STANDARD BANK GROUP LIMITED AFRICA IS OUR HOME, WE DRIVE HER
CAPITALISING ON THE GNU OPPORTUNITY
Luvuyo Masinda: Chief Executive, Corporate and Investment Banking 08 October 2024
Agenda
01 02 03
Reflecting on the | CIB South Africa | CIB South Africa |
GNU | today | strategic growth |
themes |
2 | STANDARD BANK GROUP CAPITALISING ON THE GNU OPPORTUNITY | 08 October 2024
Reflecting on the | 01 |
government of | |
national unity | |
Rational, fact-based optimism on the government of national unity and overall SA trajectory…
Government of national unity a positive outcome
Affirmation of constitutional democracy
- Broader representation and accountability in government
Greater support for structural reform
- Renewal of Operation Vulindlela, with an ongoing focus on energy, water, and logistics, among others
Increased private sector participation
Supported by uptick in sentiment and positive market reaction
Business Confidence Index
50
45
40
35
30
25
In a period of gradual progress and stability
Year to date electricity loadshedding
18 | |
16 | |
14 | |
('000) | 12 |
10 | |
GWh | 8 |
6 | |
4 | |
2 | |
0 |
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 Weeks
2020 | 2021 | 2022 | 2023 | 2024 | ||||
- Government-privatesector workstreams critical in providing capacity to support revival
• Currency improvement post election outcome | • Sharp reduction in loadshedding in 2024 | ||
• | Uptick in Business and Consumer confidence | • | Signs of freight recovery |
after sustained weakness | • | National Budget that promoted fiscal | |
• | Recovery in foreign investor sentiment | consolidation |
4 | | | STANDARD BANK GROUP CAPITALISING ON THE GNU OPPORTUNITY | 08 October 2024 |
Source(s): Eskom, SARB and Standard Bank Research. |
…that can deliver promising mid-term economic growth,
supported by favourable rate cycle
Upward revisions to growth…
Real GDP, %
…cycling into favourable interest rate cycle
Inflation (YE), % | Repo Rate (YE), % |
+0.3% | ||
+0.1% | 2.1% | |
1.9% | ||
1.8% | ||
1.1%
0.7%
2022 | 2023 | 2024 | 2025 | 2026 |
Revisions post elections
6.9% | ||||
6.0% | ||||
5.1% | ||||
4.5% | 4.4% | |||
2022 | 2023 | 2024f | 2025f | 2026f |
8.25
7.75
7.25 7.25
7.00
2022 | 2023 | 2024f | 2025f | 2026f |
Modest upward revisions for 2025 and 2026
reflect tempered optimism, awaiting evidence of
progress
Inflation will trend around the mid-point of the | Rate cut cycle initiated in September and we |
Reserve Bank target range over the medium | expect further 75bps over next 12 months |
term |
5 | | | STANDARD BANK GROUP CAPITALISING ON THE GNU OPPORTUNITY | 08 October 2024 |
Source(s): Eskom, SARB and Standard Bank Research. |
CIB South | 02 |
Africa today |
CIB SA: a diversified, at-scale market leader
CIB South Africa serves large companies (multinational, regional and domestic), governments, SOCs and institutional clients
Delivering compelling client solutions…
- Proactively partner to deliver relevant solutions and exceptional client experience
- Specialist expertise on sectors driving growth
- Presence, knowledge and connectivity across South Africa, Africa and select international markets
- Appropriate risk appetite to support target client growth
- through deep expertise across sectors
- Primary and Infrastructure sectors
- Metals and Mining
- Energy
- Infrastructure
- Consumer and secondary sectors
- Consumer
- Diversified Industries
- Real Estate
- Telecoms, Media and Technology
- Financial and Government sectors
- Banks
- Non-bankfinancial institutions
- Sovereign and Public
We are recognised as a leader in the market
• | Foreign Exchange | |
#1 | • | Equities |
• | Investor Services | |
• | Deposits | |
• | Trade | |
#2 | • | Debt Capital Markets |
• | Syndicated Loans | |
• | Sustainable Finance |
7 | STANDARD BANK GROUP CAPITALISING ON THE GNU OPPORTUNITY | 08 October 2024
Delivering robust financial results
Revenue growth
5-year CAGR, %
+7%
+7%
CIB SA: 7.3%
SA market: 5.3%
FY18 FY19 FY20 FY21 FY22 FY23
Revenue by business unit
FY23, %
+7%
Investment
TransactionBanking
Banking
23%
36%
41%
Global Markets
Revenue by sector
FY23, %
Financial and | Consumer and |
Government | Secondary |
35%
41%
24%
Primary and
Infrastructure
8 | STANDARD BANK GROUP CAPITALISING ON THE GNU OPPORTUNITY | 08 October 2024
A diversified and well-managed credit risk portfolio, positioned for growth
Shape of portfolio
Infrastructure
R41bn | Consumer | |||
R41bn | ||||
Energy | ||||
R43bn | 6% | 14% | Mining and Metals | |
15% | R9bn | |||
3% | ||||
Telecoms, | ||||
Technology | 10% | |||
and Media |
R28bn | 25% | Real Estate |
R70bn | ||
17% |
Diversified10%
Industries
R47bnFinancial
Institutions
R28bn
Sector concentrations relatively stable over a 3-year period
Credit loss ratio to customers
CIB through the cycle range: 40bps - 60 bps
FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | 1H24 |
Credit loss ratio to customers historically below CIB range of 40
bps - 60 bps
9 | STANDARD BANK GROUP CAPITALISING ON THE GNU OPPORTUNITY | 08 October 2024
CIB South Africa | 03 |
strategic growth |
themes
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Disclaimer
Standard Bank Group Ltd. published this content on October 07, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 09, 2024 at 05:24:00.860.
