Standard Bank Group, the parent company of Stanbic Bank Ghana, produced a sound financial performance for 2012 and demonstrated good momentum in its businesses.
The group delivered 10 percent growth in headline earnings to a record US$1.77 billion, and 23 percent growth in attributable earnings to US$1.95 billion, the difference largely due to the US$0.18 billion profit realised from the sale of a majority stake in Standard Bank Argentina (SBA) during the year.
Jacko Maree, Group Chief Executive (CEO), commenting on the achievement, said: ‘The group’s results for 2012 reflect divergent themes. On the one hand, they indicate the considerable challenges the group has faced. Many of the negative factors are evident in Corporate & Investment Banking’s results, with headline earnings down 13 percent from 2011. On the other hand, the exciting prospects of our Africa-centred strategy are beginning to show in the performance across our business units.’
Standard Bank’s focus on maintaining its position in South Africa and growing in chosen markets in the rest of Africa paid off in 2012.
Revenue from the group’s banking activities increased by 17 percent and in the rest of Africa revenues were up by impressive 38 percent.
This was the result of Standard Bank’s consistent efforts over the last few years to gain new customers, win new mandates and increase its reach, underpinned by significant investment in systems and people.
‘The results show that the growth areas aligned to our strategic focus did very well, with areas that we are in the process of scaling down performing worse than expected, a vindication of the new focus of the Group. It is a clear and positive demonstration of the new drive for the Bank, which Stanbic Ghana is proud of,’ said Alhassan Andani, Chief Executive, Ghana.
During the year, Standard Bank continued to downsize its operations outside of Africa in a responsible and deliberate manner.
Given the narrowed focus and the prevailing macroeconomic environment, revenues from this operation were not sufficient to cover specific credit impairments and the enlarged cost base of a small investment bank in the new regulatory regime.
Personal & Business Banking (PBB) reported headline earnings of US$0.88 billion, which were 27 percent higher than the prior year.
An return-on-earnings (ROE) of 20 percent was achieved. PBB in South Africa delivered an excellent performance with headline earnings of US$0.9 billion, up 25 percent.
PBB in the rest of Africa reported a loss, albeit smaller than the prior year.
Corporate & Investment Banking (CIB) reported headline earnings of US$564.82 million, down 13 percent on the prior year.
Despite the business delivering strong revenues, with total income up 20 percent on the prior year, this was more than offset by cost growth (including a once-off restructuring charge) and several large impairment charges.
By Samuel Boadi
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