Company Announcements

Trading Statement

Source: RNS
RNS Number : 7492H
Standard Bank Group Limited
28 November 2022

Standard Bank Group Limited

28 November 2022


Voluntary trading update for the ten months to 31 October 2022


Since reporting in August 2022, sustained elevated inflation globally has prompted further monetary tightening. Between August 2022 and October 2022, interest rates increased in all our markets of operation except Angola and Zambia. In Angola interest rates declined by 50 basis points in September 2022 and in Zambia, interest rates were flat. Ghana has experienced some sovereign stress.


In South Africa, inflation moderated slightly from a peak of 7.8% in July 2022 to 7.6% in October 2022. Inflation is expected to average 6.9% for 2022. Considering the global backdrop and the inflation outlook, the South African Reserve Bank's Monetary Policy Committee decided at its November meeting to increase the repo rate by 75 basis points to 7.00% (31 December 2021: 3.75%). This takes the year-to-date increase to 325 basis points. On average, over the period, the South African Rand (ZAR) has been weaker relative to the group's basket of currencies.


In the ten months to 31 October 2022 (10M22), relative to the ten months to 31 October 2021 (10M21), robust average balance sheet growth, combined with positive endowment tailwinds from higher average interest rates, resulted in strong double-digit net interest income growth period on period. Non-interest revenue growth remained robust supported by growth in transactional activity, trading revenue and insurance earnings. Insurance earnings growth was underpinned by higher fees mainly due to annual fee increases, continued good funeral policy performance, and lower credit life claims compared to the prior period.


Cost growth was higher than expected, driven by both higher inflation and higher levels of activity, particularly in Africa Regions. Despite upward pressure, cost growth was contained to below the group's weighted average rate of inflation (14%) and the group continued to record strong positive jaws.


Group credit impairment charges increased period on period, influenced by the low base in 2H21. The Consumer and High Net Worth portfolio continued to benefit from better collections and the ongoing normalisation of previous payment holiday portfolios. This was partially offset by increased impairment charges from new business strain as well as pockets of consumer strain. The Business and Commercial Client credit impairment charges were largely flat, as a decline in impairment charges in South Africa were offset by increased charges in Africa Regions.  Corporate and Investment Banking charges continued to normalise; with additional provisions raised due to portfolio growth, internal rating downgrades and client-specific provisions. The group remains well provided and can weather an uptick in delinquencies. For the twelve months to 31 December 2022 (FY22), the group's credit loss ratio is still expected to remain in the lower half of the group's through-the-cycle target range of 70 to 100 basis points.


Group earnings growth was boosted further by an ongoing recovery in Liberty earnings, as the pandemic impact waned, as well as an insurance settlement received by ICBC Standard Bank plc (ICBCS) in January 2022. ICBCS also continued to report a positive operational performance for 10M22. 


Group return on equity (ROE) remained above the group's cost of equity (1H22 COE: 15.1%) and improved relative to the ROE reported in 1H22 (1H22 ROE: 15.3%).


The group remains well capitalised and liquid. The group's common equity tier 1 ratio (including unappropriated profits) was 13.2% as at 30 September 2022.


FY22 total income growth and cost growth are expected to be higher than guided in August 2022.  This is driven principally by faster than expected increases in interest rates and higher inflation. However, we do expect continued positive jaws. We will provide guidance for FY23 when we report in March 2023.


Lastly, the group continues to benefit from strong momentum across all its businesses and geographies and is on track to deliver against the targets committed to in August 2021 by 2025, namely:

-     Compound annual revenue growth of 7% to 9%;

-     A cost-to-income ratio of approaching 50%; and

-     An ROE in our target range of 17% to 20%.


Standard Bank Group will report financial results for the twelve months to 31 December 2022 on 9 March 2023. The event details will be made available on the group's Investor Relations website in due course.


Investor call

Standard Bank Group will host an investor call at 17h00 (South Africa time) on 28 November 2022. To register for the call please use the link below:


SBG Pre-close call link


Alternatively, the call registration details are available on the Standard Bank Group Investor Relations website -


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



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 or visit

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.