Standard Bank : SBG 2023 Interim Results Presentation
August 17, 2023 at 12:24 pm IST
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STANDARD BANK GROUP
1H23 RESULTS PRESENTATION
17 August 2023
Agenda
01 02 03
1H23
1H23 financial
Delivering against
highlights
performance and
our 2025 targets
2023 outlook
2 | STANDARD BANK GROUP 1H23 FINANCIAL RESULTS PRESENTATION | 17 AUGUST 2023
1H23
01 highlights
1H23 highlights - continued strong earnings growth, higher returns, and increased dividend per share
Strategic progress - delivering on what we set out to do
01
• Competitiveness sharpened - reflected in our growing franchise and higher transaction volumes
Strong momentum in our sustainable finance business - partnered clients to deliver several market-leading deals in 1H23
Capital optimised and Liberty integrated - all insurance and asset management businesses grouped together in a new business unit (IAM)
Financial performance - in line with our 2025 targets
02
• Strong revenue growth driven by client activity, endowment tailwinds, and market volatility
Moderated by higher credit charges as we bolstered existing provisions, and elevated cost growth linked to business activity and inflation
Positive jaws of >11% resulted in a significant decline in cost-to-income ratio to 50.5%
Shareholder returns - delivering increasing shareholder value
Headline earnings grew by 35% to over R21 billion
03
• Returns improved to 18.9%, inside our 2025 target range of 17% to 20%
Maintained our robust capital position, with a CET 1 ratio of 13.4%
Declared an interim dividend of 690 cents per share, a 34% increase
4 | STANDARD BANK GROUP 1H23 FINANCIAL RESULTS PRESENTATION | 17 AUGUST 2023
A difficult geopolitical and macroeconomic backdrop
Global
Elevated geopolitical tensions, linked to the war in Ukraine and tensions between the US and China, though reducing towards the end of the half
Banking sector vulnerabilities emerged in certain markets
Policy rates continued to increase
Global inflation moderated, particularly in the US where inflation dropped to 3% in July (July 2022: 9%)
Sub-Saharan Africa
Public debt continued to increase, while public aid decreased
Inflation and interest rates remained high
Trade and growth still relatively strong
Normalisation of sovereign risk
Currencies remained under pressure - relative to the USD, NGN and AOA devalued significantly in the period
South Africa
Energy supply remained unreliable and logistics-related constraints weighed on sentiment, but progress made in diversifying the electricity supply and on logistics
Foreign policy stance of active non- alignment and support for peaceful resolution of conflicts considerably clarified
Inflation remained high over the period, but appears to have peaked
125 bps increase in repo rate since beginning of 2023 (450 bps increase since the start of 2022)
5 | STANDARD BANK GROUP 1H23 FINANCIAL RESULTS PRESENTATION | 17 AUGUST 2023
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Standard Bank Group Ltd. published this content on 17 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2023 06:53:07 UTC.
Standard Bank Group is a banking group organized around 2 areas of activity:
- retail and commercial banking (67.1% of net interest income);
- corporate and investment banking (32.9%). Additionally, the group offers a life insurance activity.
At the end of 2020, the group managed ZAR 1,624 billion in current deposits and ZAR 1,271.3 billion in current credits.
Products and services are marketed through a network of 1,124 branches located in Africa.