Standard Bank reports strong results for the year ended 31 December 2018
Results at a glance
- Headline earnings: R27 865 billion, up 6%
- Headline earnings per share (HEPS): 1 748 cents, up 7%
- Dividend per share: 970 cents, up 7%
- Common equity tier (CET) 1 ratio: 13.5% (FY17: 13.5%)
- Net asset value (NAV) per share: 10 380 cents up 6%
- Return on equity (ROE): Improved from 17.1% to 18%
- Cost-to-income ratio: Increased from 55.5% to 57%
- Credit loss ratio: 56bps (FY17: 87bps)
Group results overview
For the year ended 31 December 2018, Standard Bank Group delivered sustainable earnings growth and improved returns. The group’s performance was underpinned by the strength and breadth of our client franchise. Group headline earnings grew 6% to R27.9 billion and ROE improved to 18.0% from 17.1% for the year ended 31 December 2017. The group’s capital position remained robust, with a common equity tier 1 (CET1) ratio of 13.5%. Accordingly, a final dividend of 540 cents per share has been declared, resulting in a total dividend of 970 cents per share, an increase of 7% on the prior year.
Banking activities headline earnings grew 7% to R25.8 billion and ROE improved to 18.8% from 18% in 2017. Non-interest revenue (NIR) continued to record strong growth, driven by retail banking. Net interest income (NII) growth was dampened, and credit impairment charges were lower, as a result of the adoption of a new accounting standard.
The 2018 group results were less impacted by currency movements than in prior years. On a constant currency basis, group headline earnings grew 8%. Africa Regions’ contribution to banking headline earnings grew to 31% from 28% in 2017. The top five contributors to Africa Regions’ headline earnings were Angola, Ghana, Mozambique, Nigeria and Uganda.
"We will reduce cost growth and increase efficiency to permanently reshape the group's cost structure. We will continue to accelerate digitisation to meet clients' needs and enhance competitiveness and efficiency." says Sim Tshabalala, Group CE