Standard Bank : SBG 2024 Interim Results Overview

AFRICA IS OUR HOME, WE DRIVE HER

STANDARD BANK GROUP

September 2024

Who we are

4 businesses	26 countries

#1 on the continent1

Attractive investment proposition

	PERSONAL &
	PRIVATE BANKING
Banking	BUSINESS &
COMMERCIAL
BANKING
	CORPORATE &
	INVESTMENT
	BANKING
	INSURANCE
	& ASSET
	MANAGEMENT

Côte	Nigeria				Ethiopia
		South		(representative
d'Ivoire Ghana
		Sudan		office)
			Uganda	Kenya
		Democratic
		Republic of Congo
				Tanzania
Offshore hubs	Angola
Isle of Man
	Zambia		Malawi
Jersey
Global centres	Zimbabwe		Mozambique
Namibia
London		Botswana
New York				Eswatini
Dubai
Beijing		South Africa	Lesotho

19.5m

Customers2

R166bn

Originated3

R3.1trn

Assets

R2.0trn

Deposits

R1.5trn

Assets under Mauritius management4

Recognised		Growing and
and trusted		engaged client
brand		franchise

Well diversified		Targeted
	technology
business
	investment
with scale
	bearing fruit5

Strong growth		Well placed
prospects and		to capture
attractive		opportunities
medium term		linked to Africa's
targets		energy transition

Well-defined strategic plan

PURPOSE DRIVEN

Africa is our home, we drive her growth

1. Largest bank based on total assets.
2. Active clients +5%.
3. Personal & Private Banking SA and Business & Commercial Banking SA disbursements and Investment Banking origination.
4. Assets under management and assets under administration.
5. Delivering improvements in client experience, stability, security and productivity.
6. Compound annual growth rate from 2020 to 2025.

CLEARLY DEFINED PLAN

2025 strategic priorities

Transform client	Execute with	Drive sustainable
experience	excellence	growth and value

CLEAR COMMITMENTS

2025 financial targets

7% - 9%		~50%
Banking revenue		Banking
growth CAGR6		cost-to-income
		ratio

17% - 20%

Group return on equity

Diversified and resilient business

SBG 1H24 highlights - delivered strong returns, improved efficiency and higher dividends

Headline earnings by business3

Rbn	% Change
CIB 10.4	-1%

Group headline

earnings

R22.0bn

+4% ZAR period

on period

+17% CCY period

on period

Group ROE

18.5%

Banking ROE

to 19.0%

SBG Franchise

headline earnings1

R21.4bn

+7% ZAR period

on period

+21% CCY period

on period

Banking

cost-to-income ratio

49.7%

Jaws 0.5%2

Group interim

dividend payout ratio

56%

Group interim

dividend of 744cps

Group CET1 ratio

13.5%

CET1 target

>12.5%

BCB		4.7		+1%	R22bn
PPB		5.0		+12%
IAM		1.6		+19%

Headline earnings by region4

		Rbn		% Change
SOUTH AFRICA
	9.4		+12%
						R22bn
AFRICA REGIONS		9.0		-2%
OFFSHORE		2.2		+6%
LIBERTY
	1.4		+29%

An attractive geographic footprint

Headline earnings CAGR (1H14 - 1H24)

SBG 10 year track record - delivered robust income, earnings and dividend growth

 Other
 Namibia
 Zambia
 Mozambique
 Kenya

Banking income

+7%

10 year CAGR

Group headline

earnings

+10%

10 year CAGR

Group dividend

+12%

10 year CAGR

 Uganda

 Angola

 Ghana

 Nigeria

1. Includes Banking and Insurance & Asset Management.
2. Based on Banking Franchise.
3. Headline earnings by business unit (SBG Franchise) excluding Centre and ICBCS.
4. Headline earnings by legal entity. Offshore is Standard Bank Offshore Group.

CIB - Corporate & Investment Banking, BCB - Business & Commercial Banking PPB - Personal & Private Banking, IAM - Insurance & Asset Management

1H24

1H14

1H15

1H16

1H17

1H18

1H19

1H20

1H21

1H22

1H23

1H24 -

growth off a high base, supported by positive jaws and improved credit charges

Total income (Banking) (Rbn)

H

H

H

H

H

H

					•	••
		•			••	••
		•		•	•	•

Net interest income

Non-interest revenue

Trading revenue

Income and cost growth (%)

(	)	1.4%	(	)	7.9%	12.9%	0.5%	Jaws
	0.2%		3.6%

		•H••	•H••	•H••	•H••	•H••	H
				•	-•€		•	••
				•	•		•	•
			Banking revenue growth			Banking cost growth

Gross customer loans1 (Rtrn)

	•	Jun-• •	Jun--€•	Jun--••	Jun---•	Jun--'•	Jun-
			€ƒ"•	€ƒ"•	€ƒ"•	€ƒ…•	€ƒ…•
	•
			€ƒ-•	€ƒ-••	€ƒ'•	€ƒ-•	€ƒ'•
	•
			€ƒ†•	€ƒ"••	€ƒ†•	€ƒ"•	€ƒ…•
	•

Mortgages & VAF (+2%)

Other retail and business (-4%)

Corporate & Sovereign (+8%)

1 % change relates to year-on-year change (Jun-24 vs Jun-23).

Pre-provision operating profit (Rbn)

	H	H	H	H	H	H

Capital (Rbn)

Dec-

Dec-

Dec-

Dec-

Dec-

Jun-

CET 1

Tier 1

Tier 2

Customer deposits1 (Rtrn)

Jun-

Jun-••

Jun-•

Jun-••

Jun-••

Jun-

		••	••	••	••	••
		•••	•••	•••	•••	•••
		••	••	••	••	••

SBSA (+2%)

Africa Regions (+0%)

Oshore (-2%)

1 % change relates to year-on-year change (Jun-24 vs Jun-23).

