Standard Bank Group (SBG) Financial results presentation For the year ended 31 December 2009 Financial highlights FY09 change FY08 Headline earnings (Rm) 11 718 (17) 14 150 Headline EPS (HEPS) (cents) 756.9 (20) 942.6 Diluted HEPS (cents) 750.6 (20) 935.6 DPS (cents) 386 386 NAVPS (cents) 5 612 5 633 ROE () 13.6 18.2 Credit loss ratio () 1.60 1.55 Cost to income ratio () 52.4 49.2 Tier I capital adequacy ratio () 11.8 11.0 2 Standard Bank Group (SBG) financial results presentation 31 December 2009 1
Income statement highlights 1H09 2H09 FY09 yoy change Rm Rm Rm Net interest income 16 610 14 883 31 493 (2) Non interest revenue 15 282 15 935 31 217 6 Total income 31 892 30 818 62 710 2 Credit impairment charges 7 115 4 982 12 097 7 Operating expenses 15 962 16 865 32 827 8 Banking activities headline earnings 6 054 5 592 11 646 (14) Liberty headline (loss)/earnings (647) 719 72 (89) SBG headline earnings 5 407 6 311 11 718 (17) 3 Business unit view Headline earnings FY09 Rm change Personal & Business Banking 3 835 (19) Corporate & Investment Banking 7 507 (6) Central and other 304 (63) Banking activities 11 646 (14) Liberty 72 (89) SBG 11 718 (17) Headline earnings mix 2 1 33 FY09 FY08 ROE 64 Personal & Business Banking 15.8 19.7 Corporate & Investment Banking 18.3 22.1 Personal & Business Banking (FY08: 33) Banking activities 14.5 18.6 Corporate & Investment Banking (FY08: 56) Liberty 12 1.2 12.8 Central and other (FY08: 6) SBG 13.6 18.2 Liberty (FY08: 5) 4 2 Standard Bank Group (SBG) financial results presentation 31 December 2009
Geographic view Headline earnings FY09 Rm Headline earnings change FY09 Headline earnings mix FY09 ROE FY09 ROE FY08 South Africa (Banking activities) 8 657 (9) 74 25.5 29.6 South Africa (Liberty) 72 (89) 1 1.2 12.8 Central and other 304 (63) 2 South Africa & Central and other 9 033 (17) 77 16.5 22.0 Rest of Africa 1 206 (35) 10 10.0 16.0 Outside Africa 1 479 7 13 7.6 8.4 Outside South Africa 2 685 (17) 23 8.5 11.5 SBG 11 718 (17) 100 13.6 18.2 5 Business unit abridged income statement and key ratios Personal & Business Banking Corporate & Investment Banking FY09 Rm change Rm change Net interest income 19 639 (2) 10 660 1 Non interest revenue 14 463 7 17 041 9 Total income 34 102 2 27 701 6 Credit impairment charges 9 890 8 2 709 64 Operating expenses 18 379 6 14 592 9 Headline earnings 3 835 (19) 7 507 (6) ROE () 15.8 18.3 Credit loss ratio () 256 2.56 073 0.73 Cost to income ratio () 54.2 52.3 6 Standard Bank Group (SBG) financial results presentation 31 December 2009 3
Balance sheet Loans and advances FY09 change FY08 Rbn Rbn Personal & Business Banking 382 (2) 390 Mortgage loans 256 2 251 Instalment sale and finance leases 53 (15) 63 Card debtors 22 (4) 23 Other loans and advances 51 (4) 53 Corporate & Investment Banking 362 (12) 411 Banks 122 (6) 129 Customers 240 (15) 282 Central and other (2) 3 Gross loans and advances 742 (8) 804 South Africa 554 (1) 558 Rest of Africa 43 (20) 55 Outside Africa 145 (24) 191 8 4 Standard Bank Group (SBG) financial results presentation 31 December 2009
Deposit and current accounts FY09 change FY08 Rbn Rbn Personal & Business Banking 363 (2) 372 Retail priced 172 (1) 174 Wholesale priced 191 (4) 198 Money market 40 40 Securitisation 16 (13) 18 Intragroup from CIB 135 (4) 140 Corporate & Investment Banking 419 (13) 480 Central and other (13) (8) Deposit and current accounts 769 (9) 844 South Africa 572 (6) 607 Rest of Africa 72 1 72 Outside Africa 125 (25) 165 9 Group return on equity 6 000 30 5 000 22.9 24.2 25.4 25.4 24.8 25 4 000 18.2 20 3 000 2 000 14.8 13.4 12.0 12.6 13.4 15.2 14.6 13.6 15 10 1 000 5 0 2 154 2 453 2 809 3 548 4 255 5 633 5 612 0 cents FY03 FY04 FY05 FY06 FY07 FY08 FY09 NAV per share ROE Average cost of equity 10 Standard Bank Group (SBG) financial results presentation 31 December 2009 5
