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STANDARD BANK GROUP LIMITED - Provisional results and dividend announcement for the year ended 31 December 2018

Release Date: 07/03/2019 08:00
Code(s): SBK SBT203 SBT101 SBT102 SBT201 SBT103 SBT202     PDF:  
 
Wrap Text
Provisional results and dividend announcement for the year ended 31 December 2018

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
A2X share code: SBK 
JSE Bond code: SBKI

Standard Bank Group
Provisional results and dividend announcement for the year ended 31 December 2018

The Standard Bank Group Limited's (the group) condensed consolidated financial statements, for the year ended 
31 December 2018 (results) are prepared in accordance with the requirements of the JSE Limited (JSE) Listings 
Requirements for provisional reports, 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 and 
Financial Pronouncements as issued by the Financial Reporting Standards Council, the presentation requirements 
of IAS 34 Interim Financial Reporting (IAS 34) (excluding paragraph 16 A(j) as permitted by the JSE Listings 
Requirements) and the requirements of the South African Companies Act, 71 of 2008 applicable to condensed 
financial statements. 

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. This report 
is presented in South African rand, which is the presentation currency of the group. All amounts are stated in millions 
of rand (Rm), unless indicated otherwise. 

While this report in itself is not audited, the consolidated annual financial statements from which the results below
have been derived were audited by KPMG Inc. and PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon. 
That audit report does not necessarily report on all of the information contained in this report. 

Shareholders are therefore advised that, in order to obtain a full understanding of the nature of the auditors'
engagement and, more specifically, the nature of the information that has been audited, they should obtain a copy of the
auditors' report together with the accompanying audited consolidated annual financial statements, both of which are available
for inspection at the company's registered office. The group's reporting suite, including the Standard Bank Group's
annual integrated report and annual financial statements will be made available during April 2019. Copies can be requested
from our registered office or downloaded from the company's website following the announcement in April 2019 on the
JSE's Stock Exchange News Service (SENS). 

The accounting policies applied in the preparation of these condensed consolidated financial statements from which the
results have been derived are in terms of IFRS, including IFRS 9 Financial Instruments (IFRS 9), which is effective for
the group from 1 January 2018. These accounting policies are consistent with the accounting policies applied in the
preparation of the group's previous consolidated annual financial statements with the exception of changes referred 
to due to IFRS 9. 

The group has, as permitted by IFRS 9, elected not to restate its comparative financial statements. Therefore
comparability will not be achieved by the fact that the comparative financial information has been prepared on an IAS 39
Financial Instruments: Recognition and Measurement (IAS 39) basis. The group did, however, align certain disclosures within
these results to provide comparable data. The impact of adopting IFRS 9 has been applied retrospectively with an adjustment
to the group's opening 1 January 2018 reserves. The application of IAS 39 for the group's 2017 financial year was
unaffected by the application of IFRS 9. Refer to below and the group's IFRS 9 transition report (transition report),
available at www.standardbank.com/reporting, for more details on IFRS 9.

The board of directors (the board) 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 7 March 2019.

This report contains pro forma financial information. Refer below for further detail. 

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 (SBSA),
can be found.

Shareholders are reminded that should they wish to make use of the group's electronic communication notification
system to receive all shareholder entitled communication electronically as opposed to delivery through physical mail and have
not already done so, this option can still be elected by advising the group's transfer secretaries at the following
email address ecomms@computershare.co.za or fax to +27 11 688 5248 or contact the call centre on +27 861 100 933. Other
related queries can be sent to electroniccommunication@standardbank.co.za.


Highlights
HEADLINE EARNINGS
Up 6% R27 865 million
2017: R26 270 million

HEADLINE EARNINGS PER SHARE
Up 7% 1 748 cents
2017: 1 640 cents

DIVIDEND PER SHARE
Up 7% 970 cents
2017: 910 cents

COMMON EQUITY TIER 1 RATIO1
2018: 13.5%
2017: 13.5%

CREDIT LOSS RATIO2
2018: 0.56%
2017: 0.87%

JAWS2
2018: (2.8)%
2017: 1.1%

COST-TO-INCOME RATIO
Up 57.0%
2017: 55.5%3

RETURN ON EQUITY
Up 18.0%
2017: 17.1%

1 Following the adoption of IFRS 9 the group elected the South African Reserve Bank's (SARB) three year phase-in
  provision in terms of its directive 5/2017 (SARB IFRS 9 phase-in provision). The ratio is reported after 
  applying this phase-in provision. The fully loaded ratio is 13.1%, for further details please 
  refer below.
2 Refer to the IFRS 9-related accounting impact section below for more information regarding key IFRS 9 changes 
  impacting these ratios. Comparatives are based on IAS 39.
3 Restated. Refer below.

Overview of financial results 
Group results
For the year ended 31 December 2018 (2018), Standard Bank Group delivered sustainable earnings growth and improved
returns. The group's performance was underpinned by the strength and breadth of our client franchise. Group headline
earnings grew 6% to R27.9 billion and ROE improved to 18.0% from 17.1% for the year ended 31 December 2017 (2017). 
The group's capital position remained robust, with a common equity tier 1 (CET1) ratio of 13.5%. Accordingly, a final 
dividend of 540 cents per share has been declared, resulting in a total dividend of 970 cents per share, an increase 
of 7% on the prior year. 

Banking activities headline earnings grew 7% to R25.8 billion and ROE improved to 18.8% from 18.0% in 2017.
Non-interest revenue (NIR) continued to record strong growth, driven by retail banking. Net interest income (NII) 
growth was dampened, and credit impairment charges were lower, as a result of the adoption of a new accounting standard. 

The 2018 group results were less impacted by currency movements than in prior years. On a constant currency basis,
group headline earnings grew 8%. Africa Regions' contribution to banking headline earnings grew to 31% from 28% 
in 2017. The top five contributors to Africa Regions' headline earnings were Angola, Ghana, Mozambique, Nigeria 
and Uganda.

Operating environment
Global economic growth plateaued at 3.7% as geopolitical tensions rose and risk sentiment deteriorated. Growth
trajectories de-coupled as fiscal stimulus in the US supported continued growth, whilst other advanced economies, 
in particular the Euro area, started to slow. Emerging market capital inflows reversed, which negatively impacted 
exchange rates and borrowing costs. 

Economic growth in sub-Saharan Africa was 2.9%. In 1H18 inflation continued to ease, providing scope for interest 
rate cuts. By 2H18, heightened global risks resulted in a pause in monetary policy easing. Across our basket of 
currencies, exchange rates were relatively stable, other than in Angola where the Angolan Kwanza (AOA) devalued 
approximately 50% relative to the South African Rand (ZAR). 

The economic recovery in the West Africa region was supported by buoyant growth in Côte d'Ivoire and Ghana and a
recovery in Nigeria. In Angola, as the impacts of the currency devaluation in early 2018 moderated, inflation stabilised. 

Kenya, Tanzania and Uganda all recorded real growth in excess of 5% in 2018. Private sector credit growth in Kenya
remained below pre-rate cap levels. Uganda enjoyed robust growth in domestic demand, public infrastructure investment,
agricultural productivity and a recovery in Foreign Direct Investment.

The countries neighbouring South Africa (SA) continued to feel the drag of SA's poor economic environment, in particular 
Lesotho, Namibia and eSwatini. In Mozambique, despite the declining rates cycle, the operating environment remained 
difficult and lending activity remained subdued. Zimbabwe's challenges escalated in 3Q18, including acute currency 
shortages and inflationary pressures which drove weakened business confidence.

Growth in the SA economy was weaker than expected at 0.7%. The poor macro environment, slow policy progress and higher
taxes weighed on consumer and business confidence and, in turn, demand for credit. A 25 basis point (bps) interest rate
cut in March, on the back of broadly favourable conditions, was later reversed in November as the US fiscal tightening,
oil price and exchange rate outlook were considered a threat to the South African Reserve Bank's inflation targeting.
The ZAR was relatively strong against the major currencies in 1H18, but this reversed in 2H18.

IFRS 9-related accounting impact
Following the transition to IFRS 9, Standard Bank Group is required to suspend interest earlier which resulted in a
R553 million reduction in NII and credit impairment charges in Personal & Business Banking South Africa (PBB SA). In
addition, following a clarification from the IFRS Interpretations Committee in December 2018, the group is required to
recognise previously unrecognised interest earned on loans which cured out of Stage 3 (otherwise referred to as released
interest in suspense (IIS) on cured assets) as a reduction in credit impairment charges. Prior to 2018, IIS on cured assets
was accounted for as interest income. The reclassification amounted to R1 169 million in 2018, of which R1 064 million
related to PBB and R105 million related to Corporate & Investment Banking (CIB). The commentary below includes reference
to the impact of these changes on net interest income, total income and credit impairment charges, as well as some of 
the group's key ratios, namely net interest margin, credit loss ratio, cost-to-income ratio and jaws. There was no 
impact on 2018 headline earnings.

                                          IFRS 9-                                                     
                                          related                                          2018     
                                       accounting         2018                 2018    adjusted     
                               2018        impact     adjusted      2017    vs 2017     vs 2017    
                                Rbn           Rbn          Rbn       Rbn          %           %    
Net interest income            59.6           1.7         61.3      60.1         (1)          2    
Non-interest revenue           45.7                       45.7      42.6          7           7    
Total income                  105.3           1.7        107.0     102.7          3           4    
Credit impairment charges      (6.5)         (1.7)        (8.2)     (9.4)       (31)        (13)   
Operating expenses            (60.1)                     (60.1)    (57.0)         5           5    
Headline earnings              27.9                       27.9      26.3          6           6    
Credit loss ratio (%)          0.56                       0.71      0.87                           
Cost-to-income ratio (%)       57.0                       56.1      55.5                           
Jaws (%)                       (2.8)                      (1.1)      1.1                           
The adjusted figures and ratios are collectively referred to as "Non-IFRS Financial Information" and 
is pro forma financial information for purposes of the JSE Listings Requirements. Please refer to 
the pro forma financial information section below.

Revenue
Group revenue grew 3% and The Standard Bank of South Africa Limited's (SBSA) revenue was flat. Adjusting for the IFRS
9-related accounting impact, group revenue grew 4% and SBSA, 2%. Africa Regions grew revenue 6%, 12% on a constant
currency basis, reflective of the better economic environment and the underlying momentum in the franchise. 

NII decreased 1% as margins declined 16 bps to 458 bps and average interest-earning assets grew 2.5% year on year.
IFRS 9-related accounting impact accounted for 13 bps of the 16 bps decline. The impact of competitive pricing and demand
for higher yielding deposit products in SA and negative endowment in Africa Regions was largely offset by strong growth
in current and savings accounts (CASA) and a mix benefit as unsecured lending grew faster than asset-backed lending. 

Non-interest revenue grew 7% supported by broad-based growth across all three underlying categories, namely net fee
and commission revenue up 6%, trading revenue up 4% and other revenue up 11%.

In line with our customers' increasing preference for convenient digital channels over traditional channels,
electronic banking fee revenue increased 11% whilst revenue from account transaction fees increased at a slower rate 
of 2%. In SA, the business saw strong digital volume growth across Instant Money, the SBG mobile app and value-added 
services as well as card-based transactions. Digital adoption also continued to gain traction in Africa Regions, in 
particular, in Namibia, Nigeria and Zimbabwe. Knowledge-based fees grew 3%, following CIB's participation in several 
landmark transactions, coupled with increased client activity in the Energy and Infrastructure sectors. 

Equities provided an uplift in trading revenue, whilst the fixed income and currencies desks struggled against a high
base in 2017. Other revenue was boosted by better bancassurance-related earnings and CIB's portion of ICBC Standard Bank
Plc's (ICBCS) aluminium recovery which equated to R151 million. In line with IFRS 9, interest income on certain debt
instruments is now recorded in other gains and losses on financial instruments. 

Credit impairment charges
Credit impairment charges were R6.5 billion, 31% lower than the prior year, and the group credit loss ratio declined
to 56 bps (2017: 87 bps). Adjusting for the IFRS 9-related accounting impact, the group credit loss ratio would have 
been 71 bps. 

After adjusting for the IFRS 9-related accounting impact, PBB SA's credit loss ratio decreased year on year, largely
driven by higher post write-off recoveries, operational enhancements in customer credit ratings and continued
improvements in collection processes. PBB Africa Regions also reflected improvements driven by improved risk 
performance, enhanced collection strategies and a lower provisioning requirement on highly collateralised 
non-performing loans.

