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STANDARD BANK GROUP LIMITED - Unaudited condensed consolidated interim results and dividend announcement for the six months ended 30 June 2016

Release Date: 18/08/2016 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 2016

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

Unaudited condensed consolidated interim results and dividend announcement
for the six months ended 30 June 2016

The Standard Bank Group Limited’s (the group) condensed consolidated interim results, including the statement of 
financial position, income statement, statement of changes in equity, statement of other comprehensive income and 
statement of cash flows, for the six months ended 30 June 2016 (results) are prepared in accordance with the 
requirements of the JSE Limited (JSE) Listings Requirements, the requirements of International Financial Reporting 
Standards (IFRS) and its interpretations as adopted 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 and the 
requirements of the South African Companies Act, 71 of 2008. This announcement has been prepared in accordance 
with IAS 34 - Interim Financial Reporting (IAS 34), excluding paragraph 16A(j) as permitted by the JSE Listings 
Requirements. A full analysis of the results for the six months, which includes the full IAS 34 disclosure 
requirements, is available for viewing at www.standardbank.com/reporting or from the company’s registered office 
upon request.

The accounting policies applied in the preparation of these condensed consolidated interim results 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 with the exception of changes referred to below.

These interim results have not been audited or independently reviewed by the group’s external auditors. The group’s
2015 annual financial information has been correctly extracted from the underlying audited consolidated annual financial
statements.

The interim results discussed in this announcement are presented on an IFRS basis.

1H16 refers to the first half year results for 2016. 1H15 refers to the first half year results for 2015. FY15 refers
to the full year results for 2015. Change % reflects 1H16 change on 1H15.

All amounts relate to the group’s results unless otherwise specified.

The directors of the group take full responsibility for the preparation of this report. 

The preparation of the group’s results was supervised by the group financial director, Arno Daehnke BSc, MSc, PhD,
MBA, AMP.
 
The results were made publicly available on 18 August 2016.

This report contains pro forma constant currency financial information. For further details refer to below.

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

Highlights

- R10 861 million Headline earnings
  1H15: R10 373 million
  up 5% 
  
- 680 cents Headline earnings per share
  1H15: 650 cents
  up 5%
  
- 340 cents Dividend per share
  1H15: 303 cents
  up 12% 
  
- 9 381 cents Net asset value per share
  1H15: 8 832 cents
  up 6%
    
- 14.4% Return on equity (ROE)
  1H15: 15.1% 
  
- 13.2% Common equity tier I ratio
  1H15: 13.1%  
  
- 56.8% Cost-to-income ratio - banking activities
  1H15: 57.3%
  

- 1.05% Credit loss ratio - banking activities
  1H15: 0.99%
  
All results in this booklet are presented on an IFRS basis. For financial periods up to the end of December 2015, the
group normalised its results to reflect the group’s view of the economics of its Black Economic Empowerment Ownership
(Tutuwa) initiative and the group’s share exposures entered into to facilitate client trading activities and for the
benefit of Liberty policyholders.
  

Overview of financial results
Group results
Shareholders are reminded that the group has reverted to IFRS as its primary reporting basis in 2016. Unless otherwise
specified, all figures and movements referred to below are prepared on an IFRS basis. In addition, from the 2016
financial reporting period the group’s primary segments comprise the group’s banking activities, which consist of Personal 
and Business Banking (PBB), Corporate and Investment Banking (CIB) and Central and other. The group’s banking activities 
together with the group’s other banking interests and Liberty Holdings Limited, represent the group’s total operations. 
The group’sinterest in ICBC Argentina, previously included in Central and other, and ICBC Standard Bank Plc (ICBCS), previously
included in CIB’s results, now comprise the group’s other banking interests and represent the group’s associate interests 
in previously consolidated entities that are held in terms of strategic partnerships with the Industrial and Commercial
Bank of China (ICBC). CIB and Central and other previously reported results have accordingly been restated to exclude the
equity accounted earnings relating to these entities. 

Group headline earnings and headline earnings per share increased by 5% to R10 861 million and 680 cents respectively.
An interim dividend of 340 cents per share has been declared, representing a 12% increase on 1H15 and 2.0x dividend
cover. Headline earnings growth of 5% combined with 9% growth in average equity resulted in a decline in group ROE from
15.1% for 1H15 to 14.4% for 1H16. Banking activities recorded an ROE of 15.2% for 1H16.

During 1H16 the group continued to reap the benefits of ongoing growth in its businesses both in South Africa and in
the rest of Africa franchise. Rest of Africa legal entities contributed 31% to banking activities’ total income, relative
to 29% in the prior period, and 27% to the banking activities’ headline earnings, from 28% in the prior period.
 
The 1H15 headline earnings included the financial impact of a partial recovery in respect of insurance claims relating
to an external fraud on aluminium held 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 of the group’s interest in Standard Bank Plc (SB Plc) and
Brazil, which together totalled R1,2 billion. Furthermore, in the prior period, group earnings attributable to ordinary
shareholders included R2,8 billion of non-recurring net disposal gains (excluded from headline earnings) relating mainly
to the release from the group’s foreign currency translation reserve (FCTR) on disposal of its controlling interest in 
SB Plc which did not recur in 1H16. 

The commentary which follows refers to the group’s banking activities. Other banking interests and Liberty’s results
are discussed separately.

Operating environment
The global growth outlook going into 2016 was cautiously positive, with the International Monetary Fund (IMF) forecasting 
an improvement in global growth to 3.4% relative to the 3.1% recorded in 2015. The risks highlighted focused on China’s 
demand and the speed of its economic re-balancing, sustained low commodity prices and uncertainty leading to overall
weak global demand. In the first quarter, output growth across key markets, other than the US, was better than expected
and the oil markets improved from January lows on the back of a decline in supply, broadly supporting the outlook.
Subsequently, however, the risks highlighted at the beginning of the year have started to materialise, increasing volatility
and uncertainty. Britain’s vote to leave the European Union and the associated lack of clarity has only served to
exacerbate this. Further US monetary tightening, although widely expected at the beginning of the year, has not materialised
and accommodative monetary policy in Europe has continued.

Across sub-Saharan Africa, oil and other commodity export-reliant countries continue to feel the impact of lower prices on 
the back of excess supply and subdued China demand. More specifically, oil exporters continue to experience strain as the 
oil price stubbornly remains below production cost levels, placing pressure on those countries’ foreign currency reserves 
and local currencies. The pace of structural reform, which is required to promote diversification and much needed economic 
growth, has been slow. In addition, the prolonged and widespread drought brought by El Niño has affected a number of African
countries, in particular across east, south and central parts of the region. Net oil importing countries have benefited from 
the lower oil prices to moderate the inflationary pressures brought by the drought.

In South Africa (SA), the mining and agriculture sector headwinds associated with low commodity prices and the
persistent drought continued to place pressure on the economy into 2016. Whilst the relative currency weakness provided a 
boost to trade and manufacturing, it was insufficient to offset the headwinds, resulting in GDP contraction year-on-year 
in 1Q16. For most of the period under review, the country operated under the threat of a downgrade of its sovereign rating
to sub-investment grade by ratings agencies. Higher rates and above target inflation throughout the period placed
additional strain on consumers, manifesting in lower confidence levels and a contraction of consumer credit. The rand
strengthened through the period from the low levels of late January 2016. The overall macro deterioration, although marked 
and prolonged, has been more gradual than that experienced in the 2008/2009 crisis, enabling businesses and consumers to
better prepare and adjust.

Revenue 
Total income grew by 15% in 1H16, with net interest income (NII) increasing by 18% on the back of stronger margins, up
23bps to 372bps. The key drivers of the margin expansion were a positive endowment impact, improved PBB loan pricing,
and a favourable mix impact.

Non-interest revenue (NIR) grew 12% supported by a growing contribution from the rest of Africa. Net fees and commissions 
grew by 13% while trading revenue increased by 21% on the back of good growth in fixed income and currencies (FIC)
trading, and equities trading, up 19%, and 61% respectively. Other revenue was 21% lower than in the prior period due to
the non-recurrence of certain gains on the disposal of real estate investments and fair value gains within the
investment portfolio recorded in the prior period.

