| Wed 13 Aug 2003, 10:34 | | Interim results and dividend announcemen |
|
SBK
Standard Bank Group Limited -t
STANDARD BANK GROUP LIMITED
JSE Securities Exchange share code: SBK
Namibian Stock Exchange share code: SNB
ISIN: ZAE000038873
Interim results and dividend announcement for the six months ended 30 June 2003
Headline earnings 22% up
Headline earnings per share 22% higher
Cost-to-income ratio improved to 54,9%
Return on equity 22,5%
Business overview
In accordance with South African generally accepted accounting practice, the
group is required to adopt the accounting statement AC 133 "Financial
instruments: Recognition and Measurement" with effect from 1 January 2003. Full
details of the effect of this on the earnings for the period and on the opening
equity and asset and liability base are given below in Accounting policies. In
summary, the adoption of AC 133 has not had a material effect, with earnings for
the period R71 million higher and opening net equity at 1 January 2003 R172
million lower as a consequence.
Standard Bank Group continued its positive long-term growth trend with headline
earnings over the period 22% higher at R2 942 million. This favourable result
was achieved despite the adverse effect of the stronger rand on consolidated
earnings from the group"s international and African operations and the negative
impact of depressed equity markets on Liberty.
The South African economy remained firm over the six months despite the lack of
growth evident in the major western economies. The prime interest rate peaked at
17% during the period and then commenced a downward cycle in June 2003 as the
inflation rate (CPIX) reduced to 8,5% for the period. The group"s domestic
banking operations had a successful six months as the Retail Bank benefited from
improved interest margins, the buoyant domestic residential mortgage market and
an increase in instalment finance lending. The increase in the average prime
rate assisted the interest margin in SCMB, but weaker equity markets and
volatile interest rates on long-dated instruments dampened trading activities.
The group"s international operations achieved strong earnings growth, assisted
by a recovery in international debt markets. Healthy growth was achieved in
local currency terms in the African operations, but this was offset to some
extent by the stronger rand exchange rate.
The group"s key financial highlights were:
- ROE increased to 22,5% from 18,7%, and exceeded the group"s stated
objective of 20%;
- Headline earnings of R2 942 million increased by 22%;
- Headline earnings per share increased by 22% to 220,9 cents per share;
- Dividends per share of 41,5 cents were 22% higher; and
- The cost-to-income ratio improved to 54,9% from 57,5% in 2002.
Broad based empowerment deals concluded
The transformation of South Africa"s social, political and economic environment
requires of business that it positions itself at the forefront of the
transformation process in recognition of the broader socio-economic changes that
are necessary. Standard Bank Group entered into two empowerment deals during the
past six months. With effect from 1 August 2003, Standard Bank sold the agency
business of SCMB Securities (the bank"s stockbroking arm) together with the
bank"s treasury outsourcing business, Standard Risk and Treasury Management
Services (SRTMS), to Andisa Capital. This company is now 49% owned by the group
and 51% owned by a consortium comprising Safika, Nduna Trust, Simeka and a broad
based empowerment trust representing communities from historically disadvantaged
backgrounds. It is expected that Andisa"s deep understanding of the broad socio-
economic opportunities and challenges of the country will be a platform for the
growth of its investment banking operations. In a second empowerment deal,
Standard Bank Group and Liberty Group sold 25,2% of STANLIB to the above
consortium, effective 1 July 2003. This latest transaction should place STANLIB
in an improved position to retain and source a wide range of external asset
management mandates.
Financial commentary
Net interest income
Growth in net interest income of 24% resulted mainly from an improvement in
retail interest margins following an increase in the average prime rate and the
higher retail deposit base. Home loans, instalment finance and card debtors
continued the growth trend started in the first half of 2002 and contributed
strongly to the growth in net interest income. Competitive pressures, however,
negatively affected retail and corporate lending margins, which were also
reduced by additional cash reserving and liquid asset requirements. In terms of
AC 133, additional interest income of R164 million was included from the
unwinding of the discount element inherent in provisions for non-performing
loans.
