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  • Introduction
    • OUR APPROACH TO INTEGRATED THINKING
    • ABOUT OUR INTEGRATED REPORT
    • OUR REPORTING SUITE
    • WHO WE ARE
    • ADDITIONAL INFORMATION
  • Leadership
    • CHAIRMAN’S STATEMENT
    • GROUP CHIEF EXECUTIVE’S REVIEW
  • Value creation
    • OUR OPERATING CONTEXT
    • OUR MATERIAL ISSUES
    • OUR STRATEGY
    • OUR EXECUTION MODEL
    • OUR STRATEGIC PROGRESS
    • OUR VALUE PROPOSITION
  • Our strategy
    • CLIENT FOCUS
    • EMPLOYEE ENGAGEMENT
    • RISK AND CONDUCT
    • FINANCIAL OUTCOME
    • SEE IMPACT
  • Accountability
    • GOVERNANCE OVERVIEW
    • REMUNERATION OVERVIEW
  • Downloads
  • Additional information

    Pro forma information
    Pro forma constant currency information

    The pro forma constant currency information has been presented to illustrate the impact of changes in currency rates on the group’s results of operations. In determining the change in constant currency terms, the comparative financial year’s results for the year ended 31 December 2018 has been adjusted for the difference between the current and prior period’s average exchange rates (determined as the average of the daily exchange rates). The measurement has been performed for each of the group’s material currencies. The following average exchange rates were used in the determination of the pro forma constant currency information and were calculated using the average of the average monthly exchange rates (determined on the last day of each of the 12 months in the period).

                   
          2019 average exchange rate     2018 average exchange rate  
    US dollar     14.44     13.23  
    Pound sterling     18.43     17.63  
    Argentine peso     0.31     0.50  
    Angolan kwanza     0.04     0.04  
    Ghanaian cedi     2.70     2.86  
    Nigerian naira     0.04     0.04  
    Kenyan shilling     0.14     0.13  
    Mozambican metical     0.23     0.22  
    Zambian Kwacha     1.12     1.27  
    Standard Bank Group Limited credit ratings
    As at 5 March 2020            
               
        Short term   Long term   Outlook  
    Fitch Ratings              
    Foreign currency              
    issuer default rating   B   BB+   Negative  
    Local currency issuer              
    default rating       BB+   Negative  
    National rating   F1 + (ZAF)   AA (ZAF)   Stable  
               
    Moody’s Investor Services              
    Issuer rating     Ba1   Negative  

    For further details regarding the group’s credit ratings, including credit ratings for key subsidiaries, click here.

    Restatements

    During 2019, certain financial information published in 2018 was restated to correct errors identified in the classification of certain information. These are detailed below.

    Correction of prior period income statement presentation error

    During 2019, the group restated trading revenue to exclude gains and losses that do not comprise gains and losses from changes in the fair value of trading assets and liabilities, including related interest income, expense and dividends. These gains and losses that have been presented in other revenue as being more representative of their nature and aligns to the group’s gains and losses presentation policy. This correction has no impact on the group’s consolidated income statement, total income, profit for the year and earnings per share. The impact on the non-interest revenue disclosure is as follows:

               
        As previously
    presented
    income/
    (expense)
    Rm
     


    Restatement
    Rm
     
    Restated
    income/
    (expense)
    Rm
     
    2018              
    Trading revenue   11 129   (330)   10 799  
    Other revenue   3 533   330   3 863  
    Correction of the classification of investment in unit trust and portfolio managed funds

    During 2019, the group identified that on transition to IFRS 9, certain investments in unit trusts and portfolio managed funds were incorrectly classified as loans and advances (at amortised cost) instead of financial investments (at fair value through profit and loss). However, due to the fact that the carrying amount of these assets approximate their fair values, they did not impact the group’s total assets, profit for the year or credit impairment charges. The impact of the reclassification on the statement of financial position and income statement line items disclosure is as follows:

