issued shares during 2013.

Other significant related party
transactions
At 30 June 2014, the ICBC, a 20.1% shareholder,
had a deposit with the group of R66 million
(FY13: R161 million). The group earned net income
of R51 million (FY13: R50 million) from transactions
with the ICBC.

Post-employment benefit plans
Details of transactions between the company and the group's post-employment benefit plans are listed
below:

                                                             1H14      FY13
                                                         Unaudited  Audited
                                                               Rm        Rm
Fee income                                                     21        33
Deposits held with the group                                  379       363
Interest paid                                                  37        47
Value of assets under management                           12 124    11 276
Investments held in bonds and money market instruments        854       797
Value of ordinary SBG shares held                           7 240     7 281

Aluminium reverse repurchase
agreements
As communicated on the SENS of the JSE during
June and July 2014, Standard Bank Plc (SB Plc)
commenced investigations and legal proceedings
against several parties with respect to SB Plc's
rights to physical aluminium held in bonded
warehouses in China. The aluminium represents
SB Plc's collateral held for a series of commodity
financing arrangements, otherwise characterised as
repos. The gross exposure in SB Plc's statement of
financial position as at 30 June 2014 in respect of
the repos is USD167 million, against which USD210
million of aluminium collateral is held and is subject
to this legal process. As at 30 June 2014, SB Plc
recognised a valuation adjustment of USD80 million
against the repos, representing management's best
estimate of the risk adjustment required in
determining the fair value of SB Plc's net exposure.
The valuation adjustment was recognised within the
discontinued operation line item in the income
statement. Consequently, the exposure has been
reclassified into level 3 in the fair value hierarchy. In
determining the valuation adjustment, SB Plc
considered the collateral, the client's ability to
perform and the obligation of the custodians to
account for the collateral. The group also maintains
insurance for such loss events and will recognise the
value of its rights to compensation once the
applicable IFRS recognition criteria have been met.

Change in group directorate
The following changes in directorate took place during the six months ended 30 June 2014:

Appointments     
                                              
Kaisheng Yang                  as director   16 January 2014   
Wenbin Wang                    as director   16 January 2014   
F du Plessis                   as director     14 March 2014   
AC Parker                      as director     14 March 2014   
BS Tshabalala                  as director     14 March 2014

Resignations and retirements  
                                 
Hongli Zhang                   as director   16 January 2014   
Yagan Liu                      as director   16 January 2014   
KP Kalyan                      as director      3 March 2014   
AC Nissen                      as director       29 May 2014   
DDB Band                       as director       29 May 2014   


Non-current assets and liabilities held
for sale

RCS Investment Holdings Proprietary Limited
(RCS)
On 9 April 2014 the group concluded an
agreement to dispose of its 45% investment in RCS
to BNP Paribas, subject to regulatory approval, at a
selling price of approximately R1,0 billion (to be
adjusted by the movement in RCS's attributable net
asset value from July 2013 to the effective date of
the transaction).

The investment has accordingly been classified as
held for sale. In terms of IFRS, equity accounting has
been suspended from the date of classification as
held for sale.

The profit on sale will be recognised on the
completion date of the transaction and will be
excluded from headline earnings.

Brazil
During March 2014, the group announced that it
reached an agreement with Grupo Financiero
Inbursa SAB, the listed Mexican banking group,
(Inbursa) in terms of which Inbursa will acquire the
group's Brazilian licensed banking subsidiary, Banco
Standard de Investimentos SA (BSI), subject to
regulatory approvals, for a price to be determined,
with reference to the closing net asset value of BSI
which was approximately USD45 million.

The group has accordingly included BSI in the
statement of financial position within non-current
assets and liabilities held for sale.

Standard Bank Plc
During 2013, the group announced that it was in
discussions regarding the disposal of a controlling
interest in its global markets business outside Africa
through the sale of a controlling interest in SB Plc,
the group's London banking operation (disposal of
OA GM). This was followed by an announcement
during 2014 that transaction agreements had been
signed with the ICBC. Standard Bank shareholder
approval for the transaction was obtained on
28 March 2014.

Accordingly, the group's IFRS results have been
adjusted as follows:
-   Presentation of OA GM in the statement of
    financial position within non-current assets and
    liabilities held for sale.
-   Presentation of OA GM's results as a single line
    item in the group's discontinued operations in
    the income statement. In addition, the
    previously eliminated intercompany transactions
    between the group's continuing and
    discontinued operations have been presented
    separately within the group's continuing and
    discontinuing operations as applicable.
-   Recognition of an impairment loss, being the
    difference between OA GM's fair value less
    costs to sell and its recognised carrying value.
    The impairment loss has been limited to the
    value of OA GM's non-financial assets. The
    remaining loss will be recognised in the income
    statement at the time at which the transaction is
    completed.

The fair value of OA GM was determined using
valuation techniques that incorporate unobservable
inputs. Accordingly, the non-current assets and
liabilities held for sale have been classified within
level 3 of the fair value hierarchy. However, for
disclosure purposes, the financial assets and
financial liabilities within the non-current assets and
liabilities held for sale classification that are
measured at fair value have been categorised as
level 1, 2, and 3 as appropriate in these results' fair
value disclosures.

Day one profit or loss
The table below sets out the aggregate net day one profits yet to be recognised in profit or loss at the
beginning and end of the period with a reconciliation of changes in the balances during the period.

                                                      Derivative   Trading           
                                                     instruments    assets   Total   
                                                              Rm        Rm      Rm   
Unrecognised net profit – 1 January 2013 (audited)           384        13     397   
Additional net profit on new transactions                     13                13   
Recognised in profit or loss during the year               (153)             (153)   
Exchange differences                                                     3       3   
Unrecognised net profit – 1 January 2014 (audited)           244        16     260   
Additional net loss on new transactions                    (137)             (137)   
Recognised in profit or loss during the year                  29                29   
Unrecognised net profit – 30 June 2014 (unaudited)           136        16     152   


Fair value disclosures

Financial assets and liabilities
measured at fair value

Fair value hierarchy of instruments
measured at fair value

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, respectively, be received to sell an asset or
paid to transfer a liability in an orderly transaction in
the principal (or most advantageous) market
between market participants at the measurement
date. Fair value is therefore a market-based
measurement and uses the assumptions that market
participants would use when pricing an asset or
liability under current market conditions. When
determining fair value it is presumed that the entity
is a going concern and the fair value is therefore not
an amount that represents a forced transaction,
involuntary liquidation or a distressed sale.
Information obtained from the valuation of financial
instruments is used to assess the performance of the
group and, in particular, provides assurance that the
risk and return measures that the group has taken
are accurate and complete.

Valuation process
The group's valuation control framework governs
internal control standards, methodologies, and
procedures over its valuation processes, which include:

Prices quoted in an active market: 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
financial assets and financial liabilities.

Valuation techniques: Where quoted market
prices are unavailable, the group establishes fair
value using valuation techniques that incorporate
observable inputs, either directly, such as quoted
prices, or indirectly, such as derived from quoted
prices, for such assets and liabilities. Parameter
inputs are obtained directly from the market,
consensus pricing services or recent transactions in
active markets, whenever possible.

