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standard bank interim results 2020

GM headline earnings increased 88% to R4.4 billion. The world changed fundamentally and, to some extent, permanently, in a matter of weeks. Mortgages and VAF represented 62% and 23% of the PBB SA client relief portfolio respectively. The CET1 ratio, including the full IFRS 9 transitional impact, was 12.5%. Negative endowment, and related margin compression, more than offset the revenue increases related to balance sheet growth. On behalf of everyone at the Standard Bank Group, thank you for joining us for our first fully online results presentation. MENU DATA . While the pandemic has created distress and anxiety for many people, it has also created new opportunities, specifically the opportunity to accelerate change. PBB headline earnings declined 60% to R2.9 billion and ROE declined to 7.5% (1H19: 20.1%). Significant increases in impairment charges were recorded in East Africa, South & Central Africa, as well as in South Africa. Deeds and vehicle registration offices were closed in April and the first half of May, stalling mortgage and vehicle and asset finance (VAF) portfolio growth. Despite the pandemic-related disruptions, PBB SA released several new digital capabilities and product enhancements. Investment Banking (IB) revenues were negatively impacted by muted growth in fees and equity investment valuation declines on the back of the difficult economic environment. Deposits from customers grew 19% period on period to R1.5 trillion. As we re-imagine the future, we remain of the view that our future-ready strategy remains valid. The International Monetary Fund is forecasting global real GDP to contract by 4.9%, sub-Saharan Africa by 3.2% and South Africa by 8.0% in 2020, followed by a recovery of 5.4%, 3.4% and 3.5% respectively, in 2021. In South Africa, the interrupted power supply extended the 4Q19 recession into 1Q20. Net interest margin (NIM) declined 57 bps to 387 bps. No.1962/000738/06). Pre-provision operating profit grew 19% period on period. Africa Regions delivered a strong performance. These loans are included in the business lending portfolio and were partly drawn by 30 June 2020. During this time, we have remained steadfast in support of our clients, our employees and the communities in the countries in which we operate. Headline earnings 44% 1h19: R13 361 million. Operating expenses were well contained and supported by the savings derived from the branch reconfiguration concluded in 1H19. Client behaviour post the expiry thereof will be key. Revenue grew 3%. USA : 1 412 317 0088 In South Africa, the business maintained its foreign exchange market share and improved its equities market share. From a sector perspective, the Consumer (primarily Retail and Hospitality), Industrials, Oil & Gas, Power & Infrastructure and Real Estate sectors were most impacted. It was found that aspects of work performed to develop improvements to CIB’s client engagement system were no longer suitable. Live cross to Standard Bank’s interim results presentation. Supply chains were disrupted, and demand declined. Who we are. The group also issued R5.5 billion Basel III compliant Tier 2 capital, the proceeds of which were invested in The Standard Bank of South Africa. Transactional Products & Services (TPS) revenues were negatively impacted by margin pressure as well as adverse regulatory requirements, in particular in Nigeria. STANDARD BANK GROUP 7 TCFD Interim Report 2020 Impact of climate-related risks and opportunities on business, strategy and financial planning Standard Bank has undertaken a preliminary assessment of high carbon emitting sectors in our portfolio. Wealth International revenues were negatively impacted by lower interest rates (USD and GBP), albeit partially offset by higher fees from higher client FX transactional volumes. Annual Reports. Fear and uncertainty drove a precipitous fall in the markets and a liquidity squeeze in 1Q20. The difference between headline earnings and profit attributable can be ascribed to a R1.4 billion post-tax gain on the sale of the 20% stake in ICBCA, the associated R3.4 billion negative impact of the FCTR release on sale and R1.9 billion related to the impairment of certain IT intangible assets. The group’s Africa Regions business and Corporate and Investment Banking business, most notably Global Markets, delivered strong top line growth. The group’s Africa Regions business proved relatively resilient, delivering headline earnings growth of 11%, and 7% in constant currency (CCY). CIB Covid-19 client risk exposure restructures equated to R48 billion. Physical transactions are expected to continue to decline as the transition to digital accelerates post Covid-19. Net fee and commission income declined as consumer activity levels and transactional volumes decreased significantly as a result of the lockdowns. Structural balance sheet changes required, following the South African sovereign downgrade, also impacted performance. NIM declined 42 bps to 559 bps. Global Markets (GM) revenue grew 43% on the back of strong risk management and increased client activity in volatile markets. The increase was driven by the deterioration in customer risk profiles and forward-looking assumptions, additional charges associated with the client relief portfolio in PBB, and corporate and sovereign risk downgrades. As a result, Africa Region’s contribution to 1H20 banking headline earnings grew to 62%. Lower turnover, trade and transactional levels alongside regulatory directives placed a strain on fees. In August 2019, the group exercised its option to sell its 20% stake in ICBC Argentina to the Industrial and Commercial Bank of China (ICBC). Is it a good time to be buying a bank on the continent? Credit impairment charges increased significantly relative to 1H19, driven by the non-repeat of a prior year recovery coupled with deteriorating risk grades and increased provisioning across the IB portfolio. We continue to proactively manage the costs recorded in the centre. Financial results. Fairbairn Private Bank Board of Executives Nedcor Investment Bank Peoples Bank SENS announcements. Presentations. We remain committed to delivering a positive societal, economic and environmental impact. Standard Bank Group’s headline earnings for the six months to 30 June 2020 were R7.5 billion (USD453 million) and at 30 June 2020 total assets were R2.6 trillion (USD151 billion). ESG. USD10 billion) for the six months to 30 June 2020, Standard Bank offers a range of banking and related financial services across sub-Saharan Africa. In line with the South African Reserve Bank’s guidance, the SBG Board has not declared an interim dividend. We thank them for their service. While this should be supportive for NIR growth into 2H20, ongoing uncertainty is expected to constrain balance sheet growth. Standard Bank has maintained its position as the country’s biggest bank, ... Absa has updated its customer base in its 2020 interim results, revealing a base of 9.7 million customers. A partial resumption of economic activity, following the relaxation of the lockdown regulations in the second half of May and in June, resulted in a partial recovery of transactional volumes and values and, in turn, NIR by the end of the period. The gain on sale and the FCTR impact are both outside of headline earnings and therefore, did not impact group headline earnings. Standard Bank Group, one of SA's big four banks, is announcing its 2020 interim results on Thursday August 20, with a live webcast from 10am … PBB SA was impacted by negative endowment, elevated impairments, lower transactional volumes and a significant decline in loan disbursements in 2Q20. The condensed financial results of Standard Bank Group Limited (Standard Bank) for the six month period ended 30 June 2020 have been published and submitted to … The group’s 40% share of ICBCS’ earnings equated to R508 million. ESG. As a group operating across the continent, with operations and clients across the globe, we need to adapt to remain relevant. PAGE 2 OUR PURPOSE AFRICA IS OUR HOME, WE DRIVE HER GROWTH 62% of banking headline earnings from Africa Regions1 ... 2020 were replaced with expectations for a large decline (FY20 real GDP growth, … Covid-19 ) and the distressing human and economic toll ( NIM ) declined 57 bps to 387 bps client provided. 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