Standard Bank : SBG Annual Results Booklet

		STANDARD BANK GROUP
		FINANCIAL
standardbank.com	Angola	RESULTS
	Mussulo Bay	for the year ended 31 December 2023

STANDARD BANK GROUP

ANALYSIS OF FINANCIAL RESULTS

for the year ended 31 December 2023

ANALYSIS OF FINANCIAL RESULTS for the year ended 31 December 2023

Standard Bank Group

is purpose-driven, African 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.

PRESENCE IN INTERNATIONAL MARKETS

Beijing Dubai London New York

INTERNATIONAL FINANCIAL SERVICES

Isle of Man Jersey Mauritius

• East Africa
• South & Central Africa
• West Africa
• South Africa

STANDARD BANK GROUP ANALYSIS OF FINANCIAL RESULTS	1
for the year ended 31 December 2023

Highlights

STANDARD BANK GROUP1

			Profit attributable
Headline	Headline earnings		to ordinary
earnings (Rm)	per share (HEPS) (c)	shareholders (Rm)
42 948 27%	2 590 26%	44 211 29%
2022: R33 853 million	2022: 2 050 cents		2022: R34 243 million
Return on equity	Net asset		Common equity	Dividend per
(ROE) (%)	value per share (c)		tier 1 ratio (%)	share (c)
18.8	14 269	8%	13.7	1 423 18%
2022: 16.3%	2022: 13 172 cents		2022: 13.4%	2022: 1 206 cents
Headline earnings and return on equity		Headline earnings and dividend per share
CAGR2 (2018 - 2023): 9%			CAGR (2018 - 2023): Dividend per share:	8%
				Headline earnings per share: 8%

Rm	%
		Cents	%

Listed on the					Business units
JSE Limited (JSE)					Personal & Private Banking
since 1970
	Banking
of operation
>160 years					Business & Commercial Banking
Operating in					Corporate & Investment Banking
20 countries					Insurance & Asset Management
in Africa

1	GROUP RESULTS	21	BUSINESS UNIT	53	BANKING FINANCIAL	71 LIQUIDITY AND CAPITAL
			REPORTING		PERFORMANCE	MANAGEMENT
79	KEY LEGAL ENTITY	109	ADDITIONAL	127	SHAREHOLDER
	INFORMATION		INFORMATION		INFORMATION

Standard Bank Group's (SBG or the group) analysis of financial results for the year ended 31 December 2023 have not been audited or independently reviewed. The preparation of the financial results was supervised by the Chief Finance & Value Management Officer, Arno Daehnke BSc, MSc, PhD, MBA, AMP.

2018

2019

2020

2021

20221

■

■■ ■

■

■

Headlineearnings

■

■■ ■

■■ ■

Returnonequity

■

Dividendpershare

■

Headlineearningspershare

■■ ■

Dividendpayoutratio

BUSINESS UNITS3

Banking

Return on	Cost-to-income ratio			Credit loss ratio1
equity (%)	(%)1		Jaws (%)1		(CLR) (bps)
19.5	51.4		+5.7		98
2022: 16.4%	2022: 53.9%		2022: +9.0%		2022: 83 bps
Insurance & Asset Management
Return on	Assets under		Long-term insurance	Insurance
equity	management		indexed new		operations new
(%)	(Rbn)		business (Rm)		business value (Rm)
13.1	1 480	7%	12 128	8%	3 000 13%
2022: 10.5%	2022: R1 382 billion		2022: R11 226 million		2022: R2 656 million

1. Restated, refer to page 111 - 114 for further detail. 
2. Compound annual growth rate.
3. Refer to pages 22 - 23 for more information.

2 GROUP RESULTS

FINANCIAL RESULTS, RATIOS AND STATISTICS

STANDARD BANK GROUP ANALYSIS OF FINANCIAL RESULTS	3
for the year ended 31 December 2023

MARKET AND ECONOMIC INDICATORS

		Change
		%		2023	2022
Standard Bank Group (SBG)
Headline earnings contribution by business unit1
Total headline earnings	Rm	27	42 948	33 853
SBG Franchise2
Rm	30	41 662	31 936
Banking	Rm	31	38 842	29 616
Insurance & Asset Management	Rm	22	2 820	2 320
ICBCS	Rm	(33)	1 286	1 917
Ordinary shareholders' interest
Profit attributable to ordinary shareholders	Rm	29	44 211	34 243
Ordinary shareholders' equity	Rm	8	236 445	218 197
Share statistics
Headline earnings per ordinary share (HEPS)	cents	26	2 590.4	2 050.4
Diluted HEPS	cents	26	2 559.7	2 035.6
Basic earnings per share (EPS)	cents	29	2 666.6	2 074.1

