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STANDARD BANK GROUP LIMITED - Unaudited condensed consolidated interim results and dividend announcement for the six months ended 30 June 2015

Release Date: 14/08/2015 08:00
Code(s): SBK     PDF:  
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Unaudited condensed consolidated interim results and dividend announcement for the six months ended 30 June 2015

Standard Bank Group Limited
Registration number 1969/017128/06
Incorporated in the Republic of South Africa
Share and bond codes
JSE share code: SBK
ISIN: ZAE000109815
NSX share code: SNB
NSX share code: SNB ZAE000109815

The Standard Bank Group
Unaudited condensed consolidated interim results and dividend announcement
for the six months ended 30 June 2015

The Standard Bank Group Limited's (group)
condensed consolidated interim results, including
the statement of financial position, income statement,
statement of changes in equity and statement of
cash flows, for the six months ended 30 June 2015 (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, financial pronouncements as issued by the Financial
Reporting Standards Council, 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 from which the results have
been derived are in terms of IFRS and are consistent with the
accounting policies applied in the preparation of the group's
previous audited consolidated annual financial statements.

These interim results have not been audited or independently
reviewed by the group's external auditors. The group's 2014
annual financial information has been correctly extracted from
the underlying audited 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 the normalised results section.

1H15 refers to the first half year results for 2015. 1H14 refers
to the first half year results for 2014. FY14 refers to the full 
year results for 2014. Change % reflects 1H15 growth on 1H14.

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 publicly available on
14 August 2015.

This report contains pro forma financial information.
For further details refer to the pro forma financial 
information section.

Financial highlights

Headline earnings up 27%
R10 529 million
1H14: R8 306 million

Headline earnings – 
pro forma continuing operations up 17%
R10 426 million
1H14: R8 925 million

Headline earnings per share up 27%
651 cents
1H14: 513 cents

Return on equity (ROE)
15.1%
1H14: 12.7%

Tier I capital adequacy ratio
13.7%
1H14: 12.7%

Dividend per share   up 17%
303 cents
1H14: 259 cents

Cost-to-income ratio
56.7%
1H14: 55.3%

Credit loss ratio
0.99%
1H14: 1.13%

In line with changes to JSE's Listings Requirements during 2014, 
the group no longer posts a physical copy of this document to 
our shareholders.

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, can be found. 

Overview of financial results

Group results
Group headline earnings and headline earnings per share
increased by 27% to R10 529 million and 651 cents
respectively. Net asset value per share increased by 6% and
group ROE increased to 15.1% from 12.7% in 1H14. An
interim dividend of 303 cents per share has been declared,
a 17% increase on 1H14.

During the period covered by the interim results, the
group completed the disposal of its controlling interest in
Standard Bank Plc which was designated as a discontinued
operation within the group's income statement and
statement of financial position up to the date of the
transaction's completion, 1 February 2015. Subsequent
to the transaction, Standard Bank Plc has been renamed
ICBC Standard Bank Plc (ICBCS) and the group's remaining
40% interest has been included as an associate, with equity
accounted earnings included in the group's continuing
operations results from the disposal date. As a result
of this transaction completion, earnings attributable to
ordinary shareholders includes R2,8 billion of net disposal
gains which have been excluded from headline earnings,
consisting primarily of releases to the income statement
from the group's foreign currency translation reserve.

Headline earnings to 30 June 2015 reported within the
group's discontinued operation include the effects of a
partial recovery in respect of insurance claims relating to
the external fraud in the Qingdao port in China; a write-
down of the residual aluminium exposure in China; and
cash flow hedge releases relating to the disposal. The net
contribution to headline earnings from the discontinued
operation amounts to R171 million. Headline earnings
from operations excluding the discontinued operation
(continuing operations) increased by 11% to R10 358
million. The commentary which follows refers to the group's
continuing banking operations. Liberty Holding Limited's
(Liberty) results are discussed separately.

Operating environment
Global growth of 2.2% in the first quarter of 2015
underperformed the International Monetary Fund (IMF)
expectations set at the beginning of the year. The shortfall
reflected an unexpected output contraction in the United
States caused by one-off factors such as a notably harsh
winter and port closures, as well as a strong downsizing
of capital expenditure in the oil sector. The economic
recovery in the Eurozone seems broadly on track, with a
generally robust recovery in domestic demand and inflation
beginning to increase in spite of uncertainty created by
unfolding events in Greece. Growth in output and domestic
demand in emerging markets and developing economies
broadly weakened.

The decline in commodity prices has impacted sub-Saharan
Africa in a highly differentiated manner. Oil exporters have
been most affected, while for much of the rest of the
region, the impact has been reasonably favourable, with
many countries benefiting from lower oil prices although,
for a number of them, this positive effect is partly offset by
the decline in the prices of other exported commodities.
Overall, although economic growth has subsided slightly
from the 5% achieved in 2014, sub-Saharan Africa remains
one of the world's fastest growing regions.

In South Africa, the lower oil price has temporarily lowered
inflation but electricity shortages, accompanied by subdued
consumer and business confidence, restricted economic
growth to 2.1% in the first quarter of 2015. The non-
recurrence of the damaging strikes in 2014, notably in
the platinum sector, has provided some support to first
half growth. Consumer credit growth has subsided over
the period in line with expenditure on durable goods,
while business and corporate credit demand has remained
relatively robust. Household debt relative to disposable
income inched higher from 78.0% in the fourth quarter of
2014 to 78.4% in the first quarter of 2015, although the
net wealth of the household sector increased further as
growth in the value of fixed and financial assets outpaced
the rate of increase in households' financial liabilities.

Revenue
Total income grew by 9% in 1H15, with net interest income
(NII) increasing by 8% primarily due to 16% increase in
average interest-earning assets, driven mainly by growth
in lower-yielding high quality Corporate & Investment
Banking (CIB) assets. Margin compression of 28 basis
points(bps) resulted mainly from significantly higher growth in
CIB assets relative to Personal & Business Banking (PBB)
assets. Higher funding costs and the requirement to hold
higher levels of high quality liquid assets were largely offset
by higher average South African interest rates.

Non-interest revenue (NIR) grew 9% supported by good
growth in trading and other income. Fees and commissions
were 4% higher than in the prior period as knowledge-
based fees and commissions declined by 1% and electronic
banking was impacted by low growth in the rest of Africa.
Trading revenue increased by 16% due mainly to good
growth in fixed income and currency trading, up 10%, as
well as equities trading, up 52%.

Other revenue growth of 31% was due mainly to profit on
the disposal of real estate investments and fair value gains
within the property portfolio.

Credit impairments
Total credit impairments were 2% higher than the prior
period while the credit loss ratio declined to 0.99% from
1.13%. Credit impairments in CIB increased to R591 million
from R450 million in the prior period with its credit loss
ratio unchanged at 0.25%.

In PBB, credit impairments were 2% lower than in the
prior period and its credit loss ratio improved to 1.48%
from 1.58%. Impairments in the vehicle and asset finance
business declined to R511 million from R727 million as
the overall quality of the portfolio improved. Impairments
in mortgage lending and personal lending were broadly
unchanged while card debtors' impairments were 4%
higher. Increased provisioning required in business lending
in a challenging domestic business environment resulted
in business lending impairments increasing to R576 million
from R430 million previously. Impairments in PBB's rest of
Africa operations were 2% higher and the credit loss ratio
declined to 1.94% from 2.13% in 1H14.

Operating expenses
Operating expenses increased by 11% over the prior period
and the group's cost-to-income ratio increased to 56.7%
from 55.3%. Staff expenses increased by 12% while other
operating expenses increased by 11%. Growth in staff
expenses was affected by the conversion of approximately
1 600 people from temporary to permanent staff in
South Africa, as well as earlier recognition of incentive
awards and the full-year impact of investment in specialist
capabilities. Other operating expenses were affected by
higher information technology (IT) expenses related to
the systems taken into production including increased
amortisation of capitalised software assets.

Loans and advances
Gross loans and advances to customers grew by 11% from
1H14 to 1H15. PBB balances with customers grew by 4%
and CIB balances grew by 22%. Residential mortgages
recorded growth of 2% with an increase in value of new
business partly offset by a higher prepayment rate, while
6% growth was achieved in vehicle and asset finance.
Moderate growth of 5% in card debtors and 1% growth
in personal loans was supplemented by good growth of
14% each in business and corporate lending. A high level
of loans granted under resale agreements at period-end
assisted the growth.

