Financial information provided to ICBC and update on operational performance Standard Bank Group Limited Registration No. 1969/017128/06 Incorporated in the Republic of South Africa JSE and A2X share code: SBK ISIN: ZAE000109815 NSX share code: SNB (“Standard Bank Group” or “the group”) Financial information provided to the Industrial and Commercial Bank of China Limited (“ICBC”) and update on the group’s operational performance for the nine months ended 30 September 2019 Financial information provided to ICBC On a quarterly basis the Standard Bank Group discloses to ICBC sufficient information to enable ICBC to equity account the group's results. Accordingly, the following consolidated financial information, prepared on an International Financial Reporting Standards (“IFRS”) basis, is being provided to ICBC for the nine months ended 30 September 2019. Statement of changes in ordinary shareholders' equity for the nine months ended 30 September 2019 Balance as at Earnings Other movements Balance as at 1 January attributable to for the period 30 September 2019 ordinary 2019 shareholders Rm Rm Rm Rm Ordinary share capital 162 162 Ordinary share premium 17 698 124 17 822 Foreign currency translation and hedging reserve (2 977) (1 165) (4 142) Foreign currency translation reserve (FCTR) (1 800) (1 045)1 (2 845) Foreign currency net investment and cash flow hedging reserve (1 177) (120) (1 297) Retained earnings 149 308 17 973 (16 428)2 150 853 Empowerment reserve and treasury shares (2 358) 1 170 (1 188) Other 3 418 1 316 4 734 Ordinary shareholders’ equity 165 251 17 973 (14 983) 168 241 1 The movement in the FCTR was mainly due to the introduction of the RTGS dollar in Zimbabwe. 2 Primarily comprises the ordinary dividends declared in March and August 2019 and transactions with non-controlling shareholders. Update on the group’s performance for the nine months ended 30 September 2019 For the nine months to 30 September 2019, net interest income grew faster than non-interest revenue. Net interest income was supported by higher average loan and deposit balances relative to the nine months to 30 September 2018. Income growth remained above operating expense growth resulting in positive jaws. Credit impairment charges increased period on period on the back of loan book growth and charges in East Africa and South Africa. Banking activities headline earnings growth continues to outpace the group’s headline earnings growth. The major business lines of ICBC Standard Bank Plc (‘ICBCS’) continue to be negatively impacted by deteriorating market conditions and lower than anticipated client flows. These factors have impacted the business’ ability to deliver appropriate returns on a standalone basis. The group has accordingly reviewed and impaired the value of its 40% associate investment in ICBCS from USD383 million to USD220 million as at 30 September 2019. The impairment of R2.4 billion has been recognised in earnings attributable to ordinary shareholders. As at 30 September 2019 ICBCS had sufficient capital to meet its regulatory requirements. Standard Bank Group is engaging with ICBC and ICBCS to determine the best way forward for the business. In the nine months to 30 September 2019, headline adjustable items, other than the ICBCS impairment, were not significant. Adjusting for the ICBCS impairment, earnings attributable to ordinary shareholders were 2% higher than recorded in the nine months to 30 September 2018. The group’s Basel III disclosure as at 30 September 2019 will be released in November 2019. The information contained in this announcement and that on which the operational performance update is based has not been reviewed and reported on by the group's external auditors. Johannesburg 22 October 2019 Lead sponsor The Standard Bank of South Africa Limited Independent sponsor JP Morgan Equities South Africa Proprietary Limited Namibian sponsor Simonis Storm Securities (Proprietary) Limited Date: 22/10/2019 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.