| Thu 26 May 2011, 8:00 | | SBK - Standard Bank Group Limited - Update on the group`s performance for the |
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SBK
SBK
SBK - Standard Bank Group Limited - Update on the group`s performance for the
four months to 30 April 2011 and capital adequacy disclosure at 31 March 2011
Standard Bank Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1969/017128/06)
South African Share Code: SBK
Namibian Share Code: SNB
ISIN: ZAE000109815
("Standard Bank Group" or "the group")
Update on the group`s performance for the four months to 30 April 2011 and
capital adequacy disclosure at 31 March 2011
1. Update on the group`s performance for the four months to 30 April 2011
At the annual general meeting to be held later today, chief executive Jacko
Maree will refer to this update regarding the group`s performance for the
first four months of 2011 in comparison with the same period for 2010:
For the four-month period to 30 April 2011, normalised headline earnings for
the group were slightly lower than the relatively high base set in the first
four months of 2010. The results of this four month period are however
trending more positively than the second half of 2010. This reflects a
relatively subdued operating environment, in which low interest rates
continued to put pressure on margins but helped ease the debt servicing
pressure on corporate clients and households.
Banking activities
Net interest income continued to be negatively impacted by the endowment
impact of low interest rates on transactional balances and capital and
remained flat on the comparative period. Net fee and commission revenue within
non-interest revenue improved from the comparative period, in line with our
transaction-led strategy. Trading revenues reflected a decline from the
comparative period.
Credit impairment charges decreased in Personal & Business Banking lending
portfolios across all geographies and the credit quality of clients in the
Corporate & Investment Banking portfolio continued to improve.
The cost-to-income ratio was higher than that experienced over the first four
months of 2010 given the pressure on revenues, but shows a declining trend
from the 61.7% recorded at the end of 2010. We remain focused on our objective
of keeping total costs flat in 2011 compared to 2010.
Liberty Holdings Limited ("Liberty")
Shareholders are referred to the Liberty market update on 13 May 2011 wherein,
referring to the first quarter of 2011, the following comments were included:
"The operational performance was satisfactory and capital levels remain well
above minimum requirements. The intense focus on balance sheet management,
investment performance and persistency in the insurance operations has now
been embedded into the day to day activities as business as usual. Management
continues to focus on generating sustained quality new business and managing
its diversification initiatives to business case."
2. Basel II capital adequacy disclosure at 31 March 2011
In terms of the Basel II requirements under Regulation 43(1)(e)(ii) of
regulations relating to banks, minimum disclosure on the capital adequacy of
the group is required on a quarterly basis. This announcement meets the
ongoing reporting requirement for quarterly disclosure in terms of Pillar 3 of
the Basel II capital accord.
Standard Bank Group
Standard Bank Group remained well capitalised as at 31 March 2011 with a total
capital adequacy of 15.1% and Tier 1 capital adequacy of 12.7%, significantly
exceeding minimum regulatory requirements.
March December
2011 2010
Note Rm Rm
Ordinary share capital and 17 592 17 522
premium
Ordinary shareholders` 1 69 150 69 551
reserves
Minority interest 10 735 10 622
Regulatory deductions against (19 093) (18 316)
primary capital
Regulatory exclusions from (11 756) (12 482)
primary capital
Unappropriated profit 6 316 7 604
Preference share capital and 5 495 5 495
premium
Primary capital 78 439 79 996
Subordinated debt 20 295 20 295
Secondary unimpaired reserve 1 339 1 088
funds
Regulatory deductions against (6 914) (7 039)
secondary capital
Secondary capital 14 720 14 343
Tertiary capital - 466 466
Subordinated debt
Total qualifying capital 93 625 94 805
Total minimum regulatory 3 58 838 58 906
capital requirement
Total capital adequacy ratio 2 15.1 15.3
(%)
Primary capital adequacy 2 12.7 12.9
ratio (%)
Note:
1. Ordinary shareholders` reserves include unappropriated profits net of
dividends declared during the period.
2. Capital adequacy ratios include unappropriated profits.
3. Capital requirement calculated at 9.5% and excludes bank specific add-ons
and capital floors.
The Standard Bank of South Africa Limited ("SBSA")
SBSA remained well capitalised as at 31 March 2011 with a total capital
adequacy of 14.5% and Tier 1 capital adequacy of 11.1%, significantly
exceeding minimum regulatory requirements.
March December
2011 2010
Note Rm Rm
Primary capital 1 41 922 42 172
Secondary capital 12 504 12 493
Tertiary capital - 300 300
Subordinated debt
Total qualifying capital 54 726 54 965
Total minimum regulatory 3 35 687 34 985
capital requirement
Total capital adequacy ratio 2 14.6 14.9
(%)
Primary capital adequacy 2 11.2 11.5
ratio (%)
Note:
1. Primary capital includes unappropriated profits net of dividends declared
during the period.
2. Capital adequacy ratios include unappropriated profits.
3. Capital requirement calculated at 9.5% and excludes bank specific add-ons
and capital floors.
The information contained in this announcement has not been reviewed by or
reported on by Standard Bank Group`s external auditors.
Johannesburg
26 May 2011
Lead sponsor
Standard Bank
Independent sponsor
Deutsche Securities (SA) Proprietary Limited
Date: 26/05/2011 08:00:11 Produced by the JSE SENS Department.
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