Capital, funding and liquidity
The group remains appropriately capitalised with tier I
and total capital levels at 13.7% (FY14: 12.9%) and
16.1% (FY14: 15.5%) respectively. The group is in a good
position to meet the progressively higher requirements as
prescribed by regulatory authorities across markets in which
we are present.

Deposits and current accounts from customers increased by
11% with 14% growth in retail priced deposits outpacing the
10% growth in wholesale priced deposits from customers.
Strong growth, particularly in retail priced deposits, was
recorded in the rest of Africa and outside Africa.

The group maintained its strong liquidity positions within
approved risk appetite and tolerance limits. Total liquidity
in excess of specific prudential requirements amounted
to R294,9 billion as at 1H15 (1H14: R268,1 billion),
and remains adequate to meet all internal stress testing,
prudential and regulatory requirements. The Basel III
liquidity coverage ratio (LCR) was implemented on
1 January 2015 and at 30 June 2015 the group had
exceeded the 60% minimum phased-in Basel III LCR
requirement. Further available stable funding will likely
have to be raised by South African banks to fully meet the
proposed Basel III net stable funding ratio liquidity regime.
Ongoing impact analysis and engagement through the
Banking Association of South Africa and the South African
Reserve Bank (SARB) continue to address the current
industry shortfall.

Overview of business unit performance
Headline earnings by business unit

                                                         Change     1H15      1H14      FY14   
                                                              %       Rm        Rm        Rm   
Personal & Business Banking                                  16    4 811     4 159     9 801   
Corporate & Investment Banking – continuing operations       18    4 547     3 865     8 724   
Central and other                                        (>100)     (84)       293       385   
Banking activities – continuing operations                   12    9 274     8 317    18 910   
Liberty                                                       6    1 084     1 021     2 158   
Standard Bank Group – continuing operations                  11   10 358     9 338    21 068   
Discontinued operation                                     >100      171   (1 032)   (3 745)   
Standard Bank Group                                          27   10 529     8 306    17 323   

Personal & Business Banking
PBB's headline earnings of R4 811 million were 16%
higher than the prior period. NII growth of 12% and
moderate growth of 8% in NIR enabled total income
growth of 10%. Credit impairment charges were 2% lower
than in 1H14 while operating expenses increased by 12%,
affected by the increase in permanent employees and
higher amortisation of IT systems. PBB's ROE increased
slightly to 16.0% from 15.8% in the prior period. PBB
South Africa earnings rose by 14% while PBB rest of Africa
earnings improved to R56 million from R49 million. PBB
outside Africa earnings of R205 million were 92% higher
than in the prior period.

Transactional products total income increased by 13%
helped by both higher average domestic interest rates and
balance sheet growth driven by higher cash management,
savings and investment portfolio balances. Earnings of
R1 189 million were 12% higher than in the prior period.

Mortgage lending headline earnings grew by 12% to
R1 037 million. Total income growth of 9% was achieved
despite an increase in competitive pricing pressures on
new business and a higher rate of pre-payment. Credit
impairments were at the same level in the prior period, with
the credit loss ratio declining slightly to 80bps from 82bps
previously. Non-performing loans reduced as the customer
loans increased by 2% over the prior period.

Vehicle and asset finance returned to profitability of
R155 million from a loss of R29 million in the prior
period. Total income growth of 6% in a difficult market
was supplemented by the improvement in the credit loss
ratio to 1.41% from 2.09% in the prior period reflecting a
higher quality of new business assisted by the investment
in online dealer origination capabilities and higher post
write-off recoveries.

Card product recorded headline earnings growth of 18%
to R671 million during the period. Higher domestic yields,
increased utilisation and account upgrades combined with
increased nominal consumer spend offset lower average
interchange fees to drive total income 10% higher. Credit
impairments grew by 4% and the credit loss ratio fell to
4.63% from 4.76% in the prior period.

Lending products' headline earnings fell by 1% to
R585 million. Growth of 6% in total income was achieved
through good growth in business lending although there
was slower growth in personal products lending. Credit
impairments were 5% higher than in the previous period as
the credit loss ratio declined to 2.16% on 9% growth in the
total lending portfolio.

Bancassurance and wealth achieved earnings of
R1 174 million that were 12% higher than in the
previous period. Total income improved by 11% as higher
discretionary assets under management, and offshore
products take-up offset lower growth in the brokerage
and consulting businesses. Pension fund assets in Nigeria
increased but at a lower level than previously due to the
deterioration in the economic environment.

Corporate & Investment Banking
CIB's headline earnings of R4 368 million were 54% higher
than in the prior period. Continuing operations' headline
earnings were 18% higher as 9% growth in income was
matched by similar growth in operating expenses. Although
credit impairments showed an appreciable increase, a lower
tax rate due to an increase in non-taxable investment
income and lower earnings attributable to minority interests
in the rest of Africa assisted earnings growth.

The discontinued operation's headline earnings loss, being
the outside Africa global markets business, decreased to
R179 million from a loss of R1 032 million, mainly due to
the non-recurrence of the fair value adjustment on repo
positions relating to aluminium financing in China. A partial
recovery in respect of insurance claims relating to this
matter received during the period was largely offset by a
write-down of the residual aluminium exposure in China.

Transactional products and services grew headline earnings
by 4% to R1 416 million. Total income was 9% higher on
good balance sheet growth and increased client demand
for guarantees, export confirmations and letters of credit,
offset by reduced investor services demand in Nigeria as
its investment environment deteriorated. Expenses were
adversely affected by increased staffing requirements in
the rest of Africa, increased investment in IT systems to
support franchise growth as well as higher client servicing
operational costs.

Global markets recorded excellent headline earnings
growth of 30% to R2 112 million during the period. Income
growth of 12% was due largely to higher client volumes
and better positioning in fixed income and currency (FIC)
trading, good growth in cash equities and equity derivatives
as well as improved commodities trading. Good operational
leverage was achieved by subdued growth in expenses.

Investment banking earnings were down 1% to
R943 million on broadly the same level of income as in the
prior period. Falling commodity prices and deteriorating
economic environments in certain countries in the rest of
Africa have led to higher impairments required in the oil &
gas and power & infrastructure sectors. Good control over
expenses was maintained during this period.

Real estate and principal investment management (PIM)
recorded headline earnings of R104 million compared to
a loss of R110 million in 1H14. Fair value gains within the
property investment portfolio and profit on disposal of real
estate investments provided the income uplift. The PIM
portfolio continues to be gradually wound-down.

Liberty
The financial results reported are the consolidated results
of the group's 54% investment in Liberty. Bancassurance
results are included in PBB. Liberty's headline earnings
for the six months to June 2015 increased by 6% to
R1 991 million of which R1 084 million was attributable
to the group. Operating earnings were 10% higher and
earnings from the Shareholder Investment Portfolio fell by
2%. The growth in operating earnings was achieved due to
strong performances from Individual Arrangements, Liberty
Corporate and LibFin Markets. The BEE normalised ROE at
19.4% (1H14: 19.9%) reflects ongoing efficient capital
management.

Stanlib performed in line with growth in assets under
management with market value growth muted as a
result of the higher weighting of interest rate sensitive
assets. Margins improved due to better product mix.
Net customer cash inflows remain strong with external
flows of R10,3 billion into Stanlib asset management
operations and R3,2 billion into the group's long-term
insurance businesses. The insurance business continues
to be managed well within the long-term actuarial expense
and policyholder behaviour assumptions. Assets under
management were R645 billion (1H14: R639 billion).

Prospects
Global growth of 3.3% is expected by the IMF in 2015,
marginally lower than in 2014, with a gradual improvement
in advanced economies and a slowdown in emerging
market and developing economies. The underlying drivers
for a gradual acceleration in economic activity in advanced
economies remain intact while lower commodity prices
pose risks to the outlook in many low-income developing
economies after several years of strong growth.

The economies of sub-Saharan Africa are set to register
solid economic performance with output expected to
expand by 4.5% in 2015, but at the lower end of the range
experienced in recent years. In South Africa, economic
growth outlook remains around 2% for 2015 and
2016 with downside risks such as uncertainty in the labour
market, inconsistent domestic electricity supply, prices of
mining related commodities and vulnerable global growth,
expected to persist.