Credit impairment charges
Total credit impairment charges were 16% higher than the prior period, due primarily to increased credit impairment
charges in CIB and to a lesser extent PBB in the rest of Africa. The total credit loss ratio increased from 99bps in the
prior period to 105bps. CIB’s credit loss ratio increased from 25bps to 49bps and its credit impairment charges increased
from R591 million to R1 298 million, in particular on the back of increases in non-performing loans (NPLs) in the oil &
gas and power & infrastructure sectors.

PBB’s credit loss ratio decreased from 148bps to 141bps, driven by a decline in mortgage related impairment charges
period-on-period on the back of sustained good performance of the book as well as better collections. Impairments in
commercial and business lending declined while card debtors and vehicle and asset finance (VAF) impairments were 10% and 
16% higher respectively. Overall personal unsecured impairments rose, reflective of the difficult macro environment in SA 
as well as in a number of other countries in which the group operates.

Operating expenses
The group’s cost-to-income ratio improved from 57.3% to 56.8% despite operating expenses increasing by 14% over the
prior period. Staff costs increased by 16% while other operating expenses increased by 12%. Growth in staff costs was
driven by overnight salary increases, the full six month impact of the conversion of temporary staff to permanent employment
which began on 1 April 2015 and increases in headcount to support business growth, innovation and digital banking, and
wealth and investment initiatives. Other operating expenses include a R300 million loss related to the Japan fraud,
increased amortisation of capitalised software and higher premises costs.

The weakness of the rand over the period contributed to 4% of the growth in income and expenses. On a constant
currency basis, total income grew by 11% and operating expenses grew by 10%, resulting in positive JAWs of 1%.

Loans and advances
Gross loans and advances to customers grew by 8% from 1H15 to 1H16. CIB loans to customers continued to grow faster
than PBB, at 15% and 5% respectively. Residential mortgages recorded growth of 4% relative to 1H15 on the back of an
increase in new business registrations. Moderate growth of 2% in card debtors and 3% in personal loans was supplemented 
by good growth in business and vehicle and asset finance lending, which grew by 6% and 8% respectively.

Capital, funding and liquidity
The group remains appropriately capitalised with capital levels marginally higher than those at year-end. The group’s
common equity tier I ratio as at 30 June 2016 was 13.2% (FY15: 13.1%) and tier I ratio was 13.6% (FY15: 13.3%). The
group’s capital position remains strong and more than sufficient to meet the capital requirements as prescribed by
regulatory authorities across markets in which the group has a presence.

Deposits and current accounts from customers increased by 7%, compared to the prior period, with retail priced deposits 
growing at 9%, outpacing wholesale priced deposits from customers, which grew at 6%. Retail priced deposits were 4% lower 
on 30 June 2016 than on 31 December 2015, adversely impacted by the strengthening of the rand against the USD and several 
African currencies, most notably the naira. Adjusted for the currency impact, retail priced deposits actually grew slightly 
period on period.
 
The group maintained its strong liquidity position within approved risk appetite and tolerance limits. Total contingent 
liquidity amounted to R329,3 billion as at 30 June 2016 (1H15: R300,6 billion), and remains adequate to meet all internal 
stress testing, prudential and regulatory requirements. As at 30 June 2016 the group’s quarterly average Basel III
liquidity coverage ratio (LCR) amounted to 104.8%, exceeding the 70% minimum phased-in Basel III LCR requirement. The
group, together with the local banking industry, continues to engage, through the Banking Association South Africa (BASA),
with the South African Reserve Bank (SARB) to ensure that the net stable funding ratio (NSFR) framework aligns to local
industry conditions and requirements.


Gross loans and advances to customers
                                         Change         1H16          1H15           FY15   
                                              %           Rm            Rm             Rm   
Personal & Business Banking                   5      582 076       555 695        576 078   
Mortgage loans                                4      332 782       319 168        325 867   
Vehicle and asset finance                     8       80 929        75 229         80 278   
Card debtors                                  2       31 683        31 139         31 174   
Other loans and advances                      5      136 682       130 159        138 759   
Corporate & Investment Banking               15      370 822       323 322        363 596   
Corporate loans                              14      306 981       270 321        307 546   
Commercial property finance                  20       63 841        53 001         56 050   
Other services                              (77)      (8 534)       (4 824)        (5 033)   
Gross loans and advances to customers         8      944 364       874 193        934 641   
 
 
Deposits and current accounts from customers       
                                                Change          1H16          1H15           FY15 
                                                     %            Rm            Rm             Rm 
Personal & Business Banking                         10       486 515       442 915        498 189 
Retail priced deposits                               9       389 910       356 637        404 341 
Wholesale priced deposits                           12        96 605        86 278         93 848 
Corporate & Investment Banking                       5       598 024       571 403        572 635 
Other services                                       6       (4 121)       (4 373)        (6 477) 
Deposits and current accounts from customers         7     1 080 418     1 009 945      1 064 347 
Comprising:                                                                                       
Retail priced deposits and current accounts          9       389 910       356 637        404 341 
Wholesale priced deposits                            6       690 508       653 308        660 006 
Deposits and current accounts from customers         7     1 080 418     1 009 945      1 064 347 


Headline earnings by business unit  
                                       Change         1H16         1H15          FY15                                                         
                                            %           Rm           Rm            Rm          
Personal & Business Banking                14        5 492        4 834        11 237          
Corporate & Investment Banking             13        4 983        4 399         9 094          
Central and other                       (>100)        (502)          (1)           (8)         
Banking activities                          8        9 973        9 232        20 323          
Other banking interests                   (99)           2          208          (569)         
Liberty                                    (5)         886          933         2 433          
Standard Bank Group                         5       10 861       10 373        22 187          


Overview of business unit performance
Personal & Business Banking
PBB’s headline earnings grew 14% to R5 492 million. Strong NII growth of 18% and NIR growth of 14% translated into
total income growth of 16%. Credit impairment charges were 3% higher than in 1H15 while operating expenses increased by
17%, affected by the impact of the increase in permanent employees for the full period, the R300 million Japan fraud, and
higher information technology systems amortisation. PBB’s ROE increased from 16.1% to 16.4%. PBB SA’s earnings rose by
10% to R5,0 billion, PBB Outside Africa increased 48% to R313 million and PBB Rest of Africa increased by R105 million to
R158 million. On a constant currency basis, total income grew by 13% and operating expenses grew by 14%.

Transactional products headline earnings increased 10% relative to the prior period to R1 375 million, despite the
operational risk losses associated with the Japan fraud which dampened earnings. Total income increased by 15% driven by
positive endowment and balance sheet growth, partly offset by lower interchange revenue. 

Mortgage lending headline earnings grew by 17% relative to the prior period to R1 225 million. Total income grew 10%
driven by underlying growth in new business and improved pricing. Credit impairments fell 13% and the credit loss ratio
declined from 80bps to 67bps on the back of good performance of the book and better collections. 

Card products headline earnings grew 15% to R785 million, supported by strong growth in the rest of Africa. Card products 
recorded total income growth of 17% on the back of strong NII and NIR despite the headwinds brought about by interchange 
reform. Increasing consumer strain was reflected in the increase in NPLs and credit loss ratio which increased from 463bps 
to 495bps.
 
VAF headline earnings increased 1% to R165 million. SA VAF headline earnings grew 10%; however, this was largely
offset by losses in the rest of Africa where the VAF product is still in a developmental phase. Total income growth was
strong at 16% on the back of a growing book and improving portfolio yield in SA, despite pressure from increased competition
and sharply declining new passenger vehicle sales in SA. The credit loss ratio increased from 141bps to 150bps
reflecting an uptick in NPLs.

Lending products headline earnings grew 13% to R581 million, supported by total income growth of 16%. Advances growth
was driven by growth in revolving credit plans with muted growth across the other portfolios. Lending products’ credit
loss ratio declined from 216bps to 202bps.

