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Interim results and dividend announcement
Standard Bank Group Limited
Registration number 1969/017128/06
Incorporated in the Republic of South Africa
Website: (www.standardbank.com)
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)
1H19 results overview
"We strive to meet our clients' needs by seamlessly delivering holistic, relevant financial services
offerings through the channels of their choice."
- Sim Tshabalala, Group chief executive
Standard Bank Group's African-focused strategy has delivered continued headline earnings growth, driven by
the strong underlying momentum in our core operations. For the period ended 30 June 2019 headline earnings
were R13.4 billion, an increase of 6% on the prior period (1H18), and return on equity (ROE) was 16.2%.
The group's capital position remained strong, with a common equity tier 1 ratio of 14.0%, which supported
an interim dividend of 454 cents per share, an increase of 6% on the prior period.
Banking activities recorded strong growth in headline earnings, increasing 10% to R12.8 billion. ROE was
17.5% in line with the prior corresponding period. Strong balance sheet growth period on period supported net
interest income. Pressure on fees and continued customer migration to digital channels dampened non-interest
revenue growth. Credit impairment charges increased from a low base in 1H18. Stringent cost management
resulted in positive operating leverage, by growing revenue by 1.1% faster than cost.
After adjusting for currency impacts, in particular the weaker South African Rand, group headline earnings
grew 5% on a constant currency basis. On the back of continued strong earnings growth, Africa Regions' (AR)
contribution to banking headline earnings grew to 34% from 32% in 1H18. The top six contributors to AR's
headline earnings were Angola, Ghana, Kenya, Mozambique, Nigeria and Uganda.
Financial outcome
for the six months ended 30 June 2019
Financial statistics
Change 1H19 1H18
% Unaudited Unaudited
Financial indicator (Rm)
Headline earnings 6 13 361 12 663
Banking activities headline earnings 10 12 806 11 674
Cents per ordinary share
Basic earnings per ordinary share 4 827.0 796.6
Headline earnings per ordinary share 5 837.4 793.9
Dividend per ordinary share 6 454 430
Net asset value per ordinary share 8 10 511 9 768
Financial performance (%)
ROE 16.2 16.8
Credit loss ratio on banking activities 0.8 0.6
Cost-to-income ratio on banking activities1 57.0 57.6
1 The group has, as permitted by International Financial Reporting Standards (IFRS), including IFRS 16
Leases (IFRS 16), 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 17 Leases basis. Refer to the full interim results announcement for more detail on the adoption
of IFRS16.
Income statement highlights - banking activities
Change 1H19 1H18
% Unaudited Unaudited
Income statement highlights - Banking activities (Rm)
Net interest income1 9 31 265 28 680
Non-interest revenue 4 23 012 22 030
Total income 7 54 277 50 710
Operating expenses 6 (30 941) (29 205)
Operating income 9 23 336 21 505
Credit impairment charges1 20 (4 247) (3 529)
Taxation (1) (4 685) (4 735)
Other (44) 109 195
Attributable to non-controlling interests and
other equity instrument holders (3) (1 707) (1 762)
Banking activities headline earnings 10 12 806 11 674
Banking activities ROE (%) 17.5 17.5
1 Restated, refer to the full results announcement for details on the restatement.
Headline earnings by business unit
Change 1H19 1H18
% Unaudited Unaudited1
Personal & Business Banking 8 7 201 6 697
Corporate & Investment Banking 9 6 169 5 676
Central and other (19) (564) (699)
Banking activities headline earnings 10 12 806 11 674
Other banking interests (100) (320) 132
Liberty headline earnings 2 875 857
Group headline earnings 6 13 361 12 663
1 Where responsibility for individual cost centres and divisions within business units change, the
comparative figures have been reclassified accordingly.
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 an interim gross cash dividend No.
100 of 454 cents per ordinary share (the cash dividend) to ordinary shareholders recorded in the register of
the company at the close of business on Friday, 13 September 2019. The last day to trade to participate in the
dividend is Tuesday, 10 September 2019. Ordinary shares will commence trading ex dividend from
Wednesday, 11 September 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, 11 September
2019, and Friday, 13 September 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,
16 September 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 interim dividends:
- 6.5% first cumulative preference shares (first preference shares) dividend No. 100 of 3.25 cents (gross)
per first preference share, payable on Monday, 9 September 2019, to holders of first preference shares
recorded in the books of the company at the close of business on the record date, Friday, 6 September 2019.
