Standard Bank Group Limited
Registration number 1969/017128/06
Incorporated in the Republic of South Africa
Website: www.standardbank.com/reporting

Share codes
JSE and A2X share code: SBK
ISIN: ZAE000109815
NSX share code: SNB
SBKP ZAE000038881 (First preference shares)
SBPP ZAE000056339 (Second preference shares)
JSE bond code: SBKI
(“Standard Bank Group” or “the group”)

Financial information provided to the Industrial and Commercial Bank of China Limited
(“ICBC”) and update on the group’s operational performance for the three months ended 31
March 2023

Financial information provided to ICBC

On a quarterly basis the Standard Bank Group discloses to ICBC sufficient information to enable
ICBC to equity account the group's results. Accordingly, the following consolidated financial
information, prepared on an International Financial Reporting Standards (“IFRS”) basis, is being
provided to ICBC for the three months ended 31 March 2023 (1Q23).

Statement of changes in ordinary shareholders' equity for the three months ended 31 March
2023

                          Balance as at 1            Earnings            IFRS 17   Balance as at 31
                           January 2023        attributable to   transition1 and       March 2023
                                                     ordinary              other
                                                shareholders     movements for
                                                                     the period
                                     Rm                   Rm                Rm                 Rm

 Ordinary share capital              168                                                       168

 Ordinary share
 premium                          27 341                                      9             27 350

 Treasury shares2                 (4 619)                                 2 312             (2 307)

 Foreign currency
 translation and
 hedging reserves                 (5 576)                                 2 172             (3 404)

 Foreign currency
 translation reserve
 (FCTR)                           (4 716)                                 2 115             (2 601)

 Foreign currency net
 investment and total
 hedge reserve                      (860)                                    57               (803)

 Retained Earnings3,4            192 807               10 171           (13 674)           189 304

 Other                             9 143                                    168              9 311

 Ordinary
 shareholders’ equity            219 264               10 171            (9 013)           220 422
1 The   preliminary IFRS 17 transition impact on the group's total ordinary shareholders equity as at
    1 January 2023 is a reduction of R1.1 billion. This net reduction is made up of a reduction of
    R2.2 billion in retained earnings offset by an increase of R1.2 billion in the treasury share reserve.
2   The IFRS 17 transition adjustment as at 1 January 2023 for the treasury share reserve comprises an
    increase of R1.2 billion (1 January 2022 - increase of R0.8 billion) due to the removal of SBG shares
    held by Liberty Holdings Limited (Liberty) policyholders as treasury shares.
3   The IFRS 17 transition adjustment as at 1 January 2023 for retained earnings comprises a reduction
    of R2.2 billion (1 January 2022 – reduction of R0.8 billion). The largest component of the movement
    between 1 January 2022 and 1 January 2023 is as a result of the IFRS 17 transition impact on the
    completion of the group’s acquisition of shares held by non-controlling shareholders in Liberty during
    2022.
4   Other movements for the period in retained earnings primarily comprises the R11.6 billion ordinary
    dividends declared in March 2023.


Update on the group’s operational performance for the three months ended 31 March 2023

In 1Q23, on an IFRS17 basis, the group delivered attributable earnings of R10.2 billion. In 1Q22, on an
IFRS4 basis, the group delivered attributable earnings of R7.4 billion, which included a negative treasury
share adjustment of R517 million. If this adjustment (which is no longer required under IFRS17) is
excluded to create a more comparable base, attributable earnings grew by 28% for the period. A
comprehensive IFRS17 transition report, with fully restated and comparable prior year results and
opening equity adjustments, will be released during June 2023.

The group’s performance was supported by higher average interest rates, good balance sheet
momentum from 2022, continued growth in transactional volumes, a strong trading performance and an
ongoing recovery in Liberty Holdings Limited. A weaker rand exchange rate flattered earnings growth
rates in ZAR in the period.

Headline earnings adjustable items were not material in 1Q22 or 1Q23.

Standard Bank activities
Higher average interest rates and a larger balance sheet supported the group’s net interest margin and
net interest income growth period on period. Continued growth in transactional volumes, as well as the
impact of annual price increases across the continent, supported fee growth. Trading revenue benefitted
from higher client activity driven by continued global market volatility and client demand for forex
products. 1Q23 trading revenue was ahead of the comparative period and ahead of expectations.

Inflationary pressure, combined with higher transactional activity, annual staff cost increases and higher
premises expenses linked to loadshedding in South Africa, drove higher operating expenses period on
period.

Credit impairment charges in 1Q23 were higher than in the comparative period, given balance sheet
growth, client strain on the back of higher than anticipated interest rates and corporate and sovereign risk
migration. The group’s credit loss ratio for 1Q23 was closer to the upper end of the group’s through-the-
cycle target range of 70 to 100 basis points.

Liberty Holdings Limited
Liberty Holdings Limited (Liberty) recorded improved claims experience and strong earnings growth in
1Q23. The group’s 100% shareholding in Liberty is reflected from February 2022.

ICBC Standard Bank Plc (ICBCS)
ICBCS recorded an operational profit in 1Q23, however its contribution to the group declined period on
period due to the non-recurrence of an insurance recovery recognised by the group in January 2022.
Outlook
The group remains well capitalised and liquid. We continue to monitor the impacts of potentially higher
inflation for longer and hence higher interest rates, electricity supply constraints in South Africa, global
geopolitical tensions, and banking sector vulnerabilities; all of which pose risks to our outlook. Regardless
of the scenario which unfolds, we stand ready and able to serve the needs of our 18 million customers. In
line with previous guidance, we remain committed to delivering positive jaws and an improving return on
equity in 2023.



Johannesburg
21 April 2023

JSE sponsor
The Standard Bank of South Africa Limited

Namibian sponsor
Simonis Storm Securities (Proprietary) Limited