REG - Standard Bank Group - 9M22 ICBC disclosure and operating update

Industrial and Commercial Bank of ChinaAnnouncement

19/10/2022 08:15

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RNS Number : 3849D  Standard Bank Group Limited  19 October 2022

Standard Bank Group Limited

19 October 2022

 

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 2022

 

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 2022 (9M22).

 

Statement of changes in ordinary shareholders' equity for the nine months
ended 30 September 2022

 

 ( )                                                            Balance as at 1 January 2022  Earnings attributable to ordinary shareholders  Other movements for the period  Balance as at 30 September 2022

 ( )
 ( )                                                            Rm                            Rm                                              Rm                              Rm
 Ordinary share capital^                                        162                                                                           6                               168
 Ordinary share premium^                                        17 859                                                                        9 470                           27 329
 Foreign currency translation and hedging reserve               (2 687)                                                                       2 216                           (471)
 Foreign currency translation reserve (FCTR)                    (1 603)                                                                       2 695                           1 092
 Foreign currency net investment and cash flow hedging reserve  (1 084)                                                                       (479)                           (1 563)
 Retained earnings*                                             178 771                       25 251                                          (19 945)                        184 077
 Empowerment reserve and treasury shares                        (3 260)                                                                       (739)                           (3 999)
 Other                                                          7 987                                                                         1 750                           9 737
 Ordinary shareholders' equity                                  198 832                       25 251                                          (7 242)                         216 841

^ Other movements for the period in ordinary share capital and share premium
relate to the issuance of 58 million Standard Bank Group shares in terms of
the Liberty minority buyout.

* Other movements for the period in retained earnings primarily comprises the
R17.2 billion ordinary dividends declared in March and August 2022.

 

Update on the group's operational performance

 

In the nine months from 1 January to 30 September 2022 (9M22), relative to the
nine months to 30 September 2021 (9M21), higher average loan and advance
balances and higher average interest rates supported strong double-digit net
interest income growth. The strong non-interest revenue growth seen in the
first six months of the year (1H22) continued, supported by client
transactional and trade activity. Ongoing market volatility drove client
trading activity which supported continued strong trading revenue growth.

 

While higher activity-linked costs and inflation placed pressure on the
group's operating costs, cost growth remained below the group's weighted
average inflation. The group recorded continued positive jaws in the period.

 

Credit impairment charges increased as Corporate and Investment Banking
charges continued to normalise (from a net recovery in 2021). In line with
expectations, the credit loss ratio for the 9M22 remained in the lower half of
the group's through-the-cycle credit loss ratio range of 70 to 100 basis
points.

 

Liberty's performance improved period on period. In the prior period,
Liberty's performance was negatively impacted by the pandemic provision
raised.

 

ICBC Standard Bank plc continued to report an operational profit for 9M22
(excluding the net insurance settlement received in January 2022).

 

Earnings attributable to ordinary shareholders in 9M22 were 42% higher than in
the comparative period. In 9M21 the headline earnings adjustable items were
not material. In 9M22 the headline earnings adjustable items increased
earnings attributable to ordinary shareholders by R0.7 billion.

 

The group remains well capitalised and liquid. 9M22 group return on equity
(ROE) remained above cost of equity (1H22 COE: 15.1%) and improved relative to
1H22 (1H22 ROE: 15.3%).

 

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.

 

 

 

 

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

 

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