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STANDARD BANK GROUP LIMITED - Central Bank of Nigeria investigation regarding client remittances by Stanbic IBTC Bank PLC relating to MTN Nigeria

Release Date: 30/08/2018 09:14
Code(s): SBK SBT101 SBT102 SBT201     PDF:  
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Central Bank of Nigeria investigation regarding client remittances by Stanbic IBTC Bank PLC relating to MTN Nigeria

Standard Bank Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1969/017128/06)
JSE share code: SBK
NSX share code: SNB
ISIN: ZAE000109815
SBKP ZAE000038881 (First preference shares)
SBPP ZAE000056339 (Second preference shares)
JSE bond code: SBKI
(“Standard Bank Group” or “the Group”)

Central Bank of Nigeria investigation regarding client remittances by Stanbic IBTC Bank PLC relating
to MTN Nigeria Communications Limited and Cautionary Announcement

Standard Bank Group has been advised by its Nigerian banking subsidiary, Stanbic IBTC Bank PLC
(“Stanbic IBTC Bank” or “the Bank”), that the Bank received a letter on 29 August 2018 from the
Central Bank of Nigeria (“CBN”) informing it that penalties have been imposed on Stanbic IBTC Bank
by the CBN pursuant to a review of transactions relating to the remittance of foreign exchange on
the basis of certain “irregular” Certificates of Capital Importation (“CCI’s”) issued to MTN Nigeria
Communications Limited, between 2007 and 2015.

Stanbic IBTC Bank is a wholly owned subsidiary of the Group’s 64.8% owned Nigerian Stock Exchange
listed subsidiary, Stanbic IBTC Holdings PLC.

The CBN has advised Stanbic IBTC Bank in this letter that it will be subject to a penalty of
NGN 1.885 billion (approximately ZAR 75 million / USD 5.2 million) for violations of the laws and
regulations of Nigeria pertaining to foreign exchange transactions in that country.

The CBN has further advised the Bank in this letter that it requires that a sum of approximately
USD 2.632 billion, being funds repatriated by Stanbic IBTC Bank on clients’ behalf, should be
refunded to the CBN, on the grounds that the relevant CCI’s were “illegally issued”. Stanbic IBTC
Bank was not a beneficiary of any of the remittances made on behalf of clients and denies any
imputation of malfeasance.

The Bank intends to engage with the CBN in relation to the issues it has raised.

Clients of the Bank are assured that the above does not impact on their ability to continue to
conduct their various business and corporate transactions with Stanbic IBTC Holdings PLC or any of
its subsidiaries, including the Bank.

The final impact of this regulatory intervention is accordingly being determined but may have a
material effect on the price of the Group’s securities. Accordingly, shareholders of Standard Bank
Group are advised to exercise caution when dealing in their securities, until further details regarding
this regulatory intervention are able to be announced.

30 August 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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