We have strengthened our balance sheet and continue
to strive for operational efficiency through increased
digitisation and integration of the universal banking model.
We will continue to leverage our brand, market positioning
and talented staff to better service our clients and
customers across Africa. In spite of the evident economic
challenges we remain committed to making progress in
lifting ROE further over the medium term.

Sim Tshabalala                 Ben Kruger
Group chief executive          Group chief executive

Thulani Gcabashe
Chairman

13 August 2015

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. 92 of 303,00 cents per ordinary
share (the cash dividend) to ordinary shareholders recorded
in the register of the company at the close of business
on Friday, 11 September 2015. The last day to trade to
participate in the dividend is Friday, 4 September 2015.
Ordinary shares will commence trading ex dividend from
Monday, 7 September 2015.

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, 7 September 2015,
and Friday, 11 September 2015, both days inclusive.
Ordinary shareholders who hold dematerialised shares will
have their accounts at their Central Securities Depository
Participant (CSDP) or broker credited on Monday,
14 September 2015.

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. 92 of 3,25 cents
   (gross) per first preference share, payable on Monday,
   7 September 2015, to holders of first preference shares
   recorded in the books of the company at the close of
   business on the record date, Friday, 4 September 2015.

   The last day to trade to participate in the dividend
   is Friday, 28 August 2015. First preference shares
   will commence trading ex dividend from Monday,
   31 August 2015.

-  Non-redeemable, non-cumulative, non-participating
   preference shares (second preference shares) dividend
   No. 22 of 353,20 cents (gross) per second preference
   share, payable on Monday, 7 September 2015, to
   holders of second preference shares recorded in the
   books of the company at the close of business on the
   record date, Friday, 4 September 2015. The last day to
   trade to participate in the dividend is Friday, 28 August
   2015. Second preference shares will commence trading
   ex dividend from Monday, 31 August 2015.

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,
31 August 2015 and Friday, 4 September 2015, both days
inclusive. Preference shareholders (first and second) who
hold dematerialised shares will have their accounts at their
CSDP or broker credited on Monday, 7 September 2015.

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,   
                                                                                          non-cumulative,   
                                                                                        non-participating   
                                                                      6.5% cumulative   preference shares   
                                                                    preference shares             (Second   
                                                         Ordinary   (First preference          preference   
                                                           shares             shares)             shares)   
JSE Limited                                                                                                 
Share code                                                    SBK                SBKP                SBPP   
ISIN                                                 ZAE000109815        ZAE000038881        ZAE000056339   
Namibian Stock Exchange (NSX)                                                                               
Share code                                                    SNB                                           
ISIN                                                 ZAE000109815                                           
Dividend number                                                92                  92                  22   
Gross distribution/dividend per share (cents)              303,00                3,25              353,20   
Last day to trade in order to be eligible for             Friday,             Friday,             Friday,   
the cash dividend                                4 September 2015      28 August 2015      28 August 2015   
                                                          Monday,             Monday,             Monday,   
Shares trade ex the cash dividend                7 September 2015      31 August 2015      31 August 2015   
                                                          Friday,             Friday,             Friday,   
Record date in respect of the cash dividend     11 September 2015    4 September 2015    4 September 2015   
Dividend cheques posted and CSDP/broker                   Monday,             Monday,             Monday,   
account credited/updated (payment date)         14 September 2015    7 September 2015    7 September 2015   

The above dates are subject to change. Any changes will be
released on the Stock Exchange News Service (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 South African Income Tax Act, 58 of
1962, the cash dividend will, unless exempt, be subject
to dividends tax that was introduced with effect from
1 April 2012. South African resident ordinary and
preference shareholders that are not exempt from
dividends tax, will be subject to dividends tax 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 257,55000 cents per ordinary share,
2,76250 cents per first preference share and 300,22000
cents per second preference share. Non-resident ordinary
and preference shareholders may be subject to dividends
tax 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 the date of
declaration, is as follows:

-   1 618 268 746 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 IFRS results have been
normalised to reflect the group's view of the economic and
legal substance of the following arrangements (normalised
results):

- Preference share funding provided by the group for the
  group's Tutuwa transaction is deducted from equity as a
  negative empowerment reserve 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 recognises 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 group's normalised statement of financial position and
income statement has been presented hereafter.

The lock-in period for the group's Tutuwa transaction
ended on 31 December 2014, allowing participants
to trade in the group shares in the scheme. For further 
information, refer to relevant note in this announcement.

The result of these normalised adjustments is shown in the
table below.

Normalised headline earnings                                                                           
for the six months ended 30 June 2015                                                                  
                                                                     Weighted                          
                                                               average number   Headline   Growth on   
                                                                    of shares   earnings        1H14   
                                                                         '000         Rm           %   
Disclosed on an IFRS basis                                          1 596 273     10 373          26   
Tutuwa initiative                                                       9 788         14               
Group shares held for the benefit of Liberty policyholders             13 323        142               
Share exposures held to facilitate client trading activities            (660)                          
Normalised                                                          1 618 724     10 529          27   

Normalised group statement of
financial position
as at 30 June 2015

                                                          Change        1H15        1H14        FY14   
                                                               %          Rm          Rm          Rm   
Assets                                                                                                 
Cash and balances with central banks                          35      63 066      46 786      64 302   
Derivative assets                                              7      58 931      55 282      61 633   
Trading assets                                                28      83 067      64 802      72 121   
Pledged assets                                              >100      29 149      11 060      14 185   
Financial investments                                         10     466 504     423 694     453 398   
Non-current assets held for sale(1)                        (100)         111     189 032     219 958   
Loans and advances                                            18   1 045 643     887 865     929 544   
Investment property                                           14      29 273      25 645      27 022   
Other assets                                                  29      35 139      27 254      22 904   
Interest in associates and joint ventures                   >100       9 162       3 422       3 727   
Goodwill and other intangible assets                          15      22 644      19 719      21 175   
Property and equipment                                         1      16 254      16 073      16 737   
Total assets                                                   5   1 858 943   1 770 634   1 906 706   
Equity and liabilities                                                                                 
Equity                                                         6     168 884     159 394     165 367   
Equity attributable to ordinary shareholders                   7     142 512     133 814     139 588   
Preference share capital and premium                                   5 503       5 503       5 503   
Non-controlling interest                                       4      20 869      20 077      20 276   
Liabilities                                                    5   1 690 059   1 611 240   1 741 339   
Deposit and current accounts                                  16   1 132 127     976 348   1 047 212   
Derivative liabilities                                        10      66 749      60 950      72 281   
Trading liabilities                                           44      62 675      43 487      43 761   
Other liabilities                                             16     107 712      92 765      82 979   
Non-current liabilities held for sale(1)                   (100)                 137 016     182 069   
Policyholder liabilities                                       6     295 353     278 898     287 516   
Subordinated debt                                             17      25 443      21 776      25 521   
Total equity and liabilities                                   5   1 858 943   1 770 634   1 906 706   

(1) Global markets outside Africa (GMOA) and Banco Standard de Investimentos S.A (Brazil) total assets
    and liabilities are presented as held for sale in 2014 in accordance with IFRS. Both were disposed 
    of during 1H15. In 2015, the group's associate interest in Unlu Menkul Degerler A.S. was
    classified as a non-current asset held for sale.