CIB's impairment charges declined 35% on the prior year and the credit loss ratio to customers declined to 20 bps
(2017: 44 bps). Stage 3 credit impairment charges increased in SA, reflective of the difficult macro environment, 
but decreased in Africa Regions, driven by a recovery of a prior year impairment in Nigeria and improved credit 
risk management. CIB remains cautious on the outlook for the construction sector in SA and the consumer sectors 
in East Africa and SA. 

Operating expenses
Operating expenses growth of 5% should be considered relative to inflation in the underlying markets in which we
operate, as well as the level of investment required to support our businesses' growth. In 2018 we closed our core 
banking replacement programme, delivered a variety of digital enhancements and completed various regulatory, risk 
and compliance improvements. The group cost-to-income ratio for the year was 57% and after adjusting for 
IFRS 9-related accounting impact to revenue, it was 56%. SBSA costs grew 3%, down from 7% in 1H18.

Staff costs were up 7% driven by a combination of annual salary increases, separation costs relating to the IT
restructure and key hires. Net headcount declined ~900 people on the back of a combination of natural attrition, 
digital efficiencies and management actions. 

Ongoing prudent discretionary spend is reflected in other operating expenses growth of 4%. Tight control of IT
expenses, in particular in 2H18, resulted in year-on-year growth of 5%. The increase in professional fees is 
attributable to specific projects related to customer experience in PBB and CIB as well as regulatory changes.

Loans and advances 
Gross loans and advances to customers grew 10% year on year, of which PBB's advances to customers grew 7% and CIB's,
13%. In line with underlying macros and strategy, Africa Regions recorded strong year-on-year loan portfolio growth of
31%. In SA, PBB disbursements grew across most products with particularly strong growth recorded by vehicle and asset
finance (VAF) and personal unsecured lending. 

Within PBB, the mortgage lending portfolio grew 4% driven by consistent quarter-on-quarter increases in disbursements,
an increase in home loan registration values and a marginal slow-down in prepayments. The VAF lending portfolio grew
10%, driven by growth in SA, as the franchise turnaround started to gain traction. Personal unsecured lending and 
business lending both grew 14%. PBB Africa Regions loans to customers grew 22%.

Within CIB, Investment Banking (IB) grew 8%. IB originated over R167 billion of loans in the year across the Oil & Gas, 
Industrials, Consumer, Mining and Power & Infrastructure sectors, up from approximately R130 billion in the prior
year. This is reflective of CIB's broad client franchise and ongoing commitment to partnering their clients in their
investment and expansion on the continent. The Africa Regions IB portfolio grew 28%, whilst South Africa IB grew a 
respectable 7% in a very slow environment. ZAR weakness in December 2018 inflated year-end balances. Corporate 
overdrafts and trade finance facilities, reflected under Transactional products and services, grew 52% year on 
year but 15% on average. CIB funding provided to corporates through commercial paper issuances, qualifying as 
high-quality liquid assets (HQLA), is reflected as financial investments on the balance sheet. Underlying growth 
in CIB gross loans and advances to customers, including HQLA, was 15%. Loans to banks declined as liquidity 
raised in 2H17 was repaid.

Funding and liquidity
The group's liquidity position remained strong and within approved risk appetite and tolerance limits. The group's
fourth quarter average Basel III liquidity coverage ratio amounted to 117%, exceeding the minimum phased-in regulatory
requirement of 90%. The group maintained its net stable funding ratio in excess of the 100% regulatory requirement.

During 2018 the group raised R28.3 billion of longer term funding through a combination of negotiable certificates of
deposit, senior debt and syndicated loans and R5.0 billion of Basel III compliant Tier II capital. The group will
continue to monitor opportunities to issue senior unsecured and/or Tier II subordinated debt in the domestic and/or
international markets, in order to optimise the group's capital and funding position.

Deposits from customers grew R88.6 billion, equivalent to 8%, year on year, supported by 10% growth in PBB retail-priced
deposits. Africa Regions recorded CASA inflows in Nigeria, Uganda, Zambia and Zimbabwe. Growth in customers drove 
increased deposits held in our offshore operations in the Isle of Man and Jersey.

CIB's deposits and current accounts from customers grew 5% on the back of strong growth in call and current accounts,
growing 19% and 20% respectively. The increase in deposits was driven by new clients in South Africa and across our
Africa Regions franchise as well as increases in deposits from existing clients. 

Capital management
The group maintained strong capital adequacy ratios, with a CET1 ratio of 13.5% (2017: 13.5%) and a total capital
adequacy ratio of 16.0% (2017: 16.0%). The group manages its capital levels to support business growth, maintain 
depositor and creditor confidence and create value for shareholders whilst ensuring regulatory compliance. 

IFRS 9 became effective on 1 January 2018. The fully-loaded day one impact of implementing IFRS 9 was a 70 bps
reduction in the group's CET1 ratio. After adjusting for the three year phase-in provision, the impact was reduced 
from 70 bps to 18 bps. 

Gross loans and advances to customers                                                       
                                                     Change            2018         2017    
                                                          %              Rm           Rm    
Personal & Business Banking                               7         649 968      605 187    
Mortgage loans                                            4         362 006      346 518    
Vehicle and asset finance                                10          89 410       81 640    
Card debtors                                              3          33 216       32 268    
Other loans and advances                                 14         165 336      144 761    
Corporate & Investment Banking                           13         398 425      352 190    
Global markets                                           25          26 967       21 648    
Investment banking                                        8         324 611      299 522    
Transactional products and services                      52          46 843       30 859    
Real estate and PIM                                     (98)              4          161    
Central and other                                       (61)         (1 892)      (4 841)   
Gross loans and advances to customers                    10       1 046 501      952 536    

Deposits from customers                                                                             
                                                     Change            2018         2017    
                                                          %              Rm           Rm    
                                                                                            
Personal & Business Banking                              10         591 318      535 461    
Retail priced deposits                                   10         467 989      426 484    
Wholesale priced deposits                                13         123 329      108 977    
Corporate & Investment Banking                            5         667 845      635 775    
Central and other                                       (15)         (3 971)      (4 671)   
Deposits from customers                                   8       1 255 192    1 166 565    
Comprising:                                                                                 
Retail priced deposits and                                                    
current accounts                                         10         467 989      426 484    
Wholesale priced deposits                                 6         787 203      740 081    
Deposits from customers                                   8       1 255 192    1 166 565    

Headline earnings by business unit                                                          
                                          CCY1       Change            2018         2017    
                                             %            %              Rm           Rm    
                                                                                            
Personal & Business Banking                 10           10          15 548       14 103    
Corporate & Investment Banking               1           (2)         11 177       11 392    
Central and other                          (32)         (28)           (878)      (1 227)   
Banking activities                           8            7          25 847       24 268    
Other banking interests                     (0)         (26)            418          567    
Liberty                                     11           11           1 600        1 435    
Standard Bank Group                          8            6          27 865       26 270    
1 For basis of calculation, please refer below. 

Overview of business unit performance
Personal & Business Banking
PBB's headline earnings grew 10% to R15.5 billion, underpinned by customer and balance sheet growth, higher
transaction volumes and lower credit impairment charges. The impact of negative endowment, due to lower average 
rates in Malawi, Mozambique, Nigeria and SA, was offset by the benefit of stronger growth in higher margin lending 
products, combined with deposit growth outstripping loan growth. PBB jaws were negative 265 bps, however after 
adjusting for the IFRS 9-related accounting impact, jaws reduced to negative 26 bps. ROE improved to 21.9% from 
20.0% in 2017. 

Against a difficult macro and increasingly competitive environment, PBB SA delivered headline earnings of R13.7 billion, 
up 3%. Underlying revenue benefited from higher disbursements and better cross-sell following the embedding of all
banking products into the frontline. PBB SA NII declined 1% and credit impairment charges were 28% lower, leading to a
lower credit loss ratio of 83 bps (2017: 119 bps). After adjusting for IFRS 9-related accounting impact, the NII growth 
was 4%, credit impairment charges were 3% lower and the credit loss ratio was 112 bps. The favourable performance is
attributed to improved collection strategies, higher post write-off recoveries and operational credit rating enhancements.
This is partially offset by growth in stage 3 in mortgage loans, VAF and business lending given a protracted legal
environment and business strain resulting from economic conditions.  

Operating expenses were 6% higher as the franchise continued to invest in embedding the new operating model, improving
the customer experience, staff re-skilling and upskilling and digitisation initiatives. The benefits of these
investments are reflected in improving customer and employee NPS scores, a decline in the number of complaints and 
an acceleration in disbursements over the year. 

Our customers continued to migrate to our digital platforms apace, in particular, the SBG mobile app. Digital
transaction volumes increased 26%, whilst face-to-face volumes declined 13%. SBG mobile app users increased 30% to 
1.3 million, mobile transaction values increased, 44% to 262 billion and transaction volumes increased, 50% to 
958 million (over 2.5 million a day). Instant Money, our money transfer platform, also continued to gain traction; 
unique users increased 10% to 1.7 million. Our customers' preference for digital channels is unequivocal. In order 
to deliver the always-on, always-secure offering they expect, we have to leverage the strategic IT assets we have, 
accelerate our product development and rollout and digitise our execution processes. This will require a reallocation 
of resources from our physical to our digital channels and a concomitant reconfiguration of our branch infrastructure.

PBB Africa Regions headline earnings grew more than threefold from R183 million in 2017 to R817 million in 2018.

The businesses in Angola, Ghana, Kenya, Uganda and Zambia grew market shares in both assets and deposits. Loans to
customers increased 22% and deposits from customers grew 21%. The group's market leading digital solutions assisted in
driving customer growth. The number of active customers grew 11%. Transaction volumes increased 27% driven by digital
transaction volumes which increased 34%, whilst branch transactions declined 12%. A growing customer base, combined 
with strong take up of mobile banking, resulted in a 90% increase in mobile banking transaction volumes year on year 
(2018: 52 million transactions).

Despite negative endowment, as rates fell in Malawi, Mozambique and Nigeria, net interest income grew 5% on the back
of strong balance sheet growth, in particular CASA, and margin expansion. Non-interest revenue grew 13%, underpinned by
an increase in the account base, higher transaction volumes, strong trade finance flows and growth in fees from our
pension fund business in Nigeria. PBB Africa Regions contributed almost half of the Africa Regions legal entities' total
income. The credit loss ratio decreased to 138 bps from 247 bps in the prior year, reflective of improved book quality 
and improved collections as well as non-repeat of higher prior year charges in Nigeria and Malawi. Operating expenses 
grew 5%, delivering positive jaws of 336 bps and a decline in the cost-to-income ratio to 79% (2017: 82%).

Wealth International grew headline earnings 60% supported by growth in client deposit balances to GBP5.1 billion, 
increased client activity and endowment benefit.  

Corporate & Investment Banking
CIB's headline earnings of R11.2 billion were down 2% on the prior year, and up 1% on a constant currency basis.
Revenue from strong operational client activity in Africa Regions was offset by lower trading and capital markets related
revenue linked to subdued market conditions. Declining interest rates in Africa Regions and competitive pricing in SA
negatively impacted margins. Disciplined cost management constrained cost growth to 5% but was not sufficient to avoid 
negative jaws of 414 bps. Recognising the need to improve efficiency levels, CIB has initiated structural changes to 
change the cost base going forward. The credit loss ratio to customers declined to 20 bps due to a combination of 
improved performance and recoveries. Sovereign and financial institution ratings downgrades in early 2018 resulted 
in a higher capital demand, which negatively impacted return on risk weighted assets and ROE (2018: 19.3%). 

CIB continued to grow and diversify its client base driving year-on-year client revenue growth of 8%. Client segments
underpinning growth were multinationals and large domestic corporates and key sectors included Financial Institutions,
Industrials and Power & Infrastructure. Africa Regions' performance was underpinned by strong revenue growth in Angola,
Kenya, Zambia and Zimbabwe. 

Investment banking's performance was underpinned by strong balance sheet growth, including corporate debt issuances
and foreign currency loans to SA and African multinationals. Average loans increased 9% and margins were flat. Energy 
and Infrastructure transactions supported NIR. Credit impairment charges were lower year on year due to better portfolio
performance and a recovery from a previously impaired exposure in Nigeria.

Transactional products and services continued to grow its Africa Regions client base and deposit base. Declining rates
impacted NII whilst increases in trade and transaction activity supported NIR. 

Global markets' revenue was adversely impacted by negative emerging market sentiment and lower flows. CIB's
on-the-ground presence and deep local knowledge enables it to identify opportunities and trade even in dislocated markets.

Central and other
This segment includes costs associated with corporate functions, as well as the group's treasury and capital
requirements, and central hedging activities. In 2018, the segment recorded a loss of R878 million, 28% less than the 
prior year. The primary driver of the higher loss in 2017 was the elimination, in terms of IFRS, of gains on SBK shares 
held by the group to facilitate client trading activities, which did not recur in 2018.

