Update on the group's performance for the four months to 30 April 2016 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”) Update on the group's performance for the four months to 30 April 2016 and capital adequacy, leverage ratio and liquidity coverage ratio disclosure at 31 March 2016 1. Update on the group's performance for the four months to 30 April 2016 At the annual general meeting to be held later today, group chief executives Sim Tshabalala and Ben Kruger will refer to this update regarding the group's performance for the first four months of 2016 in comparison with the equivalent period for 2015. Banking activities The economic conditions in South Africa, and across a number of the African countries in which the group operates, remain challenging. Despite this, group income growth has been good, supported by strong growth in net interest income. As expected, the group has seen some strain in the associated credit environments resulting in an increase in the group’s credit impairment charges. Expense growth was higher than income growth, exacerbated by the weaker rand, but remains within internal expectations. Management remains focused on delivering return on equity in the medium term target range of 15% to 18%. Liberty Holdings Limited (“Liberty”) Shareholders are referred to the Liberty operational update on 19 May 2016 wherein, referring to the first quarter of 2016, the following comments were included: “The performance of the group for the three months to 31 March 2016 continues to reflect the trends observed in the final quarter of 2015. Increasing pressure on consumer disposable income, volatile investment markets and lower economic growth have impacted both net customer cash flows and indexed new business. Returns on the shareholder investment portfolio were behind benchmark for 2016 but remain well ahead of the three year cumulative benchmark. Assets under management amounted to R671 billion (31 December 2015: R668 billion).” As noted in the group’s Annual Integrated Report, published on 25 April 2016, the lock-in period for the group’s Black Economic Empowerment initiative ended on the 31 December 2014, the remaining participants’ interest has a negligible impact on the group’s International Financial Reporting Standards (“IFRS”) results and the group will revert to IFRS as its primary reporting basis in 2016. 2. Basel III capital adequacy, leverage and liquidity coverage ratio disclosure as at 31 March 2016 In terms of the requirements under Regulation 43(1)(e)(iii) of the regulations relating to banks and Directive 4/2014 issued in terms of section 6(6) of the Banks Act (Act No. 94 of 1990), minimum disclosure on the capital adequacy of the group and its leverage ratio is required on a quarterly basis. This disclosure is in accordance with Pillar 3 of the Basel III accord. Standard Bank Group capital adequacy and leverage ratio 31 March 2016 Rm Ordinary share capital and premium 17 952 Ordinary shareholders' reserves1 135 641 Qualifying common equity tier I non-controlling interest 6 048 Regulatory deductions against common equity tier I capital (34 216) Common equity tier I capital 125 425 Unappropriated profit 14 828 Common equity tier I capital excluding unappropriated profit 110 597 Perpetual preference shares 3 297 Qualifying tier I non-controlling interest 410 Tier I capital excluding unappropriated profit 114 304 Tier II subordinated debt 18 541 General allowance for credit impairments 2 455 Tier II capital 20 996 Total qualifying capital excluding unappropriated profit 135 300 Total minimum regulatory capital requirement2 99 501 Credit risk 72 418 Counterparty credit risk 2 348 Equity risk in the banking book 1 418 Market risk 5 352 Operational risk 14 158 Threshold items 3 807 Capital adequacy ratio (excl unappropriated profit) Total capital adequacy ratio (%) 14.1 Tier I capital adequacy ratio (%) 11.9 Common equity tier I capital adequacy ratio (%) 11.5 Capital adequacy ratio (incl unappropriated profit) Total capital adequacy ratio (%) 15.7 Tier I capital adequacy ratio (%) 13.5 Common equity tier I capital adequacy ratio (%) 13.1 Leverage ratio Tier I capital (excl unappropriated profit) 114 304 Tier I capital (incl unappropriated profit) 129 132 Total exposures 1 869 160 Leverage ratio (excl unappropriated profits, %) 6.1 Leverage ratio (incl unappropriated profits, %) 6.9 Notes: 1 Including unappropriated profits. 2 The minimum capital requirement excludes any bank-specific capital requirement and is reported at 10.38%. The Standard Bank of South Africa Limited and its subsidiaries capital adequacy and leverage ratio 31 March 2016 Rm Common equity tier I capital1 67 101 Tier I capital1 67 101 Tier II capital 16 076 Total qualifying capital1 83 177 Unappropriated profit 6 784 Total minimum regulatory capital requirement2 61 050 Credit risk 45 926 Counterparty credit risk 2 090 Equity risk in the banking book 1 258 Market risk 2 893 Operational risk 8 269 Threshold items 614 Capital adequacy ratio (excl unappropriated profit) Total capital adequacy ratio (%) 14.1 Tier I capital adequacy ratio (%) 11.4 Common equity tier I capital adequacy ratio (%) 11.4 Capital adequacy ratio (incl unappropriated profit) Total capital adequacy ratio (%) 15.3 Tier I capital adequacy ratio (%) 12.5 Common equity tier I capital adequacy ratio (%) 12.5 Leverage ratio Tier I capital (excl unappropriated profit) 67 101 Tier I capital (incl unappropriated profit) 73 885 Total exposures 1 363 441 Leverage ratio (excl unappropriated profits, %) 4.9 Leverage ratio (incl unappropriated profits, %) 5.4 Notes: 1 Excluding unappropriated profits. 2 The minimum capital requirement excludes any bank-specific capital requirement and is reported at 10.38%. Liquidity coverage ratio disclosure In terms of the Basel III requirements in Directive 11/2014 issued in terms of section 6(6) of the Banks Act (Act No. 94 of 1990), minimum disclosure on the liquidity coverage ratio (LCR) of the group and the bank is required on a quarterly basis. This disclosure is in accordance with Pillar 3 of the Basel III liquidity accord. The LCR is designed to promote short-term resilience of the 1 month liquidity profile, by ensuring that banks have sufficient high quality liquid assets (HQLA) to meet potential outflows in a stressed environment. The minimum phase-in LCR requirement for 2016 at 70% on 1 January 2016 and will increase by 10% each year to 100% on 1 January 2019. Standard Bank Standard Bank of Group Consolidated South Africa Solo 31 March 2016 31 March 2016 Rm Rm Total high quality liquid assets 182 176 124 086 Net cash outflows 183 250 153 706 LCR (%) 99.4 80.7 Minimum requirement (%) 70.0 70.0 Notes: 1. Only banking and/or deposit taking entities are included and the group data represent an aggregation of the relevant individual net cash outflows and HQLA portfolios. 2. The above figures reflect the simple average of the month-end values at 31 January 2016, 29 February 2016 and 31 March 2016, based on the regulatory submissions to the South African Reserve Bank. The information contained in this announcement has not been reviewed and reported on by the group's external auditors. Johannesburg 26 May 2016 Lead sponsor The Standard Bank of South Africa Limited Independent sponsor Deutsche Securities (SA) Proprietary Limited Namibian sponsor Simonis Storm Securities (Proprietary) Limited Date: 26/05/2016 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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