SBK versus JSE Banks and All Share Index

(ZAR)

• January December
  ■ StandardBank ■ JSEBanksIndex ■ JSEAllShareIndex

SBK versus Emerging Markets and World Financials (USD)

• January December
  ■ StandardBank
  ■ MSCIEmergingMarketsIndex ■ MSCIWorldFinancials

Diluted EPS	cents	28	2 635.0	2 059.0
Dividend per share	cents	18	1 423	1 206
Net asset value per share	cents	8	14 269	13 172
Tangible net asset value per share	cents	10	13 501	12 259
Dividend payout ratio	%		55	59
Number of ordinary shares in issue	thousands	0	1 657 075	1 656 553
Return ratios
Return on equity (ROE)	%		18.8	16.3
Return on risk-weighted assets (RoRWA)	%		2.9	2.6
Capital adequacy
Common equity tier 1 capital adequacy ratio	%		13.7	13.4
Tier 1 capital adequacy ratio	%		15.0	14.4
Total capital adequacy ratio	%		17.0	16.5
Number of clients
Active client base	thousands	6	18 847	17 710
Taxation
Effective direct taxation rate	%		24.2	23.1
Employee statistics
Number of employees	number	2	50 451	49 325
Banking
ROE	%		19.5	16.4
Loan-to-deposit ratio	%		78.9	78.6
Net interest margin (NIM)3	bps		494	432
Non-interest revenue to operating expenses	%		72.4	73.0
Credit loss ratio (CLR)3	bps		98	83
Jaws3	%		5.7	9.0
Cost-to-income ratio3	%		51.4	53.9
Insurance & Asset Management
ROE	%		13.1	10.5
Assets under management	Rbn	7	1 480	1 382
Long-term insurance indexed new business	Rm	8	12 128	11 226
Insurance operations new business value4	Rm	13	3 000	2 656
Short-term insurance gross written premiums	Rm	9	5 155	4 728
Solvency capital requirement cover of Liberty Group Limited	times covered		1.81	1.76

1. Refer to pages 22 - 23 for more information.
2. Standard Bank Group Franchise represents the group's core business activities which consists of Personal & Private Banking, Business & Commercial Banking, Corporate & Investment Banking, and Insurance & Asset Management.
3. Restated, refer to page 111 - 114 for further detail. 
4. Represents the expected economic value of new business generated, in that specific reporting period, over its lifetime.

			Average				Closing
		Change				Change
	%	2023	2022	%	2023	2022
Market indicators
South Africa (SA) prime overdraft rate	%		11.42	8.61			11.75	10.50
SA SARB repo rate	%		7.92	5.11			8.25	7.00
SA Consumer Price Index	%		5.9	6.9			5.1	7.2
Weighted average Group inflation1	%		8.8	9.2			8.0	10.2
Weighted average Africa Regions inflation1	%		14.4	13.5			14.6	15.8
UK Consumer Price Index	%		7.4	9.1			4.0	10.5
JSE All Share Index	7	75 902	70 665	5	76 893	73 049
JSE Banks Index	2	9 967	9 725	11	10 948	9 854
SBK share price	11	180.26	161.75	24	208.10	167.79
Key exchange rates
USD/ZAR	13	18.45	16.30	9	18.52	16.97
GBP/ZAR	14	22.95	20.19	15	23.53	20.42
ZAR/AOA	32	37.42	28.37	51	45.24	29.99
ZAR/GHS	17	0.63	0.54	8	0.65	0.60
ZAR/NGN	34	34.97	26.08	88	51.05	27.14
ZAR/KES	5	7.59	7.22	16	8.44	7.27
ZAR/UGX	(11)	202.08	225.80	(7)	204.09	218.89
ZAR/MZN	(12)	3.46	3.92	(8)	3.45	3.76
ZAR/ZMW	6	1.10	1.04	30	1.38	1.06
ZAR/ZWL	>100	101.52	22.05	>100	329.66	40.32

1 Excludes Zimbabwe.

4 GROUP RESULTS

OVERVIEW OF FINANCIAL RESULTS

In 2023, Standard Bank Group delivered earnings growth of 27% and a return on equity of 18.8%. This strong performance is underpinned by our robust and growing franchise and is reflective of the positive momentum in all our businesses.

Banking

Banking headline earnings reflected a strong performance, up 31% period on period. Banking ROE increased from 16.4% to 19.5%.

Loans and advances

STANDARD BANK GROUP ANALYSIS OF FINANCIAL RESULTS	5
for the year ended 31 December 2023

Trading revenue increased by 20% to R20.5 billion, driven by increased client-backed trades as well as market-specific opportunities linked to market dislocations which occurred during the year.

