Standardbank Cover.indd - Standard Bank - Investor Relations

Group results
in brief
Segmental
reporting
Income statement
analysis
Balance sheet
analysis
Capital
management
Key banking legal
entity information
Other information
and restatements
Shareholder
information
Corporate & Investment Banking continued
Total income and headline earnings by product
Change
%
Total income
2012
Rm
2011
Rm
Change
%
Headline earnings
Global markets 8 10 262 9 464 (37) 1 134 1 806
Investment banking 11 6 757 6 113 (21) 1 981 2 517
Transactional products and services 32 8 325 6 292 29 1 917 1 482
Real estate and principal investment management 60 1 521 951 >100 358 14
Curtailed operations >100 73 (341) 79 (68) (329)
Restructure charge (100) (538)
Troika (held for sale) (100) – 31
Corporate & Investment Banking 20 26 938 22 479 (13) 4 784 5 521
Total profit before tax by product
Change 2012 2011
% Rm Rm
Global markets 2 2 799 2 757
Investment banking (43) 1 417 2 502
Transactional products and services 28 3 267 2 552
Real estate and principal investment management >100 704 204
Curtailed operations >100 2 (511)
Restructure charge (100) (758)
Corporate & Investment Banking (1) 7 431 7 504
2012
Rm
2011
Rm
Global markets
• Higher FIC revenue in the rest of Africa from increased
demand and in South Africa due to strong client flow in
interest and credit derivatives.
• Profit on the disposal of an equity investment in a Commodities
Exchange (excluded from headline earnings).
• Strong performance in base metals.
• Compressed margin as regulatory requirements necessitated
increased liquid asset buffers outside Africa.
• Reduced revenue outside Africa due to a challenging operating
environment on the back of increased competition, tight
margins and subdued trading volumes.
• Large trading counterparty provisions on the FIC desk outside
Africa and the equity desk in South Africa.
• Growth in operating expenses, particularly investment in
technology platforms to facilitate the utilisation of SBSA’s
balance sheet in booking of risk positions originated in other
group entities.
Investment banking
• Increased net interest income due to average loan book
growth across Africa at higher margins.
• Good growth in fee and commission revenue, particularly oil
and gas advisory fees and renewable energy project financing.
• Gains from the sale of an unlisted equity portfolio outside
Africa.
• Large specific impairments taken on the Middle Eastern
portfolio originated outside Africa.
Transactional products and services
• Strong deposit and asset growth across all regions.
• Increased trade and investor services volumes, particularly in
export confirmations, letters of credit, securities lending and
derivatives clearing.
• Positive endowment effect in the rest of Africa.
• Small number of large credit impairment provisions taken in
the rest of Africa following strong book growth.
Real estate and principal investment management
• Profit on the disposal of a listed property investment in South
Africa (excluded from headline earnings).
• Fair value gains on listed property investments in South Africa.
Restructure charge
• Total restructuring charge outside Africa of USD88,7 million.
• Restructure charge of USD8,8 million incurred in the first half
of 2012 in Brazil.
• Further costs of USD79,9 million taken in the second half of
the year, mainly in London, include termination costs, onerous
lease provisions and intangible assets impairment.
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