Normalised condensed group
income statement
for the six months ended 30 June 2015

                                                                Change      1H15      1H14      FY14   
                                                                     %        Rm        Rm        Rm   
Net interest income                                                  8    23 453    21 666    45 256   
Non-interest revenue                                                 9    19 795    18 155    38 984   
Total income                                                         9    43 248    39 821    84 240   
Credit impairment charges                                            2     5 032     4 952     9 009   
Income after credit impairment charges                              10    38 216    34 869    75 231   
Revenue sharing agreements with discontinued                                                           
operation                                                           88       (5)      (40)     (171)   
Income before operating expenses                                    10    38 211    34 829    75 060   
Operating expenses                                                  11    24 762    22 222    46 871   
Staff costs                                                         12    13 510    12 063    24 961   
Other operating expenses                                            11    11 252    10 159    21 910   
Net income before goodwill impairment                                7    13 449    12 607    28 189   
Goodwill impairment                                              (100)                   4         4   
Net income before disposal and liquidation of                                                          
subsidiaries and equity accounted earnings                           7    13 449    12 603    28 185   
Gain on disposal and liquidation of subsidiaries                   100       261               1 212   
Share of profit from associates and                                                                    
joint ventures                                                    (51)       189       383       665   
Net income before taxation                                           7    13 899    12 986    30 062   
Taxation                                                             2     3 641     3 582     7 869   
Profit for the period from continuing operations                     9    10 258     9 404    22 193   
Profit/(loss) from discontinued operation(1)                      >100     3 002   (1 032)   (4 048)   
Profit for the period                                               58    13 260     8 372    18 145   
Attributable to non-controlling interests                         (14)       770       900     1 848   
Attributable to preference shareholders                              6       189       178       364   
Attributable to ordinary shareholders –                                                                
banking activities                                                  69    12 301     7 294    15 933   
Headline adjustable items – banking activities                  (>100)   (2 856)       (9)     (768)   
Headline earnings – banking activities                              30     9 445     7 285    15 165   
Headline earnings – Liberty                                          6     1 084     1 021     2 158   
Standard Bank Group headline earnings                               27    10 529     8 306    17 323   

(1) Gains and losses relating to the group's GMOA business has been presented as a single amount 
    relating to their after-tax gains/(losses).

Pro forma financial information

The following pro forma financial information is the responsibility of the group's directors. Because of 
its nature, the pro forma financial information may not be a fair reflection of the group's results of 
operation. The pro forma financial information contained in this announcement has not been reviewed or 
reported on by the group's external auditors.

Group's continuing operations results including 40% retained interest in the
group's GMOA business

On 1 February 2015, the group completed the disposal of its controlling interest in its GMOA business 
and thereafter reports its retained 40% interest in ICBCS within the group's continuing operations' 
results. In the group's 2014 results, and for the current period up to the date of disposal, the 
group's GMOA business' net headline earnings/(loss) was included in the group's income statement as
 a discontinued operation.

Since the group retains a 40% interest in the discontinued operation following the date of disposal, 
and in order to illustrate the group's future continuing operation's base, the group has disclosed a
pro forma continuing operations' result to include 40% of the discontinued operation's headline earnings 
result as follows:

                                                             Continuing operations   
                                         Headline earnings                         Headline earnings   
                                               as reported           Adjustment(1)         pro forma   
                                                        Rm                    Rm                  Rm   
1H15                                                10 358                    68              10 426   
1H14                                                 9 338                 (413)               8 925   
FY14                                                21 068               (1 498)              19 570   

(1) 40% of the discontinued operations' headline earnings/(loss).

Interim unaudited results in accordance
with IFRS

Financial statistics
for the six months ended 30 June 2015

                                                          Change        1H15        1H14        FY14   
                                                               %   Unaudited   Unaudited     Audited   
Number of ordinary shares in issue ('000)                                                              
End of period                                                  1   1 601 792   1 588 000   1 577 828   
Weighted average                                               1   1 596 273   1 585 915   1 584 720   
Diluted weighted average                                       0   1 623 184   1 621 109   1 617 008   
Cents per ordinary share                                                                               
Headline earnings                                             25       649,8       518,9     1 081,4   
Continuing operations                                          9       639,1       584,0     1 317,7   
Discontinued operation                                      >100        10,7      (65,1)     (236,3)   
Diluted headline earnings                                     26       639,1       507,7     1 059,8   
Continuing operations                                         10       628,6       571,3     1 291,4   
Discontinued operation                                      >100        10,5      (63,6)     (231,6)   
Dividend                                                      17       303,0       259,0       598,0   
Net asset value                                                6       8 832       8 333       8 682   
Financial performance (%)                                                                              
ROE                                                                     15.1        12.7        13.0   
Net interest margin(1)                                                  3.47        3.75        3.79   
Credit loss ratio(1)                                                    0.99        1.13        1.00   
Cost-to-income ratio(1)                                                 56.7        55.3        54.6   
Capital adequacy ratios (%)                                                                            
Basel III                                                                                              
Tier I capital                                                          13.7        12.7        12.9   
Total capital                                                           16.1        15.2        15.5   

(1) Continuing operations for banking activities only.

Consolidated statement of financial
position
as at 30 June 2015

                                                                        1H15        1H14        FY14   
                                                          Change   Unaudited   Unaudited     Audited   
                                                               %          Rm          Rm          Rm   
Assets                                                                                                 
Cash and balances with central banks                          35      63 066      46 786      64 302   
Derivative assets                                              7      58 931      55 282      61 633   
Trading assets                                                28      83 650      65 458      72 040   
Pledged assets                                              >100      29 149      11 060      14 185   
Financial investments                                         10     464 052     421 931     450 921   
Non-current assets held for sale(1)                       (>100)         111     189 032     219 958   
Loans and advances                                            18   1 045 389     886 615     928 241   
Investment property                                           14      29 273      25 645      27 022   
Other assets                                                  29      35 139      27 254      22 904   
Interest in associates and joint ventures                   >100       9 162       3 422       3 727   
Goodwill                                                     (4)       3 612       3 767       3 752   
Other intangible assets                                       19      19 032      15 952      17 423   
Property and equipment                                         1      16 254      16 073      16 737   
Total assets                                                   5   1 856 820   1 768 277   1 902 845   
Equity and liabilities                                                                                 
Equity                                                         6     166 729     157 110     161 634   
Equity attributable to ordinary shareholders                   7     141 470     132 332     136 985   
Preference share capital and premium                           –       5 503       5 503       5 503   
Non-controlling interest                                       2      19 756      19 275      19 146   
Liabilities                                                    5   1 690 091   1 611 167   1 741 211   
Deposit and current accounts                                  16   1 132 127     976 348   1 047 212   
Derivative liabilities                                        10      66 749      60 950      72 281   
Trading liabilities                                           44      62 675      43 487      43 761   
Other liabilities                                             16     107 744      92 692      82 851   
Non-current liabilities held for sale(1)                   (100)                 137 016     182 069   
Policyholder liabilities                                       6     295 353     278 898     287 516   
Subordinated debt                                             17      25 443      21 776      25 521   
Total equity and liabilities                                   5   1 856 820   1 768 277   1 902 845   

(1) GMOA's and Brazil's total assets and liabilities are presented as held for sale in 2014 in 
    accordance with IFRS. Both were disposed of during the 1H15. In 2015, the group's associate 
    interest in Unlu Menkul Degerler A.S. was classified as a non-current asset held for sale.

Condensed consolidated
income statement
for the six months ended 30 June 2015

                                                                          1H15        1H14      FY14   
                                                            Change   Unaudited   Unaudited   Audited   
                                                                 %          Rm          Rm        Rm   
Continuing operations                                                                                  
Income from banking activities                                   9      43 245      39 838    84 214   
Net interest income                                              8      23 449      21 615    45 152   
Non-interest revenue                                             9      19 796      18 223    39 062   
Income from investment management and life                                                             
insurance activities                                          (15)      35 550      42 019    79 467   
Total income                                                   (4)      78 795      81 857   163 681   
Credit impairment charges                                        2       5 032       4 952     9 009   
Benefits due to policyholders                                 (22)      24 605      31 579    58 258   
Income after credit impairment charges and                                                             
policyholders benefits                                           8      49 158      45 326    96 414   
Revenue sharing agreements with discontinued                                                           
operation                                                       88         (5)        (40)     (171)   
Income after revenue sharing agreements with                                                           
discontinued operation                                           9      49 153      45 286    96 243   
Operating expenses in banking activities                        11      24 762      22 222    46 871   
Staff costs                                                     12      13 510      12 063    24 961   
Other operating expenses                                        11      11 252      10 159    21 910   
Operating expenses in investment management and                                                        
life insurance activities                                        5       7 592       7 216    14 546   
Net income before goodwill impairment and gains                                                        
on disposal and liquidation of subsidiaries                      6      16 799      15 848    34 826   
Goodwill impairment                                          (100)                       4         4   
Gains on disposal and liquidation of subsidiaries              100         261                 1 212   
Net income before share of profits from associates                                                     
and joint ventures                                               8      17 060      15 844    36 034   
Share of profit from associates and joint ventures            (55)         174         388       679   
Net income before indirect taxation                              6      17 234      16 232    36 713   
Indirect taxation                                               16       1 195       1 026     2 439   
Profit before direct taxation                                    5      16 039      15 206    34 274   
Direct taxation                                                (0)       3 908       3 915     8 061   
Profit for the period from continuing operations                 7      12 131      11 291    26 213   
Profit/(loss) for the period from discontinued operation(1)   >100       3 002     (1 032)   (4 048)   
Profit for the period                                           48      15 133      10 259    22 165   
Attributable to non-controlling interests                      (7)       1 714       1 845     3 904   
Attributable to preference shareholders                          9         190         175       356   
Attributable to ordinary shareholders                           61      13 229       8 239    17 905   
Basic earnings per share (cents)                                         828,7       519,5   1 129,9   
Continuing operations                                                    640,7       584,6   1 385,3   
Discontinued operation                                                   188,0      (65,1)   (255,4)   
Diluted earnings per share (cents)                                       815,0       508,2   1 107,3   
Continuing operations                                                    630,1       571,9   1 357,6   
Discontinued operation                                                   184,9      (63,7)   (250,3)   

(1) Gains and losses relating to the group's GMOA business has been presented as a single amount relating 
    to their after-tax gains and losses.