Growth in other gains on financial instruments was driven by an

Group results

In the twelve months to 31 December 2023 (FY23), the group recorded headline earnings of R42.9 billion, up 27% relative to the twelve months to 31 December 2022 (FY22) and delivered a return on equity (ROE) of 18.8% (FY22: 16.3%). This strong performance is underpinned by our robust and growing franchise and reflective of the good momentum in our business. Our Africa Regions franchise contributed 42% to group headline earnings. The top eight contributors to Africa Regions' headline earnings were Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda, Zambia and Zimbabwe.

In FY23, the group effectively defended and grew its banking franchise and improved banking earnings and returns. Client franchise health showed improvements across a number of metrics. Active customers grew by 6% to 18.8 million, with growth recorded in both South Africa and Africa Regions. In addition, digital retail clients in South Africa increased by 8% as more clients transitioned to our convenient digital channels. In the year, the group recorded over 2.8 billion digital transactions for retail clients, up 30% year on year, and distributed over R41.1 billion on behalf of our South African clients via our digital wallet platform. Client satisfaction scores improved across various channels, particularly digital in South Africa.

The Insurance & Asset Management franchise recorded an improved insurance performance and growth in its assets under management year on year. Since the announcement of the Liberty minority buyout, the group has received over R5.7 billion in distributions related primarily to capital optimisation. In FY23, the group successfully bought out the minorities of Liberty2Degrees (L2D). L2D holds an attractive portfolio of commercial properties.

The group ended the year with a common equity tier 1 ratio of 13.7% (31 December 2022: 13.4%). This positions the group well to reward shareholders and continue to grow. The SBG board approved a final dividend of 733 cents per share which, when combined with the interim dividend, equates to a dividend payout ratio of 55% for FY23.

In 2023, the group mobilised over R50 billion of sustainable finance for corporate clients and provided over R2 billion in loans to SMEs to help business owners access affordable and reliable alternative energy products. In addition, the group disbursed over R145 million to homeowners and over R840 million to businesses for solar installations in South Africa.

Operating environment

In 2023, uncertainty remained elevated globally. The year was one of two halves. In the six months to 30 June 2023 (1H23), inflation remained elevated and interest rates continued to rise. In the second six months to 31 December 2023 (2H23), central banks paused whilst monitoring inflation trends and developing geopolitical risks. Across most markets, inflation was stickier than forecast and interest rate cuts were delayed. The International Monetary Fund (IMF) forecast global real gross domestic product (GDP) growth of 3.1% in 2023.

Sub-Saharan Africa also experienced inflationary pressures and monetary policy tightening. Higher debt costs increased fiscal pressures and sovereign risks in certain countries, which in turn, drove currency weakness. There was progress on Ghana's debt restructure, Kenya's funding outlook improved, and Nigeria took steps to liberalise the Naira. While currency movements were mixed across the group's portfolio of countries, they were weaker on average by the end of the year.

In South Africa, inflation peaked in March 2023 at 7.1%, and then declined to end the year at 5.1% in December 2023. The South African Reserve Bank increased interest rates by a cumulative 125 basis points by the end of May 2023 and then paused.

The repo rate closed the year at 8.25%. While electricity disruptions and logistics constraints placed pressure on businesses and corporates, and in turn on the economy, progress was made during the year, particularly in the last quarter, towards delivering sustained improvements on both fronts. South Africa's real

GDP grew at 0.6% in 2023.

Overview of performance

The group's products and services are grouped into i) Banking and ii) Insurance & Asset Management.

Gross loans and advances grew by 7% year on year to R1.7 trillion. Subdued growth across the retail portfolios together with a decline in business lending was more than offset by strong growth in the Corporate and Sovereign lending portfolio. Higher interest rates negatively impacted demand and affordability and resulted in a slowdown across mortgages, card and personal unsecured lending in 2H23. In South Africa, personal unsecured loan applications increased but approvals declined. The business lending portfolio declined by 5% due to lower client demand linked to elevated rates, reduced appetite to invest, and higher early repayments. Renewable-energy deals and higher demand for trade facilities supported the corporate portfolio. The Africa Regions' loans and advances to customers grew by 20% in constant currency but was broadly flat in ZAR.

Total provisions increased by 15% to R64.0 billion. Total coverage increased from 3.6% at 31 December 2022 to 3.8% at 31 December 2023 driven by an increase in Stage 3 loans and related provisions. Stage 3 coverage decreased marginally from 50% at 31 December 2022 to 47% at 31 December 2023 driven by the increase in the proportion of early stage non-performing (Stage 3) loans which attract lower coverage.

