Standard Bank : SBG 2022 Annual Results Foldout

Standard Bank Group

MARCH 2023

AFRICA IS OUR HOME,

WE DRIVE HER GROWTH

	Nigeria
Côte	Ghana
d'Ivoire

Who we are

We are Africa focused,

client led and digitally enabled.

We provide comprehensive

and integrated financial and related solutions to our clients.

We drive inclusive growth and sustainable development.

Africa is our home - we drive her growth

			Ethiopia
	South Sudan	(representative
		office)		On-the-ground
					presence in
	Uganda			20 sub-Saharan
		Kenya		African
Democratic Republic
			countries
	of Congo(DRC)
	Tanzania			Africa Regions
					contributed
Angola	Malawi			36% of group
				headline
	Zambia
					earnings
	Zimbabwe	Mozambique
Namibia
				Mauritius
	Botswana
	eSwatini
	Lesotho				West Africa
					South & Central Africa
	South Africa				East Africa
	INTERNATIONAL FINANCIAL			South Africa
	PRESENCE IN INTERNATIONAL
	SERVICES:		MARKETS:
	• Isle of Man		• Beijing		• London
	• Jersey		• Dubai		• New York

• Mauritius

Market position in Africa

African Bank	Most valuable
of the year	bank brand
(African Banker	(Brand Finance
Awards 2022)	Banking 500 2022)
Largest bank	Leading CIB
(by assets)	franchise
#1 in mortgages,	#3 asset
corporate	manager
deposits and	(by AUM/AUA)
deposits
(in SA)
Key financial metrics
R2.9	R1.6
trillion	trillion
assets	lending
R1.9	R1.4
trillion	trillion
deposits	AUA/AUM

Strategic priorities

+31%	>17 million
CIB client	active clients
revenues	(CHNW & BCC)

TRANSFORM CLIENT EXPERIENCE

EXECUTE WITH EXCELLENCE

DRIVE SUSTAINABLE GROWTH AND VALUE

FY22 - strong performance across all businesses and all key metrics

Franchise strength underpinned by our enviable client franchise, an expanding solution set and exceptional people

Consumer & High Net Worth

• Continued client franchise growth
• Improved client activity
• Optimising distribution

Business & Commercial Clients

• Attractive proposition
• Improved business activity
• Focused on solving for enterprise business

Corporate & Investment Banking

• Record revenues
• Diversified businesses all delivering
• Leading franchise on the continent

1. Excludes R1 128m Centre segment costs
2. CHNW - Consumer and High Net Worth
3. BCC - Business and Commercial Clients
4. CIB - Corporate and Investment Banking
5. Regional split based on legal entity, South Africa is SBSA - The Standard Bank of South Africa
6. SBG share of Liberty's IFRS headline earnings
7. Impact of SBG shares held for the benefit of Liberty policyholders

Diversification drives our franchise strength and resilient earnings

Client segment

			change
		Rbn	%
R31.7 bn1	CHNW2	8.9	27
BCC3	8.0	51
	CIB4	14.8	11

Client solutions

			change
		Rbn	%
R31.7 bn1	Banking	28.8	25
Insurance	2.2	22
	Investment	0.7	(10)

Regional split5

			change
		Rbn	%
R30.1 bn	South Africa	16.3	26
Africa Regions	12.2	36
	International	1.6	>100

Delivered record earnings, higher returns and increased dividends

	Headline		ROE
Record Group	earnings of		improved to
R34.2 bn	16.4%
NII, NIR and
PPOP	+37%		SB Activities
	year-on-year	ROE 16.3%
Record	Robust		Total dividend
CET1 ratio		of 1 206 cps
SBSA and	13.5%		58%
Africa Regions
revenue	CET1 target,	payout in
	>11%		FY22
HEADLINE EARNINGS CONTRIBUTION
		Change
		%	2022	2021
Total headline earnings		37	34 247	25 021
	Rm	22
Standard Bank activities	30 542	24 940
Banking	Rm	25	28 768	22 989
Insurance	Rm	22	2 178	1 784
Investments	Rm	(10)	724	800
Central and other	Rm	78	(1 128)	(633)
Liberty6	Rm	(>100)	2 031	(64)
Treasury share7	Rm	(32)	(243)	(355)
ICBCS	Rm	>100	1 917	500