Bancassurance and wealth earnings grew 16% to R1 361 million. Total income improved by 25% as a result of margin
earned on increasing loan and deposit balances, higher revenues associated with the bancassurance arrangement with Liberty
and insurance returns.
 
Corporate & Investment Banking
CIB’s headline earnings grew 13% to R4 983 million. Total income grew 17% to R17 717 million with a strong contribution 
from the rest of Africa franchise. NII increased 26%, reflecting the successes of the liability-led model complemented
by targeted credit growth within selected sectors. The tough macro-economic environment impacted customers, in particular 
in the oil-reliant West Africa region, requiring increased credit impairment charges resulting in a credit loss ratio
of 49bps (1H15: 25bps). Continued investment in building client capabilities and capacity, coupled with the currency
impact, drove cost growth to 14% and positive JAWs of 3%. CIB ROE improved to 18.2% from a restated 17.7% for the first
six months of 2015.

Global markets recorded excellent headline earnings growth of 26% to R2 590 million during the period with income
growth of 21% on the back of robust client activity across all regions and the ability to take advantage of market
volatility and dislocation. Strong income growth supported positive operating leverage.
 
Transactional products and services headline earnings were down 5% to R1 327 million. Total income was 21% higher due
to good deposit growth, positive endowment impact of rate increases in SA and a strong performance from our investor
services business. Strong top-line growth was dented somewhat by an increase in impairment charges off a low base, related
primarily to exposures in the rest of Africa portfolio. Continued investment in building the capacity of the business to
support franchise growth, with a particular focus on IT systems, contributed to cost growth of 22%.

Investment banking headline earnings increased 14% to R1 146 million despite large increases in impairment charges.
Strong NII growth, driven by a combination of moderate growth in loans and advances and margin expansion, was partially
offset by a decline in NIR, as difficult market conditions dampened confidence and delayed the closing of transactions.
Sustained low commodity prices and continued macro deterioration have led to higher impairment charges, particularly in
natural resources linked sectors. Costs were well contained resulting in positive JAWs of 6% for the period.

Real estate investments and principal investment management (PIM) recorded a headline loss of R80 million, largely
attributed to the costs associated with the business’ wind down.
 
Central and other
In the prior period, the Central and other segment included a R515 million gain related to the cash flow hedge releases 
on the disposal of the group’s operations in Brazil and the 60% interest in SB Plc. Excluding this amount, headline
earnings would have been a R516 million loss. By comparison, in the current period, the segment recorded a R502 million
loss.

Other banking interests 
Headline earnings from the group’s other banking interests fell from R208 million to R2 million. The headline earnings
contribution from the group’s 20% interest in ICBC Argentina grew 52% to R358 million as this operation continued to
trade profitably despite the devaluation of the Argentinean peso in late 2015. In the first half of 2015, the group equity
accounted its investment in ICBCS from 1 February and reported an equity accounted loss of R28 million. This loss
included the group’s share of a partial recovery in respect of aluminium fraud related insurance claims of R347 million,
offsetting an operating loss for the five months of R375 million. For the current six-month period, the equity accounted
loss was R356 million, reflecting the continued difficult operating environment for revenue generation but some improvement
in cost control.

Liberty 
The financial results reported are the consolidated results of the group’s 55% investment in Liberty. Bancassurance
results are included in PBB. Liberty’s BEE normalised headline earnings for the six months to June 2016 decreased by 9% to
R1 821 million, of which the IFRS headline earnings attributable to the group was R886 million. Operating earnings were
down by 15% whilst earnings from the shareholder investment portfolio grew by 4%. The fall in operating earnings was as
a result of declines in individual and group arrangements as well as asset management which were partly offset by gains
in LibFin Markets and a reduction in central and other. Liberty’s capital position remains strong despite weaker sales
and earnings in the six months to June 2016.

Prospects
The latest IMF forecasts expect global GDP growth of 3.1% for 2016, down from 3.4% at the beginning of the year.
Although the impact of “Brexit” is expected to be most felt in the United Kingdom and European economies, prolonged
uncertainty regarding the outcome of the separation negotiations could result in downside risk to this forecast. Despite the
economic headwinds, the IMF expects emerging and developing markets to grow at 4.1%, far outstripping the advanced economies
at 1.8%.
 
Sub-Saharan Africa’s GDP is expected to grow at 1.6% with South Africa trending towards zero growth and a contraction
in Nigeria. East and South & Central regions are expected to continue to fare better than the oil exporting countries in
West Africa. Ahead of South Africa’s next ratings review in December 2016, considerable effort is being spent by
government, business and labour to find ways to promote growth, employment and greater inclusion. We are cognisant of the
constraints under which our customers are currently operating. Despite increasing our credit provisions to reflect this, the
group remains well capitalised and in a position to continue to invest and grow in our targeted sectors and countries.

We continue to monitor developments in the banking sector and financial markets to ensure that we remain appropriately
equipped to deliver on our vision to be the leading financial services organisation in, for and across Africa. We are
focused on delivering effective solutions tailored to our customers’ needs and continue to invest in our franchise, our
products and our people. We are committed to delivering through-the-cycle earnings growth and ROE within our target range
of 15% - 18% over the medium term. This includes a heightened focus on optimising resource allocations across the
group, coupled with tighter management of capital supply, and a diligent focus on costs.

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 a final gross cash
dividend No. 94 of 340,00 cents per ordinary share (the cash dividend) to ordinary shareholders recorded in the register
of the company at the close of business on Friday, 16 September 2016. The last day to trade to participate in the
dividend is Tuesday, 13 September 2016. Ordinary shares will commence trading ex dividend from Wednesday, 14 September 2016. 

The salient dates and times for the cash dividend are set out in the table below.

Ordinary share certificates may not be dematerialised or rematerialised between Wednesday, 14 September 2016, and
Friday, 16 September 2016, 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, 19 September 2016.

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. 94 of 3,25 cents (gross) per first
  preference share, payable on Monday, 12 September 2016, to holders of first preference shares recorded in the books of
  the company at the close of business on the record date, Friday, 9 September 2016. The last day to trade to participate 
  in the dividend is Tuesday, 6 September 2016. First preference shares will commence trading ex dividend from Wednesday, 
  7 September 2016. 

- Non-redeemable, non-cumulative, non-participating preference shares (second preference shares) dividend No. 24 of
  396,13 cents (gross) per second preference share, payable on Monday, 12 September 2016, to holders of second preference
  shares recorded in the books of the company at the close of business on the record date, Friday, 9 September 2016. The
  last day to trade to participate in the dividend is Tuesday, 6 September 2016. Second preference shares will commence
  trading ex dividend from Wednesday, 7 September 2016. 

The salient dates and times for the preference share distributions are set out in the table below.

Preference share certificates (first and second) may not be dematerialised or rematerialised between Wednesday, 
7 September 2016 and Friday, 9 September 2016, both days inclusive. Preference shareholders (first and second) who hold
dematerialised shares will have their accounts at their CSDP or broker credited on Monday, 12 September 2016.

Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders’ bank
accounts on the payment date. In the absence of specific mandates, dividend cheques will be posted to shareholders.


The relevant dates for the payment of dividends are as follows:  
                                                                                                            Non-redeemable,     
                                                                                         6.5%               non-cumulative,     
                                                                                   cumulative             non-participating     
                                                        Ordinary            preference shares             preference shares     
                                                          shares     (First preference shares)    (Second preference shares)   
JSE Limited (JSE)                                                                                                              
Share code                                                   SBK                         SBKP                          SBPP    
ISIN                                                ZAE000109815                 ZAE000038881                  ZAE000056339    
Namibian Stock Exchange (NSX)                                                                                                  
Share code                                                   SNB                                                               
ISIN                                                ZAE000109815                                                               
Dividend number                                               94                           94                            24    
Gross distribution/dividend per share (cents)             340,00                         3,25                        396,13    
Last day to trade in order to be eligible               Tuesday,                     Tuesday,                      Tuesday,     
for the cash dividend                          13 September 2016             6 September 2016              6 September 2016    
                                                      Wednesday,                   Wednesday,                    Wednesday,     
Shares trade ex the cash dividend              14 September 2016             7 September 2016              7 September 2016    
Record date in respect of the                            Friday,                      Friday,                       Friday,     
cash dividend                                  16 September 2016             9 September 2016              9 September 2016    
Dividend cheques posted and CSDP/                   
broker account credited/updated                          Monday,                      Monday,                       Monday,    
(payment date)                                 19 September 2016            12 September 2016             12 September 2016                                                                                    

The above dates are subject to change. Any changes will be released on the 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 289 cents per ordinary share, 
2,7625 cents per first preference share and 336,7105 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:
- 1 618 175 588 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.