Income statement Banking activities NII and NIM 35 000 4.0 30 000 25 000 20 000 15 000 3.45 2.89 3.09 2.81 3.32 3.21 3.5 2.97 2.78 2.95 3.0 2.70 2.5 2.33 2.37 2.15 2.0 1.97 1.5 10 000 10 1.0 5 000 0.5 0 11 390 11 619 13 357 17 001 22 896 32 117 31 493 0.0 Rbn FY03 FY04 FY05 FY06 FY07 FY08 FY09 NII NIM before impairment charges NIM after impairment charges 12 6 Standard Bank Group (SBG) financial results presentation 31 December 2009
Margin analysis 40 000 0.30 (0.27) 38 000 2 151 (1 957) 0.11 799 (0.58) (4 124) 36 000 1.66 4.98 1 374 34 000 3 363 35 480 (0.09) 4.45 (1.24) 790 34 513 (3 020) 32 000 3.32 32 117 3.21 31 493 30 000 28 000 Rm FY08 Net non interest earning assets Interest earning assets Volume changes Loan pricing Loan funding cost IAS 39 discount unwind Endowment Other Interest earning assets Net non interest earning assets FY09 13 = net interest margin Non-interest revenue 35 000 30 000 25 000 3 020 2 378 9 463 2 488 10 621 20 000 15 000 10 000 5 000 1 320 3 740 7 327 1 433 3 750 8 913 1 788 3 721 10 107 2 488 4 852 11 825 7 216 14 511 17 607 18 108 0 Rm FY03 FY04 FY05 FY06 FY07 FY08 FY09 Fee and commission revenue Trading revenue Other revenue 14 Standard Bank Group (SBG) financial results presentation 31 December 2009 7
Non-interest revenue FY09 change FY08 Rm Rm Net fee and commission revenue 18 108 3 17 607 Account transaction fees 7 967 13 7 054 Electronic banking fees 1 657 5 1 575 Knowledge based fees 2 666 (24) 3 531 Other fee and commission 5 818 7 5 447 Trading revenue 10 621 12 9 463 Other revenue 2 488 5 2 378 Total non-interest revenue 31 217 6 29 448 15 Credit loss ratio and NPLs 2.0 FY07: 0.80 FY08: 1.55 FY09: 1.60 50 1.86 1.84 45 1.6 40 35 1.2 1.31 1.31 30 25 0.8 0.78 0.84 20 15 0.4 10 5 0.0 0 1H07 2H07 1H08 2H08 1H09 2H09 Rbn Credit loss ratio NPLs Net movement in NPLs for the period 16 8 Standard Bank Group (SBG) financial results presentation 31 December 2009
Cost-to-income ratio 60 50 55.7 56.9 55.2 52.5 51.6 49.2 52.4 40 30 30.8 32.5 32.1 30.2 30.2 27.4 28.5 20 10 0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Cost to income ratio Staff cost to income ratio 17 Liquidity and capital Standard Bank Group (SBG) financial results presentation 31 December 2009 9
Liquidity management and focus During 2H09, availability of term funding improved gradually Loan and debt capital markets selectively accessed to raise new term funding Group long-term funding ratio 25.2 (FY08: 22.9) Liquidity premium levels since the global financial crisis - South African premiums remained at elevated levels - International markets have seen a significant improvement in availability and pricing of term liquidity Unencumbered surplus liquidity R118.6bn (1H09: R136.2bn; FY08: R96.8bn) - Aligned with international best practice, surplus liquidity holdings are informed by stress test outcomes - Surplus liquidity holdings gradually being reduced since peak in June 2009 19 Net asset value movements Change on opening balance Rm Opening balance 1 January 2009 85 902 Transactions with shareholders (3.0) (2 572) Equity settled share based payments 07 0.7 565 Dividends paid (3.7) (3 137) Additional shareholder value 4.8 4 124 Headline earnings 13.6 11 718 Currency translation movements incl hedging activities (8.7) (7 509) Net available for sale and other cash flow hedging movements 0.1 85 Other (0.2) (170) Closing balance 31 December 2009 1.8 87 454 20 10 Standard Bank Group (SBG) financial results presentation 31 December 2009
Capital adequacy 15 12 9 0.4 2.4 0.9 10.5 0.4 1.9 0.9 10.1 0.2 03 0.3 2.1 2.9 0.9 1.0 11.1 10.8 Tier I Total FY09 SBSA Capital adequacy ratio 10.6 14.1 Regulatory minimum 7.0 9.75 Internal target 9.0 11 12 6 SBG 3 Capital adequacy ratio 11.8 14.9 Regulatory minimum 7.0 9.75 0 1H08 FY08 1H09 FY09 Tier I equity Tier I pref shares Tier II Tier III Internal target 9.0 11 12 21 Distributions per share 400 386 386 386 320 320 240 232 267 160 151 80 0 cents FY03 FY04 FY05 FY06 FY07 FY08 FY09 22 Standard Bank Group (SBG) financial results presentation 31 December 2009 11
