Statement re 10M24 Voluntary Trading Update

Standard Bank Group Limited

02 December 2024

 

Standard Bank Group Limited

2 December 2024

Voluntary trading update for the ten months to 31 October 2024

10M24 performance

For the ten months to 31 October 2024 (10M24), Standard Bank Group's underlying operational and financial trends were robust and reflective of the continued momentum in the underlying franchise.

Group headline earnings grew by low-to-mid single digits in South African Rand (ZAR) and by mid-teens on a constant currency basis in the 10M24 relative to the ten months to 31 October 2023 (10M23 or period on period).

Currency devaluations in various countries in which the group operates on the African continent, together with, more recently, the stronger ZAR, continued to dilute the group's performance in ZAR. Previously, this impact was expected to moderate in the second half of the year, however this was not the case in the four months to 31 October 2024. Importantly, while the impact thereof is a headwind to reported revenue growth trends, it also favourably impacts reported operating expenses and credit impairment charges.

Banking headline earnings also grew by low-to-mid single digits in ZAR and by mid-teens on a constant currency basis period on period. Balance sheet growth has been slower than expected due to larger-than-expected currency movements in Africa Regions, and net interest income growth slowed to low-to-mid single digits period on period. Non-interest revenue declined by low-to-mid single digits period on period as continued growth in fees and commissions was more than offset by a decline in trading revenue off a high base in 10M23.

Cost growth was well contained, reflecting continued cost management discipline, and dampened by currency translation impacts. Revenue growth remained slightly ahead of cost growth.

Credit impairments were lower period on period due to a slowdown in early arrears and lower inflows into non-performing loans in Personal and Private Banking as reported previously. The group's credit loss ratio for 10M24 remained in the top half of the group's through-the-cycle range of 70 to 100 basis points.

Outlook

In line with previous guidance for the twelve months to 31 December 2024 (FY24), the group remains committed to delivering:

·      Banking revenue growth of low single digits in ZAR and low double digits in constant currency;

·      Banking revenue growth at or above operating expenses growth, resulting in a flat to lower cost-to-income ratio year on year; and

·      Group ROE well anchored in the group's target range of 17% to 20%.

The group has proved resilient and continued to deliver strong organic growth. This is reflective of the value in the diversity of the franchise across the four businesses and three regions and is testament to the strength of the client franchise and resilience of our people.

The group will provide guidance for 2025 when it reports its financial results for FY24 in March 2025.

Investor call

Standard Bank Group will host an investor call at 17h00 (South Africa time) on 2 December 2024. To register for the call please use the link below:

Standard Bank Group Pre-close call registration

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 announcement has not been reviewed or reported on by the group's external auditors.

For further information, please contact:

Marc Hearn

Standard Bank Group Limited
9th Floor
5 Simmonds Street, Johannesburg PO Box 2001
South Africa
Telephone number: [phone]

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.

 

END