Provision for credit losses
The provision for credit losses increased from 1,11% of loans and advances to
1,19%. Security values against non-performing loans were reduced as a result of
the effect of discounting future cash flows under AC 133, which served to
increase the current period"s provision charge by R213 million. This was offset
by higher recoveries in SCMB"s loan book and recoveries in a number of African
countries. Non-performing loans continued their positive trend and reduced from
2,9% and 2,7% at June 2002 and December 2002 respectively, to 2,5% of loans and
advances, reflecting the improved quality of the underlying books. In absolute
terms, non-performing loans and provision levels relating to home loans and
instalment finance increased over the period due to the lagged effect of high
interest rates and strong growth in these lending products.
Non-interest revenue
Non-interest revenue increased by 13% mainly due to healthy growth in Domestic
Banking"s fee and commission income, 14%, and International Operation"s trading
income, 16%.
Fee and commission income was 11% higher. Growth over the period was enjoyed
mainly in Domestic Banking"s branch related income due to a combination of
volume increases and repricing initiatives. International Operations increased
fees and commissions by 27% in sterling terms following an increase in deal
flows in the bond market, commodity trade finance and mining finance. The
stronger rand reduced the reported growth in fee and commission income in
Stanbic Africa and International Operations, while fee income in STANLIB was
negatively impacted by the lower equity markets and non-recurring fees received
in 2002.
Trading income was 12% higher. Growth in Domestic Banking of 15% originated
mainly from commodities and foreign exchange, partly offset by a muted
performance in debt securities. The growth in International Operations" trading
income of 40% in sterling terms, was mainly due to increased commodities
business flows and a strong performance from emerging market debt securities.
Other income increased by 36% following fair value adjustments on investment
securities, higher earnings recognised from private equity investments and
increased bancassurance earnings.
Operating expenses
Operating expenses growth of 13% benefited from a saving in non-staff related
costs and from the effect of the stronger rand on consolidated expenses from
Stanbic Africa and International Operations.
Staff costs for the period were 15% higher, with growth in Domestic Banking of
23% resulting mainly from annual salary increases, accruals for potential
incentives and higher staff numbers as the previously outsourced card operations
were re-incorporated into the group. International Operations" staff costs
increased by 25% in sterling terms as additional investment banking operations
were opened in Moscow and Sao Paulo, and restructuring expenses and additional
pension fund contributions were incurred.
Other operating expenses were 9% higher, with Domestic Banking"s growth of 12%
occurring mainly in professional fees, information technology costs and
marketing and advertising costs related to sport sponsorships. International
Operations" cost growth of 14% in sterling terms originated mainly from the
implementation of accounting and trading settlement IT systems. In Stanbic
Africa, IT was the main driver of cost growth.
Taxation
The effective tax rate of 32,7% was higher than the 31,5% reported in June 2002
as a result of a reduction in dividends and other tax-free income. Indirect
taxes remained constant as savings in non-recoverable VAT, resulting from an
increase in vatable services supplied, were offset by increases in other
indirect taxes.
Banking assets
Banking assets increased by 32% or R105,4 billion. The growth was, however,
inflated by the impact of the implementation of new accounting policies leading
to gross-ups in derivative positions that resulted in an increase of R89,0
billion in assets. This was offset to some extent by the effect of the stronger
rand exchange rate on assets consolidated from International Operations and
Stanbic Africa. Loans and advances were 14% higher than at June 2002 with 25%
growth in domestic operations. Within the domestic operations, asset growth was
mainly in the Retail Bank. The application of stricter criteria on returns on
capital in SCMB served to constrain growth in call loans and other thin margin
business.
Shareholders" funds
The group"s shareholders" funds increased by 3% since June 2002. Growth in
retained earnings was offset by a reversal of the gain previously recorded on
the translation of foreign entities. This reversal amounted to R1,3 billion for
the six months to June 2003 and was mainly due to the 10% appreciation in the
rand/sterling exchange rate.