Deposits and funding

Deposits from customers increased by 7% year on year to

R1.9 trillion, driven by ongoing underlying client franchise growth. Wholesale-priced deposits grew by 7% and retail-priced deposits grew by 4%. Deposits from banks decreased by 4% year on year. Current and savings balances growth slowed as clients increased spending and/or moved their funds to term products to take advantage of more attractive interest rates. Term deposits grew by 12%.

Revenue

Revenue grew by 21%, driven by net interest income growth of 25% and non-interest revenue growth of 14%.

The group has amended the methodology for recognising interest on Stage 3 loans. This change resulted in an increase in net interest income and an equal and opposite increase in credit impairment charges. The change also resulted in a 7 basis point increase in the group's FY22 net interest margin to 432 basis points and a

8 basis point increase in the group's FY22 credit loss ratio to 83 basis points.

Net interest income growth was driven by strong average balance sheet growth (average gross loans to customers grew by 11%) and higher margins. The net interest margin increased by 62 basis points to 494 basis points. Strong margin expansion, driven

increase in the fair value financial investment portfolio and higher mark-to-market gains.

Credit impairment charges

Credit impairment charges increased by 22% to R16.3 billion. The increase in charges was driven by new loan origination, client strain driving partial payments, negative sovereign risk migration, and new defaults in the Industrial sector and legacy exposures in the Consumer sector. In South Africa, credit impairment charges increased across all portfolios, compounded by the non-recurrence of credit recoveries on the payment holiday portfolio in FY22

(R500 million). In Africa Regions, balance sheet growth, client- specific provisions, and risk migrations led to higher credit charges. The group's credit loss ratio increased from 83 basis points in FY22 to 98 basis points in FY23, at the top of the group's through-the-cycle credit loss ratio target range of 70 to

100 basis points.

Operating expenses

In FY23, we invested in our franchise and our client propositions. We hired over 1 000 people, increased our points of representation in South Africa, launched several new products (including our solar loan) and expanded our digital offerings and functionality. Operating expenses increased by 15% to R79.7 billion, impacted by inflationary pressures, particularly in Africa Regions. Staff costs grew by 17% driven by a larger staff complement, annual increases, and higher performance-linked incentives. Other operating costs grew by 12% driven by higher business activity- related spend.

Software, cloud, and technology-related costs increased by 14% due to higher spend on cloud migration and software licenses as well as personalisation and other focused AI-driven projects.

System stability and availability was excellent throughout the year. Amortisation declined by 4% as the group's large historic

IT programs started to roll off.

Growth in premises-related costs was well contained at 10%. Increased municipal charges and higher fuel costs linked to electricity disruptions in South Africa were offset by savings from continued infrastructure optimisation. In South Africa, continued rationalisation of our footprint led to a reduction in our branch square meterage (down 4% year on year) and our ATM network (down 6% year on year). Professional fees increased due to higher audit fees and higher legal fees related to collection initiatives. In addition, travel and entertainment costs increased as business- related activity continued to recover off a low base. Total income growth exceeded cost growth, resulting in strong positive jaws of

HEADLINE EARNINGS BY BUSINESS UNIT

	CCY	Change	2023	20221
	%	%	Rm	Rm
SBG Franchise	39	30	41 662	31 936
Banking	40	31	38 842	29 616
Insurance & Asset Management	29	22	2 820	2 320
ICBCS (40% stake)	(40)	(33)	1 286	1 917
Standard Bank Group	34	27	42 948	33 853

by higher average interest rates across South Africa, Africa Regions and International (i.e. positive endowment), was moderated by pricing pressure in South Africa linked to increased competition

in home loans, vehicle and asset finance, and corporate lending. Positive endowment contributed the equivalent of

R10.8 billion uplift in net interest income in FY23 compared to FY22 (55 basis points).

A larger, increasingly engaged client base and annual price increases, combined with higher client trade and transactional activity resulted in 10% growth in net fee and commissions. Increased client card spend and travel supported healthy growth in card and foreign exchange related fees.

5.7% and a decline in the cost-to-income ratio to 51.4% (FY22: 53.9%).

Central and other

This segment includes costs associated with corporate functions and the group's treasury and capital requirements that have not been otherwise allocated to the business units. In FY23, the central headline loss amounted to R1.0 billion (FY22: loss of R1.4 billion). The loss decreased due to an increase in net interest income driven by higher average interest rates and a higher level of capital held at the Centre.

1 Restated, refer to page 111 - 114 for further detail.

6 GROUP RESULTS

OVERVIEW OF FINANCIAL RESULTS

STANDARD BANK GROUP ANALYSIS OF FINANCIAL RESULTS	7
for the year ended 31 December 2023

Insurance & Asset Management

Post the Liberty minority buyout in FY22, Liberty has been integrated into the group and is now included, with other related businesses, in the Insurance & Asset Management (IAM) business unit.

