Standard Bank reports strong FY results

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“Global economic activity and trade increased throughout the course of 2013, particularly in the second half of the year, but risks remain,” the company said in a statement.

Headline earnings were up 15 per cent to 17.1 million rand from 14.9 million rand, with return on equity was also up 14.1 per cent from 14 per cent in 2012.

Headline earnings per share were up to 1,065 cents from 935 cents in 2012. Sanlam’s net asset value per share was reported at 8,127 cents from 7,136 cents in 2012.

[DATA SBK:Standard Bank] is one of South Africa’s big four banks and is listed on the Johannesburg and Namibia stock exchanges. The bank also has a strong presence in various parts of the continent.

“Global economic activity and trade increased throughout the course of 2013, particularly in the second half of the year, but risks remain,” said Standard Bank.

“In South Africa, households continued to struggle despite the accommodative interest rate environment. Growth in household consumption expenditure, which accounts for approximately two-thirds of total GDP, moderated further in 2013.”

(READ MORE: Standard Bank improving economic presence in Africa)

Net interest income increased 15 per cent despite moderate customer loan growth of 9 per cent within banking activities.

Growth of net fee and commission growth of 9 per over the year was however achieved, and driven mostly by a good performance from Personal & Business Banking (PBB).

PBB achieved 11 per cent growth despite no price increases on personal transactional accounts during the year.

Credit impairments increased by 5 per cent over the year, and the credit loss ratio decreased to 1.04 per cent from 1.08 per cent in 2012.

Loans and advances to customers also increased by 9 per cent in 2013.

Headline earnings for Standard Bank’s Personal & Business Banking business unit increased from 7.3 million rand in 2012 to 8.3 million rand for the period in review, and the Corporate & Investment Banking business unit increased to 6.5 million rand from 4.4 million rand in 2012.

Standard Bank’s Central and other business units decreased significantly to 34 million rand from 493 million rand in 2012.

The bank’s global markets business increased revenues by 16 per cent on 2012, as a result of Standard Bank’s strategic focus on rest of Africa, where revenues increased by over 50 per cent, supported by a positive trading environment.

(READ MORE: Intra-regional bank acquisiton gaining momentum in Africa)

“The global economic outlook appears somewhat brighter in recent months due to the strengthening of US growth,” said Standard Bank.

“Robust economic growth of around 6 per cent is expected generally across sub-Saharan Africa in 2014, but only a mild improvement to 2.2 per cent growth is expected for South Africa assuming some negative impact from higher interest rates and subdued consumer demand.”