Headline earnings
for the six months ended 30 June 2015

                                                                                   1H15        1H14      FY14   
                                                                     Change   Unaudited   Unaudited   Audited   
                                                                          %          Rm          Rm        Rm   
Profit for the period from continuing operations                         10      10 227       9 271    21 953   
Headline adjustable items deducted                                                 (15)        (20)   (1 017)   
Goodwill impairment – IAS 36                                                                      4         4   
Loss on sale of property and equipment – IAS 16                                       3           6        16   
Realised foreign currency translation loss/(profit) on                                                          
foreign operations – IAS 21                                                          41               (1 203)   
Profit on the disposal and liquidation of subsidiaries – IFRS 10                  (189)                   (9)   
Impairment of intangible assets – IAS 36                                                                  257   
Realised losses/(gains) on available-for-sale assets – IAS 39                        17        (30)      (29)   
Impairment/(reversal of impairment and disposal profit) on                                                      
associate – IAS 28/IAS 36                                                           113                  (53)   
Taxation on headline earnings adjustable items                                      (6)         (4)      (81)   
Non-controlling interests' share of headline earnings                                                           
adjustable items                                                                    (4)          15        27   
Standard Bank Group headline earnings from                                                                      
continuing operations                                                    10      10 202       9 262    20 882   
Profit for the period from discontinued operation                    (>100)       3 002     (1 032)   (4 048)   
Headline adjustable items (deducted)/added                                      (2 831)                   346   
Impairment of intangible assets – IAS 38                                                                  193   
Loss on disposal of subsidiary – IFRS 10                                          1 303                         
Realised foreign currency translation profit on foreign                                                         
operation – IAS 21                                                              (4 054)                         
Profit on net investment hedge on disposal of subsidiary                                                        
– IAS 39                                                                           (68)                         
Realised (gains)/losses on available-for-sale assets                                                            
– IAS 39                                                                           (12)                   153   
Taxation on headline earnings adjustable items                                                           (43)   
Standard Bank Group headline earnings from                                                                      
discontinued operation                                               (>100)         171     (1 032)   (3 745)   
Standard Bank Group headline earnings                                    26      10 373       8 230    17 137   

Condensed consolidated statement of
other comprehensive income
for the six months ended 30 June 2015

                                                        1H15                           1H14           FY14   
                                                            Non-                                                
                                        Ordinary     controlling                                                
                                          share-   interests and                                                
                                        holders'      preference                                                
                                          equity    shareholders   Total equity   Total equity   Total equity   
                                       Unaudited       Unaudited      Unaudited      Unaudited        Audited   
                                              Rm              Rm             Rm             Rm             Rm   
Profit for the period                     13 229           1 904         15 133         10 259         22 165   
Other comprehensive income (OCI)                                                                                
after tax for the period                 (4 588)           (240)        (4 828)          (888)          (888)   
Items that may be reclassified                                                                                  
subsequently to profit or loss:                                                                                 
Exchange rate differences on                                                                                    
translating equity investment in                                                                                
foreign operations                       (4 001)           (302)        (4 303)          (765)            (5)   
Foreign currency hedge of net                                                                                   
investments                                (166)                          (166)            112          (147)   
Cash flow hedges                           (435)            (13)          (448)           (64)          (379)   
Available-for-sale financial assets           60              69            129              7          (226)   
Items that may not be reclassified                                                                              
to profit or loss:                                                                                              
Defined benefit fund adjustments            (52)               6           (46)          (182)           (99)   
Revaluation and other gains/(losses)           6                              6              4           (32)   
Total comprehensive income for                                                                                  
the period                                 8 641           1 664         10 305          9 371         21 277   
Attributable to non-controlling                                                                                 
interests                                                  1 474          1 474          1 804          2 689   
Attributable to equity holders of                                                                               
the parent                                 8 641             190          8 831          7 567         18 588   
Attributable to preference                                                                                      
shareholders                                                 190            190            175            356   
Attributable to ordinary                                                                                        
shareholders                               8 641                          8 641          7 392         18 232   

Consolidated statement of changes
in equity
for the six months ended 30 June 2015

                                                                                                            Foreign               
                                                                                             Foreign       currency               
                                                        Ordinary   Empower-                 currency   hedge of net   Cash flow   
                                                   share capital       ment   Treasury   translation     investment     hedging   
                                                     and premium    reserve     shares       reserve        reserve     reserve   
                                                              Rm         Rm         Rm            Rm             Rm          Rm   
Balance at 1 January 2014 (audited)                       18 126    (1 846)      (285)         6 274          (268)         804   
Increase in statutory credit risk reserve                                                                                         
Transactions with non-controlling shareholders                          (2)        (1)                                            
Equity-settled share-based payment transactions                                                                                   
Deferred tax on share-based payment transactions                                                                                  
Transfer of vested equity options                                                                                                 
Decrease in treasury shares                                                        605                                            
Net purchase of share capital and share premium                                                                                   
and capitalisation of reserves                              (58)                                                                  
Unincorporated property partnerships capital                                                                                      
reductions and distributions                                                                                                      
Total comprehensive income for the period                                                      (753)            112        (42)   
Net dividends paid                                                     (47)                                                       
Balance at 30 June 2014 (unaudited)                       18 068    (1 895)        319         5 521          (156)         762   
Balance at 1 July 2014 (unaudited)                        18 068    (1 895)        319         5 521          (156)         762   
Increase in statutory credit risk reserve                                                                                         
Transactions with non-controlling shareholders                            2                                                       
Equity-settled share-based payment transactions                                                                                   
Deferred tax on share-based payment transactions                                                                                  
Transfer of vested equity options                                                                                                 
Increase in treasury shares                                                      (955)                                            
Net purchase of share capital and share premium                                                                                   
and capitalisation of reserves                               (1)                                                                  
Unincorporated property partnerships capital                                                                                      
reductions and distributions                                                                                                      
Total comprehensive income for the period                                                      1 838          (259)       (295)   
Net dividends paid                                                     (41)                                                       
Balance at 31 December 2014 (audited)                     18 067    (1 934)      (636)         7 359          (415)         467   
Balance at 1 January 2015 (audited)                       18 067    (1 934)      (636)         7 359          (415)         467   
Increase in statutory credit risk reserve                                                                                         
Transactions with non-controlling shareholders                                     (3)                                            
Equity-settled share-based payment transactions                                                                                   
Deferred tax on share-based payment transactions                                                                                  
Transfer of vested equity options                                                                                                 
Increase in treasury shares                                                      (109)                                            
Net purchase of share capital and share premium                                                                                   
and capitalisation of reserves                              (91)                                                                  
Redemption of preference shares                                       1 307                                                       
Unincorporated property partnerships capital                                                                                      
reductions and distributions                                                                                                      
Total comprehensive income for the period                                                    (4 001)          (166)       (435)   
Net dividends paid                                                      169                                                       
Balance at 30 June 2015 (unaudited)                       17 976      (458)      (748)         3 358          (581)          32   