Where such inputs are not available, the group makes
use of theoretical inputs in establishing fair value
(unobservable imputs). Such inputs are based on
other relevant inputs sources of information and incorporate
assumptions that include prices for similar transactions,
historic data, economic fundamentals, and research
information, with appropriate adjustment to reflect the
terms of the actual instrument being valued and
current market conditions. Changes in these
assumptions would affect the reported fair values of
these financial instruments.

Valuation techniques used for financial instruments
include the use of financial models that 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 fair value of certain financial
instruments is determined using industry standard
models such as, discounted cash flow analysis and
standard option pricing models. These models are
generally used to estimate future cash flows and
discount these back to the valuation date. For
complex or unique instruments, more sophisticated
modelling techniques may be required, which
require assumptions or more complex parameters
such as correlations, prepayment spreads, default
rates and loss severity.

Valuation adjustments: Valuation adjustments are
an integral part of the valuation process. In making
appropriate valuation adjustments, the group follows
methodologies that consider factors such as bid-offer
spreads, liquidity, counterparty and own credit risk.

Validation and control: All financial instruments
carried at fair value, regardless of classification,
and for which there are no quoted market prices
for that instrument, are fair valued using models
that conform to international best practice and
established financial theory. These models are
validated independently by the group's model
validation unit and formally reviewed and approved
by the market risk methodologies committee. This
control applies to both off-the-shelf models as well
as those developed internally by the group.
Further, all inputs into the valuation models are
subject to independent price validation procedures
carried out by the group's market risk unit. Such
price validation is performed on at least a monthly,
basis but daily where possible given the availability
of the underlying price inputs. Independent
valuation comparisons are also performed and any
significant variances noted are appropriately
investigated. Less liquid risk drivers, which are
typically used to mark level 3 assets and liabilities
to model, are carefully validated and tabled at the
monthly price validation forum to ensure that these
are reasonable and used consistently across all
entities in the group. Sensitivities arising from
exposures to such drivers are similarly scrutinised,
together with movements in level 3 fair values.
They are also disclosed on a monthly basis at the
market risk and asset and liability committees.

Portfolio exception: The group has, on meeting
certain qualifying criteria, elected the portfolio
exception to measure the fair value of certain
groups of financial assets and financial liabilities on
a net basis.

Fair value hierarchy
The tables that follow analyses the group's financial
instruments carried at fair value, by level of fair
value hierarchy. The different levels are based on
the extent to which observable and unobservable
market data is used in the calculation of the fair
value of the financial instruments. The levels have
been defined as follows:

Level 1 – fair value is 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 value is determined through valuation
techniques based on observable inputs, either
directly, such as quoted prices, or indirectly, such as
those derived from quoted prices. This category
includes instruments valued using quoted market
prices in active markets for similar instruments,
quoted prices for identical or similar instruments in
markets that are considered less than active or
other valuation techniques where all significant
inputs are directly or indirectly observable from
market data.

Level 3 – fair value is determined through valuation
techniques using significant unobservable inputs.
This category includes all instruments where the
valuation technique includes inputs not based on
observable data and the unobservable inputs have a
significant effect on the instrument's valuation. This
category includes instruments that are valued based
on quoted prices for similar instruments where
significant unobservable adjustments or
assumptions are required to reflect differences
between the instrument being valued and the
similar instrument.

Significant unobservable inputs
The fair value of level 3 financial assets and liabilities
is determined using valuation techniques which
include reference to recent arm's length transactions,
discounted cash flow analyses, pricing models and
other valuation techniques commonly used by market
participants. However, such techniques typically have
unobservable inputs that are subject to management
judgement. 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 the financial instruments. These inputs include,
but are not limited to, credit spreads on illiquid
issuers, implied volatilities on thinly traded stocks,
correlation between risk factors, prepayment rates,
and other illiquid risk drivers. Exposure to such
illiquid risk drivers is typically managed by:
-     using bid-offer spreads that are reflective of the
      relatively low liquidity of the underlying risk
      driver
-     quantifying and reporting the sensitivity to each
      risk driver
-     raising day one profit provisions in accordance
      with IFRS and
-     limiting exposure to such risk drivers and
      analysing this exposure on a regular basis.

Accounting classifications and fair values of financial assets and liabilities

The unaudited table below categorises the group's assets and liabilities as at 30 June 2014 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.

                                            Held-for-      Designated   Held-to-   
                                           trading(1)   at fair value   maturity   
                                                   Rm              Rm         Rm   
Assets                                                                             
Cash and balances with central banks                                               
Derivative assets                              55 282                              
Trading assets                                 65 458                              
Pledged assets                                  2 465           6 364              
Non-current assets held for sale              116 441                              
Financial investments                                         366 135     15 576   
Loans and advances to banks                                     1 443              
Loans and advances to customers                                   482              
Interest in associates and joint ventures                                          
Investment property                                                                
Other financial assets(4)                                                          
Other non-financial assets                                                         
                                              239 646         374 424     15 576   
Liabilities                                                                        
Derivative liabilities                         60 950                              
Trading liabilities                            43 487                              
Non-current liabilities held for sale          60 280           1 039              
Deposits from banks                                                                
Deposits from customers                                        24 555              
Policyholders' liabilities                                     79 997              
Subordinated debt                                                                  
Other financial liabilities(4)                                 42 456              
Other non-financial liabilities                                                    
                                              164 717         148 047              


(1) Includes derivative assets or 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 value, excluding non-financial assets and liabilities.
(4) The carrying value of other financial assets/liabilities approximates fair value due to their short-term nature.

                                                      Other                             
                                      Other   non-financial       Total                 
     Loans and   Available-for-   amortised         assets/    carrying                 
receivables(2)             sale     cost(2)     liabilities      amount   Fair value(3)   
            Rm               Rm          Rm              Rm          Rm              Rm   
        46 786                                                   46 786          46 786   
                                                                 55 282          55 282   
                                                                 65 458          65 458   
           217            2 014                                  11 060          11 066   
        70 647               32                       1 912     189 032         182 020   
         7 891           32 329                                 421 931         422 686   
       102 813                                                  104 256         104 099   
       781 877                                                  782 359         786 425   
                                                      3 422       3 422                   
                                                     25 645      25 645                   
         6 661                                                    6 661                   
                                                     56 385      56 385                   
     1 016 892           34 375                      87 364   1 768 277 

                                                                 60 950          60 950   
                                                                 43 487          43 487   
                                     75 174             523     137 016         132 096   
                                     83 851                      83 851          84 460   
                                    867 942                     892 497         913 839   
                                                    198 901     278 898          79 997   
                                     21 776                      21 776          19 626   
                                     20 243                      62 699                   
                                                     29 993      29 993                 
                                  1 068 986         229 417   1 611 167                 
  
  
                                                        