Liberty
Weak investment markets significantly affected earnings from Liberty. Headline
earnings attributable to Standard Bank Group for the period reduced by 47% to
R100 million. Liberty"s life fund operating surplus of R253 million was R310
million lower, with the weighted return on the proxy portfolio used to calculate
shareholders participation in capital bonuses, some 3,2% lower. Operationally,
indexed new business increased by 6% and the net flow of funds remained positive
at R1 730 million, with net cash flows up 6%. Liberty remains strongly
capitalised with a capital adequacy multiple of 2,6 times.
Capital adequacy
The group"s capital adequacy ratio increased to 14,5% from 14,3% at December
2002 and is well above the weighted average regulatory requirement of 10,6%. The
group"s and Standard Bank of South Africa"s primary capital ratios were 10,9%
and 7,8% respectively. It is expected that a revised minimum Tier I capital
requirement of 7,5% will come into force in South Africa at the end of 2003.
Dividend
The group"s policy is to declare an interim dividend of a third of the previous
year"s total dividend per share. An interim dividend of 41,5 cents per share
(2002: 34 cents) has accordingly been declared, an increase of 22% on the
previous interim dividend. The group"s announced intention to gradually reduce
dividend cover to 3,0 over the medium term remains unchanged.
Prospects
Declining interest rates, lower inflation and a strong currency are all signs of
a healthy South African economy, but these welcome indicators are likely to have
mixed effects on the group and its domestic customers. It is anticipated that
domestic bad debt experience will continue to reflect improvement and that
retail advances growth should remain reasonably buoyant. However, it is also
expected that domestic margins will come under pressure from a series of
interest rate cuts and that corporate demand for credit will remain muted.
A good operating performance is expected from the group"s African operations,
though reported rand growth is likely to be constrained. The group"s
international operations could benefit from further recovery in international
markets, but it is considered unlikely that the level of earnings to June from
this operation will be repeated in the second half. Improvement in equity
markets is uncertain, although Liberty is well positioned to benefit from any
such recovery.
In the light of these factors, and particularly an expected tightening in
domestic margins, it is not anticipated that similar growth in earnings to that
recorded in the first half is achievable for the full year. Accordingly, the
target for earnings growth for the full 2003 year remains the group"s stated
medium-term growth objective of inflation (CPIX) plus 10 percentage points.
The positive AC 133 related income statement effects to date are unlikely to
recur but should be viewed against the probability of greater volatility in
reported earnings for companies which have implemented this accounting
statement.
Derek Cooper, Chairman
Jacko Maree, Chief Executive
Declaration of dividend No 68
Notice is hereby given that an interim dividend no. 68 of 41,5 cents per
ordinary share has been declared payable on Monday, 15 September 2003 to
shareholders recorded in the books of the company at the close of business on
the record date, Friday, 12 September 2003. The last day to trade to participate
in the dividend is Friday, 5 September 2003. Shares will commence trading ex-
dividend from Monday, 8 September 2003. The relevant dates for the payment of
the dividend are as follows:
Last day to trade "CUM" dividend Friday, 5 September 2003
Shares trade "EX" dividend Monday, 8 September 2003
Record date Friday, 12 September 2003
Payment date Monday, 15 September 2003
Share certificates may not be dematerialised or rematerialised between Monday, 8
September 2003 and Friday, 12 September 2003, both days inclusive. Where
applicable, dividends in respect of certificated shares will be transferred
electronically to shareholders" bank accounts on the payment date. In the
absence of specific mandates, dividend cheques will be posted to shareholders.
Shareholders who have dematerialised their share certificates will have their
accounts at their CSDP or broker credited on Monday, 15 September 2003.
By order of the board,
Loren Wulfsohn, Group Secretary
12 August 2003
Accounting policies
Basis of preparation
The accounting policies comply in all material respects with South African
Statements of Generally Accepted Accounting Practice (SA GAAP) as well as the
South African Companies Act of 1973.
Changes in accounting policies
These accounting policies are consistent with those applied in 2002, except for
the adoption of the accounting statement on recognition and measurement of
financial instruments (AC 133).