                    Available-                                                                                                     
                      for-sale   Share-based                               Ordinary      Preference          Non-                  
Statutory credit   revaluation       payment      Other    Retained   shareholders'   share capital   controlling                  
    risk reserve       reserve       reserve   reserves    earnings          equity     and premium      interest   Total equity   
              Rm            Rm            Rm         Rm          Rm              Rm              Rm            Rm             Rm   
           1 295           196         1 233        245     103 162         128 936           5 503        18 209        152 648   
             378                                              (378)                                                                
                                                               (71)            (74)                          (72)          (146)   
                                         380                   (54)             326                            24            350   
                                                                183             183                                          183   
                                       (373)                    373                                                                
                                                              (137)             468                             4            472   
                                                               (41)            (99)                                         (99)   
                                                                                                             (63)           (63)   
                             9                        4       8 062           7 392             175         1 804          9 371   
                                                            (4 753)         (4 800)           (175)         (631)        (5 606)   
           1 673           205         1 240        249     106 346         132 332           5 503        19 275        157 110   
           1 673           205         1 240        249     106 346         132 332           5 503        19 275        157 110   
             432                                              (432)                                                                
                                                              (344)           (342)                            46          (296)   
                                         200                  (305)           (105)                            24           (81)   
                                                               (33)            (33)                                         (33)   
                                       (268)                    268                                                                
                                                              (105)         (1 060)                         (308)        (1 368)   
                                                              (499)           (500)                                        (500)   
                                                                                                             (16)           (16)   
                         (143)                     (15)       9 714          10 840             181           885         11 906   
                                                            (4 106)         (4 147)           (181)         (760)        (5 088)   
           2 105            62         1 172        234     110 504         136 985           5 503        19 146        161 634   
           2 105            62         1 172        234     110 504         136 985           5 503        19 146        161 634   
             487                                              (487)                                                                
                                                              (149)           (152)                         (192)          (344)   
                                         132                   (43)              89                            26            115   
                                                                134             134                                          134   
                                       (249)                    249                                                                
                                                                483             374                         (107)            267   
                                                              (371)           (462)                                        (462)   
                                                                              1 307                                        1 307   
                                                                                                             (97)           (97)   
                            60                        6      13 177           8 641             190         1 474         10 305   
                                                            (5 615)         (5 446)           (190)         (494)        (6 130)   
           2 592           122         1 055        240     117 882         141 470           5 503        19 756        166 729   

Condensed consolidated statement
of cash flows
for the six months ended 30 June 2015

                                                                                                     1H15        1H14       FY14   
                                                                                                Unaudited   Unaudited    Audited   
                                                                                                       Rm          Rm         Rm   
Net cash flows from operating activities                                                           15 841       (863)     29 654   
Direct taxation paid                                                                              (4 109)     (3 723)    (8 070)   
Other operating cash flows                                                                         19 950       2 860     37 724   
Net cash flows used in investing activities                                                      (28 435)     (4 693)    (8 298)   
Capital expenditure                                                                               (3 798)     (3 218)    (8 426)   
Other investing cash flows(1)                                                                    (24 637)     (1 475)        128   
Net cash flows used in financing activities                                                       (5 956)     (8 691)   (10 262)   
Proceeds from the issue of share capital and share buy-backs                                        (462)        (99)      (599)   
Repayment of empowerment reserve                                                                    1 307                          
Net subordinated debt cash flows                                                                    (217)     (1 906)      1 960   
Other financing cash flows                                                                        (6 584)     (6 686)   (11 623)   
Effect of exchange rate changes on cash and cash equivalents                                          737         573      2 376   
Net (decrease)/increase in cash and cash equivalents                                             (17 813)    (13 674)     13 470   
Cash and cash equivalents at beginning of the period                                               80 879      67 409     67 409   
Cash and cash equivalents at the end of the period                                                 63 066      53 735     80 879   
Comprising:                                                                                                                        
Cash and balances with central banks                                                               63 066      46 786     64 302   
Cash and balances with central banks held for sale                                                              6 949     16 577   
Cash and cash equivalents at the end of the period                                                 63 066      53 735     80 879   

(1) The material net change in other investing cash flows for the period relates to the higher utilisation of asset repurchase 
    agreements and scrip lending transactions within the group's insurance operations; cash outflow of R5,1 billion from the 
    disposal of Standard Bank Plc, being the net of Standard Bank Plc's cash and cash equivalents that are no longer part of the 
    group less the cash disposal proceeds received by 30 June 2015; and the receipt of proceeds on disposal of Brazil of R581 million.

Notes

Condensed segment report
for the six months ended 30 June 2015
                                                                                                   1H15         1H14        FY14   
                                                                                     Change   Unaudited Unaudited(1)  Audited(1)   
                                                                                          %          Rm           Rm          Rm   
Revenue contribution by business unit                                                                                              
Personal & Business Banking                                                              10      28 783       26 101      55 398   
Corporate & Investment Banking                                                            9      15 125       13 838      29 343   
Central and other                                                                    (>100)       (660)        (118)       (501)   
Banking activities                                                                        9      43 248       39 821      84 240   
Liberty                                                                                (15)      35 832       42 163      79 744   
Standard Bank Group – normalised                                                        (4)      79 080       81 984     163 984   
Adjustments for IFRS                                                                 (>100)       (285)        (127)       (303)   
Standard Bank Group – IFRS                                                              (4)      78 795       81 857     163 681   
Profit or loss attributable to ordinary shareholders                                                                               
Personal & Business Banking                                                              16       4 801        4 156       9 666   
Corporate & Investment Banking                                                           49       4 205        2 827       4 875   
Central and other                                                                      >100       3 295          311       1 392   
Banking activities                                                                       69      12 301        7 294      15 933   
Liberty                                                                                   6       1 084        1 021       2 158   
Standard Bank Group – normalised                                                         61      13 385        8 315      18 091   
Adjustments for IFRS                                                                 (>100)       (156)         (76)       (186)   
Standard Bank Group – IFRS                                                               61      13 229        8 239      17 905   
Total assets by business unit                                                                                                      
Personal & Business Banking                                                               6     641 314      603 132     621 299   
Corporate & Investment Banking                                                            1     860 403      853 503     954 063   
Central and other                                                                        28    (30 424)     (42 392)    (25 101)   
Banking activities                                                                        4   1 471 293    1 414 243   1 550 261   
Liberty                                                                                   9     387 650      356 391     356 445   
Standard Bank Group – normalised                                                          5   1 858 943    1 770 634   1 906 706   
Adjustments for IFRS                                                                     10     (2 123)      (2 357)     (3 861)   
Standard Bank Group – IFRS                                                                5   1 856 820    1 768 277   1 902 845   
Total liabilities by business unit                                                                                                 
Personal & Business Banking                                                               6     577 616      546 354     562 906   
Corporate & Investment Banking                                                          (0)     800 847      802 829     900 059   
Central and other                                                                        28    (51 126)     (71 427)    (53 683)   
Banking activities                                                                        4   1 327 337    1 277 756   1 409 282   
Liberty                                                                                   9     362 722      333 484     332 057   
Standard Bank Group – normalised                                                          5   1 690 059    1 611 240   1 741 339   
Adjustments for IFRS                                                                   >100          32         (73)       (128)   
Standard Bank Group – IFRS                                                                5   1 690 091    1 611 167   1 741 211   

(1) 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 2015

                                                                                                                  1H15      FY14   
                                                                                                             Unaudited   Audited   
                                                                                                                    Rm        Rm   
Letters of credit and bankers' acceptances                                                                      10 479    16 162   
Guarantees                                                                                                      52 241    53 365   
Contingent liabilities                                                                                          62 720    69 527   
Contracted capital expenditure                                                                                   3 137     4 216   
Capital expenditure authorised but not yet contracted                                                            8 620    10 867   
Capital commitments                                                                                             11 757    15 083   

Legal proceedings
In the ordinary course of business, the group is involved in litigation, lawsuits and other proceedings. While recognising the
inherent difficulty of predicting the outcome of defended legal proceedings, management believes, based upon current
knowledge and after consulting with legal counsel, that the legal proceedings currently pending against it should not
have a material adverse effect on the group's consolidated financial position. The directors are satisfied, based on present
information and the assessed probability of claims eventuating, that the group has adequate insurance programmes and
provisions in place to meet such claims.

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.

