This morning we released our interim results for 2015. The Group delivered solid growth in Africa during the first half of the year despite economic challenges facing sub-Saharan Africa.
Group headline earnings increased by 27% to R10 529 million and headline earnings per share (HEPS) increased by 27% to 651 cents.
Results highlights for the six months to 30 June 2015:
Total dividend per ordinary share: 303 cents per share, up 17% from 1H14
Tier 1 capital adequacy ratio: 13.7% (1H14: 12.7%)
Net asset value (NAV) per share: Increased by 6%
Return on equity (ROE): increased to 15.1% from 12.7%
Cost to income ratio: 56.7% from 55.3%
Credit loss ratio: declined to 0.99% from 1.13%
Global growth of 2.2% in the first quarter of 2015 underperformed the International Monetary Fund expectations set at the beginning of the year. The economic recovery in the Eurozone seems broadly on track, while in South Africa, the lower oil price has temporarily lowered inflation but electricity shortages, accompanied by subdued consumer and business confidence, restricted economic growth to 2.1%.
Overall, although economic growth has subsided slightly from the 5% achieved in 2014, sub-Saharan Africa remains one of the world’s fastest growing regions.
Global growth of 3.3% is expected in 2015 and South Africa’s economic growth outlook remains around 2% for 2015 and 2016.
Our Group Chief Executive Sim Tshabalala reaffirmed the Group’s strong position at the results presentation and said in spite of the evident economic challenges Standard Bank Group remains committed to making progress, delivering value and equity to our customers and shareholders. We will continue to leverage our brand, market positioning and talented staff to better service our clients and customers across Africa.