Other banking interests
Other banking interests recorded headline earnings of R418 million. ICBCS recorded growth in its underlying franchise
revenue and a recovery of US$38 million relating to the aluminium previously written off. This was unfortunately offset
by the trading business performance which was negatively impacted by declining global emerging market risk appetite and
reduced flows, resulting in ICBCS recording a loss of US$14.9 million for the year. The group's 40% share thereof
equated to R74 million. ICBCS's ability to deliver sustainable profits is dependent on its ability to continue to 
integrate into, and leverage, ICBC's extensive client base. ICBCS did not require additional capital in 2018 on the 
back of lower than expected RWA growth. ICBCS's business plan indicates the need for a capital injection of 
approximately US$200 million in the next 12 to 18 months, subject to RWA growth. The group's share thereof would 
be US$80 million.

ICBC Argentina delivered a strong performance despite the dislocation experienced in the domestic market. The headline
earnings contribution from the group's 20% stake in ICBC Argentina increased 19% to R492 million. Adjusting for the
significant devaluation of the Argentinian peso, earnings were up 95% on a constant currency basis year on year. 

During 2019, we will continue to work with our strategic partners at ICBC to develop a lasting solution for these
businesses. 

Liberty
The financial results reported are the consolidated results of the group's 56% investment in Liberty, adjusted for SBK
shares held by Liberty for the benefit of Liberty policyholders which are deemed to be treasury shares in the group's
consolidated accounts.

Liberty's operating earnings were up 42% on the prior year, driven by strong performances in Individual Arrangements
and STANLIB. As is to be expected, given the negative trend in asset prices during the year, Liberty's shareholder
investment portfolio was impacted by volatile market conditions resulting in lower market returns. We will continue 
to support Liberty as it executes its remedial and recovery plan and by continuing to deepen the collaboration between 
our businesses. Liberty's IFRS headline earnings, after the adjustments for the impact of the BEE preference share 
income and the Liberty Two Degrees listed Real Estate Investment Trust accounting mismatch, declined to R2.6 billion 
from R3.3 billion in the prior year. Investors are referred to the full Liberty announcement dated 28 February 2019 
for further detail.

Headline earnings attributable to the Standard Bank Group, adjusted by R129 million for the impact of deemed treasury
shares, were R1.6 billion, 11% higher than in the prior year.

Prospects
Global growth is expected to weaken slightly in 2019 to 3.5% as the slowdown in momentum seen in 2H18 continues into
2019. With risks to the downside, economic conditions will remain challenging and volatile in 2019. Subdued demand will
impact global trade, industrial production and could drive commodity and oil prices lower. 

Whilst not immune from global risks, prospects for sub-Saharan Africa overall are good with growth expected to
accelerate from 2.9% in 2018 to 3.5% in 2019. Over a third of the countries in the region are expected to grow above 5%. 

With elections set for May 2019, South Africa is expected to be a tale of two halves. Subdued growth is anticipated 
in 1H19 as political and policy uncertainty continues to undermine confidence and delay investment and growth. An
acceleration in 2H19 and into 2020, driven by corporate investment, whilst expected, will be dependent on the rate of policy
progress, structural reform, broader economic stimulus and job creation. A return of stable electricity supply is critical.
Assuming some progress and no further downgrades by rating agencies, we expect inflation to remain within the target
range and interest rates to remain at current levels in 2019. This should support an uptick in growth to 1.3% for the
year.

There is no doubt that in the years ahead the financial services industry, the competitive and regulatory environment
and our customers' and employees' expectations will continue to change. Across the group, we are making the changes
necessary to best position the franchise to deliver to all our stakeholders. We are focused on transforming our customer 
and employee experience and improving our productivity to deliver a "future-ready" group. In 2019, we will build on the
franchise momentum from 2018, continue to simplify, rationalise and digitise and seek ways to accelerate our delivery. 

We remain committed to our medium-term targets of delivering sustainable earnings growth and an ROE in our 18%-20%
target range. Finally, in delivering on our purpose of driving Africa's growth, we will continue to support faster, 
more inclusive and more sustainable growth and human development in South Africa and across the continent we are proud 
to call home.

Stakeholders should note that any forward-looking information in this announcement has not been reviewed and reported
on by the group's external auditors.

Sim Tshabalala
Group chief executive

Thulani Gcabashe
Chairman

6 March 2019


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 has resolved to declare a final gross cash dividend No. 99 of 
540 cents per ordinary share (the cash dividend) to ordinary shareholders recorded in the register of the company 
at the close of business on Friday, 12 April 2019. The last day to trade to participate in the dividend is 
Tuesday, 9 April 2019. Ordinary shares will commence trading ex dividend from Wednesday, 10 April 2019.

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

Ordinary share certificates may not be dematerialised or rematerialised between Wednesday, 10 April 2019, and 
Friday, 12 April 2019, 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, 15 April 2019.

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 final dividends:
- 6.5% first cumulative preference shares (first preference shares) dividend No. 99 of 3.25 cents (gross) per first
  preference share, payable on Monday, 8 April 2019, to holders of first preference shares recorded in the books of the
  company at the close of business on the record date, Friday, 5 April 2019. The last day to trade to participate in the
  dividend is Tuesday, 2 April 2019. First preference shares will commence trading ex dividend from Wednesday, 3 April 2019.
- Non-redeemable, non-cumulative, non-participating preference shares (second preference shares) dividend No. 29 of
  390.22 cents (gross) per second preference share, payable on Monday, 8 April 2019, to holders of second preference shares
  recorded in the books of the company at the close of business on the record date, Friday, 5 April 2019. The last day to
  trade to participate in the dividend is Tuesday, 2 April 2019. Second preference shares will commence trading ex
  dividend from Wednesday, 3 April 2019.

The salient dates and times for the preference share dividend are set out in the table that follows.

Preference share certificates (first and second) may not be dematerialised or rematerialised between Wednesday, 
3 April 2019, and Friday, 5 April 2019, both days inclusive. Preference shareholders (first and second) who hold
dematerialised shares will have their accounts at their CSDP or broker credited on Monday, 8 April 2019.

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,     
                                                                                                           non-cumulative,     
                                                                                                         non-participating     
                                                                              6.5% cumulative            preference shares     
                                                         Ordinary           preference shares           (Second preference     
                                                           shares    (First preference shares)                      shares)    
JSE Limited                                                                                                                   
Share code                                                    SBK                        SBKP                         SBPP    
ISIN                                                 ZAE000109815                ZAE000038881                 ZAE000056339    
Namibian Stock Exchange (NSX)                                                                                                 
Share code                                                    SNB                                                             
ISIN                                                 ZAE000109815                                                             
Dividend number                                                99                          99                           29    
Dividend per share (cents)                                    540                        3.25                       390.22    
Last day to trade in order                                          
to be eligible for the cash dividend        Tuesday, 9 April 2019       Tuesday, 2 April 2019        Tuesday, 2 April 2019    
Shares trade ex the cash dividend        Wednesday, 10 April 2019     Wednesday, 3 April 2019      Wednesday, 3 April 2019    
Record date in respect of               
the cash dividend                           Friday, 12 April 2019        Friday, 5 April 2019         Friday, 5 April 2019    
Dividend cheques posted and CSDP/broker                             
account credited/updated (payment date)     Monday, 15 April 2019        Monday, 8 April 2019         Monday, 8 April 2019    

The above dates are subject to change. Any changes will be released on the Stock Exchange News Service (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 20% 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 432 cents per
ordinary share, 2.6 cents per first preference share and 312.176 cents per second preference share. Non-resident ordinary 
and preference shareholders may be subject to dividends tax at a rate of less than 20% 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:
- 1 618 514 218 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
for the year ended 31 December 2018
                                                                            2018              2017    
Number of ordinary shares in issue, net of deemed 
treasury shares (000's)                                              
End of period                                                          1 590 217         1 597 371    
Weighted average                                                       1 593 719         1 601 855    
Diluted weighted average                                               1 609 901         1 621 921    
Cents per ordinary share                                                                              
Basic earnings                                                           1 722.6           1 637.8    
Diluted earnings                                                         1 705.3           1 617.5    
Headline earnings                                                        1 748.4           1 640.0    
Diluted headline earnings                                                1 730.9           1 619.7    
Dividend per share                                                           970               910    
Net asset value                                                           10 380             9 830    
Financial performance (%)                                                                             
ROE                                                                         18.0              17.1    
Net interest margin on banking activities                                   4.58              4.74    
Credit loss ratio on banking activities3                                    0.56              0.87    
Cost-to-income ratio on banking activities1                                 57.0              55.5    
Jaws on banking activities1                                                 (2.8)              1.1    
Capital adequacy ratios (%)2                                                                          
CET1 capital adequacy ratio                                                 13.5              13.5    
Tier 1 capital adequacy ratio                                               14.1              14.2    
Total capital adequacy ratio                                                16.0              16.0    
1 Refer below for details on the restatements affecting this ratio.
2 The 2018 ratios are reported after applying the IFRS 9 phase-in transition adjustment 
  allowed by the SARB, for further details regarding the ratio assuming the no phase-in 
  provision (fully loaded ratio) please refer below.
3 Restated 2017


Condensed consolidated statement of financial position
as at 31 December 2018 
                                                                            2018              2017    
                                                                              Rm                Rm    
Assets                                                                                                
Cash and balances with central banks                                      85 145            75 310    
Derivative assets                                                         51 678            75 610    
Trading assets                                                           181 112           160 894    
Pledged assets                                                            19 879            20 785    
Financial investments                                                    547 405           533 314    
Current and deferred tax assets                                            4 519             2 109    
Disposal group assets held-for-sale                                          762                      
Loans and advances                                                     1 120 668         1 048 027    
Policyholders' assets                                                      6 708             7 484    
Other assets                                                              22 514            22 996    
Interest in associates and joint ventures                                 10 376             9 665    
Investment property                                                       33 326            32 226    
Property and equipment                                                    19 194            16 179    
Goodwill and other intangible assets                                      23 676            23 329    
Total assets                                                           2 126 962         2 027 928    
Equity and liabilities                                                                                
Equity                                                                   199 063           190 017    
Equity attributable to ordinary shareholders                             165 061           157 020    
Equity attributable to other equity instrument holders                     9 047             9 047    
Equity attributable to non-controlling interests                          24 955            23 950    
Liabilities                                                            1 927 899         1 837 911    
Derivative liabilities                                                    55 057            76 896    
Trading liabilities                                                       59 947            62 855    
Current and deferred tax liabilities                                       8 015             8 614    
Disposal group liabilities held-for-sale                                     237                      
Deposits and debt funding                                              1 357 537         1 243 911    
Policyholders' liabilities                                               310 994           322 918    
Subordinated debt                                                         26 359            24 289    
Provisions and other liabilities                                         109 753            98 428    
Total equity and liabilities                                           2 126 962         2 027 928    


Condensed consolidated income statement
for the year ended 31 December 2018 
                                                                            2018              20172    
                                                                              Rm                Rm    
Income from banking activities                                           105 331           102 699    
Net interest income1                                                      59 622            60 125    
Non-interest revenue1, 2                                                  45 709            42 574    
Income from investment management and life insurance                                  
activities1                                                               21 722            24 394    
Total income                                                             127 053           127 093    
Credit impairment charges1                                                (6 489)           (9 410)   
Net income before operating expenses                                     120 564           117 683    
Operating expenses from banking activities2                              (60 084)          (57 049)   
Operating expenses from investment management and life                                
insurance activities                                                     (16 404)          (17 800)   
Net income before capital items and equity accounted earnings             44 076            42 834    
Non-trading and capital related items                                       (641)             (261)   
Share of post tax profit from associates and joint ventures                  912             1 102    
Net income before indirect taxation                                       44 347            43 675    
Indirect taxation                                                         (2 609)           (2 481)   
Profit before direct taxation                                             41 738            41 194    
Direct taxation                                                           (9 095)          (10 479)   
Profit for the period                                                     32 643            30 715    
Attributable to ordinary shareholders                                     27 453            26 235    
Attributable to other equity instrument holders                              738               594    
Attributable to non-controlling interests                                  4 452             3 886    
Earnings per share (cents)                                                                            
Basic earnings per ordinary share                                        1 722.6           1 637.8    
Diluted earnings per ordinary share                                      1 705.3           1 617.5    
1 The group has, as permitted by IFRS 9, elected not to restate its comparative financial statements. 
  Therefore comparability will not be achieved by the fact that the comparative financial information 
  has been prepared on an IAS 39 basis. 
2 Refer to the restatement section for details about the restatement to non-interest revenue and 
  operating expenses from banking activities.


