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|
|As at 5 March 2020|
|Short term||Long term||Outlook|
|issuer default rating||B||BB+||Negative|
|Local currency issuer|
|National rating||F1 + (ZAF)||AA (ZAF)||Stable|
|Moody’s Investor Services|
For further details regarding the group’s credit ratings, including credit ratings for key subsidiaries, click here.
During 2019, certain financial information published in 2018 was restated to correct errors identified in the classification of certain information. These are detailed below.
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:
|Trading revenue||11 129||(330)||10 799|
|Other revenue||3 533||330||3 863|
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:
|Statement of financial position|
|Financial investment||547 405||1 121||548 526|
|Loans and advances||1 120 668||(1 121)||1 119 547|
|Net interest income||(59 622)||117||(59 505)|
|Other gains and losses on financial instruments||(672)||(117)||(789)|
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.
|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.
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
Tel: +27 11 631 6897
9th Floor, Standard Bank Centre
5 Simmonds Street, Johannesburg 2001
PO Box 7725, Johannesburg 2000
Group financial director
Tel: +27 11 636 3756
Tel: +27 11 631 9106
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.