The last day to trade to participate in the dividend is Tuesday, 3 September 2019. First preference shares
will commence trading ex dividend from Wednesday, 4 September 2019.
- Non-redeemable, non-cumulative, non-participating preference shares (second preference shares) dividend
No. 30 of 391.38 cents (gross) per second preference share, payable on Monday, 9 September 2019, to holders of
second preference shares recorded in the books of the company at the close of business on the record
date, Friday, 6 September 2019. The last day to trade to participate in the dividend is Tuesday, 3 September 2019.
Second preference shares will commence trading ex dividend from Wednesday, 4 September 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, 4 September 2019, and Friday, 6 September 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, 9
September 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,
6.5% cumulative non-participating
Ordinary preference shares preference shares (Second
shares (First preference shares) preference shares)
JSE Limited
Share code SBK SBKP SBPP
ISIN ZAE000109815 ZAE000038881 ZAE000056339
Namibian Stock Exchange (NSX)
Share code SNB
ISIN ZAE000109815
Dividend number 100 100 30
Dividend per share (cents) 454 3.25 391.38
Last day to trade
in order to be
eligible for the
cash dividend Tuesday, 10 September 2019 Tuesday, 3 September 2019 Tuesday, 3 September 2019
Shares trade ex the
cash dividend Wednesday, 11 September 2019 Wednesday, 4 September 2019 Wednesday, 4 September 2019
Record date in
respect of the
cash dividend Friday, 13 September 2019 Friday, 6 September 2019 Friday, 6 September 2019
Dividend cheques posted
and CSDP/broker account
credited/updated
(payment date) Monday, 16 September 2019 Monday, 9 September 2019 Monday, 9 September 2019
The above dates are subject to change. Any changes will be released on the Stock Exchange News Service
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 363.20 cents per ordinary share, 2.60 cents per first preference share and 313.104 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:
- 1 619 235 231 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.
Johannesburg
08 August 2019
Other information
This announcement is a summary of the information contained in the full interim results announcement and
does not contain full or complete details. Any investment decisions by investors or shareholders should
be based on a consideration of the full interim results announcement available at www.standardbank.com/reporting.
Copies of the full interim results announcement may be requested by emailing InvestorRelations@standardbank.co.za
or by phoning +27 11 636 5039. Copies of this announcement are also available at Standard Bank Group Limited's
registered office at no charge on weekdays from 09:00 to 16:00.
Standard Bank Group Limited's full announcement containing the interim results and dividend announcement for
the six months ended 30 June 2019 is available for viewing by using the following JSE link:
https://senspdf.jse.co.za/documents/2019/jse/isse/SBK/SBG1H19.pdf
The directors of Standard Bank Group Limited take full responsibility for the preparation of this
announcement including the pro forma constant currency financial information. The pro forma constant currency
information and the 1H19 results, including comparatives for 1H18, where applicable, have not been audited or
independently reviewed by the group's external auditors. The pro forma constant currency information has been
presented to illustrate the impact of changes in currency rates on the group's results and may not fairly
present the group's results of operations. Refer to the group's full interim results announcement for further
details regarding the computation of the group's pro forma constant currency financial information.
Registered office: 9th floor, Standard Bank Centre, 5 Simmonds Street, Johannesburg 2001,
PO Box 7725, Johannesburg 2000
Independent sponsors: South Africa: JP Morgan Equities (SA) Proprietary Limited,
Namibia: Simonis Storm Securities (Proprietary) Limited
Joint sponsor: The Standard Bank of South Africa Limited (acting through its Corporate & Investment Banking
business unit)
Directors: TS Gcabashe (chairman), A Daehnke*, MA Erasmus1, GJ Fraser-Moleketi, H Hu2 (deputy chairman),
GMB Kennealy, JH Maree (deputy chairman), NNA Matyumza, KD Moroka, ML Oduor-Otieno3, AC Parker, ANA Peterside
CON4, MJD Ruck, PD Sullivan5, SK Tshabalala* (chief executive), JM Vice, L Wang2.
All nationalities are South African, unless otherwise specified. * Executive director 1 British 2 Chinese
3 Kenyan 4 Nigerian 5 Australian
Date: 08/08/2019 07:30:00
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