Financial statistics
                                                       Change           1H16           1H15           FY15 
for the six months ended 30 June 2016                       %      Unaudited      Unaudited        Audited 
Number of ordinary shares in issue (000’s)                                                                 
End of period                                                      1 595 627      1 601 792      1 601 417 
Weighted average                                                   1 597 746      1 596 273      1 597 399 
Diluted weighted average                                           1 618 260      1 623 184      1 611 522 
Cents per ordinary share                                                                                   
Headline earnings                                           5          679,8          649,8        1 388,9 
Continuing operations                                       6          679,8          639,1        1 394,5 
Discontinued operation                                   (100)                         10,7           (5,6)
Diluted headline earnings                                   5          671,2          639,1        1 376,8 
Continuing operations                                       7          671,2          628,6        1 382,4 
Discontinued operation                                   (100)                         10,5           (5,6)
Dividend                                                   12          340,0          303,0          674,0 
Net asset value                                             6          9 381          8 832          9 433 
Financial performance (%)                                                                                  
ROE                                                                     14.4           15.1           15.6 
Net interest margin on continuing banking activities1                   3.72           3.49           3.52 
Credit loss ratio on continuing banking activities                      1.05           0.99           0.87 
Cost-to-income ratio on continuing banking activities2                  56.8           57.3           56.5 
Capital adequacy ratios (%)                                                                                
Basel III                                                                                                  
Tier I capital adequacy ratio1                                          13.6           13.6           13.3 
Total capital adequacy ratio1                                           15.9           16.0           15.7 
Common equity tier I ratio                                              13.2           13.1           12.9 
1 1H15 has been restated as a result of a calculation methodology change.  
2 Comparatives have been restated as a result of a definition change.     


Condensed consolidated statement of financial position
                                                                         1H16             1H15            FY15  
                                                        Change      Unaudited        Unaudited         Audited  
as at 30 June 2016                                           %             Rm               Rm              Rm  
Assets              
Cash and balances with central banks                        16         73 442           63 066          75 112  
Derivative assets                                           36         79 942           58 931         111 089  
Trading assets                                              47        122 839           83 650          86 219  
Pledged assets                                             (37)        18 324           29 149          34 429  
Financial investments                                        1        470 968          464 052         486 704  
Current tax assets                                         (11)           721              807             534  
Loans and advances                                           2      1 071 206        1 045 389       1 076 917  
Non-current asset held for sale1                          (100)                            111                  
Other assets                                               (12)        29 127           32 999          24 552  
Interest in associates and joint ventures                   (4)         8 827            9 162           9 703  
Investment property                                          6         30 955           29 273          30 508  
Property and equipment                                                 16 210           16 254          17 670  
Goodwill and other intangible assets                         6         23 970           22 644          24 031  
Deferred tax assets                                         (7)         1 241            1 333           1 881  
Total assets                                                 5      1 947 772        1 856 820       1 979 349  
Equity and liabilities                                                                                          
Equity                                                       6        176 257          166 729         178 908  
Equity attributable to ordinary shareholders                 6        149 690          141 470         151 069  
Preference share capital and premium                                    5 503            5 503           5 503  
Non-controlling interest                                     7         21 064           19 756          22 336  
Liabilities                                                  5      1 771 515        1 690 091       1 800 441  
Derivative liabilities                                      36         90 951           66 749         133 958  
Trading liabilities                                        (25)        46 848           62 675          43 304  
Current tax liabilities                                    (16)         7 134            8 509           4 304  
Deposits and debt funding                                    6      1 197 155        1 132 127       1 186 514  
Policyholder liabilities                                     3        305 065          295 353         298 232  
Subordinated debt                                           12         28 438           25 443          27 141  
Provisions and other liabilities                            (4)        95 066           98 823         101 894  
Deferred tax liabilities                                  >100            858              412           5 094  
Total equity and liabilities                                 5      1 947 772        1 856 820       1 979 349  
1 During 2015, the group’s associate interest in Ünlü Menkul Degerler A.S. was classified as a non-current asset
  held for sale and was disposed of on 21 October 2015.   


Condensed consolidated income statement
                                                                                      1H16           1H15          FY15  
                                                                     Change      Unaudited      Unaudited       Audited  
for the six months ended 30 June 2016                                     %             Rm             Rm            Rm  
Continuing operations                                                                                                    
Income from banking activities                                           15         49 863         43 240        91 113  
Net interest income                                                      18         27 775         23 449        49 310  
Non-interest revenue                                                     12         22 088         19 791        41 803  
Income from investment management and life insurance activities           7         11 695         10 945        23 997  
Total income                                                             14         61 558         54 185       115 110  
Credit impairment charges                                                16         (5 815)        (5 032)       (9 371) 
Net income after credit impairment charges                               13         55 743         49 153       105 739  
Operating expenses in banking activities                                 14        (28 340)       (24 756)      (51 434) 
Operating expenses in insurance activities                               11         (8 433)        (7 592)      (16 184) 
Net income before non-trading and capital related items                  13         18 970         16 805        38 121  
and equity accounted earnings                                                                                            
Non-trading and capital related items                                 (>100)          (214)           142        (1 512) 
Share of post tax profit/(loss) from associates and joint ventures      (47)           152            287          (323) 
Net income before indirect taxation                                      10         18 908         17 234        36 286  
Indirect taxation                                                        (5)        (1 137)        (1 195)       (2 739) 
Net income before direct taxation                                        11         17 771         16 039        33 547  
Direct taxation                                                          21         (4 716)        (3 908)       (8 187) 
Profit for the period from continuing operations                          8         13 055         12 131        25 360  
Profit from discontinued operation1                                    (100)                        3 002         2 741  
Profit for the period                                                   (14)        13 055         15 133        28 101  
Attributable to non-controlling interests                                19          2 047          1 714         3 970  
Attributable to preference shareholders                                   3            196            190           377  
Attributable to ordinary shareholders                                   (18)        10 812         13 229        23 754  
Earnings per share from continuing operations and                                                                        
discontinued operation                                                                                                   
Basic earnings per ordinary share (cents)                                            676,7          828,7       1 487,0  
Diluted earnings per ordinary share (cents)                                          668,1          815,0       1 474,0  
Earnings per share from continuing operations                                                                            
Basic earnings per ordinary share (cents)                                            676,7          640,7       1 315,5  
Diluted earnings per ordinary share (cents)                                          668,1          630,1       1 303,9  
1 Gains and losses relating to SB Plc have been presented as a single amount relating to its post tax profit.


