Standard Bank Group Limited
The Standard Bank of South Africa Limited
28 March 2024
Availability of the Standard Bank Group and The Standard Bank of South Africa Reporting Suite
Standard Bank Group (SBG)
An electronic version of the group's annual integrated report, governance report, remuneration report, risk and capital management report, sustainability disclosures, report to society and climate-related financial disclosures report have been made available on the following website: https://www.standardbank.com/sbg/standard-bank-group/investor-relations/results-and-reports
The Standard Bank Group 2024 Annual General Meeting (AGM) will be held on 10 June 2024. The notice of the AGM and proxy forms will be published on 29 April 2024.
The Standard Bank of South Africa Limited (SBSA)
The annual financial statements and the annual integrated report for The Standard Bank of South Africa Limited (the group and company) have been made available on the following website: https://www.standardbank.com/sbg/standard-bank-group/investor-relations/results-and-reports/subsidairies
The group and company further wish to advise that their audit reports were unqualified.
Restatement of Previously Published Results
During the preparation of the 2023 annual financial statements, the following restatements relating to previously published results were noted for both SBG and SBSA:
1. During the finalisation of the group results, the group amended its calculation of interest income on stage 3 loans and advances for Personal & Private Banking (PPB) and Business & Commercial Banking (BCB) clients as follows:
§ Previously, interest income on stage 3 loans and advances was calculated using a portfolio approach. The interest income on the stage 3 loan portfolio was calculated as the difference between the expected discounted and undiscounted recovery cash flows and was unwound on a straight-line basis over the expected period to resolution, being either recovery or write-off ("portfolio straight-line approach"). This modelling approach was utilised as a proxy for IFRS 9 Financial Instruments (IFRS 9) stage 3 interest income recognition requirement.
§ Going forward, interest income on stage 3 loans and advances will be calculated on a loan-by-loan basis. This change in calculation methodology is not a change in accounting policy. Interest income on stage 3 loans and advances will be calculated by multiplying the net carrying amount of each customer balance (after deducting credit impairments) by the effective interest rate of the loan and advance ("loan-by-loan outstanding balance approach"), which is aligned to the requirements of IFRS 9 stage 3 interest income recognition requirement.
§ During this change to the loan-by-loan outstanding balance approach, the group identified that by previously applying the portfolio straight-line approach to calculating stage 3 interest income, interest income and income statement credit impairments were erroneously understated by
R1 279 million for the 31 December 2022 reporting period.
§ The group has restated for this impact. The expected credit loss (ECL) provision is not impacted by this restatement, as the correction to interest income and income statement credit impairment each have an equal and opposite impact on the ECL provision.
§ This restatement has no impact on earnings attributable to ordinary shareholders or headline earnings but does impact the relevant ratios (being net interest margin, credit loss ratio, cost-to-income and jaws) which have been restated for this change. Furthermore, this change has no impact on gross loans and advances, balance sheet ECL provisions, coverage or statement of cash flows.
This restatement impact to the income statement line items is detailed below.
| | 2022 | ||
| | As previously reported Rm | Restatement Rm | Restated Rm |
| SBG group | | | |
| Income statement | | | |
| Interest income | 133 596 | 1 279 | 134 875 |
| Credit impairment charges | (12 064) | (1 279) | (13 343) |
| | 2022 | ||
| | As previously reported | Restatement | Restated |
| | Rm | Rm | Rm |
| SBSA company | | | |
| Income statement | | | |
| Interest income | 97 735 | 1 279 | 99 014 |
| Credit impairment charges | (8 571) | (1 279) | (9 850) |
| SBSA group | | | |
| Income statement | | | |
| Interest income | 98 469 | 1 279 | 99 748 |
| Credit impairment charges | (8 618) | (1 279) | (9 897) |
For details relating to the impact of the IFRS 17 Insurance Contracts transition on SBG, which is not included above, refer to the SBG annual financial statements.
For further information, please contact:
Marc Hearn
Standard Bank Group Limited
9th Floor
5 Simmonds Street, Johannesburg PO Box 2001
South Africa
Telephone number: +27 11 344 5004
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