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STANDARD BANK GROUP LIMITED - Financial information provided to the Industrial and Commercial Bank of China Limited and update on group operations

Release Date: 17/10/2023 11:11
Code(s): SBK SBKP SBPP     PDF:  
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Financial information provided to the Industrial and Commercial Bank of China Limited and update on group operations

Standard Bank Group Limited
Registration number 1969/017128/06
Incorporated in the Republic of South Africa

Share codes
JSE and A2X share code: SBK
ISIN: ZAE000109815
NSX share code: SNB
SBKP ZAE000038881 (First preference shares)
SBPP ZAE000056339 (Second preference shares)
JSE bond code: SBKI
("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 2023

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 2023 (9M23).

Statement of changes in ordinary shareholders' equity for the nine months ended 30
September 2023

                           Balance as at             Earnings             Other    Balance as at
                              1 January        attributable to   movements for     30 September
                                  2023^              ordinary        the period            2023
                                      Rm                  Rm               Rm                  Rm
 Ordinary share capital               168                                                     168
 Ordinary share
 premium                           27 341                                 (398)            26 943
 Treasury shares                   (3 461)                                 945             (2 516)
 Foreign currency
 translation reserve               (4 716)                              (1 471)            (6 187)
 Retained earnings*               190 582              32 699          (22 827)           200 454
 Other                              8 283                                 1 060              9 343
 Ordinary shareholders'
 equity                           218 197              32 699          (22 691)           228 205
^ Post IFRS 17 restatements as detailed in the IFRS 17 Transition report available to download from
  the Standard Bank Investor Relations website. The impact on the group's total ordinary
  shareholders equity as at 1 January 2023 equated to a reduction of R1.1 billion.
* Other movements for the period in retained earnings primarily comprises the R23.2 billion ordinary
  dividends declared in March and August 2023.

Update on the group's operational performance

Standard Bank Group
Earnings attributable to ordinary shareholders in 9M23 were 30% higher than in the nine months to 30
September 2022 (9M22). The headline earnings adjustable items were not material in 9M22 or 9M23.
Africa Regions' contribution to group headline earnings for 9M23 remained at 44%.

The 9M23 group return on equity remained well anchored within the group's target range of 17% to

Banking income growth trends in 9M23 relative to 9M22 (period on period) remained robust. Net
interest income growth continued to be supported by higher average interest rates and a larger
balance sheet. Disbursements slowed, as higher interest rates continued to curb demand. The strong
fee growth recorded in the six months to 30 June 2023 (1H23) continued, supported by higher client
numbers and increased client transactional volumes and trade activity. As expected, trading revenue
growth 3Q23 on 3Q22 was in the low teens. Both income and cost growth moderated period on
period relative to that reported for the six months to 30 June 2023 (1H23). The group continued to
deliver strong positive jaws period on period.

While credit impairment charges remained elevated relative to 9M22, the period-on-period growth in
credit charges slowed relative to the growth reported in 1H23. In 3Q23, additional credit charges in
Corporate and Investment Banking and Business and Commercial Banking (the latter in Africa
Regions) were more than offset by a slowdown in growth in Personal and Private Banking charges as
expected. The group's credit loss ratio for the 9M23 remained within the group's through-the-cycle
credit loss ratio range of 70 to 100 basis points, in line with expectations.

Insurance and Asset Management
Earnings from the Insurance and Asset Management business increased by mid-single digits period
on period as the benefit from improved underlying risk experience in the South African insurance
business was partially offset by losses incurred in the Shareholder Asset and Exposure portfolio
following the negative impacts of market movements.

ICBC Standard Bank Plc continued to trade profitably in 3Q23.

The group remains well capitalised and liquid.

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.

17 October 2023

Sarah Rivett-Carnac

JSE sponsor
The Standard Bank of South Africa Limited

Namibian sponsor
Simonis Storm Securities (Proprietary) Limited

Date: 17-10-2023 11:11:00
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