Personal & Business Banking Peter Wharton-Hood Operating environment Severe global economic downturn Household debt-to-disposable income ratio remained elevated at 80 Sustained decrease in customer spending and demand for credit Locally, steep decline in interest rates - Exposure to endowment risk - No immediate relief to the consumer Increased levels of job losses - Increased default rates Strengthening of the Rand against African currencies Indications of recovery in 4Q09 24 12 Standard Bank Group (SBG) financial results presentation 31 December 2009
Personal & Business Banking approach to operating environment Excellent consistent customer service Transactional account base growth Modest asset growth - influenced by risk appetite and demand Reduced reliance on wholesale funding Engaged and connected people - no retrenchments Proactive credit management with emphasis on collections Continued investment in IT, infrastructure and branch network Embedding business processes 25 Personal & Business Banking performance FY09 Rm change FY08 Rm Net interest income 19 639 (2) 19 956 Non interest revenue 14 463 7 13 560 Total income 34 102 2 33 516 Credit impairment charges 9 890 8 9 196 Operating expenses 18 379 6 17 311 Headline earnings 3 835 (19) 4 739 26 Standard Bank Group (SBG) financial results presentation 31 December 2009 13
Personal & Business Banking South Africa 68:32 Personal:Business total income split (FY08: 70:30) Dedicated Business Banking focus now clear in the organisation Customer service initiatives proving invaluable - 5 growth to 7.8m primary customers - Independently voted best bank for service* - Internal service measure (CEBS) moved to all time high - Increased ATM distribution tion and availability ailabilit with 566 new ATMs - 13 increase in active internet users 27 * Ask Afrika Orange Index Personal & Business Banking South Africa Transactional account base grew in line with strategy - 11 increase in number of current accounts - Retail:Wholesale deposits ratio improved Focus on efficiencies and effectiveness - Staff costs up 3, headcount down 2 - Operational risk losses down 19 - Consolidation of processing centres from 15 to 4 Continued investment in and focus on rehabilitations and recoveries 28 14 Standard Bank Group (SBG) financial results presentation 31 December 2009
Personal & Business Banking Rest of Africa Sustained marketing campaigns and branch network expansion Products further embedded in-country with increased availability Rand strengthened against African currencies - Dampened headline earnings by R44m - Loans and advances down 6 in Rand dterms The majority of African countries showed growth in local currency terms Ongoing investment in infrastructure - Staff costs up 15, 5 increase in headcount to 8 015 employees - 19 increase in IT expenditure - Branches increased by 16 to 348 Branch expansion in Ghana, Kenya and Mozambique - ATMs increased by 150 to 770 ATM footprint increased in Nigeria and Uganda - 8 growth in customer base to 2.4m customers 29 Early arrears as a of book in PBB South Africa 5 4.2 4 3.5 3.6 3 2 1 2.0 1.7 1.6 1.2 2.1 2.4 2.2 1.8 14 1.4 0 1H07 FY07 1H08 FY08 1H09 FY09 Mortgage loans Instalment sale and finance leases Card debtors Other loans and advances 30 Standard Bank Group (SBG) financial results presentation 31 December 2009 15