Headline earnings
                                                                                  1H16          1H15        FY15  
                                                                  Change     Unaudited     Unaudited     Audited  
for the six months ended 30 June 2016                                  %            Rm            Rm          Rm  
Profit for the period from continuing operations                       6        10 812        10 227      21 013  
Headline adjustable items added/(reversed)                                          80           (15)      1 687  
Goodwill impairment - IAS 36                                                                                 333  
Loss/(gains) on a disposal of a business - IFRS 10                                   3          (189)       (195) 
Loss on sale of property and equipment - IAS 16                                      5             3          48  
Realised foreign currency loss/(profit) on foreign operations                                     
- IAS 21                                                                                          41          (5)  
Impairment of associate - IAS 27/IAS 36                                             10                       112  
Impairment of intangible assets - IAS 36                                           196           113       1 330  
Realised (gains)/losses on available-for-sale assets - IAS 39                     (134)           17          64  
Taxation on headline earnings adjustable items                                     (26)           (6)       (381) 
Non-controlling interests' share of headline earnings                               
adjustable items                                                                    (5)           (4)        (42)  
Standard Bank Group headline earnings from continuing                   
operations                                                             7        10 861        10 202      22 277   
Profit for the period from discontinued operation                   (100)                      3 002       2 741  
Headline adjustable items reversed                                                            (2 831)     (2 831) 
Loss on disposal of subsidiary - IFRS 10                                                       1 303       1 303  
Realised foreign currency profit on foreign operations - IAS 21                               (4 054)     (4 054) 
Net investment hedge gain - IAS 39                                                               (68)        (68) 
Realised gains on available-for-sale assets - IAS 39                                             (12)        (12) 
Standard Bank Group headline earnings from                          
discontinued operation                                              (100)                        171         (90)    
Standard Bank Group headline earnings                                  5        10 861        10 373      22 187  


Condensed consolidated statement of other comprehensive income
                                                                             1H16            1H15          FY15  
                                                                        Unaudited       Unaudited       Audited  
for the six months ended 30 June 2016                                          Rm              Rm            Rm  
Profit for the period                                                      13 055          15 133        28 101  
Other comprehensive income after tax for the period                        (9 364)         (4 828)        3 009  
Items that may be reclassified subsequently to profit and loss             (9 306)         (4 788)        3 109  
Exchange differences on translating foreign operations                     (9 315)         (4 303)        4 103  
Net change on hedges of net investments in foreign operations                (110)           (166)         (325) 
Movement in the cash flow hedging reserve                                     138            (448)         (903) 
Net change in fair value of cash flow hedges                               (1 054)            706         1 551  
Realised fair value adjustments of cash flow hedges transferred to          1 192          (1 154)       (2 454) 
profit or loss                                                                                                   
Movement in the available-for-sale revaluation reserve                        (19)            129           234  
Items that may not be reclassified to profit and loss                         (58)            (40)         (100) 
Defined benefit fund remeasurements                                           (51)            (46)         (121) 
Other (losses)/gains                                                           (7)              6            21  
Total comprehensive income for the period                                   3 691          10 305        31 110  
Attributable to non-controlling interests                                    (194)          1 474         5 227  
Attributable to equity holders of the parent                                3 885           8 831        25 883     


Condensed consolidated statement of changes in equity
                                                                Ordinary        Preference            Non-  
                                                           shareholders'     share capital     controlling        Total     
                                                                  equity       and premium        interest       equity           
for the six months ended 30 June 2016                                 Rm                Rm              Rm           Rm    
Balance at 1 January 2015 (audited)                              136 985             5 503          19 146      161 634    
Total comprehensive income for the period                          8 641               190           1 474       10 305    
Transactions with owners, recorded directly in equity             (4 156)             (190)           (767)      (5 113)   
Equity-settled share-based payment transactions                       89                                26          115    
Deferred tax on share-based payment transactions                     134                                            134    
Transactions with non-controlling shareholders                      (152)                             (192)        (344)   
Net increase in treasury shares                                      374                              (107)         267    
Net repurchase of share capital and share premium and                 
capitalisation of reserves                                          (462)                                          (462) 
Redemption of preference shares                                    1 307                                          1 307    
Net dividends paid                                                (5 446)             (190)           (494)      (6 130)   
Unincorporated property partnerships capital reductions                                                  
and distributions                                                                                      (97)         (97)   
Balance at 30 June 2015 (unaudited)                              141 470             5 503          19 756      166 729    
Balance at 1 July 2015 (unaudited)                               141 470             5 503          19 756      166 729    
Total comprehensive income for the period                         16 865               187           3 753       20 805    
Transactions with owners, recorded directly in equity             (7 266)             (187)         (1 126)      (8 579)   
Equity-settled share-based payment transactions                   (1 481)                               47       (1 434)   
Deferred tax on share-based payment transactions                    (206)                                          (206)   
Transactions with non-controlling shareholders                      (217)                             (586)        (803)   
Net decrease in treasury shares                                     (308)                              156         (152)   
Net repurchase of share capital and share premium and            
capitalisation of reserves                                          (179)                                          (179)            
Redemption of preference shares                                       10                                             10    
Net dividends paid                                                (4 885)             (187)           (743)      (5 815)   
Unincorporated property partnerships capital reductions                                                 
and distributions                                                                                      (47)         (47)     
Balance at 31 December 2015 (audited)                            151 069             5 503          22 336      178 908    
Balance at 1 January 2016 (audited)                              151 069             5 503          22 336      178 908    
Total comprehensive income for the period                          3 689               196            (194)       3 691    
Transactions with owners, recorded directly in equity             (5 068)             (196)           (970)      (6 234)   
Equity-settled share-based payment transactions                      487                                16          503    
Deferred tax on share-based payment transactions                      47                                             47    
Transactions with non-controlling shareholders                      (126)                             (302)        (428)   
Net increase in treasury shares                                      561                                 9          570    
Net repurchase of share capital and share premium and               
capitalisation of reserves                                          (123)                                          (123)  
Redemption of preference shares                                       65                                             65    
Net dividends paid                                                (5 979)             (196)           (693)      (6 868)   
Unincorporated property partnerships capital reductions                                            
and distributions                                                                                     (108)        (108) 
Balance at 30 June 2016 (unaudited)                              149 690             5 503          21 064      176 257    


Condensed consolidated statement of cash flows 
                                                                                 1H16           1H15           FY15          
                                                                            Unaudited      Unaudited        Audited          
for the six months ended 30 June 2016                                              Rm             Rm             Rm          
Net cash flows from operating activities                                       10 839         15 841         35 504          
Direct taxation paid                                                           (4 745)        (4 109)        (8 012)         
Other operating cash flows                                                     15 584         19 950         43 516          
Net cash flows generated from/(used in) investing activities                    1 969        (28 435)       (31 828)         
Capital expenditure                                                            (3 123)        (3 798)        (9 527)         
Other investing cash inflows/(outflows)                                         5 092        (24 637)       (22 301)         
Net cash flows used in financing activities                                    (5 736)        (5 956)       (11 509)         
Cash outflow from share buybacks net of issue of share capital                   (123)          (462)          (641)         
Net cash outflow from equity transactions with non-controlling interests         (524)          (454)        (1 118)         
Release of empowerment reserve                                                     65          1 307          1 317          
Subordinated debt issued                                                        1 714          2 844          4 005          
Subordinated debt redeemed                                                                    (3 061)        (3 127)         
Dividends paid                                                                 (6 868)        (6 130)       (11 945)         
Effect of exchange rate changes on cash and cash equivalents                   (8 742)           737          2 066          
Net decrease in cash and cash equivalents                                      (1 670)       (17 813)        (5 767)         
Cash and cash equivalents at beginning of the period                           75 112         80 879         80 879          
Cash and cash equivalents at the end of the period                             73 442         63 066         75 112          
Comprising:                                                                                                                  
Cash and balances with central banks                                           73 442         63 066         75 112          

