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STANDARD BANK GROUP LIMITED - Announcement regarding Financial Reporting Council of Nigeria notification

Release Date: 30/10/2015 10:55
Code(s): SBK     PDF:  
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Announcement regarding Financial Reporting Council of Nigeria notification

Standard Bank Group Limited
Registration No. 1969/017128/06
Incorporated in the Republic of South Africa
JSE share code: SBK
ISIN: ZAE000109815
NSX share code: SNB
NSX share code: SNB ZAE000109815
(“Standard Bank Group” or “the group”)

Standard Bank Group announcement regarding Financial Reporting Council of Nigeria
notification in relation to the financial reporting of Stanbic IBTC Holdings PLC

Standard Bank Group has noted the public announcement by the Financial Reporting Council of
Nigeria ("FRCN") released on 26 October 2015, regarding alleged material misstatements of the 2013
and 2014 financial statements of the group's Nigerian listed 53.2% held subsidiary, Stanbic IBTC
Holdings PLC ("Stanbic IBTC"). Stanbic IBTC issued a public response to this notification on
26 October 2015.

In relation to Stanbic IBTC’s financial statements, the sole material issue under dispute is whether the
accruals for amounts payable to fellow Standard Bank Group subsidiaries by Stanbic IBTC for
services rendered should continue to be reflected as liabilities, given the increasing difficulties in
obtaining regulatory approval for cross-border payments. Stanbic IBTC believes that, notwithstanding
the withholding of regulatory clearance for these cross-border payments, the associated agreements
are not rendered null or void and Stanbic IBTC’s associated liabilities are not relieved.

In the context of Standard Bank Group, the potential financial effect of the issue under dispute is not
material.

Legal advice has been received that both the FRCN’s notification, and an associated purported FRCN
fine against Stanbic IBTC of NGN 1 billion (approximately US$ 5 million), were issued without
compliance with prescribed process and in a manner exceeding the FRCN’s regulatory
powers. Stanbic IBTC remains firm in its position that there has been no material misstatement of the
2013 and 2014 Stanbic IBTC financial statements. Stanbic IBTC’s auditors in Nigeria, KPMG
Professional Services, have issued a public statement dated 28 October 2015 confirming that they
stand by their audit opinions on the relevant financial statements.

Standard Bank Group fully supports Stanbic IBTC in its response to the FRCN. Both Stanbic IBTC
and the group remain in close contact with the relevant banking regulators.

Johannesburg

30 October 2015

Lead sponsor
The Standard Bank of South Africa Limited

Independent sponsor
Deutsche Securities (SA) Proprietary Limited

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