               
        As
    reported
      Restate-
    ment
     
    Restated
     
    2018              
    Statement of financial position        
    Financial investment   547 405   1 121   548 526  
    Loans and advances   1 120 668   (1 121)   1 119 547  
    Income statement              
    Net interest income   (59 622)   117   (59 505)  
    Other gains and losses on financial instruments   (672)   (117)   (789)  
    Changes in accounting policies

    The adoption of new and amended accounting standards on 1 January 2019 did not affect the group’s previously reported financial results, disclosures or accounting policies. IFRS 16 Leases replaced IAS 17 Leases, as well as the related interpretations, on 1 January 2019, introducing a single lease accounting model for leases. The group retrospectively adopted IFRS 16 on 1 January 2019 with an adjustment to opening reserves and, as permitted by IFRS 16, did not restate its comparative financial results. Accordingly, the group’s results up to 31 December 2018 are presented in accordance with IAS 17, while for 2019 and future reporting periods, are presented in terms of IFRS 16.

    The key financial impact on the group’s results were an R4.8 billion increase in total assets, R4.7 billion increase in total liabilities and R190 million increase in reserves, mainly due to the release of the IAS 17 straight-line lease liability provision.

               
        31
    December
    2018
    Rm
      IFRS 16
    transition
    adjustment
    Rm
     
    1 January
    2019
    Rm
     
    Statement of financial position              
    Property, equipment and right-of-use asset   19 194   5 394   24 588  
    Other financial and non-financial assets   2 107 768   (508)   2 107 260  
    Total assets   2 126 962   4 886   2 131 848  
    Equity – equity attributable to ordinary shareholders   199 063   190   199 253  
    Liabilities   1 927 899   4 696   1 932 595  
    Total equity and liabilities   2 126 962   4 886   2 131 848  

    Detailed information relating to the restatements and the impact of changes in our accounting policies, particularly the IFRS 16 transition, is available online in the group’s annual financial statements.

    Glossary
    A
    AGM
    Annual general meeting
    AI
    Artificial intelligence
    AML/CFT
    Anti-Money Laundering and Combating the Financing of Terrorism
    API
    Application programming interface
    AT1
    Additional tier 1 capital
    ATMs
    Automated teller machines
    B
    Banks Act
    South African Banks Act, 94 of 1990
    Basel III
    Basel Committee on Banking Supervision’s third Basel Accords
    B-BBEE
    Broad-based black economic empowerment
    bps
    basis points
    C
    CCY
    Constant currency
    CET 1
    Common equity tier 1 ratio
    CIB
    Corporate & Investment Banking
    CLR
    Credit loss ratio
    Companies Act
    Companies Act, 71 of 2008, as amended
    CPI
    Consumer price inflation
    CSI
    Client satisfaction index
    CT
    Computerised tomography
    CTC
    Cost-to-company
    D
    DRC
    Democratic Republic of Congo
    E
    ECD
    Early childhood development
    ECL
    Expected credit loss
    EDGE
    Excellence in Design for Greater Efficiencies
    EDO
    Enterprise data office
    eNPS
    Employee net promoter score
    ESG
    Environmental, social and governance
    EU
    European Union
    F
    FinTech
    Financial technology
    FAIS
    Financial Advisory and Intermediary Services
    FSCA
    Financial Sector Conduct Authority
    FX
    Foreign exchange
    G
    GDP
    Gross domestic product
    GDPR
    General Data Protection Regulation
    GRES
    Group Real Estate Services
    H
    HEPS
    Headline earnings per share
    HR
    Human resources
    I
    ICBC
    Industrial and Commercial Bank of China
    ICBCS
    ICBC Standard Plc
    ICT
    Information, communication and technology
    IFRS
    International Financial Reporting Standards
    IMF
    International Monetary Fund
    IPO
    Initial public offering
    IR
    Integrated reporting
    IT
    Information technology
    J
    JSE
    Johannesburg Stock Exchange
    K
    King IV
    King IV Report on Corporate Governance for South Africa 2016, also King Code
    KYC
    Know your customer
    L
    LCR
    Liquidity coverage ratio
    Liberty
    Liberty Holdings Limited
    LSE
    London Stock Exchange
    LTI
    Long-term incentive
    M
    MIT
    Massachusetts Institute of Technology
    MVNO
    Mobile virtual network operator
    MW
    Megawatts
    N
    NPS
    Net promoter score
    NSFR
    Net stable funding ratio
    NII
    Net interest income
    NIM
    Net interest margin
    NIR
    Non-interest revenue
    O
    OECD
    Organisation for Economic Cooperation and Development
    P
    PBB
    Personal & Business Banking
    POS
    Point of sale
    PRP
    Performance reward plan
    R
    remco
    Remuneration Committee
    ROE
    Return on equity
    RoRWA
    Return on risk-weighted assets
    RTS
    Report to society
    RWA
    Risk-weighted assets
    S
    SA
    South Africa
    SAGEA
    South African Graduate Employers Association
    SAICA
    South African Institute of Chartered Accountants
    SARA
    South African Reward Association
    SARB
    South African Reserve Bank
    SASBO
    South African Society of Bank Officials
    SBFC
    Standard Bank Financial Consultants
    SBSA
    The Standard Bank of South Africa Limited
    SDG
    Sustainable Development Goals
    SEE
    Social, economic and environmental
    SENS
    Stock exchange news service
    SME
    Small- and medium-sized enterprises
    SMS
    Short message service
    SOE
    State-owned enterprises
    STI
    Short-term incentive
    T
    The group
    Standard Bank Group Limited
    TB
    Tuberculosis
    TCFD
    Task Force on Climate-related Financial Disclosures
    TPS
    Transactional products and services
    U
    UN
    United Nations
    UNEP-FI
    United Nations Environment Programme Finance Initiative
    UNICEF
    United Nations Children’s Fund
    US
    United States
    V
    VAF
    Vehicle asset finance
    W
    WEF
    World Economic Forum
    Y
    YES
    Youth Employment Services

