REG - Standard Bank Group - Statement re 9M23 ICBC disclosure and update

Industrial and Commercial Bank of ChinaAnnouncement

17/10/2023 11:30

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RNS Number : 3965Q  Standard Bank Group Limited  17 October 2023

Standard Bank Group Limited

17 October 2023

 

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 1 January 2023^  Earnings attributable to ordinary shareholders  Other movements for the period  Balance as at 30 September 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 20%.

 

Banking

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.

 

Other

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.

 

For further information, please contact:

Marc Hearn

Standard Bank Group Limited

9th Floor

5 Simmonds Street, Johannesburg PO Box 2001

South Africa

Telephone number: +27 11 344 5004

 

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