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SBK
SBK
SBK - Standard Bank Group Limited - Update on the group`s performance for the
four months to 30 April 2012 and capital adequacy disclosure at 31 March 2012
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 2012 and
capital adequacy disclosure at 31 March 2012
1 Update on the group`s performance for the four months to 30 April 2012
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 2012 in comparison with the same period for 2011.
Banking activities
Net interest income for the first four months of 2012 benefited from good
loan growth towards the end of 2011 and the ongoing improvement in new
business lending margins. Non-interest revenue was boosted by good growth
in trading revenues albeit off a lower base in the prior year.
As anticipated, credit impairment charges reflect some increase as
portfolio provisions are created in line with book growth and a more normal
charge has been incurred in Corporate & Investment Banking compared to a
net recovery in the prior period.
The cost-to-income ratio for the four months was slightly higher than that
achieved for the 2011 year but the group remains focused on reducing this
ratio.
Liberty
Shareholders are referred to the Liberty market update on 18 May 2012
wherein, referring to the first quarter of 2011, the following comments
were included: "the results reflect continued strong growth in Retail SA
new business, positive client net cash inflows in both asset management and
insurance operations, and a good operational performance. Returns on the
shareholder investment portfolio were supported by the positive investment
markets."
2 Basel II capital adequacy disclosure at 31 March 2012
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 2012 with a
total capital adequacy of 13.5% and primary capital adequacy of 11.0%,
significantly exceeding minimum regulatory requirements.
March December
2012 2011
Note Rm Rm
Ordinary share capital and premium 17 933 17 735
Ordinary shareholders` reserves 1 78 926 81 307
Minority interest 13 101 12 988
Regulatory deductions against primary (17 951) (20 698)
capital
Regulatory exclusions from primary (15 537) (16 687)
capital
Foreign Currency Translation Reserve 2 2 785 1 331
Other regulatory exclusions (14 467) (12 611)
Unappropriated Profit (3 855) (5 407)
Preference share capital and premium 5 495 5 495
Primary capital 81 967 80 140
Subordinated debt 23 754 20 983
Secondary unimpaired reserve funds 1 992 1 560
Regulatory deductions against secondary (6 457) (6 412)
capital
Secondary capital 19 289 16 131
Tertiary capital - Subordinated debt 300 300
Total qualifying capital 101 556 96 571
Total minimum regulatory capital 3 74 364 67 519
requirement
Credit Risk 53 824 49 575
Equity Risk 1 831 1 986
Market Risk 8 112 5 628
Operational Risk 10 597 10 330
Capital Adequacy Ratio (excl
unappropriated profit)
Total capital adequacy ratio (%) 13.0 13.6
Primary capital adequacy ratio (%) 10.5 11.3
Capital Adequacy Ratio (incl
unappropriated profit)
Total capital adequacy ratio (%) 13.5 14.3
Primary capital adequacy ratio (%) 11.0 12.0
Note:
1. Ordinary shareholders` reserves include unappropriated profits net of
dividends declared during the period.
2. Movement due to currency translation gains arising from a weakening of the
exchange rate.
3. Total minimum capital requirement calculated at 9.5% is comprised of Pillar
1 at 8% and Pillar 2a at 1.5% and excludes bank specific add-ons and
capital floors. R3.9bn of the increase in capital requirement arose from
the adoption of new regulatory rules relating to the scaling factor of 1.06
applied to credit internal ratings-based ("IRB") portfolios and stress
value-at-risk ("VAR") in respect of market risk.
The remaining R2.9bn of the increase is due to book growth in South Africa
and the Rest of Africa.
The Standard Bank of South Africa Limited ("SBSA")
SBSA remained well capitalised as at 31 March 2012 with a total capital adequacy
of 12.4% and primary capital adequacy of 9.3%, significantly exceeding minimum
regulatory requirements.
March December
2012 2011
Note Rm Rm
Primary capital 1 43 871 44 769
Secondary capital 14 754 11 770
Tertiary capital - Subordinated debt 300 300
Total qualifying capital 58 925 56 839
Unappropriated Profit 434 1 445
Total minimum regulatory capital 2 45 473 40 896
requirement
Credit Risk 35 832 31 845
Equity Risk 1 433 1 498
Market Risk 2 085 1 427
Operational Risk 6 123 6 126
Capital Adequacy Ratio (excl
unappropriated profit)
Total capital adequacy ratio (%) 12.3 13.2
Primary capital adequacy ratio (%) 9.2 10.4
Capital Adequacy Ratio (incl
unappropriated profit)
Total capital adequacy ratio (%) 12.4 13.5
Primary capital adequacy ratio (%) 9.3 10.7
Note:
1. Primary capital excludes unappropriated profits and is net of dividends
declared during the period.
2. Total minimum capital requirement calculated at 9.5% is comprised of Pillar
1 at 8% and Pillar 2a at 1.5% and excludes bank specific add-ons and
capital floors. R2.6bn of the increase in capital requirement during the
quarter arose from the application of the 1.06 scaling factor to credit IRB
portfolios and stress VAR to the calculation of market risk. The remaining
increase in capital requirement is mainly due to book growth.
The information contained in this announcement has not been reviewed by or
reported on by Standard Bank Group`s external auditors.
Johannesburg
31 May 2012
Lead sponsor
Standard Bank
Independent sponsor
Deutsche Securities (SA) Proprietary Limited
Date: 31/05/2012 08:00:05 Produced by the JSE SENS Department.
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