Financial information provided to ICBC and update on the group’s operational performance Standard Bank Group Limited Registration No. 1969/017128/06 Incorporated in the Republic of South Africa JSE share code: SBK ISIN: ZAE000109815 NSX share code: SNB NSX share code: SNB ZAE000109815 (“Standard Bank Group” or “the group”) Financial information provided to The Industrial and Commercial Bank of China Limited (“ICBC”) and update on the group’s operational performance for the three months ended 31 March 2017 Financial information provided to ICBC On a quarterly basis the Standard Bank Group discloses to ICBC sufficient information to enable ICBC to equity account the group's results. Accordingly, the following consolidated financial information, prepared on an International Financial Reporting Standards basis, is being provided to ICBC for the three months ended 31 March 2017. Statement of changes in ordinary shareholders' equity for the three months ended 31 March 2017 Balance at Earnings Other Balance at 1 January 2017 attributable to movements for 31 March 2017 ordinary the period shareholders Rm Rm Rm Rm Ordinary share capital 162 162 Ordinary share 17 798 139 17 937 premium Foreign currency translation and (2 356) (868) (3 224) hedging reserves Foreign currency translation reserve (1 189) (796)[1] (1 985) (FCTR) Foreign currency net investment and cash (1 167) (72) (1 239) flow hedging reserve Retained earnings 132 614 6 227 (7 591)[2] 131 250 Empowerment reserve (621) (275) (896) and treasury shares Other 3 160 281 3 441 Total ordinary 150 757 6 227 (8 314) 148 670 shareholders' equity [1] The decrease in the FCTR is primarily as a result of the strengthening of the Rand against the US Dollar (R13.37/USD at 31 March 2017 from R13.69/USD at 31 December 2016) and other African currencies. [2] Primarily comprises the ordinary dividends declared in March 2017. Update on the group’s performance for the three months ended 31 March 2017 (1Q17) Further to requests from investors, the group has decided to provide some context to the earnings attributable to ordinary shareholders provided in the statement of changes in equity above. In the three months ended 31 March 2017, the group’s banking operations performance was underpinned by a benign credit performance and well managed costs resulting in low double digit earnings growth. The group’s earnings attributable to ordinary shareholders grew 16% period-on-period. Although robust, this growth was dampened by the strength of the Rand relative to the USD, GBP and key African currencies (namely NGN, MZN and KES) during 1Q17. During the period the headline adjustable items were negligible and as a result the group’s headline earnings growth for the period was in line with growth in earnings attributable to Standard Bank Group ordinary shareholders. Balance sheet Subdued credit demand in South Africa combined with tighter risk appetite across the Africa Regions translated into muted year to date growth in gross loans and advances across all categories. Retail priced deposits were broadly flat on levels recorded at 31 December 2016. Operating performance Net interest margin (NIM) widened slightly in 1Q17 relative to the 3.83% recorded in the 2016 year, assisted by positive endowment in South Africa and certain African markets most notably Nigeria, Angola and Mozambique. NIM expansion and muted loan growth supported the low single digit increase in net interest income period-on- period. Non-interest revenue declined year-on-year off a high base in 1Q16. 1Q16’s performance was buoyed by strong trading revenues on the back of exceptional market volatility and currency dislocation in certain African markets. In 1Q17 lower volatility impacted trading revenues. Impairment charges declined year-on-year, supported by ongoing strong performance of the mortgage book as well as a decline in Corporate and Investment Banking provisions from a high base in 1Q16, in particular in the Africa Regions. Continued focus on costs, in particular discretionary spend, delivered positive jaws and a moderate decline in the cost-to-income ratio relative to the 56.3% reported for the 2016 year. Liberty is due to publish its operational update for the three months to 31 March 2017 on 19 May 2017. Capital The group’s common equity tier 1 capital ratio remained in excess of our internal target range of 11.0% – 12.5%. In late March 2017 the group successfully executed its inaugural additional tier 1 capital issuance, raising R1.7bn. The notes are Basel III compliant perpetual instruments with permanent write-off features and add approximately 20bps to the group’s tier 1 capital ratio. The group’s 1Q17 Basel III disclosure will be released on 24 May 2017. Downgrade Given recent political developments in South Africa and sovereign downgrades to sub-investment grade, it is deemed necessary to highlight that the group remains very liquid, appropriately funded and well capitalised. Although these developments are disappointing, the group remains steadfast in its commitment to supporting our clients and delivering value to all of our stakeholders. Importantly, this includes continuing to work with government, business and labour in the promotion of inclusive growth in South Africa. The information contained in this announcement and that on which the operational performance update is based has not been reviewed and reported on by the group's external auditors. Johannesburg 25 April 2017 Lead sponsor The Standard Bank of South Africa Limited Independent sponsor Deutsche Securities (SA) Proprietary Limited Namibian sponsor Simonis Storm Securities (Proprietary) Limited Date: 25/04/2017 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. 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