Notes
Condensed segment report
                                                                                1H16                1H15               FY15          
                                                          Change           Unaudited          Unaudited1           Audited1          
for the period ended 30 June 2016                              %                  Rm                  Rm                 Rm          
Revenue contribution by business unit                                                                                                
Personal & Business Banking                                   16              33 541              28 875             60 573          
Corporate & Investment Banking                                17              17 717              15 149             31 388          
Central and other                                             78              (1 395)               (784)              (848)         
Banking activities                                            15              49 863              43 240             91 113          
Other banking interest2                                                                                                              
Liberty                                                        7              11 695              10 945             23 997          
Standard Bank Group                                           14              61 558              54 185            115 110          
Profit or loss attributable to ordinary shareholders                                                                                 
Personal & Business Banking                                   13               5 468               4 825             10 638          
Corporate & Investment Banking                                17               4 959               4 235              8 678          
Central and other                                          (>100)               (503)              3 028              2 625          
Banking activities                                           (18)              9 924              12 088             21 941          
Other banking interest2                                      (99)                  2                 208               (569)         
Liberty                                                       (5)                886                 933              2 382          
Standard Bank Group                                          (18)             10 812              13 229             23 754          
Total assets by business unit                                                                                                        
Personal & Business Banking                                    6             677 600             641 314            682 080          
Corporate & Investment Banking                                 7             911 751             854 955            930 644          
Central and other                                            (25)            (40 059)            (32 008)           (42 114)         
Banking activities                                             6           1 549 292           1 464 261          1 570 610          
Other banking interest2                                       (5)              7 028               7 361              7 933          
Liberty                                                        2             391 452             385 198            400 806          
Standard Bank Group                                            5           1 947 772           1 856 820          1 979 349          
Total liabilities by business unit                                                                                                   
Personal & Business Banking                                    5             606 450             577 616            614 614          
Corporate & Investment Banking                                 6             851 516             801 890            871 597          
Central and other                                             (1)            (52 853)            (52 123)           (61 748)         
Banking activities                                             6           1 405 113           1 327 383          1 424 463          
Other banking interest2                                                                                                              
Liberty                                                        1             366 402             362 708            375 978          
Standard Bank Group                                            5           1 771 515           1 690 091          1 800 441          
1 Where responsibility for individual cost centres and divisions within business units change, the comparative figures are 
  reclassified accordingly.                                                                                       
2 For the group's 2016 financial reporting period the group's primary segments comprise the group's banking activities, 
  which consist of PBB, CIB and central and other. The group's banking activities together with the group's other banking 
  interests and Liberty, represent the group's total activities and operations. The group's interest in ICBC Argentina, 
  previously included in Central and other, and ICBCS, previously included in CIB's results, are now included as part of 
  the group's Other banking interests and represent the group's associate interests in previously consolidated entities that 
  are held in terms of strategic partnerships with ICBC.                                                                                       

Notes continued
Contingent liabilities and capital commitments
                                                           1H16               FY15          
                                                      Unaudited            Audited          
as at 30 June 2016                                           Rm                 Rm          
Letters of credit and bankers' acceptances               11 834             11 437          
Guarantees                                               63 551             67 161          
Contingent liabilities                                   75 385             78 598          
Investment property                                         681                835          
Property and equipment                                      379                405          
Other intangible assets                                   1 014              1 169          
Commitments                                               2 074              2 409          

Legal proceedings
In the ordinary course of business, the group is involved as a defendant in litigation, lawsuits and other
proceedings. Management recognises the inherent difficulty of predicting the outcome of defended legal proceedings. 
Nevertheless, based on management's knowledge from investigation analyses and after consulting with legal counsel, 
management believes that there are no individual legal proceedings that are currently assessed as being 'likely to  
succeed and material' or 'unlikely to succeed but material should they succeed'. The group is also the defendant 
in some legal cases for which the group is fully indemnified by external third parties, none of which are 
individually material. 

Management is accordingly satisfied that the legal proceedings currently pending against the group should not have a
material adverse effect on the group's consolidated financial position and the directors are satisfied that the group has
adequate insurance programmes and provisions in place to meet claims that may succeed.

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 2/2015 Headline Earnings, issued by the 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.
                                                               1H16               FY15          
                                                          Unaudited            Audited          
                                                                 Rm                 Rm          
Cost                                                             38                 48          
Carrying value                                                  514                492          
Fair value                                                      514                482          
Realised gains on disposal for the period included in
headline earnings                                                45                             
Attributable income before impairment                            29                 51          

Equity securities
During the period, the group allotted 1 309 717 shares (FY15: 3 813 706 shares) in terms of the group's share
incentive schemes and repurchased 1 386 311 shares (FY15: 3 923 373 shares). 

The total equity securities held as treasury shares at the end of the period was 16 798 218 shares (FY15: 11 084 016 shares). 
These treasury shares exclude group shares that are held by certain structured entities (SEs) relating to the group's Tutuwa 
initiative (refer to the related party note for more detail) since those SEs hold the voting rights on such shares and are 
accordingly not treasury shares as defined by the JSE Listings Requirements.

Subordinated debt
During the period the group issued R1.7 billion (FY15: R4 billion) and redeemed Rnil (FY15: R3.1 billion) subordinated
debt instruments.

The terms of the issued bonds include a regulatory requirement which provides for the write-off in whole or in part on
the earlier of a decision by the relevant regulator (SARB) that a write off, or a public sector injection of capital or
equivalent support is necessary, without which the issuer would have become non-viable.

Japan card fraud incident 
As announced by the group on 23 May 2016 on SENS, the group's South African banking operations were the victim of a
sophisticated, coordinated fraud incident which involved the withdrawal of cash using a small number of fictitious cards
at various ATMs in Japan. Standard Bank was the target of the fraud and there has been no financial loss for its
customers. Swift action was taken to contain the matter and the gross loss (prior to any potential recoveries) is estimated 
at R300 million. This loss has been recognised in operating expenses within the group's banking activities. 

Investigations into the cause of the fraud are at an advanced stage. The group is proactively taking steps to prevent
any potential reoccurrence of such an incident.

Foreign currency translation reserve
During the six months ended 30 June 2016 the group's FCTR decreased by R7.1 billion. This decrease was partly 
attributable to the weakening of the Nigerian naira (51%) and Mozambicanmetical (40%) against the South African rand 
which resulted in an FCTR loss of R2.6 billion and R1 billion respectively relating to the group's investments in Stanbic 
IBTC Holdings PLC (SIBTC Holdings) and Standard Bank S.A.R.L, Mozambique(Mozambique). Post 30 June 2016, the Nigerian naira 
and the Mozambican metical continued to depreciate which may result in a further decrease of the group's FCTR in the second 
half of 2016 should such depreciation be sustained. 

The group's goodwill materially comprises of goodwill relating to the group's investment in SIBTC Holdings which is
denominated in Nigerian naira. While the group will, in terms of IFRS, continue to review its investment in Nigeria for
impairment, the weakening of the Nigerian naira did not result in any impairment to the group's investment in SIBTC
Holdings at 30 June 2016. Similarly, the weaker Mozambican metical did not result in any impairment to the group's 
investment in Mozambique at 30 June 2016. 

SIBTC Holdings financial statements
SIBTC Holdings advised its shareholders through The Nigerian Stock Exchange (NSE) on 24 March 2016 that, due to the
Financial Reporting Council of Nigeria's (FRC) allegations surrounding material misstatements of its 2013 and 2014
financial statements (as referred to in the group's SENS announcements dated 30 October 2015 and 4 November 2015) and the
associated legal proceedings, it would be unable to complete its 2015 audit and issue its 2015 annual report before 
31 March 2016. Whilst SIBTC Holdings noted that it intended to finalise its audited financial statements on or before 
31 May 2016, this was unable to be achieved. On 27 May 2016, a revised announcement was released through the NSE to 
shareholders informing them of this fact as well as stating that the FRC informed KPMG, SIBTC Holding's external auditors, 
that it would sanction KPMG if, pending the outcome of litigation about the FRC's allegations on SIBTC Holdings' financial 
statements, it issued an audit opinion in respect of the financial statements of SIBTC Holdings or any of its subsidiaries. 
SIBTC Holdings and the group's management continues to explore all available avenues to resolve this matter with the FRC, 
including through litigation in the courts of Nigeria.

The results of SIBTC Holdings will continue to be included in the group's consolidated results but will not be
individually identifiable or disclosed separately. These developments have not had any material impact on the group's results
for the six months ended  30 June 2016.