                                            Held-for-      Designated   Held-to-   
                                           trading(1)   at fair value   maturity   
                                                   Rm              Rm         Rm   
Assets                                                                             
Cash and balances with central banks                                               
Derivative assets                              64 474                              
Trading assets                                 54 588                              
Pledged assets                                  3 324           1 348              
Non-current assets held for sale              107 306                              
Financial investments                             506         342 896     13 264   
Loans and advances to banks                                       668              
Loans and advances to customers                 1 074             181          4   
Interest in associates and joint ventures                                          
Investment property                                                                
Other financial assets(4)                                                          
Other non-financial assets                                                         
                                              231 272         345 093     13 268   
Liabilities                                                                        
Derivative liabilities                         69 244                              
Trading liabilities                            35 368                              
Non-current liabilities held for sale          57 194             294              
Deposits from banks                                               961              
Deposits from customers                                        24 377              
Policyholders' liabilities                                     74 146              
Subordinated debt                                                                  
Other financial liabilities(4)                                 39 983              
Other non-financial liabilities                                                    
                                              161 806         139 761              


(1) Includes derivative assets or 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 value, excluding non-financial assets and liabilities.
(4) The carrying value of other financial assets/liabilities approximates fair value due to their short-term nature.

                                                      Other                             
                                      Other   non-financial       Total                 
     Loans and   Available-for-   amortised         assets/    carrying                 
receivables(2)             sale     cost(2)     liabilities      amount   Fair value(3)   
            Rm               Rm          Rm              Rm          Rm              Rm   
        53 310                                                   53 310          53 310   
                                                                 64 474          64 474   
                                                                 54 588          54 588   
                          2 041                                   6 713           6 713   
        74 871               29                       1 078     183 284         180 051   
        11 162           27 889                                 395 717         396 243   
        94 236                                                   94 904          95 034   
       743 457                                                  744 716         736 389   
                                                      4 797       4 797                   
                                                     27 299      27 299          27 299   
         8 365                                                    8 365                   
                                                     52 762      52 762                   
       985 401           29 959                      85 936   1 690 929 

                                                                 69 244          69 244   
                                                                 35 368          35 368   
                                     75 505           1 511     134 504         130 031   
                                     67 689                      68 650          68 877   
                                    828 711                     853 088         858 875   
                                                    189 798     263 944          74 146   
                                     24 516                      24 516          22 096   
                                     31 347                      71 330                 
                                                     17 637      17 637                 
                                  1 027 768         208 946   1 538 281                 


Financial assets and liabilities measured at fair value (unaudited)
as at 30 June 2014

                                         Level 1   Level 2   Level 3     Total   
                                              Rm        Rm        Rm        Rm   
Financial assets                                                                 
Measured on a recurring basis                                                    
Derivative assets                            781    53 708       793    55 282   
Trading assets                            21 169    40 913     3 376    65 458   
Pledged assets                             6 636     4 207              10 843   
Financial investments                    187 650   201 475     9 339   398 464   
Loans and advances to banks                  707       736               1 443   
Loans and advances to customers                7       468         7       482   
Measured on a non-recurring basis                                                
Non-current assets held for sale(1)       34 228    76 444     5 801   116 473   
                                         251 178   377 951    19 316   648 445   
Comprising:                                                                      
Held-for-trading                                                       239 646   
Designated at fair value                                               374 424   
Available-for-sale                                                      34 375   
                                                                       648 445   
Financial liabilities                                                            
Measured on a recurring basis                                                    
Derivative liabilities                              53 520     7 430    60 950   
Trading liabilities                       27 862    15 091       534    43 487   
Deposits from customers                      297    24 258              24 555   
Policyholders' liabilities                          79 997              79 997   
Other financial liabilities                         42 456              42 456   
Measured on a non-recurring basis                                                
Non-current liabilities held for sale(1)  11 251    43 977     6 091    61 319   
                                          39 410   259 299    14 055   312 764   
Comprising:                                                                      
Held-for-trading                                                       164 717   
Designated at fair value                                               148 047   
                                                                       312 764   

(1) While the disposal group has been classified as held for sale and has been measured to its fair value less costs to sell, the disposal
    group's fair value measured assets and liabilities have been categorised within the fair value hierarchy.

Financial assets and liabilites measured at fair value (audited) continued as at 31 December 2013

                                         Level 1   Level 2   Level 3     Total   
                                              Rm        Rm        Rm        Rm   
Financial assets                                                                 
Measured on a recurring basis                                                    
Derivative assets                             91    62 293     2 090    64 474   
Trading assets                            19 477    33 001     2 110    54 588   
Pledged assets                             3 525     3 180         8     6 713   
Financial investments                    178 044   189 066     4 181   371 291   
Loans and advances to banks                  668                           668   
Loans and advances to customers                7     1 205        43     1 255   
Measured on a non-recurring basis                                                
Non-current assets held for sale(1)       24 942    76 780     5 613   107 335   
                                         226 754   365 525    14 045   606 324   
Comprising:                                                                      
Held-for-trading                                                       231 272   
Designated at fair value                                               345 093   
Available-for-sale                                                      29 959   
                                                                       606 324   
Financial liabilities                                                            
Measured on a recurring basis                                                    
Derivative liabilities                       162    61 207     7 875    69 244   
Trading liabilities                       18 384    16 552       432    35 368   
Deposits from banks                                    961                 961   
Deposits from customers                      389    23 988              24 377   
Policyholders' liabilities                          74 146              74 146   
Other financial liabilities                         39 983              39 983   
Measured on a non-recurring basis                                                
Non-current liabilities held for sale(1)   7 981    42 579     6 928    57 488   
                                          26 916   259 416    15 235   301 567   
Comprising:                                                                      
Held-for-trading                                                       161 806   
Designated at fair value                                               139 761   
                                                                       301 567   

(1) While the disposal group has been classified as held for sale and has been measured to its fair value less costs to sell, the disposal
    group's fair value measured assets and liabilities have been categorised within the fair value hierarchy.

Level 2 and 3 – valuation techniques
and inputs

Derivative financial instruments
Derivative financial instruments comprise foreign
exchange, interest rate, commodity, credit and equity
derivatives that are either held-for-trading or
designated as hedging instruments in hedge
relationships. Standard derivative contracts are valued
using market accepted models and quoted parameter
inputs. More complex derivative contracts are
modelled using more sophisticated modelling
techniques applicable to the instrument. Inputs used
in the valuation process include spot prices of the
underlying, dividend yields, risk-free rates, risk-
premiums, timing of settlement, storage/services
costs, credit risks, volatilities, prepayment risk/
surrender risk and recovery rates/loss given default.

Trading assets and liabilities, pledged
assets and financial investments
Trading assets and liabilities comprise instruments
which are part of the group's underlying trading
activities. These instruments include sovereign and
corporate debt, commodities, collateral, collateralised
lending agreements and equity securities.

Pledged assets comprise instruments that may be
sold or repledged by the group in the absence of
default by the group. Pledged assets are non-trading
assets that include sovereign and corporate debt,
commodities pledged in terms of repurchase
agreements and commodities that have been leased
to third parties.