Credit impairment charges (Rbn)

	76 bps	169 bps	88 bps	90 bps	109 bps	92 bps	CLR
	H	H	H	H	H	H

Group ROE and cost of equity (%)

H H H H H H

•

•

•

Group ROE

Cost of equity

Driving sustainable growth and value

Our short term commitments...

Key macroeconomic trends positive across our portfolio

...and medium and long-term aspirations

SBG portfolio,
weighted average	FY24	FY25	Key drivers
Inflation (%)	7.7	7.0	Inflation trending down
Interest rates (%)	11.8	10.7	Interest rates expected to moderate
Real GDP growth (%)	2.0	2.7	Growth expected to improve
Currency movements	(11)	(3)	Currency impact expected to moderate
vs ZAR, YOY
SBG 2024 guidance - core metrics reaffirmed

Core metrics	FY24 guidance	Key drivers
		NII and NIR revised due to change in methodology
Banking total		"	NII - up mid-to-high single digits (from up low-to-mid single
Low single digits		digits), subject to loan growth
income
	"	NIR - down low-to-mid single digits (from up low single digits),
			subject to market activity
Banking	Flat to down	"	Banking revenue growth at or ahead of operating expenses
cost-to-income
year on year		growth resulting in flat to positive jaws1
ratio
	Inside the 2025	"	Ongoing focus on capital optimisation and returns
Group ROE	target range of
"	IAM ROE expected to be close to group COE
	17% - 20%
Supplementary metrics
Credit loss	At the top of the	"	Subject to inflation and interest rate developments
TTC2 range	"	Charges expected to peak in 1H24, driven by ongoing strain
ratio
(70 - 100 bps)		in PPB
CET1 ratio	March 2024: >11%	"	Revised minimum target ratio to better align to operational
August 2024: >12.5%		management levels
Dividend	45% - 60%	"	Capital generation will support distributions
payout ratio

1. Jaws for Banking businesses.
2. Through-the-cycle.
3. Africa's best regional private bank based on the Euromoney Private Banking Awards 2024.
4. IMF forecasts.
5. Trade flows from Kenya, Tanzania and Uganda to EAC (Source: East Africa Community).
6. Standard Bank estimate.

The leading private bank3

• Africa's development path is rapidly expanding affluent segments
• Aspirational brand and comprehensive product offering, including offshore hubs
• PPB and IAM integration
• Opportunity for growth in presence countries

A leader in East Africa

• Africa's fastest growing sub-region
• Increasingly integrated
• Strong existing presence
• Opportunity for growth in market shares

Leader of Africa's energy transition

• Africa's power and infrastructure deficit requires significant investment
• Strong presence in Power & Infrastructure sector
• Leader in sustainable finance with ambitious targets
• Opportunity for continued growth

~2.8m

Target

SA clients

~4.8m

Target

Africa clients

>5.5%

GDP growth4

$5.4bn

Trade flows5

$3.4trn

Investment

required6

Driving sustainable growth and value

Market data

TEN MAJOR SHAREHOLDERS¹

	28-Jun-24	31-Dec-23
	Number of
		Number of
	shares		shares
Ten major shareholders	(million)	% holding	(million)	% holding
Industrial and Commercial Bank of China	325.0	19.4	325.0	19.4
Government Employees Pension Fund (PIC)	245.3	14.7	243.8	14.5
Old Mutual Life Assurance Company	36.9	2.2	30.8	1.8
GIC Asset Management Pte Ltd	27.1	1.6	24.0	1.4
Alexander Forbes Investments	24.5	1.5	27.2	1.6
Allan Gray Balanced Fund	22.5	1.3	20.7	1.2
Vanguard Total International Stock Index Fund	19.6	1.2	19.4	1.2
Eskom Pension Fund	18.4	1.1	17.6	1.1
Vanguard Emerging Markets Stock Index Fund	17.5	1.0	18.1	1.1
Government of Norway (NO)	17.4	1.0	14.1	0.8
	754.2	45.0	740.7	44.1

1 Beneficial holdings determined from the share register and investigations conducted on our behalf in terms of section 56 of the Companies Act, 71 of 2008.

ESG scores

AA	3.8	17.2
Stable	slight decline from	slight decline from
	4.1 in 2023	18.4 in 2023

67.87

C

69

Share price performance (ZAR)

SBK vs JSE Banks and All Share Index (SBK, +42%)

150
140
130
120
110
100
90
80
70	Jan-23

+42% +33%

+15%

Aug-24

Geographic spread of shareholders (%)

Unchanged

Stable

Improved

Equity information

Listings	JSE (SBK);
	A2X (SBK);	Scan for digital copy
	NSE (SNB)
Share price*	ZAR210.81/ USD11.54

-SBG -JSE Banks index -JSE All Share

Share price performance (USD)

SBK vs MSCI (SBK, +35%)

150
140			+40%
130			+35%
120			+15%
110
100
90
80
70	Jan-23		Aug-24
	-SBG ($)	-MSCI Emerging Markets ($)	-MSCI World ($)

		Jun-24
	SouthAfrica
	China
UnitedStates
Europe
Other

Market cap* ZAR347bn/USD19 bn

For more information

https://www.standardbank.com/sbg/ standard-bank-group/investor-relations

Investor Relations

Sarah Rivett-Carnac

[e-mail]

* As at 28 June 2024.