                                                                                                                  1H15      FY14   
                                                                                                             Unaudited   Audited   
                                                                                                                    Rm        Rm   
Cost                                                                                                                88        94   
Carrying value                                                                                                     573       625   
Fair value                                                                                                         573       589   
Attributable income before impairment                                                                                         64   

Equity securities
During the period, the group allotted 2 188 716 shares (FY14: 4 879 268 shares) in terms of the group's share incentive
schemes and repurchased 2 281 819 shares (FY14: 4 361 547 shares). The total equity securities held as treasury shares
at the end of the period was 10 153 184 shares (FY14: 12 807 677 shares).

Subordinated debt
During the period the group issued R2,8 billion (FY14:
R4,4 billion) and redeemed R3,1 billion (FY14:
R2,4 billion) subordinated debt instruments.

The terms of the SBK 21, SBK 22 and SBK 23 bonds, which
were issued in 2015, include a regulatory requirement for
tier II capital instruments which provides for the write-off
in whole or, if permitted by the relevant regulator (SARB) ,
in part on the earlier of a decision that a write-off, without
which the issuer would become non-viable, is necessary;
or a decision to make a public sector injection of capital, or
equivalent support, without which the issuer would have
become non-viable, as determined and notified by the
relevant regulator (SARB).

Black economic empowerment (BEE)
transactions
In 2004, the group entered into a series of transactions
whereby investments were made in cumulative redeemable
preference shares issued by BEE entities. The group's
banking operations' BEE initiative is referred to as Tutuwa
and Liberty's is referred to as Lexshell.

A key feature of these BEE initiatives is that all participants
were subject to a ten-year lock-in restriction, during which
time they were not permitted to access the underlying
equity value in their shares. This lock-in period expired on
31 December 2014.

To the extent that the Tutuwa participants accessed their
underlying equity value and to the extent that those
equity shares are financed by the group, a proportionate
amount of the group's negative empowerment reserve
is released through the payment of the underlying debt
owing on the preference shares by the participant. From
January 2015 to June 2015, a total number of 36,4 million
Standard Bank Group shares were released from the Tutuwa
empowerment structure, with approximately 59% of those
shares being financed by the group. This has resulted in
a release of R1,1 billion from the group's empowerment
reserve.

As a result of participants accessing value in Liberty's
Lexshell initiative, a release of R254 million from the
group's empowerment reserve was recognised.

In terms of IFRS, shares held within the Tutuwa structure
which were financed by the group, were accounted for as
treasury shares. The release of shares out of the Tutuwa
structure resulted in an increase of 18 million shares in the
weighted average number of shares, as these are no longer
deemed to be treasury shares.

Aluminium reverse repurchase
agreement
The group's net exposure in respect of the aluminium
in repurchase agreements in Chinese ports as at
31 December 2014 was recorded at USD20 million. In
light of new circumstances arising in January 2015, a
further downward valuation adjustment of USD20 million
was recognised as at 31 January 2015. At this date, while
insurance claims had been made in respect of certain of the
aluminium exposures, the outcome of these claims was not
yet sufficiently certain to satisfy IFRS' "virtually certain"
recognition criteria.

In June 2015, as announced by the group on SENS on
28 July 2015, a settlement agreement was concluded with
the majority of the group's third-party insurers in respect
of certain of the losses suffered as a consequence of the
fraud in Qingdao port, and an amount of approximately
USD65 million in cash was received by ICBCS with respect
to this settlement. Pursuant to the amendments to
the disposal agreement with ICBC in relation to ICBCS
announced on 10 December 2014, the group enjoys the
full economic benefit of this recovery.

Efforts continue through a number of avenues to recover
amounts owing from the remaining third party insurer and
other counterparties, and to access metal stocks held by
the authorities in China.

Related party transactions
Tutuwa related parties
As discussed, Tutuwa participants are allowed to access
their underlying equity value post the expiry of the lock-in
period on 31 December 2014.

As reported by the group on SENS on 16 February 2015,
key management personnel sold 335 113 of the group's
ordinary shares out of the Tutuwa structure in order to
settle employees' tax, associated funding and transaction
costs arising from the expiry of the lock-in period.

Tutuwa shares movement since lock-in period ended                                                                                  
                                                                                                                  1H15   
                                                                                                           Issued       Weighted   
                                                                                                        number of      number of   
                                                                                                     shares 000's   shares 000's   
Shares financed by Standard Bank Group – 1 January 2015                                                    27 726         27 726   
Less: sale of shares by participants                                                                     (21 403)       (17 938)   
Shares financed by Standard Bank Group – 30 June 2015                                                       6 323          9 788   


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

                                                                                                                  1H15      FY14   
                                                                                                             Unaudited   Audited   
                                                                                                                    Rm        Rm   
Value of assets under management                                                                                 9 860     9 077   
Investments held in bonds and money market instruments                                                             795       655   
Value of ordinary group shares held                                                                                308       330   


Transactions with an associate
As noted, on 1 February 2015 the group disposed of its controlling interest in Standard Bank Plc to ICBC. With effect
from that date Standard Bank Plc was renamed to ICBC Standard Bank Plc (ICBCS) and became a supported subsidiary of ICBC.
The group's retained 40% interest in ICBCS was, with effect from the disposal date, classified as an interest in an associate 
and equity accounted thereafter. During the period ended 30 June 2015 the group both maintained and entered into new lending, deposit, 
derivative and other trading related transactions with ICBCS on market related terms as follows:

                                                                                                                            1H15   
                                                                                                                       Unaudited   
                                                                                                                              Rm   
Net loans and advances/deposits                                                                                                    
Net loans and advances/deposits outstanding at the end of the period                                                      30 652   
Net derivative liabilities                                                                                                         
Net derivative liabilities at the end of the period                                                                      (1 818)   
Trading liabilities                                                                                                                
Trading liabilities outstanding at end of the period                                                                     (2 337)   

Transactions with a shareholder
The following transactions took place between the group and ICBC, a 20.1% shareholder of Standard Bank Group Limited:

                                                                                                                1H15        1H14   
                                                                                                           Unaudited   Unaudited   
                                                                                                                  Rm          Rm   
Revenue                                                                                                                            
Trading revenue                                                                                                   42          54   
Fees and commission income                                                                                         2           1   
Net interest income                                                                                               29          39   
Total revenue earned                                                                                              73          94 
  
                                                                                                                1H15        FY14   
                                                                                                           Unaudited     Audited   
                                                                                                                  Rm          Rm   
Net loans and advances/deposits                                                                                                    
Net loans and advances outstanding at beginning of the period                                                  1 462               
Net loans and advances (deposits repaid)/incurred during the period                                            (239)       1 462   
Net loans and advances outstanding at the end of the period                                                    1 223       1 462   
Net loans and advances to ICBC includes fixed terms loans with a maturity of less                                                  
than 12 months from the reporting date. These facilities were entered into at                                                      
market related terms and conditions.                                                                                               
Trading assets                                                                                                                     
Trading assets outstanding at beginning of the period                                                             20               
Net trading positions (closed)/opened during the period                                                         (14)          20   
Trading assets outstanding at the end of the period                                                                6          20   
During the period, the group entered into commodity leasing transactions with                                                      
ICBC at market related terms and conditions.                                                                                       
Other receivables                                                                                                                  
Deferred consideration – proceeds on sale of Standard Bank Plc                                                 1 177               
As at 30 June 2015 the group had a receivable owing from ICBC of                                                                   
USD97,1 million relating to the disposal of the group's 60% controlling                                                            
interest in Standard Bank Plc.                                                                                                     
Letters of credit                                                                                                                  
The group has off-balance sheet letters of credit exposure issued to ICBC                                                          
as at 30 June 2015 of R175 million. The group received R2 million                                                                  
(1H14: R1 million) in fee and commission income relating to these transactions.                                  175         646   

Disposal of subsidiaries
Brazil
In April 2015, the group completed the disposal of Banco
Standard de Investimentos S.A., the group's Brazilian
licensed banking subsidiary, to Grupo Financiero Inbursa
SAB, a listed Mexican banking group. The final disposal
proceeds amounted to R581 million. The net gain on
the disposal, together with the recognition of a foreign
currency translation loss, has been included in the group's
income statement as part of its continuing operation's
results.

Standard Bank Plc
The group disposed of 60% of Standard Bank Plc to the
ICBC on 1 February 2015. The final cash proceeds on
this 60% disposal, which was based on a discount to the
31 January 2015 net asset value (this net asset value
was impacted by the valuation of certain aluminium claims
as previously discussed), amounted to USD675 million.
The final tranche of payment in this respect was made,
in terms of the transaction agreements, in early July 2015.
Standard Bank Plc's financial results, together with the
net gain on disposal, have been reported as part of the
group's discontinued operation's results up to the date
of completion of the transaction.

