Company Announcements

SBK Voluntary trading statement and pre-close call

Source: RNS
RNS Number : 8526T
Standard Bank Group Limited
29 November 2021
 

Standard Bank Group Limited

The Standard Bank of South Africa Limited

29 November 2021

 

Voluntary trading update and pre-close call details

As the recovery across our markets of operation continues, the group's lending and transactional activity continues to gain momentum. In South Africa, in the ten months to 31 October 2021, mortgage, vehicle and asset finance, and business disbursements continued to trend well above prior periods and personal unsecured lending disbursements recovered to 2019 levels. In Africa Regions, personal loan volumes were also higher period on period, driven by a strong recovery in branch-originated loans. Investment Banking (IB) origination supported a recovery in the IB loan book balances to levels close to those as at 31 December 2020.

 

Revenues continued to recover, supported by higher average balances, a growing client base, improved sales, and higher activity levels relative to the comparative period (i.e. the ten months to 31 October 2020). In South Africa, card spend recovered to 2019 levels, while merchant acquiring turnover was well in excess thereof. In Africa Regions, transaction volumes also reflected good growth. Trading revenue has been better than expected in recent months.

 

Costs remain well managed. Cost growth was driven by higher activity- and performance-related costs, including incentives. While we still expect negative jaws for FY21, we expect jaws to narrow relative to 1H21. 

 

Credit performance continues to track better than expected.

 

In October, the relevant Liberty Holdings Limited (Liberty) preference and ordinary shareholders approved the schemes proposed by the group. With regards to the Liberty preference shareholders, the conditions to the preference share scheme were satisfied, the consideration has been paid and the Liberty preference shares have been delisted from the JSE Limited. With regards to the Liberty ordinary shareholders, we are in the process of obtaining the requisite regulatory approvals and still expect to satisfy the remaining outstanding conditions to the ordinary share scheme to allow us to complete the transaction in the first quarter of 2022. With regards to Liberty's performance, please refer to Liberty's voluntary operational update announcement released on SENS on 18 November 2021.

 

The group's capital and liquidity levels remain well above regulatory minimums and internal risk appetite thresholds. The group's common equity tier 1 ratio (including unappropriated profits) was 13.5% as at 30 September 2021 (31 December 2020: 13.2%). Additional capital and liquidity information can be found in the group's Pillar 3 Report available on the group's Investor Relations website.

 

Group guidance for the twelve months to 31 December 2021, as provided in August 2021, remains unchanged.

 

While the global recovery is expected to be uneven, our diversified client base, broad portfolio of solutions, and geographic footprint position us well to continue to manage risk and find opportunities to partner our clients in their growth journeys. We are executing the strategy set out at our Strategy Update in August 2021 and are focused on delivering against the targets we committed to. All three of our client segments are showing good underlying momentum, which bodes well for 2022.

 

Standard Bank will release its financial results for the 2021 financial year on 11 March 2022. The event details will be made available on the group's Investor Relations website in due course.

 

Investor call

 

Standard Bank will host an investor call at 17h00 (South Africa time) on 29 November 2021. To register for the call please use the link below:

Standard Bank Pre-close call Registration link

 

Alternatively, the call registration details are available on the Standard Bank Group Investor Relations website - https://reporting.standardbank.com/

 

A replay will be available on the Investor Relations website shortly after the end of the call. 

 

Shareholders are advised that the information contained in this voluntary trading update has not been reviewed or reported on by the group's external auditors.

 

 

For further information, please contact:

Ann Hunter

Standard Bank Group Limited
9th Floor
5 Simmonds Street, Johannesburg PO Box 2001
South Africa
Telephone number: +27 11 415 4194

 

DISCLAIMER

This Announcement is not intended to, and shall not, constitute or contain an offer to sell or solicitation of an offer to purchase the securities referred to herein by any person in any jurisdiction where it is unlawful to make an offer or solicitation. The distribution of the Announcement and the offer or sale of the securities referred to herein in certain jurisdictions is restricted by law. This Announcement may not be used for or in connection with, and does not constitute, any offer to, or solicitation by, anyone in any jurisdiction or under any circumstance in which such offer or solicitation is not authorised or is unlawful.

 

In the United Kingdom, this Announcement is being distributed only to, and is directed only at, persons who are (i) investment professionals, as such term is defined in Article 19(5) of the U.K. Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the Financial Promotion Order); (ii) persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations, etc.") of the Financial Promotion Order; (iii) outside the United Kingdom; or (iv) persons to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any Notes may otherwise lawfully be communicated or caused to be communicated.

 

The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the Securities Act), or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to US persons (as such term is defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act. The issuer of the securities has not registered, and does not intend to register, any portion of the offering in the United States, and does not intend to conduct a public offering of the securities in the United States.

 

Your right to access this service is conditional upon complying with the above requirement.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
STRBLBRTMTBTMFB