The insurance operations new business value increased by 13% year on year to R3.0 billion mainly due to an improved claims experience and increased sales. Insurance operating earnings grew by 23% to R3.9 million supported by the South African insurance business which increased operating earnings by 27% to

R3.9 million.

Assets under Management (AUM) in the South African asset management businesses increased by 8% to R1.0 trillion. This growth was attributed to the STANLIB South Africa business given positive local and offshore investment market movements during 2023. Asset management operating earnings decreased by 20% to R928 million, largely as a result of higher planned operating expenditure in STANLIB.

Overall, IAM headline earnings grew by 22% to R2.8 billion in FY23 and delivered an ROE of 13.1% (FY22: 10.5%). The capital coverage of the key legal entities within IAM remain robust.

ICBC Standard Bank Plc

ICBC Standard Bank Plc (ICBCS) recorded a strong operational performance in FY23 driven by increased client activity linked to market volatility. ICBCS (via the group's 40% stake) contributed R1.3 billion to group earnings (FY22: R1.9 billion, R1.2 billion thereof related to the insurance settlement and R0.7 billion thereof related to ICBCS' operational performance).

Profit attributable

The group's profit attributable to ordinary shareholders increased by 29% to R44.2 billion. The primary driver of the difference between the group's headline earnings and profit attributable was fair value gains on investment property in Zimbabwe.

Capital and liquidity

The group's common equity tier 1 ratio (including unappropriated profits) was 13.7% as at 31 December 2023 (31 December 2022, 13.4%). The group's Basel III liquidity coverage ratio and net stable funding ratio both remained well above the 100% regulatory requirements.

Prospects

In 2024, while global risks are expected to persist, the IMF is forecasting a soft landing. Inflation is expected to continue to fall providing scope for interest rate cuts. The IMF expects global real GDP growth to be 3.1% in 2024, in line with 2023.

Real GDP growth in sub-Saharan Africa is expected to accelerate from 3.3% to 3.8% as higher levels of growth in East Africa more than offsets lower growth in South Africa and Nigeria. The interest rate outlook is mixed. While some markets may still see interest rate increases in 1H24 (Angola, Kenya, Nigeria and Zambia), most markets are expected to start cutting interest rates in 2H24. Overall, the outlook is positive, but the region remains at risk of global shocks and climate events. In addition, 13 countries in sub-Saharan Africa will hold elections in 2024, including six where the group operates, namely Botswana, Ghana, Mauritius, Mozambique, Namibia, and South Africa.

In South Africa, inflation is expected to decline to 5.0% on average in 2024, supported by a lack of demand-driven inflation, a lack of wage pressure and favourable base effects. The repo rate is expected to decline to 7.50% by year end (Standard Bank Research: 3 cuts of 25 basis points each starting in July 2024 and one 25 basis point cut in 2025). The electricity shortfall is expected to ease notably, relative to that experienced in 2023, driven by an increase in Eskom supply and the ongoing expansion of private sector generation capacity. Actions to ease the logistics constraints are also expected to gather pace. Together, this should support an improvement in real GDP growth to 1.2% in 2024. The South African election outcome is not expected to drive a change in policy direction. Accordingly, the continued gradual policy reform should be growth-supportive over time. Any acceleration in resolving the electricity, road, rail, and port constraints would aid this further.

While organic growth (in constant currency) is expected to remain relatively robust, the group's year-on-year trends in reported currency (ZAR) will be dampened by the currency devaluations experienced in certain of our Africa Regions' countries in 2023 and forecast for 2024. The guidance that follows is based on year-on- year movements in reported currency (ZAR).

For the twelve months to 31 December 2024 (FY24), we expect average interest rates to be marginally down and pricing to remain competitive. Balance sheet growth to remain slow in 1H24, but improve in 2H24. Accordingly, net interest income is expected to be up low-to-mid single digits year on year. Fee and commissions are expected to grow at mid-single digits supported by a larger client base, increased client activity and higher client spend. Trading revenue is likely to decline off a high base in FY23, but will be subject to market developments and client flow. While there is a heightened focus on costs, we need to continue to invest in our business to remain competitive and grow. Banking revenue growth is expected to be similar to banking cost growth and Jaws flat to positive.

Our clients are likely to remain constrained until interest rates start to decline. Credit impairment charges are expected to peak in the first six months of 2024, driven primarily by ongoing strain in Personal & Private Banking. For FY24, the credit loss ratio is expected to remain within but near the top of the group's through- the-cycle credit loss ratio range of 70 to 100 basis points. A continued improvement in IAM earnings is expected to be partially offset by a decline in ICBCS earnings (off a high base). The group's FY24 ROE is expected to remain well anchored inside the group's target range of 17% to 20%.

