TIDM68IG
RNS Number : 1204X
Standard Bank Group Limited
21 April 2023
Standard Bank Group Limited
21 April 2023
Financial information provided to the Industrial and Commercial
Bank of China Limited ("ICBC") and update on the group's
operational performance for the three months ended 31 March
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 three
months ended 31 March 2023 (1Q23).
Statement of changes in ordinary shareholders' equity for the
three months ended 31 March 2023
Balance Earnings IFRS 17 Balance
as at 1 January attributable transition as at 31
2023 to ordinary (1) and other March 2023
shareholders movements
for the period
Rm Rm Rm Rm
------------------------ ----------------- -------------- ---------------- ------------
Ordinary share
capital 168 168
----------------- -------------- ---------------- ------------
Ordinary share
premium 27 341 9 27 350
----------------- -------------- ---------------- ------------
Treasury shares(2) (4 619) 2 312 (2 307)
----------------- -------------- ---------------- ------------
Foreign currency
translation
and hedging
reserves (5 576) 2 172 (3 404)
------------------------ ----------------- -------------- ---------------- ------------
Foreign currency
translation
reserve (FCTR) (4 716) 2 115 (2 601)
------------------------ ----------------- -------------- ---------------- ------------
Foreign currency
net investment
and total hedge
reserve (860) 57 (803)
------------------------ ----------------- -------------- ---------------- ------------
Retained Earnings(3,4) 192 807 10 171 (13 674) 189 304
----------------- -------------- ---------------- ------------
Other 9 143 168 9 311
----------------- -------------- ---------------- ------------
Ordinary shareholders'
equity 219 264 10 171 (9 013) 220 422
------------------------ ----------------- -------------- ---------------- ------------
(1) The preliminary IFRS 17 transition impact on the group's
total ordinary shareholders equity as at 1 January 2023 is a
reduction of R1.1 billion. This net reduction is made up of a
reduction of R2.2 billion in retained earnings offset by an
increase of R1.2 billion in the treasury share reserve.
(2) The IFRS 17 transition adjustment as at 1 January 2023 for
the treasury share reserve comprises an increase of R1.2 billion (1
January 2022 - increase of R0.8 billion) due to the removal of SBG
shares held by Liberty Holdings Limited (Liberty) policyholders as
treasury shares.
(3) The IFRS 17 transition adjustment as at 1 January 2023 for
retained earnings comprises a reduction of R2.2 billion (1 January
2022 - reduction of R0.8 billion). The largest component of the
movement between 1 January 2022 and 1 January 2023 is as a result
of the IFRS 17 transition impact on the completion of the group's
acquisition of shares held by non-controlling shareholders in
Liberty during 2022.
(4) Other movements for the period in retained earnings
primarily comprises the R11.6 billion ordinary dividends declared
in March 2023.
Update on the group's operational performance for the three
months ended 31 March 2023
In 1Q23, on an IFRS17 basis, the group delivered attributable
earnings of R10.2 billion. In 1Q22, on an IFRS4 basis, the group
delivered attributable earnings of R7.4 billion, which included a
negative treasury share adjustment of R517 million. If this
adjustment (which is no longer required under IFRS17) is excluded
to create a more comparable base, attributable earnings grew by 28%
for the period. A comprehensive IFRS17 transition report, with
fully restated and comparable prior year results and opening equity
adjustments, will be released during June 2023.
The group's performance was supported by higher average interest
rates, good balance sheet momentum from 2022, continued growth in
transactional volumes, a strong trading performance and an ongoing
recovery in Liberty Holdings Limited. A weaker rand exchange rate
flattered earnings growth rates in ZAR in the period.
Headline earnings adjustable items were not material in 1Q22 or
1Q23.
Standard Bank activities
Higher average interest rates and a larger balance sheet
supported the group's net interest margin and net interest income
growth period on period. Continued growth in transactional volumes,
as well as the impact of annual price increases across the
continent, supported fee growth. Trading revenue benefitted from
higher client activity driven by continued global market volatility
and client demand for forex products. 1Q23 trading revenue was
ahead of the comparative period and ahead of expectations.
Inflationary pressure, combined with higher transactional
activity, annual staff cost increases and higher premises expenses
linked to loadshedding in South Africa, drove higher operating
expenses period on period.
Credit impairment charges in 1Q23 were higher than in the
comparative period, given balance sheet growth, client strain on
the back of higher than anticipated interest rates and corporate
and sovereign risk migration. The group's credit loss ratio for
1Q23 was closer to the upper end of the group's through-the-cycle
target range of 70 to 100 basis points.
Liberty Holdings Limited
Liberty Holdings Limited (Liberty) recorded improved claims
experience and strong earnings growth in 1Q23. The group's 100%
shareholding in Liberty is reflected from February 2022.
ICBC Standard Bank Plc (ICBCS)
ICBCS recorded an operational profit in 1Q23, however its
contribution to the group declined period on period due to the
non-recurrence of an insurance recovery recognised by the group in
January 2022.
Outlook
The group remains well capitalised and liquid. We continue to
monitor the impacts of potentially higher inflation for longer and
hence higher interest rates, electricity supply constraints in
South Africa, global geopolitical tensions, and banking sector
vulnerabilities; all of which pose risks to our outlook. Regardless
of the scenario which unfolds, we stand ready and able to serve the
needs of our 18 million customers. In line with previous guidance,
we remain committed to delivering positive jaws and an improving
return on equity in 2023.
For further information, please contact:
Ann Hunter
Standard Bank Group Limited
9th Floor
5 Simmonds Street, Johannesburg PO Box 2001
South Africa
Telephone number: +27 11 415 4194
DISCLAIMER
This Announcement is not intended to, and shall not, constitute
or contain an offer to sell or solicitation of an offer to purchase
the securities referred to herein by any person in any jurisdiction
where it is unlawful to make an offer or solicitation. The
distribution of the Announcement and the offer or sale of the
securities referred to herein in certain jurisdictions is
restricted by law. This Announcement may not be used for or in
connection with, and does not constitute, any offer to, or
solicitation by, anyone in any jurisdiction or under any
circumstance in which such offer or solicitation is not authorised
or is unlawful.
In the United Kingdom, this Announcement is being distributed
only to, and is directed only at, persons who are (i) investment
professionals, as such term is defined in Article 19(5) of the U.K.
Financial Services and Markets Act 2000 (Financial Promotion) Order
2005 (as amended, the Financial Promotion Order); (ii) persons
falling within Article 49(2)(a) to (d) ("high net worth companies,
unincorporated associations, etc.") of the Financial Promotion
Order; (iii) outside the United Kingdom; or (iv) persons to whom an
invitation or inducement to engage in investment activity (within
the meaning of Section 21 of the Financial Services and Markets Act
2000) in connection with the issue or sale of any Notes may
otherwise lawfully be communicated or caused to be
communicated.
The securities referred to herein have not been and will not be
registered under the US Securities Act of 1933, as amended (the
Securities Act), or with any securities regulatory authority of any
state or other jurisdiction of the United States, and may not be
offered or sold in the United States or to US persons (as such term
is defined in Regulation S under the Securities Act) except
pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the US Securities Act. The issuer
of the securities has not registered, and does not intend to
register, any portion of the offering in the United States, and
does not intend to conduct a public offering of the securities in
the United States.
Your right to access this service is conditional upon complying
with the above requirement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTNKDBBABKDDQB
(END) Dow Jones Newswires
April 21, 2023 12:24 ET (16:24 GMT)
Standard Bk 29 (LSE:68IG)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Standard Bk 29 (LSE:68IG)
Historical Stock Chart
Von Jul 2023 bis Jul 2024