Condensed consolidated statement of other comprehensive income
for the year ended 31 December 2018 
                                                                            2018              2017  
                                                                              Rm                Rm  
Profit for the period                                                     32 643            30 715  
Other comprehensive income/(loss) after tax for the period                 5 056            (5 940) 
Items that may be subsequently reclassified to profit                                 
or loss                                                                    5 104            (5 607) 
Exchange differences on translating foreign operations                     5 217            (6 180) 
Movement in the cash flow hedging reserve and foreign                                 
currency hedge reserves                                                     (108)              111  
Movement in the available-for-sale revaluation reserve - IAS 391                               462  
Net change in debt financial assets measured at fair value                            
through other comprehensive income (OCI) - IFRS 91                            (5)                   
Items that may not be subsequently reclassified to profit or loss            (48)             (333) 
Defined benefit fund remeasurement                                            12              (219) 
Change in own credit risk recognised on financial liabilities                         
designated at fair value through profit or loss - IFRS 91                     55                    
Net change in fair value of equity financial assets measured at                       
fair value through OCI - IFRS 91                                            (130)                   
Other gains/(losses)                                                          15              (114) 
Total comprehensive income for the period                                 37 699            24 775  
Attributable to ordinary shareholders                                     31 877            21 514  
Attributable to other equity instrument holders                              738               594  
Attributable to non-controlling interests                                  5 084             2 667  
1 The group has, as permitted by IFRS 9, elected not to restate its comparative financial statements. 
  Therefore comparability will not be achieved by the fact that the comparative financial information 
  has been prepared on an IAS 39 basis. Refer to the accounting policy elections, including the IFRS 9
  transition adjustments and restatement below for more detail. 


Condensed consolidated statement of changes in equity
for the year ended 31 December 2018
                                                                                       Equity  
                                                                                 attributable  
                                                                     Ordinary        to other            Non-               
                                                                shareholders'          equity     controlling         Total  
                                                                       equity         holders       interests        equity  
                                                                           Rm              Rm              Rm            Rm  
Balance at 1 January 2017                                             150 757           5 503          23 099       179 359  
Total comprehensive income for the period                              21 514             594           2 667        24 775  
Transactions with owners and non-controlling interests recorded       (15 251)          2 950          (1 665)      (13 966) 
directly in equity                                                                                                           
Equity-settled share-based payment transactions1                         (885)                             29          (856) 
Deferred tax on share-based payment transactions                          276                                           276  
Transactions with non-controlling interests                               (54)                            160           106  
Net dividends paid                                                    (13 552)           (594)         (1 364)      (15 510) 
Net increase in treasury shares                                        (1 153)                           (490)       (1 643) 
Other equity movements                                                    117           3 544                         3 661  
Unincorporated property partnerships' capital reductions and                                             (151)         (151) 
distributions                                                                                                                
Balance at 31 December 2017                                           157 020           9 047          23 950       190 017  
IFRS 9 transition2                                                     (6 261)                           (376)       (6 637) 
Balance at 1 January 2018 (IFRS 9)                                    150 759           9 047          23 574       183 380  
Total comprehensive income for the year                                31 877             738           5 084        37 699  
Transactions with owners and non-controlling interests recorded       (17 575)           (738)         (3 481)      (21 794) 
directly in equity                                                                                                           
Equity-settled share-based payment transactions1                          600                              26           626  
Deferred tax on share-based payment transactions                         (128)                                         (128) 
Transactions with non-controlling interests3                           (1 609)                         (1 386)       (2 995) 
Net dividends paid                                                    (15 113)           (738)         (1 725)      (17 576) 
Net increase in treasury shares                                        (1 295)                           (412)       (1 707) 
Other equity movements                                                    (30)                             16           (14) 
Unincorporated property partnerships' capital reductions and                                             (222)         (222) 
distributions                                                                                                                
Balance at 31 December 2018                                           165 061           9 047          24 955       199 063  
1 Includes hedges of the group's equity settled share incentive schemes.
2 Refer below for detail on the IFRS 9 transition adjustments.
3 Refer below for detail on significant transactions with non-controlling interests.


Condensed consolidated statement of cash flows
for the year ended 31 December 2018 
                                                                            2018              20173    
                                                                              Rm                Rm    
Net cash flows from operating activities3                                 34 697            21 020    
Direct taxation paid                                                     (10 256)          (10 078)   
Other operating activities                                                44 903            31 098    
Net cash flows used in investing activities3                              (8 728)           (5 298)   
Capital expenditure                                                       (9 426)           (5 391)   
Other investing activities                                                   698                93    
Net cash flows used in financing activities                              (18 335)          (12 674)   
Dividends paid1                                                          (17 701)          (15 574)   
Equity transactions with non-controlling interests2                       (1 843)            1 173    
Issuance of other equity instruments                                                         3 544    
Issuance of subordinated debt                                              6 100             2 246    
Redemption of subordinated debt                                           (4 550)           (4 180)   
Other financing activities                                                  (341)              117    
Effect of exchange rate changes on cash and cash equivalents               2 251            (5 212)   
Net increase/(decrease) in cash and cash equivalents                       9 835            (2 164)   
Cash and cash equivalents at the beginning of the period                  75 310            77 474    
Cash and cash equivalents at the end of the period                        85 145            75 310    
Cash and balances with central banks                                      85 145            75 310    
1 Refer below for detail on the dividends paid to Additional Tier 1 (AT1) equity 
  holders.
2 Refer below for detail on significant transactions with non-controlling interests. 
  Includes non-controlling interests' share of subsidiary distributions.
3 Refer below for details about the restatement to the statement of cash flows.


Notes
Financial investments
as at 31 December 2018 
                                                                            2018              20171 
                                                                              Rm                Rm  
                                                                                                    
Corporate and sovereign                                                  261 484           240 703  
Bank                                                                      71 210            46 278  
Mutual funds and unit-linked investments                                  85 034            98 169  
Listed equities                                                           96 395           122 545  
Unlisted equities                                                          6 506             5 554  
Interest in associates and joint ventures held at                                        
fair value                                                                13 848            15 197  
Other instruments                                                         12 928             4 868  
Total financial investments                                              547 405           533 314  
Net financial investments measured at amortised cost                     144 145                    
Gross financial investments measured at amortised cost                   144 339                    
Less: Expected credit loss (ECL) for financial investments                                     
measured at amortised cost2                                                 (194)                   
Financial investments measured at fair value                             403 260                    
Financial investments measured at fair value through                                     
profit or loss                                                           348 923                    
Debt financial investments measured at fair value                                        
through OCI3                                                              53 083                    
Equity financial investments measured at fair value                                      
through OCI                                                                1 254                    
1 The group has, as permitted by IFRS 9, elected not to restate its comparative financial statements. 
  The group has aligned its categories for financial investments disclosed in 2017 to those disclosed 
  for 2018. This did not result in a restatement to the group's statement of financial position as at 
  31 December 2017.
2 The group recognised an ECL of R97 million on debt financial investments measured at amortised cost 
  upon the transition to IFRS 9 on 1 January 2018. Refer to the credit impairment charges note for the 
  2018 credit impairment charge of R82 million on financial investments measured at amortised cost.
3 The group recognised an ECL of R175 million on debt financial investments measured at fair value 
  through OCI upon the transition to IFRS 9 on 1 January 2018. At 31 December 2018, the ECL for debt 
  financial investments measured at fair value through OCI was R206 million. Refer to the credit 
  impairment charges note for the 2018 credit impairment charge of R19 million relating to 
  financial investments measured at fair value through OCI.

Loans and advances
as at 31 December 2018 
                                                                            2018              20171
                                                                              Rm                Rm 
Loans and advances measured at fair value through                   
profit or loss                                                             1 204               110 
Net loans and advances measured at amortised cost                      1 119 464         1 047 917 
Gross loans and advances measured at amortised cost                    1 156 149         1 070 361 
Mortgage loans                                                           361 830           346 508 
Vehicle and asset finance                                                 89 651            83 136 
Card debtors                                                              32 395            32 253 
Corporate and sovereign                                                  397 261           352 025 
Bank                                                                     110 852           117 935 
Other loans and advances                                                 164 160           138 504 
Credit impairments for loans and advances (IAS 39)                                         (22 444)
Total credit impairment on loans and advances (IFRS 9)2                  (36 685)                  
Total loans and advances                                               1 120 668         1 048 027 
1 The group has, as permitted by IFRS 9, elected not to restate its comparative financial statements. 
  Therefore comparability will not be achieved by the fact that the comparative financial information 
  has been prepared on an IAS 39 basis. The group has, however, aligned its categories for loans and 
  advances disclosed in 2017 to those disclosed for 2018. This did not result in a restatement to the 
  group's statement of financial position as at 31 December 2017.
2 For details on the group's accounting policy on interest in suspense, refer below.


Reconciliation of expected credit loss for loans and advances at amortised cost 

                                               Total             Net                                       Closing     
                           Opening ECL     transfers     impairments         Impaired      Exchange            ECL     
                             1 January       between         raised/         accounts     and other    31 December    
                                  20181       stages      (released)2     written-off     movements           2018    
                                    Rm            Rm              Rm               Rm            Rm             Rm    
Mortgage loans                   9 396                         1 067             (995)          662         10 130    
Stage 1                          1 126           382            (470)                            (1)         1 037    
Stage 2                          2 014          (144)            131                             17          2 018    
Stage 3                          6 256          (238)          1 406             (995)          646          7 075    
Vehicle and asset finance        3 236                         1 074           (1 027)          119          3 402    
Stage 1                            766           226            (227)                             5            770    
Stage 2                            994          (324)            240                             38            948    
Stage 3                          1 476            98           1 061           (1 027)           76          1 684    
Card debtors                     3 179                         1 187           (1 341)           42          3 067    
Stage 1                            698           176            (231)                                          643    
Stage 2                            821          (109)            266                              2            980    
Stage 3                          1 660           (67)          1 152           (1 341)           40          1 444    
Corporate                        7 667                           889           (1 275)        1 214          8 495    
Stage 1                            781           150             (88)                           107            950    
Stage 2                          1 956        (1 240)           (124)                           449          1 041    
Stage 3                          4 930         1 090           1 101           (1 275)          658          6 504    
Sovereign                          125                           (47)                             2             80    
Stage 1                             84                           (13)                             2             73    
Stage 2                             36                           (34)                                            2    
Stage 3                              5                                                                           5    
Bank                                45                           (18)                            36             63    
Stage 1                             45                           (14)                            29             63    
Stage 2                                                           (4)                             7              3    
Other loans and advances        11 391                         3 085           (3 541)          513         11 448    
Stage 1                          2 289            50            (189)                            57          2 207    
Stage 2                          2 454          (271)            (85)                            54          2 152    
Stage 3                          6 648           221           3 359           (3 541)          402          7 089    
Total                           35 039                         7 237           (8 179)        2 588         36 685    
Stage 1                          5 789           984          (1 232)                           199          5 740    
Stage 2                          8 275        (2 088)            390                            567          7 144    
Stage 3                         20 975         1 104           8 079           (8 179)        1 822         23 801    
1 IFRS 9 resulted in a transition increase in ECL of R2 563 million for mortgage loans; R1 001 million for 
  vehicles and asset finance; R694 million for card debtors; R561 million for CIB; and R2 108 million for 
  other loans and advances. The opening ECL as at 1 January 2018 incorporates these IFRS 9 transition 
  adjustments.
2 Net impairments raised/(released) less recoveries of amounts written off in previous years equals income 
  statement impairment charge (refer credit impairment charges note below).


Reconciliation of credit impairments for loans and advances (IAS 39)
                                                   Vehicle and
                                        Mortgage         asset        Card      Other loans    Corporate
                                           loans       finance     debtors     and advances      lending      Total    
                                              Rm            Rm          Rm               Rm           Rm         Rm    
20171                                                                                                                  
Specific impairments                                                                                                   
Balance at beginning of the year           3 640         1 410       1 598            5 121        2 890     14 659    
Net impairments raised/(released)2         1 826         1 261       1 415            4 371        1 024      9 897    
Impaired accounts written off             (1 159)       (1 146)     (1 383)          (3 861)        (245)    (7 794)   
Discount element recognised in interest 
income                                      (317)         (120)        (26)            (345)        (102)      (910)   
Exchange and other movements                 (11)          (38)         (8)            (283)        (242)      (582)   
Balance at end of the year                 3 979         1 367       1 596            5 003        3 325     15 270    
Portfolio impairments                                                                                                  
Balance at beginning of the year           1 137           801         651            2 749        1 796      7 134    
Net impairments raised/(released)2           (55)         (141)         61             (159)         649        355    
Exchange and other movements                  (5)           (7)        (47)             (40)        (216)      (315)   
Balance at end of the year                 1 077           653         665            2 550        2 229      7 174    
Total specific and portfolio impairments   5 056         2 020       2 261            7 553        5 554     22 444    
1 The group has, as permitted by IFRS 9, elected not to restate its comparative financial statements. The group has 
  aligned its categories for loans and advances disclosed in 2017 to those disclosed for 2018. This did not result 
  in a restatement to the group's statement of financial position as at 31 December 2017.
2 Net impairments raised/(released) less recoveries of amounts written off in previous years, as well as credit 
  recovery on off-balance sheet exposure, equals income statement impairment charges.


