We continued to reap the benefits of ongoing growth in its businesses both in South Africa and our rest of Africa franchise, in the six months to June 30, 2016.
Rest of Africa contributed 31% to the group’s total income, relative to 29% in the prior period, and 25% to the group’s headline earnings.
Results for the six months to 30 June 2016 at a glance:
Headline earnings: R10 861 million, up 5%
Headline earnings per share (HEPS): 680 cents, up 5%
Interim dividend per share: 340 cents per share, up 12% from 1H15
Common equity tier I ratio: 13.2% (1H15: 13.1%)
Return on equity (ROE): decreased from 15.1% to 14.4%
Cost to income ratio: improved from 57.3% to 56.8%
Credit loss ratio: increased from 99bps to 105bps
Globally the slow speed of China’s economic re-balancing, sustained low commodity prices and overall weak global demand have resulted in increased volatility and uncertainty.
Across sub-Saharan Africa, oil and commodity export-reliant countries continue to feel the impact of lower prices on the back of excess supply and subdued demand from China.
In South Africa, the mining and agriculture sector headwinds associated with low commodity prices and the persistent drought, continued to place pressure on the economy into 2016.
Sim Tshabalala, Standard Bank Group Chief Executive says, “We continue to monitor developments in the banking sector and financial markets to ensure that we remain appropriately equipped to deliver on our vision to be the leading financial services organisation in, for and across Africa. We are focused on delivering effective solutions tailored to our customers’ needs and continue to invest in our franchise, our products and our people."
We are cognisant of the constraints under which our customers are currently operating. Despite increasing credit provisions to reflect this, the group remains well capitalised and in a position to continue to invest and grow in its targeted sectors and countries.