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STANDARD BANK GROUP LIMITED - Interim results and dividend announcement

Release Date: 08/08/2019 07:30
Code(s): SBK SBKP SBPP     PDF:  
 
Wrap Text
Interim results and dividend announcement

Standard Bank Group Limited
Registration number 1969/017128/06
Incorporated in the Republic of South Africa
Website: (www.standardbank.com)

Share codes
JSE share code: SBK ISIN: ZAE000109815
NSX share code: SNB ZAE000109815
A2X share code: SBK
SBKP ZAE000038881 (first preference shares)
SBPP ZAE000056339 (second preference shares)

1H19 results overview
"We strive to meet our clients' needs by seamlessly delivering holistic, relevant financial services
offerings through the channels of their choice."
- Sim Tshabalala, Group chief executive

Standard Bank Group's African-focused strategy has delivered continued headline earnings growth, driven by
the strong underlying momentum in our core operations. For the period ended 30 June 2019 headline earnings 
were R13.4 billion, an increase of 6% on the prior period (1H18), and return on equity (ROE) was 16.2%. 
The group's capital position remained strong, with a common equity tier 1 ratio of 14.0%, which supported 
an interim dividend of 454 cents per share, an increase of 6% on the prior period.

Banking activities recorded strong growth in headline earnings, increasing 10% to R12.8 billion. ROE was
17.5% in line with the prior corresponding period. Strong balance sheet growth period on period supported net
interest income. Pressure on fees and continued customer migration to digital channels dampened non-interest
revenue  growth. Credit impairment charges increased from a low base in 1H18. Stringent cost management 
resulted in positive operating leverage, by growing revenue by 1.1% faster than cost.

After adjusting for currency impacts, in particular the weaker South African Rand, group headline earnings
grew 5% on a constant currency basis. On the back of continued strong earnings growth, Africa Regions' (AR)
contribution to banking headline earnings grew to 34% from 32% in 1H18. The top six contributors to AR's 
headline earnings were Angola, Ghana, Kenya, Mozambique, Nigeria and Uganda.

Financial outcome
for the six months ended 30 June 2019

Financial statistics
                                                           Change              1H19                 1H18    
                                                                %         Unaudited            Unaudited    
Financial indicator (Rm)                                                                                    
Headline earnings                                               6            13 361               12 663    
Banking activities headline earnings                           10            12 806               11 674    
Cents per ordinary share                                                                                    
Basic earnings per ordinary share                               4             827.0                796.6    
Headline earnings per ordinary share                            5             837.4                793.9    
Dividend per ordinary share                                     6               454                  430    
Net asset value per ordinary share                              8            10 511                9 768    
Financial performance (%)                                                                                   
ROE                                                                            16.2                 16.8    
Credit loss ratio on banking activities                                         0.8                  0.6    
Cost-to-income ratio on banking activities1                                    57.0                 57.6    
1 The group has, as permitted by International Financial Reporting Standards (IFRS), including IFRS 16 
  Leases (IFRS 16), elected not to restate its comparative financial statements. Therefore comparability 
  will not be achieved by the fact that the comparative financial information has been prepared on an 
  IAS 17 Leases basis. Refer to the full interim results announcement for more detail on the adoption 
  of IFRS16.                                                         

Income statement highlights - banking activities
                                                           Change              1H19                 1H18    
                                                                %         Unaudited            Unaudited    
Income statement highlights - Banking activities (Rm)                                                       
Net interest income1                                            9            31 265               28 680    
Non-interest revenue                                            4            23 012               22 030    
Total income                                                    7            54 277               50 710    
Operating expenses                                              6           (30 941)             (29 205)   
Operating income                                                9            23 336               21 505    
Credit impairment charges1                                     20            (4 247)              (3 529)   
Taxation                                                       (1)           (4 685)              (4 735)   
Other                                                         (44)              109                  195    
Attributable to non-controlling interests and           
other equity instrument holders                                (3)           (1 707)              (1 762)   
Banking activities headline earnings                           10            12 806               11 674    
Banking activities ROE (%)                                                     17.5                 17.5    
1 Restated, refer to the full results announcement for details on the restatement.