Loans and advances at amortised cost performance 

                                                          SB 1 - 12              SB 13 - 20           SB 21- 25         Default
                                             Gross                                                                              
                                         loans and     Stage 1     Stage 2    Stage 1   Stage 2     Stage 1    Stage 2   Stage 3
                                          advances          Rm          Rm         Rm        Rm          Rm         Rm        Rm
Loans and advances at amortised cost                                                                                            
Personal & Business Banking                701 723     191 602       1 815    407 955     7 083       8 220     50 589    34 459
Mortgage loans                             362 006     108 575       1 786    196 795     4 332       4 261     27 840    18 417
Vehicle and asset finance                   89 410       1 250          11     75 939     1 214         347      7 138     3 511
Card debtors                                33 216       1 604           8     25 382       174         317      3 882     1 849
Other loans and advances                   217 091      80 173          10    109 839     1 363       3 295     11 729    10 682
Personal unsecured lending                  59 459         961                 46 457         8       1 556      5 625     4 852
Business lending and other                 157 632      79 212          10     63 382     1 355       1 739      6 104     5 830
Corporate & Investment Banking             510 113     291 386       4 912    179 889    17 965       3 833      2 394     9 734
Corporate                                  388 973     182 578       4 801    170 726    17 598       1 142      2 394     9 734
Sovereign                                    8 288       4 533         109      3 319       129         198                     
Banking                                    112 852     104 275           2      5 844       238       2 493                     
Other service                              (55 687)    (55 687)                                                                 
Gross carrying amount of loans and                                                                                       
advances at amortised cost               1 156 149     427 301       6 727    587 844    25 048      12 053     52 983    44 193
Gross loans and advances at fair value       1 204                                                                              
Total gross loans and advance            1 157 353                                                                              
The group uses a 25-point master rating scale to quantify the credit risk for each borrower (corporate asset classes)
or facility (specialised lending and retail asset classes), as illustrated in the table below. These ratings are mapped 
to PDs by means of calibration formulae that use historical default rates and other data from the applicable PPB portfolios.

                                                                                Balance 
                                                                                  sheet 
                                                                               expected 
                                                              Securities    credit loss 
                                                                     and     on default 
                                                                expected      exposures 
                                                              recoveries   and interest       Gross
                                                              on default    in suspense     default     Stage 3 
                                                               exposures     on stage 3    coverage   exposures 
                                                                      Rm             Rm           %           % 
Loans and advances at amortised cost                                                                            
Personal & Business Banking                                       17 167         17 292          50         4.9 
Mortgage loans                                                    11 342          7 075          38         5.1 
Vehicle and asset finance                                          1 827          1 684          48         3.9 
Card debtors                                                         405          1 444          78         5.6 
Other loans and advances                                           3 593          7 089          66         4.9 
Personal unsecured lending                                           900          3 952          81         8.2 
Business lending and other                                         2 693          3 137          54         3.7 
Corporate & Investment Banking                                     3 225          6 509          67         1.9 
Corporate                                                          3 225          6 509          67         2.5 
Sovereign                                                                                                    
Banking                                                                                                     
Other service                                                                                                   
Gross carrying amount of loans and advances at amortised cost     20 392         23 801          54         3.8 
Gross loans and advances at fair value                                                                          
Total gross loans and advance                                                                                   
The group uses a 25-point master rating scale to quantify the credit risk for each borrower (corporate asset classes)
or facility (specialised lending and retail asset classes), as illustrated in the table below. These ratings are mapped 
to PDs by means of calibration formulae that use historical default rates and other data from the applicable PPB 
portfolios.


Loans and advances performance
                                                                                                       Net after 
                                                                      Total                           securities 
                                                               specifically      Securities and     and expected 
                                                                   impaired            expected    recoveries on 
                                 Gross loans                           non-       recoveries on     specifically 
                                         and    Performing       performing        specifically         impaired 
                                     advances         loans           loans      impaired loans            loans 
                                           Rm            Rm              Rm                  Rm               Rm 
20171,2                                                                                                          
Personal & Business Banking           645 868       616 949          28 919              16 976           11 943 
Mortgage loans                        346 518       331 014          15 504              11 525            3 979 
Vehicle and asset finance              81 640        78 514           3 126               1 759            1 367 
Card debtors                           32 268        30 148           2 120                 524            1 596 
Other loans and advances              185 442       177 273           8 169               3 168            5 001 
Personal unsecured lending             52 016        47 827           4 189               1 002            3 187 
Business lending and other            133 426       129 446           3 980               2 166            1 814 
Corporate & Investment Banking        472 437       466 862           5 575               2 250            3 325 
Central and other                     (47 834)      (47 836)              2                                    2 
Gross loans and advances            1 070 471     1 035 975          34 496              19 226           15 270 
Percentage of total book (%)            100.0          96.8             3.2                 1.8              1.4 
1 The loans and advances performance disclosures have been presented at a segment level, whereas the other 
  loans and advances disclosures within these results are disclosed on group consolidated view, unless 
  stated otherwise.
2 The group has, as permitted by IFRS 9, elected not to restate its comparative financial statements. 
  The group has aligned its performance for loans and advances disclosed in 2017 to those disclosed 
  for 2018. This did not result in a restatement to the group's statement of financial position as at 
  31 December 2017.

                                 Balance sheet                                                  
                                   impairments                                                  
                                      for non-                                                 
                                    performing                             Total                
                                  specifically     Specific gross           non-          Non- 
                                      impaired         impairment     performing    performing  
                                         loans           coverage          loans         loans 
                                            Rm                  %             Rm             % 
20171,2                                                                                        
Personal & Business Banking             11 943                 41         28 919           4.5 
Mortgage loans                           3 979                 26         15 504           4.5 
Vehicle and asset finance                1 367                 44          3 126           3.8 
Card debtors                             1 596                 75          2 120           6.6 
Other loans and advances                 5 001                 61          8 169           4.4 
Personal unsecured lending               3 187                 76          4 189           8.1 
Business lending and other               1 814                 46          3 980           3.0 
Corporate & Investment Banking           3 325                 60          5 600           1.2 
Central and other                            2                                 2               
Gross loans and advances                15 270                 44         34 521           3.2 
Percentage of total book (%)               1.4                                                 
1 The loans and advances performance disclosures have been presented at a segment level, where as the other 
  loans and advances disclosures within these results are disclosed on group consolidated view, unless 
  stated otherwise.
2 The group has, as permitted by IFRS 9, elected not to restate its comparative financial statements. 
  The group has aligned its performance for loans and advances disclosed in 2017 to those disclosed 
  for 2018. This did not result in a restatement to the group's statement of financial position as at 
  31 December 2017.


Contingent liabilities and commitments
as at 31 December 2018 
                                                             2018            2017    
                                                               Rm              Rm    
                                                                                     
Letters of credit and bankers' acceptances                 17 802          13 413    
Guarantees                                                 85 576          63 761    
Contingent liabilities                                    103 378          77 174    
Investment property                                           748             385    
Property and equipment                                        620              94    
Other intangible assets                                       270             299    
Commitments                                                 1 638             778    

Loan commitments of R77 253 million (2017: R62 347 million) are either irrevocable over the life of the facility or
revocable only in response to material adverse changes.

Day one profit or loss
The table below sets out the aggregate net day one profit or loss yet to be recognised in profit or loss at the
beginning and end of the year with a reconciliation of changes in the balances during the period.

                                                             Derivative       Trading
                                                            instruments        assets         Total
                                                                     Rm            Rm            Rm    
Balance at 1 January 2017                                           161           588           749    
Additional net profit on new transactions during the year           544           162           706    
Recognised in trading revenue during the year                      (508)         (108)         (616)   
Exchange differences                                                (37)                        (37)   
Balance at 31 December 2017                                         160           642           802    
Balance at 1 January 2018                                           160           642           802    
Additional net profit on new transactions during the period         299           339           638    
Recognised in trading revenue during the period                    (307)         (136)         (443)   
Exchange differences                                                 24                          24    
Balance at 31 December 2018                                         176           845         1 021    


Headline earnings
for the year ended 31 December 2018 
                                                                                 2018          2017    
                                                                                   Rm            Rm    
                                                                                                       
Profit for the period                                                          27 453        26 235    
Headline adjustable items (reversed)/added                                        641           187    
IAS 16 - (Gain)/loss on sale of property and equipment                            (15)           10    
IAS 21 - Realised foreign currency profit on foreign operations                                (214)   
IAS 27/IAS 28 - (Gains)/losses on disposal of businesses                          (47)           18    
IAS 28/IAS 36 - Impairment of associate                                             5                  
IAS 36 - Impairment of intangible assets                                          449           447    
IFRS 5 - Headline adjustable items: Impairment of disposal group                             
assets held for sale                                                              249                  
IAS 39 - Realised gains on available-for-sale assets1                                           (74)   
Taxation on headline earnings adjustable items                                   (122)          (94)   
Non-controlling interests' share of headline earnings adjustable items           (107)          (58)   
Standard Bank Group headline earnings                                          27 865        26 270    
Headline earnings per ordinary share (cents)                                                           
Headline earnings per ordinary share                                          1 748.4       1 640.0    
Diluted headline earnings per ordinary share                                  1 730.9       1 619.7    
1 Headline Earnings Circular 4/2018 specifies that realised gains or losses on debt instruments 
  measured at fair value through OCI, in terms of IFRS 9, are not excluded from headline earnings, 
  therefore, from 1 January 2018, IAS 39 realised gains or losses on available-for-sale assets is 
  not applicable.


Private equity associates and joint ventures
as at 31 December 2018

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 the circular titled Headline Earnings issued by SAICA, and amended from time to time. 
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.
                                                                                 2018          2017    
                                                                                   Rm            Rm    
Cost                                                                               48            48    
Carrying value                                                                    619           546    
Fair value                                                                        619           546    
Attributable income before impairment                                              93           159    


Non-interest revenue
for the year ended 31 December 2018
                                                                                 2018          2017 
                                                                                           Restated 
                                                                                   Rm            Rm 
Net fee and commission revenue1                                                30 375        28 670 
Fee and commission revenue                                                     36 592        34 290 
Accounting transaction fees                                                    11 669        11 488 
Card-based commission                                                           6 760         6 535 
Documentation and administration fees                                           2 273         2 197 
Electronic banking                                                              3 829         3 446 
Foreign currency service fees                                                   2 244         1 879 
Insurance - fees and commission                                                 1 904         1 945 
Knowledge-based fees and commission                                             2 350         2 278 
Other                                                                           5 563         4 522 
Fee and commission expense1                                                    (6 217)       (5 620)
Trading revenue                                                                11 129        10 731 
Other revenue                                                                   3 533         3 173 
Other gains and losses on financial instrument                                    672               
Total non-interest revenue2                                                    45 709        42 574 
1 Refer to restatement section for details about the restatement to net fee and commission revenue.
2 For more detail on the split of each non-interest revenue category per key business unit, please 
  refer to the group's analysis of financial results available at www.standardbank.com/reporting.


Credit impairment charges
for the year ended 31 December 2018 
                                                                                 2018          2017    
                                                                                   Rm            Rm    
Credit impairments (IAS 39)1                                                                 10 252    
Portfolio impairments                                                                           355    
Specific impairments                                                                          9 897    
Credit impairments (IFRS 9)1                                                    7 515                  
Financial investments                                                             101                  
Loans and advances                                                              7 237                  
Letters of credit and guarantees                                                  177                  
Modification losses                                                               145                  
Recoveries on loans and advances previously written off                        (1 171)         (842)   
Total credit impairment charge                                                  6 489         9 410    
1 The group has, as permitted by IFRS 9, elected not to restate its comparative financial statements. 
  Therefore comparability will not be achieved by the fact that the comparative financial information 
  has been prepared on an IAS 39 basis.


Related party balances and 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. The number of shares in issue that is financed by the group as at 31 December 2018 is 2 985 513 
(2017: 5 750 291). The weighted number of these shares for the year ended 31 December 2018 equated to 4 178 422 
(2017: 5 750 291).