While uncertainty is expected to remain elevated, our business is well diversified, growing, and resilient. We are focused on delivering against our strategic priorities and remain on track to deliver on our 2025 targets. The group is also on track to deliver against its ambitious sustainable finance and renewable energy targets.

In 2024, we will continue to support our clients, develop our employees, and deliver sustainable growth and value to our shareholders and other stakeholders. In addition, as a leading financial institution on the continent, we recognise our responsibility to deliver positive impact. We do so by delivering against our purpose of driving Africa's growth.

The forecast financial information above is the sole responsibility of the board and has not been reviewed and reported on by the group's auditors.

Sim Tshabalala	Nonkululeko Nyembezi
Group Chief Executive Officer	Chairman
14 March 2024	14 March 2024

8 GROUP RESULTS

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 December 2023

				1 January
	Change	2023	20221	2022
	%	Rm	Rm	Rm
Assets
Cash and balances with central banks	20	137 787	114 483	91 169
Derivative assets	31	97 419	74 410	63 688
Trading assets	1	316 515	314 918	285 020
Pledged assets	5	20 210	19 308	14 178
Disposal group assets held for sale	(58)	235	555	1 025
Financial investments	5	758 776	722 494	726 129
Current and deferred tax assets	2	9 784	9 585	7 616
Loans and advances	7	1 608 846	1 504 940	1 424 328
Insurance contract assets	(11)	1 631	1 830	1 264
Reinsurance contract assets	(2)	5 422	5 522	5 902
Receivables and other assets	(16)	33 482	39 647	29 215
Interest in associates and joint ventures	22	12 173	9 956	7 280
Investment property	4	30 444	29 289	29 985
Property, equipment and right of use assets	0	20 298	20 340	20 619
Goodwill and other intangible assets	(16)	12 723	15 120	16 909
Total assets	6	3 065 745	2 882 397	2 724 327
Equity and liabilities
Equity	7	276 920	258 866	242 891
Equity attributable to ordinary shareholders	8	236 445	218 197	198 873
Equity attributable to other equity holders2	23	24 167	19 667	16 052
Equity attributable to non-controlling interests	(22)	16 308	21 002	27 966
Liabilities	6	2 788 825	2 623 531	2 481 436
Derivative liabilities	22	103 373	85 049	67 259
Trading liabilities	(14)	94 468	109 928	81 484
Current and deferred tax liabilities	4	10 093	9 666	9 915
Disposal group liabilities held for sale				96
Deposits and debt funding	6	2 001 646	1 889 099	1 776 615
Financial liabilities under investment contracts	11	151 035	136 309	136 622
Insurance contract liabilities	8	251 389	231 849	233 730
Subordinated debt	2	32 227	31 744	30 430
Provisions and other liabilities	11	144 594	129 887	145 285
Total equity and liabilities	6	3 065 745	2 882 397	2 724 327

1. Restated, refer to page 111 - 114 for further detail.
2. Includes other equity holders of preference share capital and additional tier 1 capital (AT1).

STANDARD BANK GROUP ANALYSIS OF FINANCIAL RESULTS	9
for the year ended 31 December 2023

CONDENSED CONSOLIDATED INCOME STATEMENT

for the year ended 31 December 2023

	CCY	Change	2023	20221
	%	%	Rm	Rm
Net interest income	30	25	98 188	78 391
Non-interest revenue	19	13	62 003	54 965
Net income from Insurance & Asset Management	45	18	17 425	14 761
Total net income	26	20	177 616	148 117
Credit impairment charges	24	22	(16 261)	(13 343)
Net income before operating expenses	26	20	161 355	134 774
Operating expenses	17	13	(94 749)	(83 533)
Net income before non-trading and capital related items	40	30	66 606	51 241
Non-trading and capital related items	(>100)	>100	1 487	328
Share of post-tax profit from associates and joint ventures	(27)	(27)	1 648	2 265
Profit before indirect taxation	40	30	69 741	53 834
Indirect taxation	27	10	(3 373)	(3 077)
Profit before direct taxation	41	31	66 368	50 757
Direct taxation	47	37	(16 065)	(11 717)
Profit for the period	39	29	50 303	39 040
Attributable to ordinary shareholders	39	29	44 211	34 243
Attributable to other equity instrument holders	76	76	1 762	999
Attributable to non-controlling interests	32	14	4 330	3 798
Earnings per share
Basic earnings per ordinary share (cents)		29	2 666.6	2 074.1
Diluted earnings per ordinary share (cents)		28	2 635.0	2 059.0