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

Tutuwa share movement since lock-in period ended                                                                                       
                                                   1H16                             FY15                          
                                              Unaudited                          Audited                          
                                                 Issued        Weighted           Issued        Weighted           
                                              number of       number of        number of       number of           
                                                 shares          shares           shares          shares           
                                                  000's           000's            000's           000's          
Shares financed by the group -              
beginning of the period                           5 751           5 751           27 726          27 726          
Less: sale of shares by participants                                             (21 975)        (20 127)         
Shares financed by the group -              
end of the period                                 5 751           5 751            5 751           7 599          

Post-employment benefit plans                                                                            
Details of transactions between the group and the group's post-employment benefit plans are listed below:                                                   
                                                                   1H16                FY15          
                                                              Unaudited             Audited          
                                                                     Rm                  Rm          
Value of assets under management                                 12 302              11 776          
Investments held in bonds and money market instruments              921                 667          
Value of ordinary group shares held                                 534                 471          

Balances and transactions with ICBCS                                                   
The following significant balances and transactions were entered into between the group and ICBCS, 
an associate of the group:                                                   
                                                                   1H16                FY15          
                                                              Unaudited             Audited          
                                                                     Rm                  Rm          
Derivative assets                                                 2 483               4 780          
Trading assets                                                       31                  35          
Loans and advances                                               30 136              29 902          
Other assets                                                      1 567                 158          
Derivative liabilities                                           (3 794)             (5 351)         
Deposits and debt funding                                        (2 946)             (6 756)         
Provisions and other liabilities                                 (2 050)               (218)         
                                                            
The group entered into certain transitional service level arrangements with ICBCS in order to manage the orderly
separation of ICBCS from the group post the sale of 60% of SB Plc. In terms of these arrangements, services are 
delivered to and received from ICBCS for the account of each respective party. 

Balances and transactions with ICBC                                                  
The following significant balances and transactions were entered into between the group and ICBC, 
a 20.1% shareholder of the group:                                                  
                                                                   1H16               FY15          
                                                              Unaudited            Audited          
                                                                     Rm                 Rm          
Trading assets                                                                           7          
Loans and advances                                                   93                153          
Other assets1                                                       502                918          
Deposits and debt funding                                        (6 696)                            
Provisions and other liabilities                                                       (71)         
1 The group recognised losses in respect of certain commodity reverse repurchase agreements with third parties 
  prior to the date of conclusion of the sale and purchase agreement relating to SB Plc with ICBC. As a 
  consequence of the sale and purchase agreement the group holds the right to 60% of insurance and other recoveries, 
  net of costs, relating to claims for those recognised losses prior to the date of conclusion of the transaction. 
  Settlement of these amounts will occur based on audited information on pre-agreed anniversaries of the completion 
  of the transaction and the full and final settlement of all claims in respect of losses incurred. As at 30 June 2016, 
  a balance of R562 million (FY15: R619 million) is receivable from ICBC in respect of this arrangement. An amount 
  of R40 million (1H15: R539 million) was recognised in the income statement for the period in respect of this right.                          

Other related party transactions
Acquisition of investment from an interest in associate 
As at 30 June 2016, Liberty held an investment in the South Africa Infrastructure Fund Trust (SAIF), which was
accounted for as an interest in associate measured at fair value through profit or loss. SAIF has commenced a process to
realise its assets. Through this process Liberty, on 4 July 2016, purchased a share in Trans African Concessions (TRAC)
Proprietary Limited from SAIF for an amount of R1.5 billion. This purchase is part of an agreed arrangement with several
partners that will facilitate the establishment of a STANLIB managed infrastructure fund holding various non-controlling
interests in toll road concessions. This fund is likely to be accounted for as a mutual fund subsidiary of both Liberty 
and the group. 

Proposed sale of hotels businesses to The Cullinan Hotel Proprietary Ltd (Cullinan)
Liberty has entered into a sale of business agreement with Cullinan to dispose of interests in two investment
properties and the accompanying hotel businesses for an aggregate cash consideration of R310 million. The group through 
Liberty, has a 40% interest in Cullinan, which is accounted for as an associate measured at fair value through profit 
or loss. There will not be significant financial impact to the group's results or statement of financial position 
arising from this disposal. 

Change in group directorate
The following changes in directorate took place during the six months ended 30 June 2016:

Retirements                                                                           
S Ridley                      as financial director            30 April 2016          
                                                                                      
Appointments                                                                          
A Daehnke                     as financial director               1 May 2016          

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

The following table sets out the impact of offset, as well as the required disclosures where 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 below.

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.

                                                                                      Net amounts                  
                                                                                     of financial                  
                                                                   Financial               assets                                  
                                                                 liabilities            presented                                  
                                         Gross amount         set off in the               in the                                  
                                        of recognised              statement         statement of                                  
                                            financial           of financial            financial       Collateral         Net       
                                              assets1              position2            position3        received4      amount      
                                                   Rm                     Rm                   Rm               Rm          Rm    
Assets                                                                                                                            
30 June 2016 (unaudited)                                                                                                          
Derivative assets                              57 108                                      57 108          (50 913)      6 195    
Trading assets                                 31 102                                      31 102          (29 079)      2 023    
Loans and advances5                           124 267                (32 116)              92 151          (90 607)      1 544    
                                              212 477                (32 116)             180 361         (170 599)      9 762    
31 December 2015 (restated)6                                                                                                      
Derivative assets                              74 455                                      74 455          (68 533)      5 922    
Trading assets                                 23 577                                      23 577          (21 242)      2 335    
Loans and advances5                           110 748                (34 862)              75 886          (74 256)      1 630    
                                              208 780                (34 862)             173 918         (164 031)      9 887 

                                                                                       Net amount                    
                                                                                     of financial                    
                                                                   Financial          liabilities                                  
                                                                      assets            presented                                  
                                         Gross amount         set off in the               in the                                  
                                        of recognised              statement         statement of                                  
                                            financial           of financial            financial       Collateral         Net       
                                         liabilities1              position2            position3         pledged4      amount     
                                                   Rm                     Rm                   Rm               Rm          Rm     
Liabilities                                                                                                                        
30 June 2016 (unaudited)                                                                                                           
Derivative liabilities                         69 421                                      69 421          (57 560)     11 861    
Trading liabilities                            15 880                                      15 880          (15 880)               
Deposits and debt funding5                     37 473                (32 116)               5 357                        5 357    
                                              122 774                (32 116)              90 658          (73 440)     17 218    
31 December 2015 (restated)6                                                                                                      
Derivative liabilities                         90 316                                      90 316          (72 405)     17 911    
Trading liabilities                            34 225                                      34 225          (31 890)      2 335    
Deposits and debt funding5                     45 463                (34 862)              10 601           (4 417)      6 184    
                                              170 004                (34 862)             135 142         (108 712)     26 430    
1 Gross amounts are disclosed for recognised financial assets and financial liabilities that are either offset in the statement 
  of financial position or are subject to a master netting arrangement or a similar agreement, irrespective of whether the 
  offsetting criteria is met.                                                                                                       
2 Gross amounts of recognised financial assets or financial liabilities that qualify for offset in accordance with the criteria 
  per IFRS.                                                                                                       
3 Related amounts not offset in the statement of financial position that are subject to a master netting arrangement or similar 
  agreement, including financial collateral (whether recognised or unrecognised) and cash collateral. In most cases the group is 
  allowed to sell or repledge collateral received.                                                                                                       
4 Related amounts not offset in the statement of financial position that are subject to a master netting arrangement or similar 
  agreement, including financial collateral (whether recognised or unrecognised) and cash collateral. In most instances, the 
  counterparty may not sell or repledge collateral pledged by the group.                                                                            
5 The most material amounts offset in the statement of financial position pertain to cash management accounts. The cash management 
  accounts allow holding companies (or central treasury functions) to manage the cash flows of a group by linking the current 
  accounts of multiple legal entities within a group of companies. 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.                                                                                                       
6 A reassessment of financial instruments subject to master netting arrangements resulted in a restatement of amounts presented 
  at December 2015. The restatement improves the comparability of the financial information and did not affect the group's 
  statement of financial position.                                                                                                       


Offsetting and other similar arrangements continued
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 and derivatives      The agreement allows for offset in the 
                                                                                     event of default.

Trading assets and trading liabilities      Global master repurchase agreements      The agreement allows for offset in the 
                                                                                     event of default.                                                               

Loans and advances to banks                 Customer agreement and Banks Act         In the event of liquidation or bankruptcy, 
                                                                                     offset shall be enforceable subject to 
                                                                                     Banks Act requirements being met.
 
