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: +27 11 344 5004

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