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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