Deposits and debt funding                   Customer agreement and Banks Act         In the event of liquidation or bankruptcy, 
                                                                                     offset shall be enforceable subject to 
                                                                                     Banks Act requirements being met. 

Accounting policies and restatements 
Basis of preparation
The 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 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 and circular, as set out below.

Adoption of new and amended standards and circular 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 amendments effective for the current period:
- Amendment to IFRS 11 Joint Arrangements (IFRS 11) 
- SAICA Headline Earnings circular (Circular 2/2015) 
- IAS 27 Separate Financial Statements (IAS 27): amendment which allows entities preparing separate financial
  statements to utilise the equity method to account for investments in subsidiaries, joint ventures and associates. 
  The standard will be applied retrospectively.

Early adoption of revised standards:
- Amendment to IAS 7 Statement of Cash Flow (IAS 7)
- Amendment to IAS 12 Income Taxes (IAS 12)

The above mentioned amendments to the IFRS standards and circular, adopted on 1 January 2016, 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. However, the group has elected to change the accounting policy for investments in associates and joint ventures 
only to both Standard Bank Group Limited and The Standard Bank of South Africa's separate financial statements as a result 
of the IAS 27 amendment from the cost method to the equity accounting method. The amendment has been applied retrospectively. 

The amendment to IAS 1 Presentation of Financial Statements (IAS 1) which was early adopted at the 31 December 2015
reporting period, resulted in the following changes to the group's 30 June 2016 interim report:
- Changes to the ordering of line items in the financial statements, notably in the statement of financial position to
better reflect liquidity
- The application of materiality to items in the income statement, together with the development of a revised income
statement format, resulted in changes to the income statement's previously reported results as set out in the following
table:

As previously presented                                      Revised presentation                                          
                                                   1H15                                                            1H15    
                                              Unaudited                                                       Unaudited    
                                                     Rm                                                              Rm    
Description                                  Gain/(loss)     Description                                     Gain/(loss)    
Non-interest revenue                             19 796      Non-interest revenue1                               19 791    
Revenue sharing agreements with                                                                       
discontinued operation                               (5)                                                                   
Income from investment management                                                                     
and life insurance activities                    35 550                                               
                                                             Income from investment management                   10 945
Benefits due to policyholders                   (24 605)     and life insurance activities2                                      
Operating expenses in banking activities        (24 762)     Operating expenses in banking activities3          (24 756)   
Share of post tax profit/(loss) from                         Share of post tax profit/(loss) from     
associates and joint ventures                       174      associates and joint ventures3                         287    
Gains on disposal and liquidation                                                                     
of subsidiaries                                     261      Non-trading and capital related items3                 142    

1 Inclusion in total income of revenue sharing agreements with discontinued operation.                                         
2 In determining net income from investment management and life insurance activities, benefits due to policyholders is 
  now presented together with income from investment management and life insurance activities.                                             
3 A new line item, namely 'non-trading and capital related items', has been included in the income statement. 
  This line item replaces the previously disclosed income statement line items relating to, where applicable, goodwill 
  impairment and gain on disposal and liquidation of subsidiaries includes the impairment of intangible assets and the 
  loss on disposal of property and equipment that were previously included in operating expenses; and further includes 
  the net impairment of associates and gains on disposals of associates previously included in the share of profit 
  from associates and joint ventures.                              
                                                                                   
Pro forma constant currency financial information
The pro forma constant currency information disclosed in these results is the responsibility of the group's directors.
The pro forma constant currency information has been presented to illustrate the impact of changes in currency rates on
the group's results and may not fairly present the group's results of operations. In determining the change in constant
currency terms, the comparative financial reporting period's results have been adjusted for the difference between the
current and prior period's average exchange rates (determined as the average of the daily exchange rates). The
measurement has been performed for each of the group's material currencies. The pro forma constant currency financial information
has not been reviewed and reported on by the group's external auditors.

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


                               US        Nigerian    Kenyan      Zambian    Ugandan     
                               dollar    naira       shilling    kwacha     shilling        
1H16 average exchange rate     15,400    0,076       0,152       1,443      0,005               
1H15 average exchange rate     11,915    0,061       0,127       1,682      0,004               

Acronyms and abbreviations
ATM                 Automated teller machine                                         
BASA                The Banking Association South Africa                             
Basel III           Basel Capital Accord                                             
BEE                 Black Economic Empowerment                                       
bps                 Basis points                                                     
Brazil              Banco Standard de Investimentos SA                               
CAGR                Compound annual growth rate                                      
CDS                 Credit default swaps                                             
CIB                 Corporate & Investment Banking                                   
CSDP                Central Securities Depository Participant                        
Cullinan            The Cullinan Hotel Proprietary Ltd                               
FCTR                Foreign currency translation reserve                             
FIC                 Fixed income and currencies                                      
FRC                 Financial Reporting Council of Nigeria                           
GDP                 Gross domestic product                                           
IAS                 International Accounting Standards                               
ICBC                The Industrial and Commercial Bank of China Limited              
ICBCS               The Industrial and Commercial Bank of China Standard Bank Plc    
IFRS                International Financial Reporting Standards                      
IMF                 International Monetary Fund                                      
JAWs                Difference between income and expense growth rate                
JSE                 JSE Limited                                                      
LCR                 Liquidity coverage ratio                                         
Liberty             Liberty Holdings Group                                           
NII                 Net interest income                                              
NIR                 Non-interest revenue                                             
NPL                 Non-performing loans                                             
NSE                 Nigeria Stock Exchange                                           
NSFR                Net stable funding ratio                                         
NSX                 Namibian Stock Exchange                                          
PBB                 Personal & Business Banking                                      
PIM                 Principal investment management                                  
ROE                 Return on equity                                                 
SA                  South Africa                                                     
SAICA               South African Institute of Chartered Accountants                 
SAIF                South Africa Infrastructure Fund                                 
SARB                South African Reserve Bank                                       
SB Plc              Standard Bank Plc                                                
SE                  Structured entities                                              
SENS                Stock Exchange News Service                                      
SIBTC Holdings      Stanbic IBTC Holdings Plc                                        
the group           Standard Bank Group                                              
Tutuwa              The group's black economic empowerment ownership initiative      
US                  United States                                                    
VAF                 Vehicle and asset finance

Johannesburg, 18 August 2016

Administrative and contact details

Standard Bank Group Limited
Registration number 1969/017128/06
Incorporated in the Republic of South Africa
Website: www.standardbank.com

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
Zola.Stephen@standardbank.co.za

Head: Investor relations
Sarah Rivett-Carnac
Tel: +27 11 631 6897
Sarah.Rivett-carnac@standardbank.co.za

Group financial director
Arno Daehnke
Tel: +27 11 636 3756
Arno.Daehnke@standardbank.co.za

Head office switchboard
Tel: +27 11 636 9111                                        

Directors
TS Gcabashe (Chairman), Shu Gu** (Deputy Chairman), 
Dr A Daehnke*, RMW Dunne°, BJ Kruger* (Chief Executive), Adv KD Moroka, Dr ML Oduor-Otieno°°, AC Parker, ANA Peterside
CON^, MJD Ruck, PD Sullivan^^, BS Tshabalala, SK Tshabalala* (Chief Executive), 
Wenbin Wang**, EM Woods

*Executive Director **Chinese °British °°Kenyan ^Nigerian ^^Australian

All nationalities are South African, unless otherwise specified as above.
 
Share transfer secretaries in South Africa
Computershare Investor Services
Proprietary Limited
Ground floor, 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, Namibia

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

Share and bond codes
JSE share code: SBK 
ISIN: ZAE000109815
NSX share code: SNB 
ISIN: ZAE000109815
SBKP ZAE000038881 (First preference shares) 
SBPP ZAE000056339 (Second preference shares) 
JSE bond codes: SBS, SBK, SBN, SBR, ETN series 

SSN series and CLN series (all JSE-listed bonds issued in terms of The Standard Bank of South Africa Limited’s
Domestic Medium Term Note Programme and Credit Linked Note Programme).

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

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


Date: 18/08/2016 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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