The group retained a 40% interest in Standard Bank
Plc (subsequently renamed ICBC Standard Bank Plc),
with this interest being recognised as investment in
an associate from 1 February 2015. The associate was
recognised at a value of USD450 million on this date.
This value was determined to be the fair value based on
the terms of the disposal transaction. The results from
the group's remaining 40% interest in ICBCS have been
included, with effect from 1 February 2015, in the group's
continuing operation's  results.

Change in group directorate
The following changes in directorate took place during the six months ended 30 June 2015:

Appointments
T Gcabashe                                                                                    as chairman            28 May 2015
Resignation and retirements
F du Plessis                                                                                  as director            28 May 2015
F Phaswana                                                                                    as chairman            28 May 2015
Lord Smith of Kelvin, KT                                                                      as director            28 May 2015

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                            
                                                                                            instruments   Trading assets   Total   
                                                                                                     Rm               Rm      Rm   
Unrecognised net profit as at 1 January 2014                                                                                       
(audited)                                                                                           244               16     260   
Additional net profit on new transactions                                                           144                      144   
Recognised in profit or loss during the year                                                       (85)                     (85)   
Unrecognised net profit as at 1 January 2015                                                                                       
(audited)                                                                                           303               16     319   
Additional net profit on new transactions                                                            51              283     334   
Recognised in profit or loss during the period                                                        7             (11)     (4)   
Unrecognised net profit as at 30 June 2015                                                                                         
(unaudited)                                                                                         361              288     649   

Financial instruments subject to offsetting, enforceable master netting
arrangements or similar agreements
IFRS requires financial assets and 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.

The following table sets out the impact of offset, as well as financial assets and financial liabilities that are subject to
enforceable master netting arrangements, or similar agreements, irrespective of whether they have been offset in
accordance with IFRS. There are no items measured on different measurement bases 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 amount                                         
                                                 of recognised                                         
                                  Gross amount       financial                                         
                                 of recognised     liabilities                    Financial            
                                     financial   offset in the                   collateral            
                                        assets       statement   Net amounts       and cash            
                                    subject to    of financial    subject to     collateral     Net      
                                     offset(1)     position(2)        offset  received(4,5)  amount   
                                            Rm              Rm            Rm             Rm      Rm       
30 June 2015 (unaudited)                                                                               
Assets                                                                                                 
Derivative assets                       33 786                        33 786       (31 862)   1 924    
Trading assets                          13 380                        13 380       (12 079)   1 301    
Loans and advances(6)                  137 042        (31 473)       105 569      (100 408)   5 161    
                                       184 208        (31 473)       152 735      (144 349)   8 386  

                                                 Gross amount
                                                of recognised
                                 Gross amount       financial
                                of recognised          assets                    Financial
                                    financial   offset in the                   collateral
                                  liabilities       statement   Net amounts       and cash
                                   subject to    of financial    subject to     collateral      Net
                                    offset(1)     position(2)        offset   pledged(3,4)   amount
                                           Rm              Rm            Rm             Rm       Rm
30 June 2015 (unaudited)                                                                              
Liabilities                                                                                           
Derivative liabilities                 40 629                        40 629       (34 051)    6 578   
Trading liabilities                     7 148                         7 148        (7 148)            
Deposit and current accounts(6)        42 596        (31 473)        11 123        (6 085)    5 038   
                                       90 373        (31 473)        58 900       (47 284)   11 616  

                                                 Gross amount
                                                of recognised
                                 Gross amount       financial
                                of recognised     liabilities                    Financial
                                    financial   offset in the                   collateral
                                       assets       statement   Net amounts       and cash
                                   subject to    of financial    subject to     collateral      Net
                                    offset(1)     position(2)        offset  received(4,5)   amount
                                           Rm              Rm            Rm             Rm       Rm 
31 December 2014 (audited)                                                                            
Assets                                                                                                
Derivative assets                     170 304        (40 676)       129 628      (109 362)   20 266   
Trading assets                          8 990                         8 990        (7 566)    1 424   
Loans and advances(6)                 141 118        (39 082)       102 036       (24 266)   77 770   
                                      320 412        (79 758)       240 654      (141 194)   99 460   

                                                  Gross amount                                        
                                                 of recognised                                        
                                  Gross amount       financial                                        
                                 of recognised          assets                   Financial            
                                     financial   offset in the                  collateral            
                                   liabilities       statement   Net amounts      and cash            
                                    subject to    of financial    subject to    collateral      Net   
                                     offset(1)     position(2)        offset  pledged(3,4)   amount   
                                            Rm              Rm            Rm            Rm       Rm   
31 December 2014 (audited)                                                                            
Liabilities                                                                                           
Derivative liabilities                 184 537        (40 676)       143 861     (116 334)   27 527   
Trading liabilities                      6 479                         6 479       (6 477)        2   
Deposit and current accounts(6)         56 462        (39 082)        17 380       (6 644)   10 736   
                                       247 478        (79 758)       167 720     (129 455)   38 265   

(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) In most instances, the counterparty may not sell or repledge collateral pledged by the group.
(4) Recognised financial instruments that do not qualify for offset in terms of the criteria per IFRS, but that 
    are subject to an enforceable master netting arrangement or similar agreement, including financial collateral 
    (whether recognised or unrecognised).
(5) In most cases, the group is allowed to sell/repledge collateral received.
(6) 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 the current accounts of multiple legal entities within a group. It allows for cash 
    balances of the different legal entities to be offset against each other to arrive at a net balance for 
    the whole group. In addition, it should be noted that all repurchase agreements and reverse repurchase 
    agreements, subject to a master netting arrangement (or similar agreement), have been included.

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 either a master netting arrangement or similar agreement.

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

Basis of preparation
The group's 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
condensed consolidated financial statements from which
the results have been derived are in terms of IFRS and
are consistent with the accounting policies applied in the
preparation of the group's previous consolidated audited
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 amendment effective for the
current period:

-  IAS 19 Employee benefits: Amendment to employee
   contributions for defined benefit plans (IAS 19).

Early adoption of revised standards:

-  Amendment to IAS 16 Property, Plant and Equipment
   (IAS 16) and IAS 41 Agriculture (IAS 41).

-  Annual improvements 2012 – 2014: amendment to
   IFRS 7 Financial Instruments: Disclosures.

-  Annual improvements 2010 – 2012 cycle and
   2011 – 2013 cycle.

The abovementioned amendments to IFRS, adopted on
1 January 2015, did not have any effect on the group's
previously reported financial results or disclosures and had
no material impact on the group's accounting policies.

Administrative and contact details

Registered office
9th Floor, Standard Bank Centre
5 Simmonds Street, Johannesburg, 2001
PO Box 7725, Johannesburg, 2000

Group secretary
Zola Stephen
Tel: +27 11 631 9106

Head: Investor relations
David Kinsey
Tel: +27 11 631 3931

Group financial director
Simon Ridley
Tel: +27 11 636 3756

Head office switchboard
Tel: +27 11 636 9111

Directors
TS Gcabashe (chairman) Shu Gu** (deputy chairman),
RMW Dunne#, BJ Kruger* (chief executive),
Adv KD Moroka, AC Parker,
ANA Peterside CON##, SP Ridley*, MJD Ruck,
PD Sullivan^, BS Tshabalala, SK Tshabalala* (chief executive),
Wenbin Wang**, EM Woods

*Executive director **Chinese #British
^Australian   ##Nigerian

Share transfer secretaries in South Africa
Computershare Investor Services
Proprietary Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107

Share transfer secretaries in Namibia
Transfer Secretaries (Proprietary) Limited
4 Robert Mugabe Avenue
(entrance in Burg Street), Windhoek
PO Box 2401, Windhoek

JSE independent sponsor
Deutsche Securities (SA) Proprietary Limited

Namibian sponsor
Simonis Storm Securities (Proprietary) Limited

JSE joint sponsor
The Standard Bank of South Africa Limited

Please direct all customer queries and comments to:
information@standardbank.co.za

Please direct all shareholder queries and comments to:
InvestorRelations@standardbank.co.za

www.standardbank.com

Date: 14/08/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

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