Financial investments are non-trading financial assets
and comprise of listed and unlisted equity
instruments, listed sovereign or corporate debt,
investments in debentures issued by SARB,
investments in mutual fund investments and
unit-linked investments.

Where there are no recent transactions, fair value is
derived from the last available market price adjusted
for changes in risks and information since that date.
Where a proxy instrument is quoted in an active
market, the fair value for the financial investment is
determined by adjusting the proxy fair value for
differences between the proxy instrument and the
financial investment. Where proxies are not available,
then fair value is estimated using more complex
modelling techniques. These techniques include
discounted cash flow and Black-Scholes models using
current market rates for credit, interest, liquidity,
volatility and other risks. Combination techniques are
used to value unlisted equity securities and include
inputs such as earnings and dividend yields of the
underlying entity.

Loans and advances
Loans and advances comprise:
-   Loans and advances to banks: call loans,
    loans granted under resale agreements and
    balances held with other banks.
-   Loans and advances to customers: mortgage
    loans (home loans and commercial mortgages),
    other asset-based loans, including collateralised
    debt obligations (instalment sale and finance
    leases), and other secured and unsecured loans
    (card debtors, overdrafts, other demand
    lending, term lending and loans granted under
    resale agreements).

For certain loans fair value may be determined from
the market price of a recently occurring transaction
adjusted for changes in risks and information
between the transaction and valuation dates. Loans
and advances are reviewed for observed and verified
changes in credit risk and the credit spread is
adjusted at subsequent dates if there has been an
observable change in credit risk relating to a
particular loan or advance. In the absence of an
observable market for these instruments, discounted
cash flow models are used to determine fair value.
Discounted cash flow models incorporate parameter
inputs for interest rate risk, foreign exchange risk,
liquidity and credit risk, as appropriate. For credit
risk, probability of default and loss given default
parameters are determined using credit default
swaps (CDS) markets, where available and
appropriate, as well as the relevant terms of the loan
and loan counterparty such as the industry
classification and subordination of the loan.

Deposits from banks and customers and
other financial liabilities
Deposits from banks and customers comprise
amounts owed to depositors, deposits under
repurchase agreements, negotiable certificates of
deposit and other deposits.

For certain deposits, fair value may be determined
from the market price on a recently occurring
transaction adjusted for all changes in risks and
information between the transaction and valuation
dates. In the absence of an observable market for
these instruments discounted cash flow models are
used to determine fair value based on the contractual
cash flows related to the instrument. The fair value
measurement incorporates all market risk factors
including a measure of the group's credit risk relevant
for that financial liability. The market risk parameters
are valued consistently to similar instruments held as
assets stated in the section above. Where the financial
liabilities designated at fair value through profit or loss
under the fair value option are collateralised, such as
securities loaned and securities pledged under
repurchase agreements, the credit enhancement is
incorporated into the fair valuation of the liability.

The fair value of third party financial liabilities
arising on the consolidation of mutual funds are
determined using the quoted put (exit) price
provided by the fund manager and discounted for
the applicable notice period.

The fair value of a financial liability with a demand
feature is not less than the amount payable on
demand, discounted from the first date on which
the amount could be required to be paid.

Policyholder liabilities
Policyholder liabilities comprise unit-linked policies
and annuity certains. The fair value for these items
is derived as follows:
-    Unit-linked policies: assets which are linked
     to the investment contract liabilities are owned
     by the group. The investment contract obliges
     the group to use these assets to settle these
     liabilities. Therefore, the fair value of
     investment contract liabilities is determined
     with reference to the fair value of the
     underlying assets (i.e. amount payable on
     surrender of the policies).
-    Annuity certains: discounted cash flow
     models are used to determine the fair value of
     the stream of future payments and incorporate
     parameter inputs for interest rate risk, liquidity
     and credit risk as appropriate.

Level 2 financial assets and financial liabilities
The following table sets out the group's principal valuation techniques 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 inputs and assumptions               
Derivative instruments            Discounted cash flow, Black-        Discount rate*, spot price of the         
                                  Scholes and combination             underlying, volatility and correlation    
                                  technique models                    factors, dividend yield, earnings yield   
                                                                      and valuation multiples.                  
Trading assets                    Discounted cash flow model          Discount rate* and spot price of the      
                                                                      underlying.                               
Pledged assets                    Discounted cash flow model          Discount rate* and spot price of the      
                                                                      underlying.                               
Financial investments             Discounted cash flow, combination   Discount rate*, spot price of the         
                                  technique models and adjusted       underlying, notice period, dividend       
                                  quoted exit price model             yield, earnings yield and valuation       
                                                                      multiples.                                
Loans and advances to banks and   Discounted cash flow model          Discount rate*                            
 customers                                                                                                       
Trading liabilities               Discounted cash flow model          Discount rate* and spot price of the      
                                                                      underlying.                               
Deposits from banks and           Discounted cash flow model          Discount rate*                            
 customers                                                                                                       
Policyholder liabilities.         Discounted cash flow model and      Discount rate* and spot price of the      
                                  unit-linked underlying asset        underlying.                               
                                  value method                                                                  
Other financial liabilities       Quoted put (exit) price provided    N/A
                                  by the fund manager         


*Discount rates, where applicable, include the risk-free rate, risk premiums, liquidity spreads, credit risk (own and counterparty as appropriate),
 timing of settlement, service costs, prepayment and surrender risk assumptions.

Level 3 financial assets and financial liabilities
The tables below set out the reconciliation of financial assets that are measured at fair value based on
inputs that are not based on observable market data (level 3):

Reconciliation of level 3 financial assets measured on a recurring basis

                                                  Derivative   Trading   Pledged   
                                                      assets    assets    assets   
                                                          Rm        Rm        Rm   
Balance at 1 January 2013 (audited)                    3 397     6 344             
Classified as held for sale                          (1 914)   (5 992)             
Total gains/(losses) included in profit or loss        1 282      (60)             
Interest income                                                                    
Trading revenue                                        1 282      (60)             
Other revenue                                                                      
Investment gains                                                                   
Total gains/(losses) included in OCI                       1                       
Originations and purchases                               499     3 087         6   
Sales and settlements(1)                             (1 182)   (2 019)             
Transfers into level 3(3)                                 12       798             
Transfers out of level 3(2)                              (7)      (13)             
Exchange movements                                         2      (35)         2   
Balance at 1 January 2014 (audited)                    2 090     2 110         8   
Total (losses)/gains included in profit or loss          (9)      (50)             
Interest income                                                                    
Trading revenue                                          (9)      (50)             
Other revenue                                                                      
Investment gains                                                                   
Total losses included in OCI                                                       
Originations and purchases                               264     2 160             
Sales and settlements(1)                             (1 797)     (296)       (8)   
Transfers into level 3(3)                                245                       
Transfers out of level 3(2)                                                        
Reclassifications (IAS 39)(4)                                    (546)             
Exchange movements                                                 (2)             
Balance at 30 June 2014 (unaudited)                      793     3 376             


(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) The valuation inputs of certain financial assets became unobservable. The fair value of these assets was
    transferred into level 3.
(3) The valuation inputs of certain level 3 financial assets became observable. The fair value of these financial assets
    was transferred into level 2.
(4) Certain trading assets were, as permitted by IAS 39, reclassified to loans and receivables.