Post-employment benefit plans
The group manages R8 754 million (2017: R11 864 million) of the group's post-employment benefit plans' assets. 
Other significant balances between the group and the group's post-employment benefit plans are listed below:

                                                                                 2018          2017    
                                                                                   Rm            Rm    
Investments held in bonds and money market instruments                            778         1 089    
Value of ordinary group shares held1                                            3 040           749    
1 The comparative disclosure for the value of ordinary group shares held by the group's post-employment 
  benefit plans has been restated as it was erroneously disclosed as R2 157 million in 2017. The restatement 
  has no impact on the income statement and statement of financial position.

Balances and transactions with ICBCS
The following significant balances and transactions were entered into between the group and ICBCS, an associate 
of the group.

                                                                                 2018          2017    
Amounts included in the group's statement of financial position                    Rm            Rm    
Derivative assets                                                                 905         2 227    
Trading assets                                                                      9             7    
Loans and advances                                                             28 726        31 413    
Other assets                                                                      245           590    
Derivative liabilities                                                         (3 260)       (2 340)   
Trading liabilities                                                            (2 933)                 
Deposits and debt funding                                                        (282)       (1 050)   
Provisions and other liabilities                                                 (437)         (759)   


Services
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 Standard Bank Plc (SB Plc). In terms of these arrangements,
services are delivered to and received from ICBCS for the account of each respective party. As at 31 December 2018 the 
expense recognised in respect of these arrangements amounted to R229 million (2017: R277 million).

Balances and transactions with the Industrial and Commercial Bank of China Limited (ICBC)
The group, in the ordinary course of business, receives term funding from, and provides loans and advances to, ICBC
for strategic purposes. These monies are renegotiated and settled on an ongoing basis on market-related terms. The
following balances and transactions were entered into between the group and ICBC, a 20.1% shareholder of the group, 
excluding those with ICBCS.

                                                                                 2018          2017    
Amounts included in the group's statement of financial position                    Rm            Rm    
Loans and advances                                                             15 539         2 939    
Other assets1                                                                     345           611    
Deposits and debt funding                                                      (3 724)          (91)   
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 (now ICBCS) 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 
  31 December 2018, a balance of USD 24 million (R345 million) is receivable from ICBC in respect of this arrangement 
  (2017: USD50 million; R611 million).

The group has off-balance sheet letters of credit exposure issued to ICBC as at 31 December 2018 of R1 952 million
(2017: R766 million). The group received R63 million in fee and commission revenue relating to these transactions 
(2017: R8 million).

Mutual funds
The group invests in various mutual funds that are managed by Liberty. Where the group has assessed that it has control
(as defined by IFRS) over these mutual funds, it accounts for these mutual funds as subsidiaries. Where the group has
assessed that it does not have control over these mutual funds, but has significant influence, it accounts for them as
associates.
 
The following significant balances and transactions were entered into between the group and the mutual funds which the
group does not control:

                                                                                 2018          2017    
Amounts included in the group's statement of financial                                      
position and income statement                                                      Rm            Rm    
Trading liabilities                                                              (592)         (275)   
Deposits and debt funding                                                     (24 896)      (15 706)   
Trading losses                                                                    (26)         (101)   
Interest expense                                                               (2 689)         (695)   

Change in group directorate
The following changes in directorate took place during the year ended 31 December 2018:

RETIREMENTS
RMW Dunne                   As non-executive director                       30 May 2018    
BJ Kruger                   As non-executive director                  31 December 2018    


Condensed segment report
for the year ended 31 December 2018 
The group's primary segments comprise the group's banking activities (comprising PBB, CIB and central and other), the
group's other banking interests (comprising the group's interest in ICBC Argentina and ICBCS) and Liberty (comprising
the group's investment management and life insurance activities). 

                                                                                 2018            20171    
                                                                                   Rm              Rm    
                                                                                                         
Net interest income contribution by business unit                                                        
Personal & Business Banking                                                    41 754          40 963    
Corporate & Investment Banking                                                 19 190          20 434    
Central and other                                                              (1 322)         (1 272)   
Standard Bank Group                                                            59 622          60 125    
Non-interest revenue and income from investment management                                 
and life insurance activities contribution by business unit                                
Personal & Business Banking2                                                   28 053          26 745    
Corporate & Investment Banking                                                 17 791          16 336    
Central and other                                                                (135)           (507)   
Banking activities2                                                            45 709          42 574    
Liberty                                                                        21 722          24 394    
Standard Bank Group2                                                           67 431          66 968    
Revenue contribution by business unit                                                                    
Personal & Business Banking2                                                   69 807          67 708    
Corporate & Investment Banking                                                 36 981          36 770    
Central and other                                                              (1 457)         (1 779)   
Banking activities2                                                           105 331         102 699    
Liberty                                                                        21 722          24 394    
Standard Bank Group2                                                          127 053         127 093    
Profit or loss attributable to ordinary shareholders                                                     
Personal & Business Banking                                                    15 539          14 023    
Corporate & Investment Banking                                                 10 900          11 363    
Central and other                                                                (865)         (1 112)   
Banking activities                                                             25 574          24 274    
Other banking interests                                                           418             600    
Liberty                                                                         1 461           1 361    
Standard Bank Group                                                            27 453          26 235    
Total assets by business unit                                                                            
Personal & Business Banking                                                   767 328         705 232    
Corporate & Investment Banking                                                970 739         907 335    
Central and other                                                             (33 732)        (14 599)   
Banking activities                                                          1 704 335       1 597 968    
Other banking interests                                                         7 852           7 493    
Liberty2                                                                      414 775         422 467    
Standard Bank Group2                                                        2 126 962       2 027 928    
Total liabilities by business unit                                                                       
Personal & Business Banking                                                   690 187         630 796    
Corporate & Investment Banking                                                902 652         843 982    
Central and other                                                             (51 933)        (32 043)   
Banking activities                                                          1 540 906       1 442 735    
Liberty2                                                                      386 993         395 176    
Standard Bank Group2                                                        1 927 899       1 837 911    
1 Where responsibility for individual cost centres and divisions within business units change, the 
  comparative figures have been reclassified accordingly.
2 Refer to the restatement section for restatements that affected these disclosures.


Other reportable items 
Additional Tier 1 capital
The group did not issue Basel III compliant AT1 capital bonds that qualify as Tier 1 capital during the period 
(2017: R3.5 billion nominal value). During the period, coupons to the value of R447 million (2017: R229 million)
were paid to AT1 capital bond holders. Current tax of R125 million (2017: R64 million) relating to the AT1 capital 
bonds was recognised directly in equity resulting in an aggregate net equity impact of R322 million 
(2017: R165 million). The AT1 capital bonds have been recognised within other equity instruments in the statement 
of financial position.

Capital management
The group manages its capital levels to support business, growth, maintain depositor and creditors' confidence, create
value for its shareholders and ensure regulatory compliance. The main regulatory requirements to be complied with are
those specified in the Banks Act No.94 of 1990 and related regulations, which are aligned with Basel III. Regulatory
capital adequacy is measured through the CET1, Tier 1 and total capital adequacy.

The group has elected the three year phase-in as outlined in the SARB's Directive 5/2017. This phase-in results in the
IFRS 9 impact being amortised on a straight-line basis, from 25% in 2018 to reach 100% by 2021. The group's capital
adequacy ratios based on a phased-in and fully loaded basis are shown in the table below:

                                   Phased-in (IFRS 9)            Fully loaded (IFRS 9)
                                             1 January                       1 January     
                                  2018            2018            2018            2018    
Capital ratio                        %               %               %               %    
CET1                              13.5            13.3            13.1            12.8    
Tier 1                            14.1            13.9            13.6            13.4    
Total capital adequacy            16.0            15.9            15.8            15.7    

Equity securities
During the period, the group allotted 1 729 572 shares (2017: 2 877 827 shares) in terms of the group's share
incentive schemes and repurchased 2 483 523 shares (2017: 2 030 824 shares).

The total equity securities held as treasury shares at the end of the period was 25 310 447 shares (2017: 16 213 766
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 balances and transactions 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.

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, analysis 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, where required in terms of IFRS for claims that are probable, provisions in place to meet 
claims that may succeed.
 
Competition Commission - trading of foreign currency 
On 15 February 2017 South Africa's Competition Commission lodged five complaints with the Competition Tribunal against
18 institutions, including one against The Standard Bank of South Africa Limited ("SBSA") and two against a former
subsidiary of the Standard Bank Group, Standard New York Securities Inc ("SNYS"), in which it alleges unlawful collusion
between those institutions in the trading of USD/ZAR. Standard Bank Group has, with the help of external counsel, conducted
its own internal investigations and found no evidence that supports the complaints. Both SBSA and SNYS have, together
with 12 of the other respondents, applied for dismissal of the complaint referral on various legal grounds. These
applications were heard in July 2018 and judgement has been reserved. The allegations against SBSA are confined to USD/ZAR
trading activities within SBSA and do not relate to the conduct of the group more broadly.

Indemnities granted following disposal of SB Plc 
Under the terms of the disposal of SB Plc on 1 February 2015, the group provided ICBC with certain indemnities to be
paid in cash to ICBC or, at ICBC's direction, to any SB Plc (now ICBCS) group company, a sum equal to the amount of
losses suffered or incurred by ICBC arising from certain circumstances. Where an indemnity payment is required to be 
made by the group to the ICBCS group, such payment would be grossed up from ICBC's shareholding at the time in ICBCS
to 100%. These payments may, inter alia, arise as a result of an enforcement action, the cause of which occurred prior 
to the date of disposal. Enforcement actions include actions taken by regulatory or governmental authorities to enforce 
the relevant laws in any jurisdiction. While there have been no material claims relating to these indemnification 
provisions, the indemnities provided are uncapped and of unlimited duration as they reflect that the pre-completion 
regulatory risks attaching to the disposed-of business remain with the group post completion. Any claims that may arise 
for SNYS with respect to the Competition Commission matter are likely to fall within the scope of this indemnity as the 
alleged conduct, which is the subject of the referral, is alleged to have taken place prior to the disposal of SB Plc. 

Subordinated debt
During the period, the group issued R5.0 billion (2017: Rnil) Basel lll compliant bonds that qualified as Tier 2 capital.
The capital notes are perpetual, non-cumulative with an issuer call option after a minimum period of five years and one 
day, and on every coupon payment date thereafter. The payment dates are quarterly with the first call date being 
13 February 2023.

R3.5 billion (2017: R3.0 billion) Basel III compliant Tier 2 subordinated debt instruments were redeemed during the
year. 

R0.1 billion (2017: R0.3 billion) of Basel II compliant Tier 2 subordinated debt instruments were issued during the
year and R0.1 billion (2017: R0.2 billion) was redeemed in jurisdictions that have not yet adopted the Basel III
framework.
 
The terms of the Basel III compliant Tier 2 capital 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 (the SARB) that a write-off without
which the issuer would have become non-viable is necessary, or a decision to make a public sector injection of capital or
equivalent support, without which the issuer would have become non-viable.
 
During the period, the group issued subordinated debt that qualifies as regulatory insurance capital R1.0 billion
(2017: R2.0 billion) and R1.0 billion (2017: R1.0 billion) was redeemed.

Transactions with non-controlling interests
Change in shareholding of subsidiaries

                                                                                             2018    
                                                                                               Rm    
Net carrying amount of non-controlling interests acquired                                   1 139    
Net consideration (paid to)/received from non-controlling interests                        (2 675)   
Net decrease in equity attributable to ordinary shareholders                               (1 536)    

Transactions with non-controlling interests primarily comprise of:

Stanbic Africa Holdings Limited
During the period, Stanbic Africa Holdings Limited (SAHL), a wholly owned subsidiary of SBG, increased its shareholdings 
in its listed Nigerian and Kenyan subsidiaries through acquisitions of additional shares from non-controlling interests 
(NCI). Increases in the group's interest in a subsidiary, when the group already has control, are accounted for as
transactions with equity holders of the group. The difference between the purchase consideration and the group's
proportionate share of the subsidiary's additional net asset value acquired is accounted for directly in equity.

Nigeria
In Nigeria, SAHL's shareholding in Stanbic IBTC Holdings PLC (SIBTC) increased by 12% from 53% to 65% through an
announced off market trade on the Nigerian Stock Exchange and further on market share purchases for a total cash
consideration of R2 567 million. 

The group recognised a net decrease in NCI of R950 million and a decrease in retained earnings and equity attributable
to owners of the group of R1 617 million because of changes in the group's ownership interest in SIBTC.