In terms of this statement, financial assets and liabilities need to be
classified into prescribed categories and measured accordingly. As a result,
many investment banking assets previously held at cost are now required to be
fair valued.
AC 133 sets out onerous requirements before hedge accounting can be applied. In
areas of the bank where these requirements cannot be met, the effect of the
unqualifying or ineffective hedge portion of the instruments is reflected in the
income statement.
The adoption of the AC 133 cash flow valuation technique to calculate debt
provisions has resulted in an increase in specific provisions to include a
discount factor to reduce non-performing advances to the present value of future
cash flows. Prior to AC 133, consistent with industry practice, the general
provision was based on prescribed percentages applied to the performing loan
book, in line with minimum regulatory requirements. The new cash flow valuation
technique indicates that the general provision should be lower than the amount
determined under the previous methodology and a portion of this provision has
accordingly been released. A statutory credit risk reserve has been created in
order to meet any additional regulatory requirements over and above accounting
provisions.
Loans and advances at off-market rates are required to be fair valued under AC
133. This gives rise to an initial loss on recognition, which gradually unwinds
through the income statement over the life of the loan. The group offers home
loans to staff at concessionary rates which are considered to be off-market.
The statement requires that this significant change in accounting policy be
applied prospectively and, as a result, adjustments to determine the new equity,
asset and liability bases are treated as opening transitional adjustments in
shareholders" equity.
The impact of complying with AC 133 on opening shareholders equity is as
follows:
Available- Statutory
for-sale general
revaluation Cash flow credit Total
and other Retained hedge risk equity
reserve earnings reserve reserve impact
R million R million R million R million R million
Adjustments to:
-Financial
instruments - (196) - - (196)
-Cash flow
hedge reserve - - 28 - 28
-Available-for-
sale reserve 6 - - - 6
-Present value
adjustment
to specific
provisioning - (381) - - (381)
-Present value
adjustment to
staff home
loans - (164) - - (164)
-Change to
general debt
provision
methodology - 449 - - 449
-Taxation (1) 95 (8) - 86
5 (197) 20 - (172)
Statutory
general credit
risk reserve -
after tax - (242) - 242 -
Change in
accounting
policy 5 (439) 20 242 (172)
The impact of adopting AC 133 on the current period income statement is as
follows:
Income statement impact for the six months ended 30 June 2003
R million
Net interest income before provision for credit losses 302
Provision for credit losses (213)
Non-interest revenue 25
Operating profit 114
Income from associates (17)
Taxation (25)
Attributable to outside shareholders (1)
Income after taxation 71
Key ratios restated to exclude the effect of AC 133
June 2003
%
- Headline earnings growth 19,5
- Cost-to-income ratio 56,4
- Return on equity 21,9
- Provision for credit losses to average advances 0,97
AC 133 is based on the International Accounting Standard 39 (IAS 39), which is
currently subject to revision. In addition, interpretation issues with regard to
the implementation of AC 133 in South Africa continue to be deliberated by users
of the statement. With respect to the group"s banking operations, there is
currently a debate between the Banking Council and the accounting profession as
to whether the transitional adjustment to reflect the change in methodology for
calculating general debt provisions should be reflected as a change in
accounting policy through opening retained earnings, or a change in estimate
through the current year income statement. For the interim results, the group
has elected to treat the change in general provisioning methodology (release of
R449 million) as an adjustment to opening retained earnings together with the
other AC 133 transitional adjustments and this release is thus not reflected in
the income statement for the current period.
Guidance on the practical implementation of AC 133 in the insurance sector has
only recently been issued for comment. At this interim stage, the adoption of AC
133 has not had an impact on the net asset value of the Liberty Group.
Uncertainty however remains on aspects of the accounting statement as they
relate to this sector. There is an ongoing process to develop guidance for the
insurance sector, both from an accounting and actuarial perspective which could
lead to changes to the treatment followed in the interim results.
To the extent that resolution of the above issues materially affects the net
asset value of the group, appropriate communication will be made to stakeholders
and this will be reflected in the full year results to December 2003.
