STANDARD BANK GROUP LIMITED - Financial information provided to ICBC and update on the groups operational performance

Release Date: 24/04/2018 08:00
Code(s): SBK
 
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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
(“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 2018


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 2018.

Statement of changes in ordinary shareholders' equity for the three months ended 31 March 2018

                                      Balance at           IFRS 9         Earnings             Other      Balance at
                                       1 January       transition     attributable         movements        31 March
                                            2018       adjustment      to ordinary    for the period            2018
                                                                      shareholders
                                              Rm              Rm                Rm                Rm              Rm
    
    Ordinary share capital                   162                                                  -              162

    Ordinary share premium                17 901                                                185           18 086

    Foreign currency                      (7 099)                                            (1 688)          (8 787)
    translation and hedging
    reserves

    Foreign currency                      (6 116)                                            (1 688)1         (7 804)
    translation reserve (FCTR)

    Foreign currency net                    (983)                                                 -             (983)
    investment and cash flow
    hedging reserve

    Retained earnings                    144 539         (5 302)2           6 137            (7 844)3        137 530

    Empowerment reserve and               (1 373)                                              (388)          (1 761)
    treasury shares

    Other                                  2 890           (959)2                                22            1 953

    Ordinary shareholders'               157 020         (6 261)            6 137            (9 713)         147 183
    equity

1   The movement in the FCTR is primarily as a result of the strengthening of the Rand against the US Dollar, the
    Argentine Peso and other African currencies.
2   For more information on the IFRS 9 – Financial Instruments (IFRS 9) transition adjustment, please refer to the
    Standard Bank Group’s IFRS 9 Transition Report which is available on the group’s Investor Relations website,
    http://reporting.standardbank.com/resultsreports.php
3   Primarily comprises the ordinary dividends declared in March 2018.


Update on the group’s performance for the three months ended 31 March 2018 (1Q18)

In South Africa, the slight improvement in business and consumer confidence has not yet translated into stronger
asset growth. In Africa Regions, the positive momentum in the retail customer franchise continued. Good growth
in non-interest revenue, underpinned by higher trading revenues, was partially offset by slow net interest income
growth, on the back of slow asset growth and declining interest rates. A relatively benign credit environment
continued to provide support to banking earnings. Earnings from banking activities and other banking interests
grew period on period. Group earnings were dampened by the strength of the Rand relative to the USD and
Argentine Peso and weakness in key African currencies during 1Q18 relative to 1Q17.

The earnings attributable to the group from its 55.5% shareholding in Liberty Holdings Limited (Liberty) are
adjusted for the Standard Bank Group shares held by Liberty for the benefit of Liberty policyholders which are
deemed to be treasury shares in the group’s consolidated accounts. The increase in the Standard Bank Group
share price between 31 December 2017 and 31 March 2018 had a negative impact on the earnings attributable
to the group from Liberty in the period. This was in contrast to a small positive impact in the comparable period.
Liberty is due to publish its operational update for the three months ended 31 March 2018 on 18 May 2018.

During the period the headline earnings adjustable items were negligible.

The group’s Basel III disclosure as at 31 March 2017 will be released on 22 May 2018.

With the exception of the reasonable assurance report issued by the group’s external auditors on the IFRS 9
transition adjustment, 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

24 April 2018

Lead sponsor
The Standard Bank of South Africa Limited

Independent sponsor
Deutsche Securities (SA) Proprietary Limited

Namibian sponsor
Simonis Storm Securities (Proprietary) Limited

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