FY22 - Record revenue and earnings driving higher ROE

Client-driven balance sheet growth, expanding revenues, positive jaws, and well managed credit risk

Customer deposits (Rtrn) (+8%)

2.0
1.5
1.0
0.5
0.0			Dec-22
Dec19	Dec-20	Dec-21
1.0	1.1	1.2	1.3
0.2	0.3	0.3	0.4
0.1	0.1	0.1	0.1
SBSA
Africa Regions
International

Gross customer loans (Rtrn) (+9%)

1.5

1.2

0.9

0.6

0.3

0.0

Dec-19Dec-20Dec-21Dec-22

0.5	0.5	0.5	0.6
0.2	0.2	0.3	0.3
0.4	0.4	0.5	0.5

Secured retail & business

Other retail & business

Corporate & sovereign

Total income (Rbn) (+18%)

150
120
90
60
30
0	FY19	FY20	FY21	FY22
	62.9	61.4	62.4	77.1
	47.5	47.2	50.9	56.3
Total	110.5	108.6	113.3	133.4
	NIl
	NIR

Pre-provision operating profit (Rbn) (+26%)

80
60
40
20
0	FY20	FY21	FY22
FY19
48.1	45.4	47.8	60.0

Income and cost growth (%)

1.1%	(3.1%)	0.7%	5.8%		Jaws

20.0

15.0

10.0

5.0

0.0

-5.0

FY19	FY20	FY21	FY22
4.9	(1.7)	4.3	17.7
3.7	1.4	3.6	11.9

Revenue growth

Cost growth

Credit impairment charges (Rbn) (+22%)

25				CLR
68bps	151bps	73bps	75bps
20
15
10
5
0	FY20	FY21	FY22
FY19
8.0	20.6	9.9	12.1

Capital (Rbn)
250
200
150
100
50
0			Dec-22
Dec-19	Dec-20	Dec-21
154	163	188	202
8	9	12	15
22	26	30	31

CET 1

Tier 1

Tier 2

Return on equity and cost of equity (%)

20.0

15.0

10.0

5.0
FY20	FY21	FY22
FY19
16.8	8.9	13.5	16.4
13.9	14.4	14.7	15.2

Group ROE

Cost of equity

Driving sustainable growth and value

On track to deliver our 2025 targets, focused on continued delivery.

Delivering attractive shareholder returns

Delivering a positive impact

Purposeful in our response

Support Africa's		Seek sustainable			Manage risk
sustainable		finance	posed by climate
development		opportunities			change
Standard Bank Group impact areas
		Financial inclusion			Infrastructure

2025 targets

7% - 9%

Revenue growth CAGR

Approaching 50%

Cost-to-income ratio

17% - 20%

Return on equity

Job creation and				Africa
enterprise growth	Health
trade and
						investment

E UE

	FY23
Key drivers	guidance	Key drivers
Net interest	Low-teen growth	"	Supported by balance sheet growth and continued
income			endowment tailwinds1
Non-interest	Mid-single digit	"	Continued growth in active clients and
revenue	growth		transactional activity will support fees
		"	Focus on sustaining trading revenues
Efficiency	Positive jaws	"	Focused on delivering below-inflation cost growth
Credit loss ratio	Above the	"	Difficult macroeconomic conditions will put
	mid-point of our		pressure on clients
	TTC2 range of 70
	bps - 100 bps
ROE	Continued	"	Focus on optimisation of capital deployed
	progress into the
	2025 target range
	of 17% - 20%
Dividend payout	45% - 60%	"	Supported by strong capital generation
ratio

1. SBSA, 100 bps increase equates to approximately R1.4 bn net interest income annualised.
2. Through-the-cycle.

	Sustainable finance and climate change		Education

Standard Bank Group Climate Policy

Net Zero	>R50bn	>R250bn
by 2050	renewables finance	sustainable finance

• Net zero carbon emissions from its own operations by 2040 and its portfolio of financed emissions by 2050
• Includes progressive short, medium and long-term targets to reduce the group's contribution to carbon emissions and accelerate its sustainable finance commitments
• A focus on renewable energy projects across Africa