REG - Standard Bank Group - Annual Financial Report
05/04/2023 16:00
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RNS Number : 5228V Standard Bank Group Limited 05 April 2023
Standard Bank Group Limited
05 April 2023
Publication of 2022 Reporting Suite, No Changes Statement and Restatement of
Previously Published Results
Publication of the Standard Bank Group's 2022 Reporting Suite
An electronic version of the group's annual integrated report, governance and
remuneration report, risk and capital management report, environmental, social
and governance report, report to society and climate-related financial
disclosures report have been made available at www.standardbank.com/reporting
(http://www.standardbank.com/reporting) on Friday, 31 March 2023.
The Standard Bank Group 2023 Annual General Meeting (AGM) will be held on 12
June 2023. The notice of the AGM and proxy forms will be published on 26 April
2023.
No Change Statement
The consolidated audited annual financial statements of Standard Bank Group
for the year ended 31 December 2022 on which KPMG Inc. and
PricewaterhouseCoopers Inc. expressed an unmodified opinion, were released on
Thursday, 9 March 2023. The full audit opinion, including any key audit
matters, is available as part of the group's annual financial statements,
accessible via the following link:
https://thevault.exchange/?get_group_doc=18/1678340991-SBG2022AnnualFinancialStatements.pdf
(https://thevault.exchange/?get_group_doc=18/1678340991-SBG2022AnnualFinancialStatements.pdf)
.
No modifications have been made to the audited annual financial statements
from the date of release to the date of this announcement.
Restatement of 2021 Results
During the preparation of the group's 2022 annual financial statements, the
group noted the following restatements relating to the group's 2021 results
previously published:
1. During the current reporting period, the group performed benchmarking
and internal investigations to reassess the definition of cash and cash
equivalents when compiling the statement of cash flows. The following have
been identified as industry best practice during this exercise and have
resulted in the following restatements, changes to accounting presentation
policies and related additional disclosures:
· The direct method provides a more reliable representation of the
cash flow movements for the group within the statement of cash flows, which is
not available under the indirect method. This change only impacted net cash
flows from operating activities within the statement of cash flows for the
group and company.
· The group restated its financial statements to appropriately
reflect and present the change from on demand loans and advances to banks to
cash and cash equivalents in the statement of cash flow and updated the
related accounting policy accordingly. These balances were in prior periods
excluded from cash and cash equivalents and instead included in income-earning
assets. Both the balances and movement have now been appropriately included
within the cash and cash equivalents line in the statement of cash flows.
· The group restated its financial statements to appropriately
reflect and present the change from cash balances with banks within investment
management and life insurance activities, within financial investments, to
cash and cash equivalents in the statement of cash flow. These balances were
in prior periods excluded from cash and cash equivalents and instead included
in income-earning assets. Both the balances and movement have now been
included within the cash and cash equivalents line in the statement of cash
flows.
· Specific updated accounting policies, have been included for the
following:
o Cash and balances with central banks.
o Cash and cash equivalents.
2021
GROUP As previously reported Restatement Restated
Rm Rm Rm
Net cash flows from operating activities 12 893 (12 893) -
Cash flow used in operations (indirect method) (66 179) 66 179 -
Net income before capital items and equity accounted earnings 40 422 (40 422) -
Adjusted for non-cash items and other adjustments included in the income (58 693) 58 693 -
statement
Increase in income-earning assets (167 414) 167 414 -
Increase in deposits, trading and other liabilities 119 506 (119 506) -
Dividends received 2 091 (2 091) -
Interest paid (37 079) 37 079 -
Interest received 98 699 (98 699) -
Direct taxation paid (8 482) 8 482 -
Purchase of properties (131) 131 -
Proceeds on sales of properties 5 (5) -
Net purchase of financial instruments 24 744 (24 744) -
Net proceeds on realisation of fair value gain on cash and cash equivalents 283 (283) -
Net proceeds on collateral deposits payable (1 058) 1 058 -
Net cash flows from operating activities - 42 140 42 140
Cash flow from operations (direct method) 68 188 68 188
Interest, commission and premium receipts 242 713 242 713
Interest payments (37 249) (37 249)
Recoveries on loans previously written off 1 238 1 238
Cash payments to suppliers and employees (138 514) (138 514)
Net movement in working capital (19 657) (19 657)
(Increase)/decrease in operating assets (139 163) (139 163)
(Increase)/decrease in operating liabilities 119 506 119 506
Dividends received 2 091 2 091
Direct taxation paid (8 482) (8 482)
Net cash flows used in investing activities (4 674) - (4 674)
Net cash flows used in financing activities (9 350) - (9 350)
Effects of exchange rate changes 4 795 - 4 795
Net increase in cash and cash equivalents 3 664 29 247 32 911
Cash and cash equivalents at the beginning of the year 87 505 52 353 139 858
Cash and cash equivalents at the end of the year 91 169 81 600 172 769
2021
COMPANY As previously reported Restatement Restated
Rm Rm Rm
Net cash flows from operating activities 11 883 (11 883) -
Cash flow used in operations (indirect method) 340 (340) -
Profit before direct taxation 12 505 (12 505) -
Adjusted for non-cash items and other adjustments included in the income (12 188) 12 188 -
statement
Increase in income-earning assets (7) 7 -
Increase in deposits, trading and other liabilities 30 (30) -
Dividends received 11 805 (11 805) -
Interest paid (1 273) 1 273 -
Interest received 1 290 (1 290) -
Taxation paid (279) 279 -
-
Net cash flows from operating activities - 11 883 11 883
Cash flow from operations (direct method) 334 334
Interest and commission receipts 1 290 1 290
Interest payments (1 273) (1 273)
Cash payments to suppliers and employees 317 317
Net movement in working capital 23 23
(Increase)/Decrease in operating assets (7) (7)
(Increase)/Decrease in operating liabilities 30 30
Dividends received 11 805 11 805
Direct taxation paid (279) (279)
Net cash flows used in investing activities (8 029) - (8 029)
Net cash flows used in financing activities (3 854) - (3 854)
Net (decrease)/increase in cash and cash equivalents - - -
Cash and cash equivalents at the beginning of the year - - -
Cash and cash equivalents at the end of the year - - -
2. During the current reporting period, the group performed an assessment
on the presentation of MasterCard and Visa fee-related expenses and found that
these expenses were erroneously included in operating expenses for the
Standard Bank of South Africa Limited ("SBSA") entity within the group. The
group incurs scheme assessment fees on its Visa and MasterCard offerings to
its clients in the Consumer & High Net Worth and Business & Commercial
Clients segments, which are in nature linked to the related fee and commission
income within non-interest revenue. These expenses have been reclassified to
be presented within fee and commission expenses, resulting in a reallocation
of R258 million from operating expenses to fee and commission expenses in the
income statement of SBSA company, SBSA group and the group. This restatement
is a reallocation between line items and had no impact on profit for the
period, EPS (basic and diluted) or headline earnings for the entity and groups
noted. The impact relating to the above on the group and company statements of
cash flows has been included in the restatement pertaining to the move to the
direct method in the statement of cash flows above.
2021
GROUP As previously reported Restatement Restated
Rm Rm Rm
Fee and commission expense (7 086) (258) (7 344)
Operating expenses from Standard Bank Activities (65 735) 258 (65 477)
The impact relating to the above on the group and company statements of cash
flows has been included in the restatement pertaining to the move to the
direct method in the statement of cash flows above.
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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