Results at a glance
Headline earnings: R17 194 million, up 15%
Headline earnings per share (HEPS): 1 064.9 cents, up 14%
Dividends per ordinary share: 533 cents (2012: 455 cents), up 17%
Capital adequacy: tier I capital adequacy ratio of 13.2% (2012: 11.2%)
Cost-to-income ratio: 58.5% (2012: 58.9%)
Credit loss ratio: 1.04% (2012: 1.08%)Return on equity (ROE): 14.1% (2012: 14.0%)
Net asset value (NAV) per share: 8 127 cents (2012: 7 136 cents) up 14%
Standard Bank Group has produced a satisfactory performance in 2013, increasing headline earnings per share by 14% and net asset value per share by 14%. Group return on equity has increased to 14.1% from 14.0% in 2012.Standard Bank Group has produced a satisfactory performance in 2013, increasing headline earnings per share by 14% and net asset value per share by 14%. Group return on equity has increased to 14.1% from 14.0% in 2012.
Sim Tshabalala, Standard Bank Group Chief Executive says: "Underlying momentum in our business units was maintained during the year with particularly pleasing growth evident in our subsidiaries in the rest of Africa, where 44% growth in aggregate headline earnings was achieved. We made further substantial progress in group restructures and implementing our Africa-focused strategy. Our positioning in selected countries in Africa reflects our confidence in its economic prospects. We continue to use our South African scale, as well as our access to pools of capital around the world, to provide products and services that deliver value to our clients across the continent.
Global economic activity and trade increased throughout 2013, particularly in the second half of the year, but risks remain. While the recovery in the United States and Japan appears to be gaining traction, economic conditions in the Eurozone remain fragile and doubts about the sustainability of China's economic expansion persist.
In South Africa, households continued to struggle despite the accommodative interest rate environment. South African consumer confidence remains low and disposable incomes have stagnated on the back of rising inflation and lower wage payments, partly because of strike activity in 2013.In spite of the exposure to faltering commodity prices, expansion in sub-Saharan Africa economies has remained resilient and has not been confined to resource-rich countries, reflecting the positive impact of better macroeconomic policies and institutions. Growth of around 5% for the region is expected by the IMF for 2013.
Personal and Business Banking
PBB reported headline earnings of R8 358 million in 2013, an increase of 14% which was principally due to 18% growth in NII after accounting for credit impairments. PBB South Africa increased earnings by 15% to R8 538 million and PBB rest of Africa reported a loss of R361 million. PBB's ROE declined to 18.5% from 19.4% in 2012.
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