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
Standard Bank Group Analysis of financial results for the six months ended 30 June 2013
Net interest income and margin analysis
Net interest income and net interest margin
CAGR (1H07 – 1H13): 11%
Rm %
35 000
30 000
25 000
20 000
15 000
10 000
5 000
FY07
FY08
FY09
FY10
FY11
FY12
1H13
Net interest
income-first half 10 110 13 740 15 467 13 568 13 414 15 794 18 912
Net interest
income
- second half 11 958 16 589 13 971 13 460 15 613 18 439
After impairment
charges 2.31 2.05 1.84 2.09 2.27 2.30 2.27
Before impairment
charges 2.91 3.23 3.06 2.87 2.92 3.09 3.11
3.5
3.0
2.5
2.0
1.5
1.0
0.5
Favourable
Cumulative effect of mortgage lending new business pricing
strategies reflecting underlying risk and anticipated Basel III
liquidity requirements.
Growth in higher margin overdrafts, revolving credit plans, card
debtors and other unsecured lending.
Refined credit scorecards appropriately pricing for risk.
Increased investment banking loan balances at higher margins
following growth in high margin USD lending in mining, energy
and infrastructure across Africa coupled with strong demand
for lending in the renewable energy sector.
Good business banking balance growth in the rest of Africa.
Decreased cost of funding following the easing of liquidity in
the rest of Africa coupled with less expensive sources of
funding in CIB and PBB South Africa.
Improved returns on other treasury and banking activities as
excess liquidity in the rest of Africa was placed in higher
yielding government paper.
Translation effect of the weaker rand.
Adverse
Negative endowment impact on capital and transactional
balances due to lower average interest rates in South Africa,
Nigeria, Uganda, Mozambique and Kenya.
Lower unwinding to interest income of the IAS 39 discount on
expected recoveries of non-performing loans.
Higher trading and other non-interest earning assets increasing
the dilutive impact on margins.
Movement in average assets, net interest income and margin per business unit
Personal & Business Banking
Average
assets
Rm
Net
interest
income
Rm
Net
interest
margin
%
1H12 banking activities as reported 475 411 11 130 4.70
Reclassifications 4 318 (198) (0.13)
1H12 banking activities restated 479 729 10 932 4.57
Net non-interest earning assets (21 232) 411 0.39
Interest earning assets – 1H12 458 497 11 343 4.96
Impact of volume changes 52 939 1 566
Impact of calendar variance (65)
Impact of rate changes 614 0.27
Lending margin 852 0.37
Client yield 1 751 0.33
Cost of funding 2 101 0.04
Unwinding of discount on credit impairments – IAS 39 (96) (0.04)
Funding margin 270 0.12
Funding endowment (339) (0.15)
Capital and reserves endowment (87) (0.04)
Assets held for liquidity purposes 0 0.00
Other treasury and banking activities 14 0.01
Change in composition of balance sheet 0.08
Interest earning assets – 1H13 511 436 13 458 5.31
Net non-interest earning assets 24 696 (379) (0.39)
1H13 banking activities 536 132 13 079 4.92
Net change (%) 19.6
Average assets change (%) 11.8
1
Client yield changes refer to the difference in movement between average client rates and base lending rates.
2
Cost of funding changes refer to the difference in movement between base lending rates and an allocated cost of funding based on the term nature of the asset.
*
Reclassifications reflect the changes in group architecture as well as a refinement of the rest of Africa average balances
Corporate & Investment Banking
Average
assets
Rm
Net
interest
income
Rm
Net
interest
margin
%
Average
assets
Rm
Total banking activities
Net
interest
income
Rm
Net
interest
margin
%
621 605 4 666 1.51 1 086 893 15 794 2.91
(6 793) (251) (0.07) (235) – 0.00
614 812 4 415 1.44 1 086 658 15 794 2.91
(147 223) 203 0.54 (194 115) 1 213 0.91
467 589 4 618 1.98 892 543 17 007 3.82
36 876 999 91 995 2 557
(23) (94)
235 0.10 644 0.15
88 0.04 937 0.21
70 0.03 821 0.19
18 0.01 116 0.02
(5) 0.00 (106) (0.02)
227 0.10 399 0.09
(216) (0.09) (555) (0.13)
(159) (0.07) (319) (0.07)
91 0.04 168 0.04
209 0.08 120 0.03
0.25 0.15
504 465 5 829 2.33 984 538 20 114 4.12
193 640 (393) (0.76) 243 395 (1 202) (1.01)
698 105 5 436 1.57 1 227 933 18 912 3.11
23.1 19.7
13.5 13.0
42
43