Overview of financial results - Standard Bank - Investor Relations

Standard Bank Group Analysis of financial results for the six months ended 30 June 2013
Income contribution (%)
100
80
60
40
20
FY07
FY08
FY09
FY10
FY11
FY12
1H13
Net interest
income 34 39 37 38 39 37 39
Trading revenue 38 34 39 37 35 35 38
Fees and
other revenue 28 27 24 25 26 28 23
Trading income
as percentage
of non-interest
revenue 57.4 54.5 60.2 58.7 57.1 55.7 61.7
Favourable
• Momentum in revenue growth continued across Africa with
strong performances in all core products.
• Net interest income driven by balance sheet growth and
improved margins, particularly deposit balances.
• Commodities revenue remained resilient despite market
weakness.
• Strong performance in FIC trading in the rest of Africa.
• Increased net fees and commissions driven by a number of
investment banking transactions in core sectors, coupled with
strong client revenue in trade finance.
• Fair value gain on a contingent interest in Troika.
• Careful cost management, coupled with savings resulting from
the restructure outside Africa at the end of 2012, resulted in
operating expenses being down on a constant currency basis.
Adverse
• Large specific impairments in investment banking and
transactional products and services.
• Increased regulatory costs in the rest of Africa.
• Difficult trading conditions in the second quarter of 2013,
particularly in South Africa and outside Africa.
• Negative endowment impact of lower average interest rates.
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