                                  Measured on a             
                                  non-recurring             
Measured on a recurring basis             basis             
    Loans and                       Non-current             
  advances to         Financial     assets held             
    customers       investments        for sale     Total   
           Rm                Rm              Rm        Rm   
          215             5 528                    15 484   
                            (5)           7 911             
          132               207         (1 589)      (28)   
                            (2)                       (2)   
          132              (22)         (1 589)     (257)   
                            225                       225   
                              6                         6   
                            (1)                             
                          1 325             961     5 878   
        (291)           (3 267)         (2 748)   (9 507)   
                            118                       928   
         (21)              (36)                      (77)   
            8               312           1 078     1 367   
           43             4 181           5 613    14 045   
         (13)                42             527       497   
                             10                        10   
         (13)              (12)             527       443   
                             23                        23   
                             21                        21   
                            (5)                       (5)   
                          5 868             315     8 607   
         (31)             (596)         (1 070)   (3 798)   
                                          1 045     1 290   
                          (139)           (705)     (844)   
                                                    (546)   
            8              (12)              76        70   
            7             9 339           5 801    19 316   


Level 3 financial assets and financial liabilities
The table below provides disclosure of the unrealised (losses)/gains included in profit or loss for level 3
financial assets that are held at the end of the respective reporting periods:

                                                               Measured on a           
                                                               non-recurring           
                     Measured on a recurring basis                     basis           
                                                                 Non-current           
                   Derivative          Trading     Financial     assets held           
                       assets           assets   investments        for sale   Total   
                           Rm               Rm            Rm              Rm      Rm   
30 June 2014                                                                           
(unaudited)                                                                            
Interest income                                           10                      10   
Trading revenue          (63)             (38)                           913     812   
Other revenue                                            (9)                     (9)   
                         (63)             (38)             1             913     813   
31 December 2013                                                                       
(audited)                                                                              
Trading revenue         1 271             (35)                           913   2 149   
Other revenue                                             76                      76   
                        1 271             (35)            76             913   2 225   


The following table provides a reconciliation of the opening to closing balance for all financial liabilities that
are measured at fair value based on inputs that are not based on observable market data (level 3).

Reconciliation of level 3 financial liabilities

                                                                                   Measured             
                                                                                  on a non-             
                                                                                  recurring             
                                      Measured on a recurring basis                   basis             
                                                                      Policy-   Non-current             
                                    Derivative          Trading      holders'   assets held             
                                   liabilities      liabilities   liabilities      for sale     Total   
                                            Rm               Rm            Rm            Rm        Rm   
Balance at 1 January 2013                                                                               
(audited)                                2 335            5 021            10                   7 366   
Classified as held for sale              (898)          (5 021)                       5 919             
Total losses/(gains) included in                                                                        
 profit or loss – trading revenue        4 084             (27)                       (434)     3 623   
Originations and purchases               3 050              458                         590     4 098   
Sales and settlements(3)                 (633)                                        (856)   (1 489)   
Transfers into level 3(2)                   58                                          378       436   
Transfers out of level 3(1)                (8)                                                    (8)   
Net change in policyholders'                                                                            
 liabilities                                                             (10)                    (10)   
Exchange movements                       (113)                1                       1 331     1 219   
Balance at 1 January 2014                                                                               
(audited)                                7 875              432                       6 928    15 235   
Total losses/(gains) included in                                                                        
 profit or loss – trading revenue        1 025              (9)                         655     1 671   
Originations and purchases                                   89                         166       255   
Sales and settlements(3)               (1 711)                                      (1 199)   (2 910)   
Transfers into level 3(2)                  244               23                                   267   
Transfers out of level 3(1)                (2)                                        (556)     (558)   
Exchange movements                         (1)              (1)                          97        95   
Balance at 30 June 2014                                                                                 
(unaudited)                              7 430              534                       6 091    14 055   

(1) The valuation inputs of certain financial liabilities became unobservable. The fair value of these liabilities was transferred
    into level 3.
(2) The valuation inputs of certain level 3 financial assets became observable. The fair value of these financial liabilities was
    transferred into level 2.
(3) 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.

The following table provides disclosure of the unrealised losses/(gains) included in profit or loss for level 3
financial liabilities that are held at the end of the respective reporting period.

                                                                      Measured on a           
                                                                      non-recurring           
                             Measured on a recurring basis                    basis           
                                Derivative             Trading   Non-current assets           
                               liabilities         liabilities        held for sale   Total   
                                        Rm                  Rm                   Rm      Rm   
30 June 2014 (unaudited)                                                                      
Trading revenue                        897                 (9)                  400   1 288   
31 December 2013 (audited)                                                                    
Trading revenue                      3 862                (32)                  436   4 266   


Sensitivity and interrelationships of inputs
The behaviour of the unobservable parameters used to fair value level 3 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 that follows indicates the valuation techniques and main assumptions used in
the determination of the fair value of the level 3 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 and OCI (where viable) at the
reporting date (where the change in the unobservable input would change the fair value of the asset or
liability significantly). The changes in the inputs that have been used in the analysis on the next page 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.

The valuation techniques used in determining the fair value of financial assets and liabilities
classified within level 3 (unaudited)

as at 30 June 2014

                                                                                       Effect on profit or loss   
                                                                      Variance in                                 
                                                                       fair value                          (Un-   
                         Valuation basis/      Main inputs and           measure-   Favourable      favourable)   
                         technique             assumptions                   ment           Rm               Rm   
Derivative instruments   Discounted cash       Discount rate*,          (1%) – 1%          269            (269)   
                         flow, Black-Scholes   spot price of the                                                  
                         and combination       underlying,                                                        
                         technique models      volatility and                                                     
                                               correlation factors,                                               
                                               dividend yield,                                                    
                                               earnings yield and                                                 
                                               valuation multiples                                                
Trading assets           Discounted cash       Discount rate* and       (1%) – 1%          436            (438)   
                         flow model            spot price of the                                                  
                                               underlying                                                         
Financial investments    Discounted cash       Discount rate*,          (1%) – 1%          376            (317)   
                         flow and              spot price of the                                                  
                         combination           underlying,                                                        
                         technique models      dividend yield,                                                    
                                               earnings yield and                                                 
                                               valuation multiples                                                
Loans and advances       Discounted cash       Discount rate*           (1%) – 1%            –                –   
 to customers            flow model                                                                               
Trading liabilities      Discounted cash       Discount rate* and       (1%) – 1%            2            (314)   
                         flow model            spot price of the                                                  
                                               underlying                                                         
                                                                                         1 083          (1 338)   


* Discount rates, where applicable, include risk-free rate, risk premiums, liquidity spreads, credit risk (own and counterparty
  as per appropriate) timing of settlement, service costs, pre-payment and surrender risk assumptions.

Level 3 non-current assets and liabilities are included in the separate asset classes, inputs and changes in assumptions
above.