Consolidated income statement
Six months ended Year ended
June 2003 June 2002 Dec 2002
% R million R million R million
change Unaudited Unaudited Audited
Standard Bank operations
Interest income 34 18 763 14 008 31 055
Interest expense 39 12 922 9 312 20 535
Net interest income
before provision for
credit losses 24 5 841 4 696 10 520
Provision for credit
losses 7 1 124 1 049 1 955
Net interest income 29 4 717 3 647 8 565
Non-interest revenue 13 6 085 5 408 11 448
Total income 19 10 802 9 055 20 013
Operating expenses 13 6 543 5 813 12 587
Staff costs 15 3 724 3 237 6 934
Other operating expenses 9 2 819 2 576 5 653
Operating profit 31 4 259 3 242 7 426
Income from associates 20 36 30 96
Exceptional items (4) (61) (151)
Income before taxation 34 4 291 3 211 7 371
Taxation 39 1 393 1 001 2 435
Income after taxation 31 2 898 2 210 4 936
Attributable to outside
and preference
shareholders 60 56 122
Standard Bank income
attributable to ordinary
shareholders 32 2 838 2 154 4 814
Liberty Group operations
Operating profit (60) 501 1 243 1 679
Exceptional items (8) (316) (324)
Income before taxation 493 927 1 355
Taxation 231 306 359
Income after taxation 262 621 996
Attributable to outside
and preference
shareholders 183 436 702
Net income before
investment
surplus/(deficit) 79 185 294
Net income (47) 100 187 298
Exceptional items (21) (4)
(2)
Investment
surplus/(deficit) 9 39 (111)
Liberty Group income
attributable to ordinary
shareholders (61) 88 224 183
Group income
attributable to ordinary
shareholders 23 2 926 2 378 4 997
Headline earnings
Six months ended Year ended
June 2003 June 2002 Dec 2002
% R million R million R million
change Unaudited Unaudited Audited
Group income
attributable to ordinary
shareholders 23 2 926 2 378 4 997
Adjusted for Standard
Bank exceptional items 4 61 151
- Goodwill amortised on
subsidiaries acquired 42 52 105
- Goodwill amortised on
associates acquired 6 9 46
- Capital profit on sale
of properties (38) - -
- Other capital profits (6) - -
Adjusted for Liberty
Group exceptional items 12 (37) 115
- Goodwill amortised on
subsidiaries acquired 21 2 4
- Investment (surplus)/
deficit (9) (39) 111
Headline earnings 22 2 942 2 402 5 263
Consolidated balance sheet
June 2003 June 2002 Dec 2002
R million R million R million
Unaudited Unaudited Audited
Assets
Standard Bank operations 432 519 327 124 303 937
Cash and short-term funds 45 637 61 259 48 218
Derivative assets 95 492 6 504 8 850
Trading assets 36 240 30 854 26 578
Investment securities 25 859 24 306 18 649
Loans and advances 198 232 174 087 178 925
Other assets 27 058 26 515 18 859
Interest in associates 355 173 276
Goodwill and other
intangible assets 576 788 671
Property and equipment 3 070 2 638 2 911
Liberty Group operations 86 081 89 297 85 761
Current assets 3 631 3 476 3 754
Investments 81 959 85 335 81 491
Goodwill and other
intangible assets 146 148 194
Equipment and furniture 345 338 322
Total assets 518 600 416 421 389 698
Equity and liabilities
Liabilities 486 485 384 358 357 638
Standard Bank operations 408 175 303 705 279 959
Derivative liabilities 95 159 4 816 3 857
Trading liabilities 13 380 11 631 10 991
Deposit and current accounts
257 125 259 786 239 715
Other liabilities and
provisions 35 485 20 542 18 642
Subordinated bonds 7 026 6 930 6 754
Liberty Group operations 78 310 80 653 77 679
Other liabilities 2 792 2 699 2 032
Convertible bonds 1 714 2 433 1 947
Life funds 73 804 75 521 73 700
Capital and reserves 26 290 25 636 26 062
Share capital and premium 2 321 2 249 2 282
Reserves 23 969 23 387 23 780
Minority interest 5 825 6 427 5 998
Total equity and liabilities
518 600 416 421 389 698
Consolidated statement of changes in shareholders" funds
Six months ended Year ended
