Standard Bank : SBG Annual Results Presentation

STANDARD BANK GROUP

2023 ANNUAL RESULTS PRESENTATION

14 MARCH 2024

Angola

Mussulo Bay

SBG overview - FY23 and beyond

Franchise performance - proved resilient over time

01	• Our purpose, strategy and targets

• A difficult geopolitical and macroeconomic backdrop, but outlook improved as the year progressed
• A business in good health that has proved resilient over the last five years

FY23 financial performance and 2024 outlook - our differentiated franchise delivered a differentiated performance

02	• Strong performance underpinned by our robust and growing franchise

• Diversified portfolio across 4 businesses and 26 countries, all regions delivering growth
• Short term headwinds, but tracking ahead of plan so remain confident we will deliver on SBG 2025 targets

Competitive position - scale, diversity, resilience

• Positive outlook over the medium to longer term: +4% sub-Saharan Africa GDP growth
• Well diversified business with unmatched scale: 4 businesses, 26 countries, R3.1trn assets, R178bn revenue

03	• Growing and engaged client franchise: Growth in active clients across BUs, +18.8m (up 6%), and higher client revenues

• Targeted technology investment enables competitiveness and resilience: BU-led investment in client systems, improved stability and security and increasing productivity
• Capturing opportunities linked to Africa's energy transition: +R50bn sustainable finance mobilised for clients in FY23
• Steady growth and strong momentum: 10% earnings CAGR1 over 10 years, 42% earnings contribution from Africa Regions

1 Compound annual growth rate

| STANDARD BANK GROUP FY23 FINANCIAL RESULTS PRESENTATION | 14 MARCH 2024	2

Franchise1.0 performance

SBG overview - FY23 and beyond

Franchise performance - proved resilient over time

01	• Our purpose, strategy and targets

• A difficult geopolitical and macroeconomic backdrop, but outlook improved as the year progressed
• A business in good health that has proved resilient over the last five years

1 Compound annual growth rate

| STANDARD BANK GROUP FY23 FINANCIAL RESULTS PRESENTATION | 14 MARCH 2024	4

Our purpose, strategy and targets

Our purpose:

Why we exist

Africa is our home, we drive her growth

	Transform client experience	Execute with excellence	Drive sustainable growth
			and value
Our 2025 financial	7% - 9%	~50%	17% - 20%
targets: What we
have committed to	Revenue growth CAGR1	Cost-to-income ratio2	Return on equity
deliver

1 Compound annual growth rate from 2020 to 2025, 2 Approaching 50%

| STANDARD BANK GROUP FY23 FINANCIAL RESULTS PRESENTATION | 14 MARCH 2024	5

2023 - a difficult geopolitical and macroeconomic backdrop

Global

• Severe geopolitical tensions throughout the year
• In 1H23, inflation remained elevated and interest rates continued to rise
• In 2H23, central banks paused while monitoring inflation trends and developing geopolitical risks
• Inflation was stickier than expected and interest rate cuts were delayed in most markets
• GDP growth of 3.1% estimated in 20231

1 International Monetary Fund, January 2024

Sub-Saharan Africa

• Serious conflicts persisted in some countries
• Inflationary pressures and monetary policy tightening
• Higher debt costs increased fiscal pressures and sovereign risks in certain countries, causing currency weakness
• Progress on Ghana's debt restructure, Kenya's funding outlook improved, Nigeria partially liberalised the Naira
• Currencies weaker on average than in 2022
• GDP growth of 3.3% estimated in 20231

South Africa

• Electricity disruptions and logistics constraints placed pressure on businesses and corporates, though actions taken to deliver sustained improvements on both
• Inflation peaked in March 2023 at 7.1%, and then declined to end the year at 5.1% in December 2023
• Interest rates increased by a cumulative 125 basis points by May 2023; the repo rate closed the year at 8.25%
• GDP growth of 0.6% in 2023

| STANDARD BANK GROUP FY23 FINANCIAL RESULTS PRESENTATION | 14 MARCH 2024

6

Last 5 years - a business in good health that has proved resilient over time

Total income1		Headline earnings & ROE		Dividend
	+40%	Headline earnings		Dividend
		18.8%	CET 1
		ROE
				13.7%
		16.8%		13.8%
					+43%
			+52%

110.5	108.6	113.3	128.6	155.2	28.2	15.9	25.0	33.9	42.9			994	240	871	1 206	1 423
															FY20 2
Rbn FY19	FY20	FY21	FY22	FY23	Rbn FY19	FY20	FY21	FY22	FY23 %	cps FY19	FY21	FY22	FY23

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

%

Income was resilient during the pandemic despite significant interest rate cuts, and has since accelerated

Earnings and returns recovered to well above levels recorded before the pandemic

Generated and optimised capital to support distributions to shareholders

1 Total income for banking operations, 2 No 2020 interim dividend paid as per guidance from the South African Reserve Bank

| STANDARD BANK GROUP FY23 FINANCIAL RESULTS PRESENTATION | 14 MARCH 2024	7

FY23 financial	2.0
performance and
2024 outlook

SBG overview - FY23 and beyond

FY23 financial performance and 2024 outlook - our differentiated franchise delivered a differentiated performance

02	• Strong performance underpinned by our robust and growing franchise

• Diversified portfolio across 4 businesses and 26 countries, all regions delivering growth
• Short term headwinds, but tracking ahead of plan so remain confident we will deliver on SBG 2025 targets

1 Compound annual growth rate

| STANDARD BANK GROUP FY23 FINANCIAL RESULTS PRESENTATION | 14 MARCH 2024	9

Group financial	2.1
performance