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
Corporate & Investment Banking continued
Total income and headline earnings by product
Change
%
1H13
Rm
Total income
1H12
Rm
FY12
Rm
Change
%
Headline earnings
Global markets 10 5 668 5 133 10 187 70 1 183 695 1 058
Investment banking 20 3 319 2 757 6 678 19 1 120 944 1 950
Transactional products and services 22 4 351 3 574 7 452 9 1 067 980 1 735
Real estate and principal investment
management (13) 593 682 1 524 14 266 234 286
15 13 931 12 146 25 841 27 3 636 2 853 5 029
Curtailed operations >100 26 12 73 (>100) (121) (50) (68)
Restructure charge – – (538)
Corporate & Investment Banking 15 13 957 12 158 25 914 25 3 515 2 803 4 423
1H13
Rm
1H12
Rm
FY12
Rm
Global markets
• Strong FIC revenue performance in the rest of Africa
underpinned by increased client activity and high levels of
liquidity in forex and interest rate trading, largely in Nigeria,
Kenya and Ghana.
• Increased client revenues from cash equities and equity
derivatives.
• FIC trading revenue in South Africa and outside Africa dropped
in the second quarter due to lower client activity and a difficult
trading environment as market volatility intensified.
• Commodities revenue performed well, particularly in precious
metals, on the back of increased client flow and price volatility.
• Lower staff costs and other operating expenses outside Africa
following the restructure at the end of 2012 and non-recurrence
of regulatory and compliance related costs.
Investment banking
• Higher net interest income in South Africa, and in particular
the rest of Africa, due to measured loan book growth and
improved net interest margins.
• Higher fee and commission revenue due to increased client
activity in mining, energy and infrastructure sectors.
• Large specific impairments raised against a small number of
counterparties.
• Settlement received from a Middle Eastern exposure fully
impaired in prior periods.
Transactional products and services
• Continued growth in asset and deposit balances across Africa.
• Good revenue growth in cash management, trade finance and
investor services.
• Negative endowment impact as a result of declining interest
rate environments in South Africa, Nigeria, Uganda and
Mozambique.
• Investor services business, particularly in Nigeria, benefited
from increased demand for custody services.
• Trade finance experienced increased client activity with
growth in guarantees and confirmations.
• Increased impairments largely from a Mauritian trade finance
portfolio.
Real estate and principal investment management
• Non-recurrence of prior period gains on Turkey’s principal
investment management business.
• Tax credits received in the current period.
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