June 2003 June 2002 Dec 2002
R million R million R million
Unaudited Unaudited Audited
Balance at beginning of the
year 26 062 25 693 25 693
Change in accounting policy (172) - -
Restated balance at
beginning of the year 25 890 25 693 25 693
Group income 2 926 2 378 4 997
Dividends paid (1 197) (980) (1 433)
Translation reversal (1 292) (1 512) (3 271)
Issue of share capital and
share premium 39 62 95
Investment deficits
attributable to available-
for-sale assets (87) - -
Other reserve movements 11 (5) (19)
Balance at end of year 26 290 25 636 26 062
Consolidated cash flow information
Six months ended Year ended
June 2003 June 2002 Dec 2002
R million R million R million
Unaudited Unaudited Audited
Net cash inflow from
operating activities 2 961 22 114 14 801
Net cash outflow from
investing activities (2 800) (1 963) (5
379)
Net cash outflow from
financing activities (1 186) (192) (1
082)
Contingent liabilities and capital commitments
June 2003 June 2002 Dec 2002
R million R million R million
Unaudited Unaudited Audited
Contingent liabilities
Letters of credit 3 703 5 430 4 369
Guarantees 23 407 21 048 21 112
Capital commitments
Contracted capital
expenditure 421 166 467
Capital expenditure
authorised but not yet
contracted 496 300 167
Financial statistics
Six months ended Year ended
% June 2003 June 2002 Dec 2002
change Unaudited Unaudited Audited
Standard Bank Group
Shares in issue (millions)
Number of ordinary shares
in issue
- end of period 1 334 1 329 1 331
- weighted average 1 332 1 327 1 328
Cents per ordinary share
Headline earnings 22 220,9 181,1 396,3
Dividends 22 41,5 34,0 124,0
Earnings 23 219,7 179,3 376,2
Fully diluted earnings 23 217,3 176,7 371,2
Net asset value 2 1 971 1 929 1 957
Financial performance (%)
Return on equity 22,5 18,7 20,3
Standard Bank operations
Financial performance (%)
Return on equity 23,9 19,1 21,2
Cost-to-income ratio 54,9 57,5 57,3
Effective tax rate 32,7 31,5 33,5
Capital adequacy (%)
Capital ratio
- primary 10,9 11,2 10,9
- total capital 14,5 14,8 14,3
Segmental report
Six months ended Year ended
June 2003 June 2002 Dec 2002
% R million R million R million
change Unaudited Unaudited Audited
Headline earnings
Domestic Banking 27 2 085 1 638 3 960
- Retail Banking 20 1 087 905 2 110
- SCMB 30 1 028 792 1 788
- Central services (30) (59) 62
International Operations 49 499 336 429
Stanbic Africa 8 249 231 482
STANLIB (24) 31 41 62
Central funding (22) (31) 32
Standard Bank operations 28 2 842 2 215 4 965
Liberty Group operations (47) 100 187 298
Standard Bank Group 22 2 942 2 402 5 263
Domestic Banking
Retail Banking increased headline earnings by 20% and benefited from continued
growth in market share in home loans, 21,2% (Dec 2002: 20,3%) and credit cards,
26,6% (Dec 2002: 24,9%) with instalment finance down slightly to 21,5% (Dec
2002: 21,8%). Standard Bank became the South African market leader in credit
card lending in March 2003. Net interest income was assisted by a 22% growth in
advances since June 2002 and an increase in the retail deposit base. The
increase in the provision for credit losses from 1,39% to 1,55% as a percentage
of loans and advances, resulted mainly from the impact of discounting expected
recoveries in calculating provision requirements related to home loans and
instalment finance, and a top-up of general provisions given the market share
growth. The key contributors to a growth of 16% in non-interest revenue were
point of representation fees and card based commissions. Staff costs were 20%
higher due mainly to a 3% increase in the staff complement as the previously
outsourced card processes were brought into the group, increased medical and
pension contributions and accruals for potential incentives.