1 Restated, refer to page 111 - 114 for further detail.

10 GROUP RESULTS

CONDENSED CONSOLIDATED STATEMENT

OF OTHER COMPREHENSIVE INCOME

for the year ended 31 December 2023

				2023			2022
				Non-controlling
						Non-controlling
			Ordinary	interests and		Ordinary	interests and
	Change		shareholders'	other equity	Total	shareholders'	other equity	Total
		equity	instruments	equity	equity	instruments	equity
	%		Rm	Rm	Rm	Rm	Rm	Rm
Profit for the period - restated1	29	44 211	6 092	50 303	34 243	4 797	39 040
Other comprehensive loss after tax for the period		(4 338)	(3 827)	(8 165)	(3 426)	(190)	(3 616)
Items that may be subsequently reclassified to profit/(loss)		(4 439)	(3 827)	(8 266)	(3 037)	23	(3 014)
Movements in the cash flow hedging reserve		802		802	235		235
Movement in debt instruments measured at fair value through other
comprehensive income (OCI)		160	69	229	(107)	(13)	(120)
Exchange difference on translating foreign operations		(5 406)	(3 896)	(9 302)	(3 197)	36	(3 161)
Net change on hedges of net investments in foreign operations		5		5	32		32
Items that may not be subsequently reclassified to profit/(loss)		101		101	(389)	(213)	(602)
Total comprehensive income for the period - restated1		39 873	2 265	42 138	30 817	4 607	35 424
Attributable to ordinary shareholders		39 873		39 873	30 817		30 817
Attributable to other equity holders				1 762	1 762		999	999
Attributable to non-controlling interests				503	503		3 608	3 608

1 Restated, refer to page 111 - 114 for further detail.

STANDARD BANK GROUP ANALYSIS OF FINANCIAL RESULTS	11
for the year ended 31 December 2023

12	GROUP RESULTS	STANDARD BANK GROUP ANALYSIS OF FINANCIAL RESULTS	13
		for the year ended 31 December 2023

CONDENSED CONSOLIDATED STATEMENT

OF CHANGES IN EQUITY

for the year ended 31 December 2023

			Foreign
	Ordinary share		currency			Ordinary	Other equity	Non-
	capital and	Treasury	translation	Retained	Other	shareholders'	instruments	controlling
	premium	shares	reserve	earnings	reserves	equity	holders	interest	Total equity
	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm
2023
Balance at 1 January 2023 - restated	27 509	(3 461)	(4 716)	190 582	8 283	218 197	19 667	21 002	258 866
Net movement in issued equity	(403)					(403)	4 500		4 097
Increase in statutory credit risk reserve				(795)	795
Transactions with non-controlling shareholders				484		484		(2 525)	(2 041)
Equity movements relating to share-based payments				(65)	586	521			521
Hyperinflation adjustments				641		641		1	642
Total comprehensive income for the period			(5 406)	44 191	1 088	39 873	1 762	503	42 138
Dividends paid				(23 161)		(23 161)	(1 762)	(2 472)	(27 395)
Other equity movements		479		(186)		293		(201)	92
Balance at 31 December 2023	27 106	(2 982)	(10 122)	211 691	10 752	236 445	24 167	16 308	276 920
2022
Balance at 1 January 2022	18 021	(3 199)	(1 603)	178 771	6 842	198 832	16 052	27 965	242 849
Transition to IFRS 171		840		(799)		41		1	42
Balance at 1 January 2022 - restated	18 021	(2 359)	(1 603)	177 972	6 842	198 873	16 052	27 966	242 891
Net movement in issued equity	9 488					9 488	3 615		13 103
Increase in statutory credit risk reserve				(477)	477
Transactions with non-controlling shareholders2			84	(4 685)	227	(4 374)		(6 883)	(11 257)
Equity movements relating to share-based payments				(331)	730	399		(277)	122
Hyperinflation adjustments				1 203		1 203		(1)	1 202
Total comprehensive income for the period			(3 197)	34 043	(29)	30 817	999	3 608	35 424
Dividends paid				(17 211)		(17 211)	(999)	(3 215)	(21 425)
Other equity movements		(1 102)		68	36	(998)		(196)	(1 194)
Balance at 31 December 2022 - restated	27 509	(3 461)	(4 716)	190 582	8 283	218 197	19 667	21 002	258 866

All balances are stated net of applicable tax.

1. Restated, refer to page 111 - 114 for further detail.
2. The transactions with non-controlling shareholders primarily consist of the completion of the group's acquisition of the remaining non-controlling ordinary shares in Liberty Holdings Limited.
   During 2023, the group assessed the presentation of the condensed consolidated statement of changes in equity within these results. It became evident that a more aggregated view of both the comparatives disclosed as well as movements and balances within these results, would provide more relevant and useful information which is more closely aligned to IAS 34 Interim Financial Reporting (IAS 34) disclosure requirements. As such the comparatives disclosed as well as movements and balances have been realigned to include the significant movements and balances for the financial year preceding the current reporting period (2022).
   This change in presentation had no impact on the group's other primary statements or any ratios impacted by equity.