Headline earnings by business unit
                                                           Change              1H19                 1H18    
                                                                %         Unaudited           Unaudited1    
Personal & Business Banking                                     8             7 201                6 697    
Corporate & Investment Banking                                  9             6 169                5 676    
Central and other                                             (19)             (564)                (699)   
Banking activities headline earnings                           10            12 806               11 674    
Other banking interests                                     (100)             (320)                 132    
Liberty headline earnings                                       2               875                  857    
Group headline earnings                                         6            13 361               12 663    
1 Where responsibility for individual cost centres and divisions within business units change, the 
  comparative figures have been reclassified accordingly. 

Declaration of dividends
Shareholders of Standard Bank Group Limited (the company) are advised of the following dividend declarations
out of income reserves in respect of ordinary shares and preference shares.

Ordinary shares
Ordinary shareholders are advised that the board has resolved to declare an interim gross cash dividend No.
100 of 454 cents per ordinary share (the cash dividend) to ordinary shareholders recorded in the register of
the company at the close of business on Friday, 13 September 2019. The last day to trade to participate in the
dividend is Tuesday, 10 September 2019. Ordinary shares will commence trading ex dividend from
Wednesday, 11 September 2019.

The salient dates and times for the cash dividend are set out in the table that follows.

Ordinary share certificates may not be dematerialised or rematerialised between Wednesday, 11 September
2019, and Friday, 13 September 2019, both days inclusive. Ordinary shareholders who hold dematerialised shares
will have their accounts at their Central Securities Depository Participant (CSDP) or broker credited on Monday,
16 September 2019.

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.

Preference shares
Preference shareholders are advised that the board has resolved to declare the following interim dividends:
- 6.5% first cumulative preference shares (first preference shares) dividend No. 100 of  3.25 cents (gross)
  per first preference share, payable on Monday, 9 September 2019, to holders of first preference shares
  recorded in the books of the company at the close of business on the record date, Friday, 6 September 2019. 
  The last day to trade to participate in the dividend is Tuesday, 3 September 2019. First preference shares 
  will commence trading ex dividend from Wednesday, 4 September 2019.
- Non-redeemable, non-cumulative, non-participating preference shares (second preference shares) dividend
  No. 30 of 391.38 cents (gross) per second preference share, payable on Monday, 9 September 2019, to holders of
  second preference shares recorded in the books of the company at the close of business on the record
  date, Friday, 6 September 2019. The last day to trade to participate in the dividend is Tuesday, 3 September 2019.

  Second preference shares will commence trading ex dividend from Wednesday, 4 September 2019.

The salient dates and times for the preference share dividend are set out in the table that follows.

Preference share certificates (first and second) may not be dematerialised or rematerialised between
Wednesday, 4 September 2019, and Friday, 6 September 2019, both days inclusive. Preference shareholders (first and
second) who hold dematerialised shares will have their accounts at their CSDP or broker credited on Monday, 9
September 2019.

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.

The relevant dates for the payment of dividends are as follows:
                                                                                                        Non-redeemable,    
                                                                                                        non-cumulative,    
                                                                          6.5% cumulative             non-participating    
                                                   Ordinary             preference shares    preference shares (Second     
                                                     shares      (First preference shares)           preference shares)    
JSE Limited                                                                                                                
Share code                                              SBK                          SBKP                          SBPP    
ISIN                                           ZAE000109815                  ZAE000038881                  ZAE000056339    
Namibian Stock Exchange (NSX)                                                                                              
Share code                                              SNB                                                                
ISIN                                           ZAE000109815                                                                
Dividend number                                         100                           100                            30    
Dividend per share (cents)                              454                          3.25                        391.38    
Last day to trade             
in order to be                
eligible for the              
cash dividend                    Tuesday, 10 September 2019     Tuesday, 3 September 2019     Tuesday, 3 September 2019
Shares trade ex the           
cash dividend                  Wednesday, 11 September 2019   Wednesday, 4 September 2019   Wednesday, 4 September 2019    
Record date in                
respect of the                
cash dividend                     Friday, 13 September 2019      Friday, 6 September 2019      Friday, 6 September 2019                                                                                               
Dividend cheques posted                                                                  
and CSDP/broker account                                                                         
credited/updated                                                                                       
(payment date)                    Monday, 16 September 2019      Monday, 9 September 2019      Monday, 9 September 2019

The above dates are subject to change. Any changes will be released on the Stock Exchange News Service
and published in the South African and Namibian press.