The valuation techniques used in determining the fair value of financial assets and liabilities
classified within level 3 (unaudited)
as at 31 December 2013(1)

                                                                                    Effect on profit or loss   
                                                                   Variance in                                 
                                                                    fair value                          (Un-   
                         Valuation basis/      Main inputs and        measure-   Favourable      favourable)   
                         technique             assumptions                ment           Rm               Rm   
Derivative instruments   Discounted cash       Discount rate*,       (1%) – 1%          207            (209)   
                         flow, Black-Scholes   spot price of the                                               
                         and combination       underlying,                                                     
                         technique models      volatility and                                                  
                                               correlation                                                     
                                               factors, dividend                                               
                                               yield, earnings                                                 
                                               yield and                                                       
                                               valuation                                                       
                                               multiples                                                       
Trading assets           Discounted cash       Discount rate*        (1%) – 1%          548            (548)   
                         flow model            and spot price of                                               
                                               the underlying                                                  
Financial investments    Discounted cash       Discount rate*        (1%) – 1%          235            (205)   
                         flow and              spot price of the                                               
                         combination           underlying,                                                     
                         technique models      dividend yield,                                                 
                                               earnings yield                                                  
                                               and valuation                                                   
                                               multiples                                                       
Loans and advances to    Discounted cash       Discount rate*        (1%) – 1%            1              (1)   
 customers               flow model                                                                            
Trading liabilities      Discounted cash       Discount rate*        (1%) – 1%          126            (126)   
                         flow model            and spot price of                                               
                                               the underlying                                                  
                                                                                      1 117          (1 089)   


*  Discount rates, where applicable, include risk-free rate, risk premiums, liquidity spreads, credit risk (own and counterparty
   as per appropriate) timing of settlement, service costs, pre payment and surrender risk assumptions.
(1) Additional detail provided based on the group's existing valuation techniques and model inputs.

Level 3 non-current assets and liabilities are included in the separate asset classes, inputs and changes in assumptions
above.

Financial instruments subject to offsetting, enforceable master netting
arrangements or similar agreements
IFRS requires financial assets and a financial liabilities to be offset and the net amount presented in the
statement of financial position when, and only when, the group has a current legally enforceable right to
set off recognised amounts, as well as the intention to settle on a net basis or to realise the asset and
settle the liability simultaneously. There are no instances where the group has a current legally
enforceable right to offset, without the intention to settle on a net basis or to realise the asset and settle
the liability simultaneously.

The following table sets out the impact of offset, as well as financial assets and financial liabilities that are
subject to enforceable master netting arrangement or similar agreement, irrespective of whether they have
been offset in accordance with IFRS. There are no items measured on different measurement basis within
the line items in the tables

It should be noted that the information below is not intended to represent the group's actual credit
exposure, nor will it agree to that presented in the statement of financial position.
     
                                               Gross                                          
                                          amounts of                                          
                                          recognised                                          
                                           financial                     Financial            
                                         liabilities                  instruments,            
                                Gross         offset                     financial            
                            amount of         in the            Net     collateral            
                           recognised      statement        amounts       and cash            
                            financial   of financial   of financial     collateral      Net   
                            assets(1)    position(2)      assets(3)    received(4)   amount   
                                   Rm             Rm             Rm             Rm       Rm   
30 June 2014                                                                                  
(unaudited)                                                                                   
Assets                                                                                        
Derivative assets             104 244       (24 941)         79 303       (55 115)   24 188   
Trading assets                 14 191                        14 191       (14 191)            
Loans and advances(5)         131 276       (32 750)         98 526       (95 519)    3 007   
                              249 711       (57 691)        192 020      (164 825)   27 195   

Refer to page 46 for the footnotes.

                                               Gross                                          
                                          amounts of                                          
                                          recognised                                          
                                           financial                     Financial            
                                              assets                  instruments,            
                                Gross         offset                     financial            
                            amount of         in the            Net     collateral            
                           recognised      statement        amounts       and cash            
                            financial   of financial   of financial     collateral      Net   
                       liabilities(1)    position(2) liabilities(3)    received(6)   amount   
                                   Rm             Rm             Rm             Rm       Rm   
30 June 2014                                                                                  
(unaudited)                                                                                   
Liabilities                                                                                   
Derivative liabilities        106 791       (24 941)         81 850       (56 173)   25 677   
Trading liabilities             4 858                         4 858        (4 781)       77   
Deposit and current                                                                           
accounts(5)                    48 374       (32 750)         15 624        (5 732)    9 892   
                              160 023       (57 691)        102 332       (66 686)   35 646   

Refer to page 46 for the footnotes.

                                               Gross                                          
                                          amounts of                                          
                                          recognised                                          
                                           financial                     Financial            
                                         liabilities                  instruments,            
                                Gross         offset                     financial            
                            amount of         in the            Net     collateral            
                           recognised      statement        amounts       and cash            
                            financial   of financial   of financial     collateral      Net   
                            assets(1)    position(2)      assets(3)    received(4)   amount   
                                   Rm             Rm             Rm             Rm       Rm   
31 December 2013
(audited)
Assets
Derivative assets             104 088       (16 236)         87 852       (73 437)   14 415
Trading assets                 19 079                        19 079       (18 506)      573
Loans and advances(5)         116 322       (33 743)         82 579       (79 294)    3 285
                              239 489       (49 979)        189 510      (171 237)   18 273

Refer to page 46 for the footnotes.                              

                                               Gross                                          
                                          amounts of                                          
                                          recognised                                          
                                           financial                     Financial            
                                              assets                  instruments,            
                                Gross         offset                     financial            
                            amount of         in the            Net     collateral            
                           recognised      statement        amounts       and cash            
                            financial   of financial   of financial     collateral      Net   
                       liabilities(1)    position(2) liabilities(3)    received(6)   amount   
                                   Rm             Rm             Rm             Rm       Rm   
31 December 2013
(audited)
Liabilities
Derivative liabilities        107 339       (16 236)         91 103       (72 749)   18 354
Trading liabilities             7 879                         7 879        (7 879)
Deposit and current 
 accounts(5)                   47 696       (33 743)         13 953        (3 932)   10 021
                              162 914       (49 979)        112 935       (84 560)   28 375

(1) Gross amounts are disclosed for recognised assets and liabilities that are either offset in the statement of financial position
    or subject to a master netting arrangement or a similar agreement, irrespective of whether the IFRS offsetting criteria is
    met.
(2) The amounts that qualify for offset in accordance with the IFRS criteria.
(3) Refer to the reconciliation on page 47.
(4) Related amounts not offset in the statement of financial position that are subject to a master netting arrangement or
    similar agreement, including financial collateral (whether recognised or unrecognised) and cash collateral. In most cases,
    the group is allowed to sell/repledge collateral received.
(5) The most material amounts offset in the statement of financial position pertain to cash management accounts. The cash
    management accounts allow holding companies (or central treasury functions) to manage the cash flows of a group by
    linking current accounts of multiple legal entities within a group. This allows for cash balances of the different legal
    entities to be offset against each other to arrive a net balance for those groups. The cash management accounts are offset
    in the statement of financial position in terms of IFRS.
(6) Related amounts not offset in the statement of financial position that are subject to a master netting arrangement or
    similar agreement, including financial (whether recognised or unrecognised) and cash collateral. In most instances, the
    counterparty may not sell or repledge collateral pledged by the group.