SCMB coped well with the mixed domestic business conditions in the first half of
the year and increased headline earnings by 30%. Lending margins remained under
competitive pressure but a positive endowment effect from an increase in the
average prime rate assisted margins. Provision for credit losses improved from
0,61% to 0,44% as a percentage of loans and advances following an increase in
recoveries. Non-interest revenue was 28% higher. Trading income increased by 15%
with strong performance on the foreign exchange and commodity trading desks
offset partly by reduced income in debt securities trading. Other non-interest
revenue increased by R208 million as income from consolidated private equity
investments gained momentum, coupled with fair value adjustments on investment
securities and rental income generated by previously bought-in properties.
International Operations
International Operations benefited from the recovery in emerging economies" debt
markets and an improved corporate credit environment in developed markets and
increased headline earnings by 49% in rand terms. Interest income improved by
12% with mark-to-market profits recorded on investment debt instruments due to
tightening credit spreads. Provision for credit losses reduced by 12% in rand
while remaining flat in sterling terms. Trading income increased by 16% as good
results were achieved in all aspects of emerging markets fixed income business
and on sustained good performances by the resource trading businesses. Fee
income benefited from good deal flow in international bond markets, trade
finance and mining finance.
Stanbic Africa
Stanbic Africa increased headline earnings by 8% despite a 36% depreciation in
the weighted average exchange rate of the countries in which the group operates.
The cost-to-income ratio improved slightly from 58,9% to 58,8% despite
significant system implementation costs that were incurred. Provision for credit
losses as a percentage of net loans and advances reduced from 1,42% to 0,91% as
a result of debt recoveries in a number of countries. Return on equity improved
from 24,5% to 31,3%.
STANLIB
STANLIB was affected by weak equity markets and its contribution to the group"s
earnings reduced by 24% to R31 million. Fee income reduced by 5% as market
conditions reduced performance related fees. Merger and integration activities
increased cost growth to 13% but these activities are expected to be completed
by the fourth quarter of 2003 with the resulting benefits expected from 2004.
Board of Directors
DE Cooper (Chairman)
JH Maree* (Chief Executive)
DDB Band
E Bradley
T Evans
TS Gcabashe
DA Hawton
Sir Paul Judge#
SJ Macozoma
RP Menell
Adv KD Moroka
AC Nissen
RA Plumbridge
MJD Ruck*
Sir Robert Smith#
Dr CL Stals
Dr CB Strauss
* Executive director
# British
Group Secretary
L Wulfsohn
Registered office
9th Floor, Standard Bank Centre
5 Simmonds Street, Johannesburg, 2001
PO Box 7725, Johannesburg, 2000
Standard Bank Group Limited
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
(Reg No 1969/017128/06)
JSE Securities Exchange share code: SBK
Namibian Stock Exchange share code: SNB
ISIN: ZAE000038873
Share transfer secretaries
In South Africa
Computershare Limited
70 Marshall Street, Johannesburg, 2001
PO Box 1053, Johannesburg, 2000
In Namibia
Transfer Secretaries (Proprietary) Limited
Shop 12, Kaiserkrone Centre
Post Street Mall, Windhoek
PO Box 2401, Windhoek
This announcement, together with a financial presentation, is available on the
Standard Bank website at: http://www.standardbank.co.za
A live webcast of the results presentation will be available on Wednesday, 13
August at 10h00 (GMT+2). Please login to http://www.standardbank.co.za>.
Questions can be emailed during the presentation.
For Southern African viewers, Summit TV will be broadcasting the presentation
live at 10h00 on DSTV channel 55.
A delayed audio webcast will be available from 13h00 (GMT+2) on 13 August 2003.
Date: 13/08/2003 08:10:46 AM Produced by the JSE SENS Department
