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”)

Voluntary trading update for the ten months to 31 October 2023
FY23 guidance
We confirm that the group’s guidance for the twelve-month period to 31 December 2023
(FY23 or the year) remains intact. In summary:
   -   Banking revenue growth year on year is expected to be robust, underpinned by
       strong momentum across the franchise;
   -   Banking cost growth is expected to remain elevated, but the group expects to deliver
       strong positive jaws;
   -   Credit impairment charge growth is expected to moderate in the six months to 31
       December 2023 (2H23) and the group’s credit loss ratio for FY23 is expected to
       remain within the group’s through-the-cycle target range of 70 basis points to 100
       basis points, albeit above the mid-point; and
   -   Return on equity is expected to remain well anchored in the group’s 2025 target
       range of 17% to 20%.
10M23 update
Unless noted otherwise, the following commentary refers to the ten months to 31 October
2023 (10M23 or the period), relative to the ten months to 31 October 2022 (10M22).
Banking revenue growth has slowed but remained above 20% period on period, driven by
continued strong net interest income and non-interest revenue growth.
While higher average interest rates continued to support net interest margin, net interest
margin expansion has slowed in recent months given that the interest rate increases seen in
2H22 are now embedded in the base. Lower demand, reduced affordability, and competitive
pricing pressure (particularly in mortgages in South Africa), resulted in lower disbursements
to retail and business clients and a slowdown in growth in the related loan portfolios.
Corporate origination remained strong, driven by energy-related opportunities.
Non-interest revenue growth was low-to-mid teens period on period, supported by ongoing
client acquisition, higher transaction volumes, annual price increases, and continued
volatility which supported trading revenues.
Cost growth remained elevated but was slower than that reported in 1H23 (1H23: 16%). The
group continued to record strong positive jaws.
Credit impairment charges growth also slowed but remained elevated due to a combination
of balance sheet growth, client strain linked to the rapid interest rate increases, sovereign
risk migrations in Africa Regions, and provisions linked to specific corporates in South Africa.
The group’s credit loss ratio for 10M23 remained below the top of the group’s through-the-
cycle target range. Relative to levels as at 30 June 2023, balance sheet provisions remain
high, and coverage remains strong. Both are deemed appropriate at this stage of the cycle.
IFRS9-related macro-economic assumptions will be reviewed as part of the year-end
reporting process.
Africa Regions continued to perform very well and delivered strong earnings growth period
on period in both reported and constant currency. Africa Regions’ contribution to group
headline earnings for 10M23 was 44%.
All other trends were as reported in the group’s announcement dated 17 October 2023.
The group will provide guidance for 2024 when it reports its financial results for FY23 on 14
March 2024.
Investor call
Standard Bank will host an investor call at 17h00 (South Africa time) on 27 November 2023.
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.

Queries:
Investor Relations
Sarah Rivett-Carnac
Email: sarah.rivett-carnac@standardbank.co.za

Johannesburg
27 November 2023

JSE sponsor
The Standard Bank of South Africa Limited

Namibian sponsor
Simonis Storm Securities (Proprietary) Limited