Reconciliation of net amounts included in the statement of financial
position after application offset

                                               Net
                                           amounts                                            Amounts
                                         presented                                          disclosed
                                            in the                                             in the
                                         statement      Amounts                             statement
                                      of financial  not subject                     Held of financial
                                          position    to offset        Total    for sale     position
                                                Rm           Rm           Rm          Rm           Rm
30 June 2014 (unaudited)
Assets
Cash and balances with central banks                     53 735       53 735       6 949       46 786
Derivative assets                           79 303       16 463       95 766      40 484       55 282
Trading assets                              14 191      118 134      132 325      66 867       65 458
Pledged assets                                           20 150       20 150       9 090       11 060
Financial investments                                   421 962      421 962          31      421 931
Loans and advances                          98 526      846 632      945 158      58 543      886 615
Non-current assets held for sale                                               (189 032)      189 032
Other financial and non-financial  
assets                                                   99 181       99 181       7 068       92 113
                                           192 020    1 576 257    1 768 277                1 768 277
Liabilities 
Derivative liabilities                      81 850       21 533      103 383      42 433       60 950
Trading liabilities                          4 858       56 476       61 334      17 847       43 487
Deposit and current accounts                15 624    1 024 410    1 040 034      63 686      976 348
Subordinated debt                                        29 445       29 445       7 669       21 776
Policyholders' liabilities                              278 898      278 898                  278 898
Non-current liabilities held for sale                                          (137 016)      137 016
Other financial and non-financial
liabilities                                             98 073        98 073       5 381       92 692
                                           102 332   1 508 835     1 611 167                1 611 167
31 December 2013 (audited) 
Assets 
Cash and balances with central banks                    67 409        67 409      14 099       53 310
Derivative assets                           87 852      16 042       103 894      39 420       64 474
Trading assets                              19 079      96 856       115 935      61 347       54 588
Pledged assets                                          13 252        13 252       6 539        6 713
Financial investments                                  395 746       395 746          29      395 717
Loans and advances                          82 579     815 597       898 176      58 556      839 620
Non-current assets held for sale                                               (183 284)      183 284
Other financial and non-financial
assets                                                  96 517        96 517       3 294       93 223
                                           189 510   1 501 419     1 690 929                1 690 929
Liabilities
Derivative liabilities                      91 103      17 362       108 465      39 221       69 244
Trading liabilities                          7 879      45 462        53 341      17 973       35 368
Deposit and current accounts                13 953     972 828       986 781      65 043      921 738
Subordinated debt                                       31 963        31 963       7 447       24 516
Policyholders' liabilities                             263 944       263 944                  263 944
Non-current liabilities held for sale                                          (134 504)      134 504
Other financial and non-financial 
liabilities                                             93 787        93 787       4 820       88 967
                                          112 935    1 425 346     1 538 281                1 538 281

The table below sets out the nature of the agreements and the rights relating to items which do not qualify
for offset but that are subject to a master netting arrangement or similar agreement.

Financial asset/liability           Nature of agreement        Related rights to offset
Derivative assets and liabilities   International swaps and    The agreement allows for offset in the
                                    derivatives                event of default
Trading assets and trading          Global master repurchase   The agreement allows for offset in the
liabilities                         agreements                 event of default
Loans and advances to banks         Banks Act                  In the event of liquidation or
                                                               bankruptcy, offset shall be enforceable
                                                               subject to Banks Act requirements
                                                               being met.
Deposit and current accounts        Banks Act                  In the event of liquidation or
                                                               bankruptcy, offset shall be enforceable
                                                               subject to Banks Act requirements
                                                               being met.

Accounting policies and restatements

Basis of preparation
The interim 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 interim 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
and early adoption of new and revised IFRS, as set
out below:

Adoption of new and amended
standards effective for the current
financial year
The accounting policies are consistent with those
reported in the previous year except as required in
terms of the adoption of the following standards
and interpretation effective for the current period:
-   IAS 32 Financial Instruments: Presentation
    – Amendment to Offsetting Financial Assets and
    Financial Liabilities (IAS 32)
-   IFRS 10 Consolidated Financial Statements –
    Investment Entities amendment (IFRS 10)
-   IFRIC 21 Levies (IFRIC 21).

Early adoption of revised standards
-    Amendment to IAS 16 Property, Plant and
     Equipment (IAS 16) and IAS 38 Intangible
     Assets (IAS 38) – Clarification of Acceptable
     Methods of Depreciation and Amortisation
     (2014 amendment)
-    IFRS 14 Regulatory Deferral Accounts
     (2014 issued) (IFRS 14).

Restatements
The abovementioned IFRS standards and
interpretation adopted on 1 January 2014 did not
have any effect on the group's previously reported
financial results or disclosures.

Other restatements and
reclassifications
The comparative income statement and statement
of financial position as at 30 June 2013 has been
adjusted to reflect the presentation consequences
of the following restatements and reclassifications:

IFRS 5 – Non-current Assets Held for Sale
and Discontinued Operations (IFRS 5)
Following the announcement in 2013 regarding the
intended disposal of the group's controlling interest
in the global markets business outside Africa, the
group's previously reported income statement has,
in accordance with IFRS 5, been restated in order to
present the discontinued operation's results as a
separate line item.

Deposits from customers to trading
liabilities
Liabilities of R6 805 million that are part of a
portfolio of assets and liabilities that are managed
together and for which there is evidence of a
recent actual pattern of short-term profit, were
previously classified as designated at fair value
through profit or loss within deposits from
customers. In accordance with IFRS and the group's
accounting policies, these liabilities should have
been classified as trading liabilities. The liabilities
have accordingly been reclassified from deposits
from customers to trading liabilities. The
restatement aligns to the presentation in the
group's 2013 annual financial statements. The
restatement had no impact on the group's reserves
or profit and loss.

IFRS 10: Restatement between interests
in associates and financial investments
An amount of R15 088 million relating to interests
in associates that were measured at fair value and
that were, in the group's June 2013 statement of
financial position, classified within interests in
associates have been reclassified to financial
investments, which now includes interests in
associates measured on a fair value basis. The
restatement aligns to the presentation in the
group's 2013 annual financial statements. The
restatement had no impact on the group's reserves
or profit and loss.