14 GROUP RESULTS

BANKING INCOME STATEMENT

	CCY	Change	2023	20221
	%	%	Rm	Rm
Net interest income	30	25	97 495	77 953
Non-interest revenue	20	14	57 689	50 603
Net fee and commission revenue	17	10	30 825	27 993
Trading revenue	23	20	20 532	17 046
Other revenue	>100	23	1 241	1 006
Other gains and losses on financial instruments	13	12	2 728	2 435
Insurance inter-BU attribution2	11	11	2 363	2 123
Total income	26	21	155 184	128 556
Credit impairment charges	24	22	(16 262)	(13 312)
Loans and advances	32	29	(16 239)	(12 589)
Financial investments	(>100)	(>100)	159	(792)
Letters of credit, guarantees and other	(>100)	(>100)	(182)	69
Net income before operating expenses	26	21	138 922	115 244
Operating expenses	19	15	(79 722)	(69 296)
Staff costs	20	17	(46 076)	(39 275)
Other operating expenses	18	12	(33 646)	(30 021)
Net income before capital items and equity accounted earnings	38	29	59 200	45 948
Non-trading and capital related items	(>100)	>100	1 520	456
Net income before equity accounting earnings	38	31	60 720	46 404
Share of post-tax profits from associates and joint ventures	7	7	338	316
Profit before indirect taxation	41	31	61 058	46 720
Indirect taxation	13	10	(2 964)	(2 688)
Profit before direct taxation	43	32	58 094	44 032
Direct taxation	38	28	(12 719)	(9 916)
Profit for the period	44	33	45 375	34 116
Attributable to preference shareholders	39	39	(419)	(302)
Attributable to additional tier 1 capital noteholders	93	93	(1 342)	(695)
Attributable to non-controlling interests	34	15	(3 476)	(3 020)
Attributable to ordinary shareholders	44	33	40 138	30 099
Headline adjustable items	>100	>100	(1 296)	(483)
Banking headline earnings	40	31	38 842	29 616

RECONCILIATION TO STANDARD BANK GROUP HEADLINE EARNINGS

	CCY	Change	2023	20221
	%	%	Rm	Rm
Standard Bank Group Franchise	39	30	41 662	31 936
Banking	40	31	38 842	29 616
Insurance & Asset Management	29	22	2 820	2 320
ICBCS	(40)	(33)	1 286	1 917
Standard Bank Group headline earnings	34	27	42 948	33 853

STANDARD BANK GROUP ANALYSIS OF FINANCIAL RESULTS	15
for the year ended 31 December 2023

HEADLINE EARNINGS

Headline earnings

CAGR (2018 - 2023): 9%
Rm
■

RECONCILIATION OF GROUP HEADLINE EARNINGS TO PROFIT FOR THE PERIOD1

		2023				2022
			NCI
						NCI
			and				and
	Gross	Tax2	other3	Net	Gross	Tax2	other3	Net
	Rm	Rm	Rm	Rm	Rm	Rm	Rm	Rm
Standard Bank Group headline earnings1,4	64 881	(15 848)	(6 085)	42 948	50 429	(11 784)	(4 792)	33 853
Headline adjustable items	1 487	(217)	(7)	1 263	328	67	(5)	390
IAS 16 - Gains on sale of properties and equipment	25	(6)	(7)	12	39	(9)	(5)	25
IAS 16 - Compensation from third parties for assets
that were impaired	23	(6)		17	79	(22)		57
IAS 27/IAS 28 - Gains/(losses) on disposal of
businesses	38	(8)		30	(50)	15		(35)
IAS 28/IAS 36 - Impairment of associate	(62)	17		(45)	(74)	21		(53)
IAS 36 - Impairment of properties, equipment and
intangible assets					(18)	4		(14)
IAS 36 - Impairment of intangible assets					(386)	108		(278)
IAS 40 - Fair value gains on investment property	1 482	(218)		1 264	708	(42)		666
IFRS 5 - Remeasurement of disposal group assets	(19)	4		(15)	30	(8)		22
held for sale
Profit for the period1	66 368	(16 065)	(6 092)	44 211	50 757	(11 717)	(4 797)	34 243

1. Restated, refer to page 111 - 114 for further detail.
2. Direct taxation.
3. Non-controllinginterests and other equity instrument holders.
4. Headline earnings is based on the requirements as set out in the circular titled Headline earnings, issued by the South African Institute of Chartered Accounted, as amended from time to time.

1. Restated, refer to page 111 - 114 for further detail.
2. Share of profit between the product houses and the distribution network.