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Standard Bank Group Limited
Registration No. 1969/017128/06
Incorporated in the Republic of South Africa
JSE and A2X share code: SBK
ISIN: ZAE000109815
NSX share code: SNB
SBKP ZAE000038881 (First preference shares)
SBPP ZAE000056339 (Second preference shares)
('Standard Bank' or 'the group')
Voluntary trading update and pre-close call details
As the recovery across our markets of operation continues, the group's lending and transactional activity
continues to gain momentum. In South Africa, in the ten months to 31 October 2021, mortgage, vehicle
and asset finance, and business disbursements continued to trend well above prior periods and
personal unsecured lending disbursements recovered to 2019 levels. In Africa Regions, personal loan
volumes were also higher period on period, driven by a strong recovery in branch-originated loans.
Investment Banking (IB) origination supported a recovery in the IB loan book balances to levels close
to those as at 31 December 2020.
Revenues continued to recover, supported by higher average balances, a growing client base, improved
sales, and higher activity levels relative to the comparative period (i.e. the ten months to 31 October
2020). In South Africa, card spend recovered to 2019 levels, while merchant acquiring turnover was
well in excess thereof. In Africa Regions, transaction volumes also reflected good growth. Trading
revenue has been better than expected in recent months.
Costs remain well managed. Cost growth was driven by higher activity- and performance-related costs,
including incentives. While we still expect negative jaws for FY21, we expect jaws to narrow relative to
1H21.
Credit performance continues to track better than expected.
In October, the relevant Liberty Holdings Limited (Liberty) preference and ordinary shareholders
approved the schemes proposed by the group. With regards to the Liberty preference shareholders,
the conditions to the preference share scheme were satisfied, the consideration has been paid and the
Liberty preference shares have been delisted from the JSE Limited. With regards to the Liberty ordinary
shareholders, we are in the process of obtaining the requisite regulatory approvals and still expect to
satisfy the remaining outstanding conditions to the ordinary share scheme to allow us to complete the
transaction in the first quarter of 2022. With regards to Liberty's performance, please refer to Liberty's
voluntary operational update announcement released on SENS on 18 November 2021.
The group's capital and liquidity levels remain well above regulatory minimums and internal risk
appetite thresholds. The group's common equity tier 1 ratio (including unappropriated profits) was
13.5% as at 30 September 2021 (31 December 2020: 13.2%). Additional capital and liquidity
information can be found in the group's Pillar 3 Report available on the group's Investor Relations
website.
Group guidance for the twelve months to 31 December 2021, as provided in August 2021, remains
unchanged.
While the global recovery is expected to be uneven, our diversified client base, broad portfolio of
solutions, and geographic footprint position us well to continue to manage risk and find opportunities
to partner our clients in their growth journeys. We are executing the strategy set out at our Strategy
Update in August 2021 and are focused on delivering against the targets we committed to. All three of
our client segments are showing good underlying momentum, which bodes well for 2022.
Standard Bank will release its financial results for the 2021 financial year on 11 March 2022. The event
details will be made available on the group's Investor Relations website in due course.
Investor call
Standard Bank will host an investor call at 17h00 (South Africa time) on 29 November 2021. To register
for the call please use the link below:
Standard Bank Pre-close call Registration link
Alternatively, the call registration details are available on the Standard Bank Group Investor Relations
website - https://reporting.standardbank.com/
A replay will be available on the Investor Relations website shortly after the end of the call.
Shareholders are advised that the information contained in this voluntary trading update has not been
reviewed or reported on by the group's external auditors.
Queries:
Investor Relations
Sarah Rivett-Carnac
Email: sarah.rivett-carnac@standardbank.co.za
Johannesburg
29 November 2021
Lead sponsor
The Standard Bank of South Africa Limited
Independent sponsor
JP Morgan Equities South Africa Proprietary Limited
Namibian sponsor
Simonis Storm Securities (Proprietary) Limited
Date: 29-11-2021 08:12:00
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