Kenya
In Kenya, SAHL's shareholding in Stanbic Holdings Plc (SH Plc) increased by 9% from 60% to 69% following a two-stage
tender offer and further on market share purchases for a total cash consideration of R485 million. 

The group recognised a decrease in NCI of R514 million and an increase in retained earnings and equity attributable to
owners of the group of R29 million because of changes in the group's ownership interest in SH Plc.

Liberty Group Limited
During the period, Liberty Group Limited's (Liberty) shareholding in Liberty Two Degrees (L2D) decreased by 4% from 
63% to 59% for a total consideration of R301 million. Liberty recognised an increase in NCI of R249 million and an 
increase in retained earnings and equity attributable to ordinary shareholders of R52 million because of changes in 
Liberty's ownership interest in L2D.

Stanbic Bank Zimbabwe functional currency
In 2009, Stanbic Bank Zimbabwe (SBZ) concluded that the United States Dollar (USD) was its functional currency in terms of
IAS 21 The Effects of Changes in Foreign Exchange Rates (IAS 21). However, an acute shortage of USD in Zimbabwe resulted 
in an increase in electronic balances through the Real Time Gross Settlement System (RTGS) as well as the issuance of bond 
notes which were exchangeable for USD at an official rate of 1:1. In October 2018, the Reserve Bank of Zimbabwe (RBZ) 
instructed banks to separate bank accounts into FCA Nostro (USD balances) and FCA RTGS (RTGS balances). This created clarity 
that within Zimbabwe both USD and RTGS were legal tender and that these different currencies were not interchangeable, even 
though the official exchange rate was 1:1. As a result, SBZ concluded that its functional currency changed from USD to RTGS 
on 1 October 2018 because the majority of SBZ's transactions were conducted in RTGS. SBZ was prohibited from trading at any 
exchange rate other than the official rate and all exchange transactions undertaken by SBZ in 2018 occurred at the official 
rate of 1:1. The International Financial Reporting Interpretations Committee discussed the determination of an exchange rate 
when there is a long-term lack of exchangeability and concluded that the closing rate at which items should be translated is 
the rate to which an entity would have access at the end of the reporting period through a legal exchange mechanism. The only 
legal exchange mechanism that SBZ had access to in the financial period since the change in functional currency was the 
official exchange mechanism. This led to SBZ concluding that the appropriate exchange rate to use at the date of the change 
in functional currency and subsequent to the change in functional currency up until the end of the current reporting period 
is the official rate of 1:1.

Post-balance sheet event
During February 2019, RBZ announced that RTGS dollars will replace USD as the new base currency of the country. 
A new foreign interbank market was also established and this interbank market will complement the existing official
foreign exchange mechanism with the RBZ. The establishment of this interbank market has created an additional legal 
exchange mechanism whereby the bank is able to trade RTGS dollars. Whilst the RBZ has not yet indicated which exchange 
mechanism can be utilised for dividend repatriation, the 2.5 RTGS:USD exchange rate which has emerged from this interbank 
exchange market at the end of February 2019 can be utilised to estimate the financial impact. The group has estimated a 
decrease of R746 million on the foreign currency translation reserve, relating to this development by applying the 
2.5 RTGS:USD exchange rate to the 31 December 2018 SBZ balance sheet position.

IFRS 16 Leases
This standard will replace the IAS 17 Leases as well as the related interpretations and sets out the principles for
the recognition, measurement, presentation and disclosure of leases for both parties to a contract, being the lessee
(customer) and the lessor (supplier). The core principle of this standard is that the lessee and lessor should recognise 
all rights and obligations arising from leasing arrangements on balance sheet. The most significant change pertaining to 
the accounting treatment for operating leases is from the lessees' perspective. IFRS 16 eliminates the classification of
leases as either operating or finance leases as required by IAS 17 and introduces a single lessee accounting model,
where a right of use (ROU) asset together with a liability for the future payments is to be recognised for all leases with
a term of more than 12 months, unless the underlying asset is of low value. The group has elected to apply IFRS 16
retrospectively without restating comparative periods, which will continue to be presented in terms of IAS 17, with a
transition adjustment as at 1 January 2019. The single lessee accounting model, which comprises IFRS 16's most material 
impact for the group, is expected to result in an increase of approximately R5 billion in total assets, 
R4.73 billion in total liabilities and an increase in reserves of approximately R250 million. 

Accounting policy elections
Adoption of new and amended standards effective for the current financial period 
The accounting policies are consistent with those reported in the previous year except for the adoption of the
following standards and amendments effective for the current period:
- IFRS 4 Insurance Contracts (amendment) (IFRS 4), the amendment to applying IFRS 9 Financial Instruments with IFRS 4
  introduced two approaches: an overlay approach and a deferral approach. The amended standard will provide all companies
  that issue insurance contracts the option to recognise in other comprehensive income, rather than profit or loss, the
  volatility that could arise when IFRS 9 is applied before the new insurance contracts standard is issued; and provide
  companies whose activities are predominantly connected with insurance an optional temporary exemption from applying IFRS 9
  until 2021. The entities that defer the application of IFRS 9 will continue to apply the existing financial instruments
  standard IAS 39. The amendments to IFRS 4 supplement existing options in the standard that can already be used to address
  the temporary volatility. The group did not apply the optional temporary exemption of applying IFRS 9 until 2021.
- IFRS 15 Revenue from Contracts with Customers (IFRS 15), with effect from 1 January 2018, replaces the existing
  revenue standards and the related interpretations. The standard sets out the requirements for recognising revenue that
  applies to all contracts with customers (except for contracts that are within the scope of the standards on leases, insurance
  contracts or financial instruments). The core principle of the standard is that revenue recognised reflects the
  consideration to which the company expects to be entitled in exchange for the transfer of promised goods or services to the
  customer. The standard incorporates a five step analysis to determine the amount and timing of revenue recognition. The
  group adopted IFRS 15 on 1 January 2018 and, as permitted by IFRS 15, did not restate its comparative financial results.
  The standard does not apply to revenue associated with financial instruments, and therefore does not impact the majority
  of the group's revenue. 
- IFRIC 22 Foreign Currency Transactions and Advance Consideration provides guidance on how to determine the date of
  the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset,
  expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability arising from the
  payment or receipt of advance consideration in a foreign currency. 
  
The above mentioned standards and interpretation to the IFRS standards, adopted on 1 January 2018, did not effect the
group's previously reported financial results or disclosures and did not impact the group's results upon transition or
the group's accounting policies.

- IFRS 9 Financial Instruments with effect from 1 January 2018, replaced IAS 39. IFRS 9 introduced new requirements
  which included an ECL impairment model and new requirements for the classification and measurement of financial assets,
  refer below for more detail.

IFRS 9 Financial Instruments
Background
With effect from 1 January 2018, IFRS 9 replaced IAS 39. IFRS 9 introduced new requirements which included an ECL
impairment model and new requirements for the classification and measurement of financial assets as follows: 

ECL impairment         IFRS 9's ECL impairment model's requirements represented the most material IFRS 9 transition impact
requirements           for the group.

                       The ECL model applies to financial assets measured at either amortised cost or at fair value through
                       comprehensive income (FVOCI), loan commitments when there is a present commitment to extend credit
                       (unless these are measured at fair value through profit or loss (FVTPL)) and financial guarantees.

                       ECL is, at a minimum, required to be measured through a loss allowance at an amount equal to the lower of
                       12-month or full lifetime ECL (where the lifetime is less than 12 months) of the financial asset. A loss 
                       allowance for full lifetime ECL is required for a financial asset if the credit risk of that financial 
                       instrument has increased significantly since initial recognition. 
  
Classification and     IFRS 9 requires all financial assets to be classified and measured on the basis of the entity's business 
measurement            model for managing the financial assets and the contractual cash flow characteristics of the financial assets.

                       The accounting for financial assets differs in various other areas to existing requirements such as embedded
                       derivatives and the recognition of fair value adjustments in OCI.

                       All changes in the fair value of financial liabilities that are designated at FVTPL due to changes in own 
                       credit risk are required to be recognised within OCI.

Adoption of IFRS 9
The group retrospectively adopted IFRS 9 on 1 January 2018 with an adjustment to the group's opening 1 January 2018
reserves and, as permitted by IFRS 9, did not restate its comparative financial results. Accordingly, the group's
previously reported financial results up to 31 December 2017 are presented in accordance with the requirements of IAS 39 
and for 2018, and future reporting periods, are presented in terms of IFRS 9. However, the group has elected to continue 
to apply the hedge accounting requirements of IAS 39. The group prepared a IFRS 9 transition report on which a reasonable
assurance audit opinion, included in the report, was provided by the group's external auditors that outlined the impact of
the transition to IFRS 9. For further information, regarding the transition impact, refer to the transition report,
available at www.standardbank.com/reporting.

IFRS 9's ECL requirements 
The most material IFRS 9 transition impact for the group is that of IFRS 9's new ECL requirements which results in the
earlier recognition of credit impairment provisions primarily as a result of the drivers outlined in the table below.
This impact was solely as a result of the adoption of IFRS 9 and is not as a result of changes in the credit quality of
the group's loan exposures.

12-month ECL for          IFRS 9 contains a minimum 12-month ECL for exposures for which there has not been a significant increase 
performing loans          in credit risk (SICR), whereas IAS 39 required credit impairments to be recognised only following the    
(stage 1)                 identification of objective evidence of impairment.

Significant increase in   A lifetime ECL is recognised for all exposures for which there has been a SICR, being a material change  
credit risk (SICR)        in the probability of default, since origination.
(stage 2)

Off-balance sheet         IFRS 9's scope includes off-balance sheet exposures, such as unutilised loan commitments, guarantees and
exposures                 letters of credit.

Lifetime model work       In terms of determining ECL for stage 1 and 2 exposures where there is a probability of default, the        
out requirement           potential loss from a lifetime perspective is considered, which would include the probability of     
                          recovery post default and subsequent re-default.

                          For stage 3 exposures, being exposures that are either in default or where default is imminent, this
                          would include consideration of cures and subsequent re-default.

Forward looking           IFRS 9 requires an adjustment for forward looking economic expectations in the determination of SICR
economic expectations     and in the measurement of the ECL.

IFRS 9 key financial impacts 

Table 1: Impact on the group's summarised statement of financial position on 1 January 2018

                                                      IFRS 9 transition adjustment at
                                                              1 January 2018
                                      Group                          IFRS 9                     Group       
                                  IAS 39 at                  classification                 IFRS 9 at       
                                31 December                             and                 1 January      
                                       2017    IFRS 9 ECL      measurements     Total            2018     
                                         Rm            Rm                Rm        Rm              Rm     
Assets                                                                                                   
Financial investments               533 314          (272)               32      (240)        533 074    
Loans and advances                1 048 027        (7 839)              (83)   (7 922)      1 040 105    
Interest in associates                                                                 
and joint ventures                    9 665           (53)               (3)      (56)          9 609    
Other financial and                                                                    
non-financial assets1               436 922         2 234                94     2 328         439 250    
Total assets                      2 027 928        (5 930)               40    (5 890)      2 022 038    
Equity and liabilities                                                                                   
Equity                              190 017        (6 276)             (361)   (6 637)        183 380    
Equity attributable to                                                                 
ordinary shareholders               157 020        (5 930)             (331)   (6 261)        150 759    
Equity attributable to                                                                 
other equity holders                  9 047                                                     9 047    
Equity attributable to                                                                 
non-controlling interests            23 950          (346)              (30)     (376)         23 574    
Liabilities2                      1 837 911           346               401       747       1 838 658    
Total equity and liabilities      2 027 928        (5 930)               40    (5 890)      2 022 038    
1 Materially relates to the recognition of additional deferred tax assets following the recognition of the 
  IFRS 9 ECL and classification and measurement transition adjustment.
2 Materially relates to the recognition of ECL on off-balance sheet letters of credit, bankers 
  acceptances and guarantees.