Tax implications
The cash dividend received under the ordinary shares and the preference shares is likely to have tax
implications for both resident and non-resident ordinary and preference shareholders. Such shareholders are therefore
encouraged to consult their professional tax advisers.

In terms of the South African Income Tax Act, 58 of 1962, the cash dividend will, unless exempt, be subject
to dividends tax that was introduced with effect from 1 April 2012. South African resident ordinary and
preference shareholders that are not exempt from dividends tax, will be subject to dividends tax at a rate of 
20% of the cash dividend, and this amount will be withheld from the cash dividend with the result that they will
receive a net amount of 363.20 cents per ordinary share, 2.60 cents per first preference share and 313.104 cents 
per second preference share. Non-resident ordinary and preference shareholders may be subject to dividends tax at
a rate of less than 20% depending on their country of residence and the applicability of any Double Tax
Treaty between South Africa and their country of residence.

The issued share capital of the company, as at the date of declaration, is as follows:
- 1 619 235 231 ordinary shares
- 8 000 000 first preference shares
- 52 982 248 second preference shares.

The company's tax reference number is 9800/211/71/7 and registration number is 1969/017128/06.

Johannesburg
08 August 2019

Other information
This announcement is a summary of the information contained in the full interim results announcement and 
does not contain full or complete details. Any investment decisions by investors or shareholders should 
be based on a consideration of the full interim results announcement available at www.standardbank.com/reporting.

Copies of the full interim results announcement may be requested by emailing InvestorRelations@standardbank.co.za 
or by phoning +27 11 636 5039. Copies of this announcement are also available at Standard Bank Group Limited's
registered office at no charge on weekdays from 09:00 to 16:00.

Standard Bank Group Limited's full announcement containing the interim results and dividend announcement for
the six months ended 30 June 2019 is available for viewing by using the following JSE link:
https://senspdf.jse.co.za/documents/2019/jse/isse/SBK/SBG1H19.pdf

The directors of Standard Bank Group Limited take full responsibility for the preparation of this
announcement including the pro forma constant currency financial information. The pro forma constant currency
information and the 1H19 results, including comparatives for 1H18, where applicable, have not been audited or
independently reviewed by the group's external auditors. The pro forma constant currency information has been 
presented to illustrate the impact of changes in currency rates on the group's results and may not fairly 
present the group's results of operations. Refer to the group's full interim results announcement for further 
details regarding the computation of the group's pro forma constant currency financial information.

Registered office: 9th floor, Standard Bank Centre, 5 Simmonds Street, Johannesburg 2001, 
PO Box 7725, Johannesburg 2000

Independent sponsors: South Africa: JP Morgan Equities (SA) Proprietary Limited, 
Namibia: Simonis Storm Securities (Proprietary) Limited

Joint sponsor: The Standard Bank of South Africa Limited (acting through its Corporate & Investment Banking
business unit)

Directors: TS Gcabashe (chairman), A Daehnke*, MA Erasmus1, GJ Fraser-Moleketi, H Hu2 (deputy chairman), 
GMB Kennealy, JH Maree (deputy chairman), NNA Matyumza, KD Moroka, ML Oduor-Otieno3, AC Parker, ANA Peterside
CON4, MJD Ruck, PD Sullivan5, SK Tshabalala* (chief executive), JM Vice, L Wang2.

All nationalities are South African, unless otherwise specified. * Executive director 1 British 2 Chinese 
3 Kenyan 4 Nigerian 5 Australian


Date: 08/08/2019 07:30:00
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