Overview of financial results - 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
Personal & Business Banking
Headline earnings (Rm)
CAGR (1H07 – 1H13): 7%
Cost-to-income ratio (%)
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
FY07 FY08 FY09 FY10 FY11 FY12 1H13
First half 2 616 2 565 1 998 1 934 2 408 3 197 3 655
Second half 3 049 2 212 1 868 2 430 3 452 4 145
70
60
50
40
30
20
10
1H07 1H08 1H09 1H10 1H11 1H12 1H13
51.6 47.5 48.8 58.5 65.1 61.5 60.3
Change
% 1H13 1H12 FY12
Net interest income Rm 20 13 079 10 932 23 429
Non-interest revenue Rm 9 9 937 9 147 19 083
Total income Rm 15 23 016 20 079 42 512
Credit impairment charges Rm 32 4 083 3 090 6 658
Operating expenses Rm 12 13 961 12 413 25 891
Taxation Rm (1) 1 446 1 459 2 922
Headline earnings Rm 14 3 655 3 197 7 342
Headline earnings change % 14 33 25
Headline earnings contribution to the group % 45 44 49
ROE % 16.8 18.0 19.4
Net interest margin % 4.92 4.57 4.80
Cost-to-income ratio % 60.3 61.5 60.1
Credit loss ratio % 1.57 1.32 1.39
Effective taxation rate % 28.2 31.2 27.9
Total assets Rm 12 549 092 488 618 518 458
Net loans and advances Rm 11 519 019 465 978 489 909
Number of employees 3 21 605 20 898 21 067
Favourable
• Net interest income benefited from balance sheet growth at
wider margins.
• Improved product profitability through continued pricing for
risk.
• Higher non-interest revenue due to growth in transactional,
savings and investment portfolios, as well as higher electronic
and card-based commission revenue.
• Increased short-term insurance policy base.
Adverse
• Negative endowment impact of lower average interest rates in
South Africa, Uganda, Nigeria, Mozambique and Kenya.
• Increased new defaults, particularly within the personal
unsecured lending and business lending portfolios in South
Africa, driving credit impairments higher.
• Increased credit impairments in the rest of Africa, particularly
in Tanzania, Malawi, Uganda and Mozambique.
• Increased information technology costs following the
commissioning of core banking platforms in 2012 and 2013.
• Higher other operating expenses due to increased business
volumes and branch network expansion, particularly in the rest
of Africa.
30