Table 2: Impact on the group's summarised statement of changes in equity on 1 January 2018

                                                                         IFRS 9                          
                                                  Group              transition                 Group     
                                              IAS 39 at           adjustment at             IFRS 9 at     
                                            31 December               1 January             1 January    
                                                   2017                    2018                  2018     
                                                     Rm                      Rm                    Rm    
Ordinary share capital and share premium         18 063                                        18 063    
Retained earnings1                              144 539                  (5 302)              139 237    
Statutory credit risk reserve2                    3 089                    (948)                2 141    
Other3                                           (8 671)                    (11)               (8 682)   
Total ordinary shareholder's equity             157 020                  (6 261)              150 759    
Other equity instruments                          9 047                                         9 047    
Non-controlling interests4                       23 950                    (376)               23 574    
Total equity                                    190 017                  (6 637)              183 380    
1 The change in the retained earnings relates to IFRS 9's classification and measurement and ECL changes 
  and the reversal of the statutory credit risk reserve (SCRR) as explained further below.
2 In addition to the R6 637 million impact on the group's reserves, as a result of the adoption of IFRS 9, 
  a debit of R948 million to the group's SCRR and a corresponding credit to the group's retained earnings 
  has been recognised. The SCRR has historically been maintained by means of an appropriation of retained 
  earnings to a non-distributable reserve, being the SCRR, by the group's operations in the Africa Regions 
  as a result of country regulators requiring a higher credit impairment provision than that as determined 
  in accordance with IAS 39. Given that IFRS 9 typically results in an impairment provision that is 
  equivalent to or greater than that as required by the Africa Regions' regulators, a transfer from the 
  SCRR back to retained earnings is required on transition to IFRS 9. The transfer has only been reflected 
  with respect to those countries whose regulators that, at the date of this transition report, had approved 
  such releases. This transfer has no impact on the group's net asset value, total reserves or capital ratios.
3 Of the R593 million in the group's available-for-sale reserve as at 31 December 2017, R582 million has 
  been reclassified on the adoption of IFRS 9 to the FVOCI category and R11 million relates to gains and 
  losses on instruments that were classified as available-for-sale and are now classified as either FVTPL 
  or at amortised cost.                                                                           
4 The change relates to the non-controlling interests' share of the IFRS 9 impact post tax relating to 
  IFRS 9's classification and measurement and ECL changes.

Table 3: Impact on financial instrument classification (excluding impact of IFRS 9 ECL)

                                               IFRS 9 transition adjustment at 
                                                        1 January 2018
                               Group                                                          Group
                           IAS 39 at                                              Fair       IFRS 9
                                  31                                             value           at
                            December    Held-for-                  Amortised   through    1 January   Transitional     
                                2017      trading   Fair value1         cost       OCI         2018     adjustment     
                                  Rm           Rm            Rm           Rm        Rm           Rm             Rm     
Financial assets                                                                                                      
Held-for-trading             241 482      241 482                                           241 482                   
Designated at fair value     409 456                    370 517       38 126                408 643           (813)   
Held to maturity              81 607                      3 261       79 187                 82 448            841    
Loans and receivables      1 142 431                     66 908    1 075 492        26    1 142 426             (5)   
Available-for-sale            45 149                        423       10 041    34 537       45 001           (148)   
                           1 920 125      241 482       441 109    1 202 846    34 563    1 920 000           (125)   
Financial liabilities                                                                                                 
Held-for-trading             139 751      139 751                                           139 751                   
Designated at fair value     173 176                    165 559        7 813                173 372            196    
Other amortised cost       1 284 837                      9 311    1 275 731              1 285 042            205    
                           1 597 764      139 751       174 870    1 283 544              1 598 165            401    
1 Includes designated at fair value and fair value default financial instruments

IFRS 9 accounting policies
Interest in suspense
In addition to the above identified changes between IAS 39 and IFRS 9, interest in suspense (refers to contractual
interest which accrues on financial assets which are classified as non-performing) is presented as follows:

IAS 39 accounting treatment
Up to 31 December 2017, IAS 18 Revenue required interest income to be recognised only when it was probable that the
economic benefits associated with a transaction would flow to the entity. The group, in line with these requirements,
suspended the recognition of contractual interest income on all exposures where it was determined that future economic
benefits were not probable. The accounting presentation policy for this suspended contractual interest was to present 
the balance sheet interest in suspense account as part of the gross carrying amount of the financial asset (i.e. gross 
carrying amount net of interest in suspense). In addition, upon the curing of the non-performing financial asset, the 
group elected an accounting presentation policy to recognise this suspended contractual interest (previously unrecognised
interest) within the net the interest income line within the income statement. This policy was elected on the basis that 
the presentation best represented the nature of the amount in terms of IAS 1 Presentation of Financial Statements (IAS 1).

IFRS 9 accounting treatment
IFRS 9 requires that interest income for financial assets classified as Stage 3 be calculated on the net carrying
amount (after deducting credit impairments), which will result in a portion of contractual interest being suspended. 
IFRS 9 requires that this suspended contractual interest be presented as part of the financial assets' gross carrying 
amount. The group has applied this requirement by presenting balance sheet suspended contractual interest together 
within credit impairment. Hence suspended contractual interest does not impact the net carrying amount of the financial 
asset as presented on the statement of financial position. However, this change in presentation has resulted in an 
increased gross carrying amount of financial asset and increased credit impairments when compared to IAS 39. 

The group has presented previously unrecognised interest earned on curing of a financial asset out of Stage 3 within
credit impairment. This presentation is consistent with the IFRIC clarification issued in December 2018.

Restatements

Change in accounting policy
Expenses incurred with respect to the group's customer loyalty programme (UCount) have historically been recorded as
part of operating expenses in the income statement. During the year, the group amended its accounting policy for these
expenses to rather be presented as part of net fee and commission revenue (within non-interest revenue). This policy
aligns with the group's policy for other expenses that are presented within net fee and commission revenue. The impact 
of the change in the accounting policy on the group's financial results is as follows:

                                                                             2017
                                                     As previously                                         
                                                         presented                            Restated     
                                                           Income/                             Income/    
                                                          (expense)       Restatement         (expense)   
                                                                Rm                 Rm               Rm    
Non-interest revenue                                        43 037               (463)          42 574    
Operating expenses in banking activities                   (57 512)               463          (57 049)   

The following condensed primary financial statement and notes have been impacted by this restatement:
- condensed consolidated income statement 
- non-interest revenue
- operating expenses
- condensed segment report.

The above restatement had the following effect on key financial statistics:

                                                                             2017
                                                     As previously                                    
                                                          reported        Restatement         Restated    
Jaws                                                          1.0%               0.1%             1.1%    
Cost-to-income                                               55.7%              (0.2%)           55.5%    

Restatement of statement of cash flows
During 2018 a comprehensive review of the group's long-term insurance business model was undertaken due 
to various regulatory changes including the new regulatory capital regime effective 1 July 2018 and the 
enterprise risk management framework. The above review supported a change in key judgement relating to 
the appropriateness of all cash flows relating to investment portfolios backing policyholder liabilities 
and supporting regulatory and group risk adjusted minimum capital levels. Management are of the opinion 
that these should be reflected as cash flows from operating activities rather than as previously reflected 
as cash flows from investing activities. This provides more relevant information as it more accurately 
reflects the nature of the cash flows as a result the statement of cash flows for 2017 has been restated. 
The impact of the restatement on the group's statement of cash flows is as follows:

                                                                             2017
                                                     As previously
                                                         presented                            Restated     
                                                      cash inflow/                        cash inflow/    
                                                     (cash outflow)       Restatement    (cash outflow)   
                                                                Rm                 Rm               Rm    
Cash flows presented within operating activities                                                         
Other operating activities                                  34 215             (3 117)          31 098    
Cash flows presented within investing activities                                                          
Capital expenditure                                         (5 451)                60           (5 391)   
Other investing activities                                  (2 964)             3 057               93    

Other information

Pro forma financial and constant currency information
The pro forma financial information and pro forma constant currency information disclosed in these results 
is the responsibility of the group's directors. Because of its nature, the pro forma financial information 
may not be a fair reflection of the group's results of operation. The pro forma financial information and 
pro forma constant currency information contained in this announcement have been reviewed by the group's 
external auditors and their unmodified limited assurance report prepared in terms of ISAE 3420 is available 
for inspection at the company's registered office on weekdays from 09:00 to 16:00. 

IFRS 9-related accounting impact
In compliance with IFRS 9, the group is required to suspend interest earlier which resulted in a R553 million
reduction in net interest income and credit impairment charges. In addition, following a clarification from the 
IFRS Interpretations Committee in December 2018, the group is required to recognise previously unrecognised 
interest earned on loans which cured out of Stage 3 (otherwise referred to as released IIS on cured assets) as 
a reduction in credit impairment charges. Prior to 2018, IIS on cured assets was accounted for as interest income. 
The reclassification from interest income to credit impairment charges amounted to R1 169 million in 2018. The table 
below shows the impact of these changes on net interest income, total income and credit impairment charges as well 
as some of the group's key ratios, namely credit loss ratio, cost-to-income ratio and jaws. The adjusted figures and 
ratios are collectively referred to as "Non-IFRS Financial Information" and is pro forma financial information for 
purposes of the JSE Listings Requirements. There was no impact on 2018 headline earnings. The directors are 
responsible for compiling the Non-IFRS Financial Information on the basis of the applicable criteria specified in 
the JSE Listings Requirements, including JSE Guidance Letter: Presentation of pro forma financial information dated 
4 March 2010.

                                                                                                  2018     
                                                        2018            Adjustment            adjusted    
                                                         Rbn                   Rbn                 Rbn    
Net interest income                                     59.6                   1.7                61.3    
Non-interest revenue                                    45.7                                      45.7    
Total income                                           105.3                   1.7               107.0    
Credit impairment charges                               (6.5)                 (1.7)               (8.2)   
Headline earnings                                       27.9                                      27.9    
Credit loss ratio (%)                                   0.56                                      0.74    
Cost-to-income ratio (%)                                57.0                                      56.2    
Jaws (%)                                                (2.8)                                     (1.1)   

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 financial position, changes in equity, results of operations
or cash flows. In determining the change in constant currency terms, the comparative financial year's results for the
year ended 31 December 2017 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 following average exchange rates were used in the determination of the pro forma constant currency information 
and were calculated using the average of the average monthly exchange rates (determined on the last day of each of 
the 12 months in the period).

                                                                2018 average              2017 average     
                                                               exchange rate             exchange rate    
US dollar                                                              13.23                     13.30    
Pound sterling                                                         17.63                     17.13    
Argentinian peso                                                        0.50                      0.81    
Nigerian naira                                                          0.04                      0.04    
Kenyan shilling                                                         0.13                      0.13    
Zambian kwacha                                                          1.27                      0.72    
Mozambique metical                                                      0.22                      0.21    

7 March 2019


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
Email: Zola.Stephen@standardbank.co.za 

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

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

Head office switchboard
Tel: +27 11 636 9111 

Directors
TS Gcabashe (chairman), H Hu1 (deputy chairman), 
JH Maree (deputy chairman), A Daehnke*, 
GJ Fraser-Moleketi, GMB Kennealy,
NNA Matyumza, KD Moroka, ML Oduor-Otieno2, 
AC Parker, ANA Peterside CON3, MJD Ruck, PD Sullivan4, SK Tshabalala* (chief executive), 
JM Vice, L Wang1

*Executive Director  1Chinese  2Kenyan   3Nigerian   4Australian 

All nationalities are South African, unless otherwise specified above.

Share transfer secretaries in South Africa
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, 
Johannesburg, 2196
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

JSE independent sponsor
JP Morgan Equities South Africa Proprietary Limited

Namibian sponsor
Simonis Storm Securities (Proprietary) Limited

JSE joint sponsor
The Standard Bank of South Africa Limited

Share codes
JSE share code:  SBK ISIN: ZAE000109815
NSX share code: SNB ZAE000109815
A2X share code: SBK
SBKP ZAE000038881 (First preference shares) 
SBPP ZAE000056339 (Second preference shares) 

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

Refer to www.standardbank.com/reporting for a list of definitions, acronyms and abbreviations

Disclaimer
This document contains certain statements that are "forward-looking" with respect to certain of the group's plans,
goals and expectations relating to its future performance, results, strategies and objectives. Words such as "may",
"could", "will", "expect", "intend", "estimate", "anticipate", "aim", "outlook", "believe", "plan", "seek", "predict" 
or similar expressions typically identify forward-looking statements. These forward-looking statements are not statements 
of fact or guarantees of future performance, results, strategies and objectives, and by their nature, involve risk and
uncertainty because they relate to future events and circumstances which are difficult to predict and are beyond the group's
control, including but not limited to, domestic and global economic business conditions, market-related risks such as
fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities (including changes
related to capital and solvency requirements), the impact of competition, inflation, deflation, the timing impact and other
uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of changes in
domestic and global legislation and regulations in the jurisdictions in which the group and its affiliates operate. 
The group's actual future performance, results, strategies and objectives may differ materially from the plans, goals 
and expectations expressed or implied in the forward-looking statements. The group makes no representations or warranty, 
express or implied, that these forward-looking statements will be achieved and undue reliance should not be placed on such
statements. The group undertakes no obligation to update the historical information or forward-looking statements in this
document and does not assume responsibility for any loss or damage arising as a result of the reliance by any party
thereon.

www.standardbank.com/reporting

www.standardbank.com
Date: 07/03/2019 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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