    More information about financial and other definitions used is, available online.

    CONTACT AND OTHER DETAILS

    Standard Bank Group Limited

    Registration No. 1969/017128/06
    Incorporated in the Republic of South Africa

    Investor relations
    Sarah Rivett-Carnac
    Tel: +27 11 631 6897

    Registered office
    9th Floor, Standard Bank Centre
    5 Simmonds Street, Johannesburg 2001
    PO Box 7725, Johannesburg 2000
    www.standardbank.com

    Group financial director
    Arno Daehnke
    Tel: +27 11 636 3756

    Please direct all annual report
    queries and comments to:
    [email protected]

    Please direct all customer-related
    queries and comments to:
    [email protected]

    Please direct all investor relations
    queries and comments to:
    [email protected]

    Group secretary
    Zola Stephen
    Tel: +27 11 631 9106

    Disclaimer

    This document contains certain statements that are ‘forward-looking’ with respect to certain of the group’s plans, goals and expectations relating to its future performance, results, strategies and objectives. Words such as “may”, “could”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “aim”, “outlook”, “believe”, “plan”, “seek”, “predict” or similar expressions typically identify forward-looking statements. These forward-looking statements are not statements of fact or guarantees of future performance, results, strategies and objectives, and by their nature, involve risk and uncertainty because they relate to future events and circumstances which are difficult to predict and are beyond the group’s control, including but not limited to, domestic and global economic conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities (including changes related to capital and solvency requirements), the impact of competition, as well as the impact of changes in domestic and global legislation and regulations in the jurisdictions in which the group and its affiliates operate. The group’s actual future performance, results, strategies and objectives may differ materially from the plans, goals and expectations expressed or implied in the forward-looking statements. The group makes no representations or warranty, express or implied, that these forward-looking statements will be achieved and undue reliance should not be placed on such statements. The group undertakes no obligation to update the historical information or forward-looking statements in this document and does not assume responsibility for any loss or damage arising as a result of the reliance by any party thereon.