Accounting policies and restatements

Restatements of 30 June 2013
financial results

Consolidated income statement                                                                               
for the six months ended 30 June 2013                                                                       
                                                                  As previously                             
                                                                       reported   Restatement    Restated   
                                                                      Unaudited                 Unaudited   
                                                                             Rm            Rm          Rm   
Continuing operations                                                                                       
Income from banking activities                                           36 541       (1 238)      35 303   
Net interest income                                                      18 809            25      18 834   
Non-interest revenue                                                     17 732       (1 263)      16 469   
Income from investment management and life insurance activities          30 835                    30 835   
Total income                                                             67 376       (1 238)      66 138   
Credit impairment charges                                                 5 065          (63)       5 002   
Benefits due to policyholders                                            21 593                    21 593   
Income after credit impairment charges and policyholders'                                                   
 benefits                                                                40 718       (1 175)      39 543   
Revenue sharing agreements with group companies                                          (15)        (15)   
Income after revenue sharing agreements with group                                                          
 companies                                                               40 718       (1 190)      39 528   
Operating expenses in banking activities                                 21 129       (1 353)      19 776   
Staff costs                                                              12 082         (847)      11 235   
Other operating expenses                                                  9 047         (506)       8 541   
Operating expenses in investment management and life insurance                                              
 activities                                                               6 200                     6 200   
Net income before share of profits from associates and                                                      
 joint ventures                                                          13 389           163      13 552   
Share of profit from associates and joint ventures                          260                       260   
Net income before indirect taxation                                      13 649           163      13 812   
Indirect taxation                                                           892          (30)         862   
Profit before direct taxation                                            12 757           193      12 950   
Direct taxation                                                           3 093          (17)       3 076   
Profit for the period from continuing operations                          9 664           210       9 874   
Discontinued operation                                                                  (210)       (210)   
Profit for the period                                                     9 664                     9 664   
Attributable to non-controlling interests                                 1 422                     1 422   
Attributable to preference shareholders                                     176                       176   
Attributable to ordinary shareholders                                     8 066                     8 066   


Consolidated statement of financial position
as at 30 June 2013

                                                    As previously                              
                                                         reported   Restatements    Restated   
                                                        Unaudited                  Unaudited   
                                                               Rm             Rm          Rm   
Assets                                                                                         
Cash and balances with central banks                       56 041                     56 041   
Financial investments, trading and pledged assets         479 609         15 088     494 697   
Loans and advances                                        910 332                    910 332   
Derivative and other assets                               175 486                    175 486   
Interest in associates and joint ventures                  20 197       (15 088)       5 109   
Investment property                                        24 259                     24 259   
Goodwill and other intangible assets                       16 594                     16 594   
Property and equipment                                     16 200                     16 200   
Total assets                                            1 698 718                  1 698 718   
Equity and liabilities                                                                         
Equity                                                    144 123                    144 123   
Equity attributable to ordinary shareholders              122 348                    122 348   
Preference share capital and premium                        5 503                      5 503   
Non-controlling interest                                   16 272                     16 272   
Liabilities                                             1 554 595                  1 554 595   
Deposit and current accounts                              996 124        (6 805)     989 319   
Deposits from banks                                       162 450                    162 450   
Deposits from customers                                   833 674        (6 805)     826 869   
Derivative, trading and other liabilities                 286 101          6 805     292 906   
Policyholders' liabilities                                241 414                    241 414   
Subordinated debt                                          30 956                     30 956   
Total equity and liabilities                            1 698 718                  1 698 718   


Abbreviations and acronyms

BCBS ............... ................................ Basel Committee on Banking Supervision   
bps ................ ...........................................................Basis points   
BSI................. .................................... Banco Standard de Investimentos SA   
CAGR................ ........................................... Compound annual growth rate   
CDS ................ ...................................................Credit default swaps   
CIB................. .........................................Corporate & Investment Banking   
CSDP ............... ............................. Central Securities Depository Participant   
DT.................. .............................................. Dividend withholding tax   
FIC ................ ............................................. Fixed income and currency   
GDP................. .................................................Gross domestic product   
HEPS ............... ........................................... Headline earnings per share   
IAS................. .................................... International Accounting Standards   
ICBC ............... ............................... Industrial and Commercial Bank of China   
IFRIC .............. ............International Financial Reporting Interpretations Committee   
IFRS ............... ............................International Financial Reporting Standards   
JSE ................ ............................................................JSE Limited   
LCR................. ...............................................Liquidity coverage ratio   
Liberty............. .................................................Liberty Holdings Group   
NII ................ ................................................... Net interest income   
NIR ................ ...................................................Non-interest revenue   
NSFR ............... ...............................................Net stable funding ratio   
OA GM .............. ......................................... Outside Africa global markets   
OCI ................ ....................................Other comprehensive income business   
PBB ................ ........................................... Personal & Business Banking   
PIM ................ ....................................... Principal investment management   
RCS................. ........................... RCS Investment Holdings Proprietary Limited   
repos .............. ..........................................Reverse repurchase agreements   
ROE ................ ...................................................... Return on equity   
SAICA............... .......................South African Institute of Chartered Accountants   
SARB ............... .............................................South African Reserve Bank   
SB Plc ............. ..................................................... Standard Bank Plc   
SBG ................ ................................................... Standard Bank Group   
SENS ............... ........................................... Stock Exchange News Service   
STC ................ .............................................Secondary tax on companies   
the group .......... ................................................... Standard Bank Group   
Troika ............. ........................................... Troika Dialog Group Limited   
Tutuwa ............. ....................... Black economic empowerment ownership initiative   
USD ................ .................................................. United States Dollar   


Administrative and contact details

Standard Bank Group Limited                         Share transfer secretaries in
Registration number 1969/017128/06                  South Africa
Incorporated in the Republic of South Africa        Computershare Investor Services
Website: www.standardbank.com                       Proprietary Limited
                                                    70 Marshall Street, Johannesburg 2001
Registered office                                   PO Box 61051, Marshalltown 2107
9th Floor, Standard Bank Centre
5 Simmonds Street, Johannesburg 2001                Share transfer secretaries in Namibia
PO Box 7725, Johannesburg 2000                      Transfer Secretaries (Proprietary) Limited
                                                    4 Robert Mugabe Avenue
Group secretary                                     (entrance in Burg Street), 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 switchboard                             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
Kaisheng Yang** (Deputy chairman)                   SBKP ZAE000038881 (First preference shares)
SJ Macozoma (Deputy chairman)                       SBPP ZAE000056339 (Second preference shares)
RMW Dunne#, F du Plessis, TS Gcabashe, BJ Kruger*   JSE bond codes: SBS, SBK, SBN, SBR, ETN series
(Chief executive), Adv KD Moroka, AC Parker,        SSN series and CLN series (all JSE-listed bonds
SP Ridley*, MJD Ruck, Lord Smith of Kelvin KT#,     issued in terms of The Standard Bank of South
PD Sullivan†, BS Tshabalala, SK Tshabalala*         Africa Limited's Domestic Medium Term Note
(Chief executive), Wenbin Wang**, EM Woods          Programme and Credit Linked Note Programme)
                                  
*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

Facilitating stronger African economics

Our network of on-the-ground operations across sub-Saharan Africa is
positioned to serve the anticipated growth in demand for banking and
non-banking financial services. By facilitating access to financial services we
enable socioeconomic development and personal wealth creation in the
countries in which we operate.

Pictured is CfC Stanbic Bank Limited's (Kenya) head office in Nairobi.

www.standardbank.com



Date: 14/08/2014 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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