NPLs as a of book in PBB South Africa 12 10 8 6 4 2 0 10.31 8.46 7.28 657 6.57 6.72 4.25 4.12 3.29 3.92 229 2.29 2.25 1.58 1H07 FY07 1H08 FY08 1H09 FY09 Mortgage loans Instalment sale and finance leases Card debtors Card debtors before methodology change Other loans and advances 31 Proactive credit management was a top priority in 2009 Personal Banking book - Collections focus with successful set-off and rehabilitation campaigns Mainly in mortgage lending - Restructures res an appropriate tool for managing consumer affordability Restructured mortgage portfolio increased further during the year - Internal debt review operational environment streamlined Substantial ti increase in volumes since June 2007 Business Banking book - Focus on appropriate levels of provisions - Review of collections strategies 32 16 Standard Bank Group (SBG) financial results presentation 31 December 2009
Contribution from product areas Total income Headline earnings FY09 Rm change FY09 Rm change Mortgage lending 4 478 33 (490) 45 Instalment sale and finance leases 2 947 5 (464) (66) Card products 4 682 (7) 657 98 Transactional and lending products 19 871 (2) 3 417 (30) Bancassurance 2 124 3 715 0 Personal & Business Banking 34 102 2 3 835 (19) 33 Mortgage lending Book increased by 2 - Prepayment levels reduced from 9.2 to 4.9 - Purchase of mortgages from SA Home Loans of R3.7bn Headline loss nearly halved to R490m - Proactive margin management in South Africa - Growth in Rest of Africa Slow growth in new business in South Africa - Positive risk appetite revision in 3Q09 - Mortgage origination strategy revisited with favourable outcomes Further book maturation; 69 2years (FY08: 42) NPLs up 59; likely to peak 1H10 Portfolio well provided; 18.1 gross impairment coverage Stable market share domestically 34 Standard Bank Group (SBG) financial results presentation 31 December 2009 17
Card products Card debtors decreased by 4 - Reduced consumer spending - Positive revisions in card risk appetite in 3Q09 98 growth in headline earnings - Credit impairment charge down 44 IAS39 methodology change to account for post write-off recoveries Credit loss ratio at 5.53 53 (FY08: 9.53) - Revenue growth in the Rest of Africa following successful marketing campaigns - Increased margins within Argentina 35 Instalment sale and finance leases Book contracted by 15 - Significantly reduced consumer demand; loan applications down 27 in South Africa - Stricter lending criteria implemented for passenger vehicles in 2H08 - Business portfolio negatively el impacted by downturn in economy - Partially offset by 20 growth in the Rest of Africa book Benefited from motor dealer and branch network strategy Credit impairment charge increased by 24 to R2.1bn Increased lending margins in Argentina 36 18 Standard Bank Group (SBG) financial results presentation 31 December 2009
Lending products Book contracted by 4 - Reduced appetite for credit utilisation - Decrease in personal term loans and import and export financing Outside Africa Term advances margins showed improvement Increase in credit impairment charge by 40 to R2.6bn Increased stress evident in SME market and top end of business banking 37 Transactional and investment products Acquisition of deposits and transactional customers in South Africa - Record number of current accounts opened in FY09 11 increase in number of current accounts - Strong product sales in lower end of the market Deposit margins impacted by negative endowment effect - Compounded by a shift in product mix to lower yielding products Reduced income within the Rest of Africa - Lower transactional volumes and bases - Negative endowment impact 38 Standard Bank Group (SBG) financial results presentation 31 December 2009 19
Bancassurance Headline earnings up marginally to R715m - Increased penetration in South Africa Home Loan protection at 28 Vehicle Loan protection ti at 28 Credit Card protection at 26 Funeral cover stable at 29 - Average premiums ms per policy up 2.5 - Partially offset by a reduction in complex product embedded value profits Solid performance from the Rest of Africa off small base Liberty co-operation operation steadily improving 39 Outlook Domestic retail environment starting to look positive Rest of Africa retail environments present good transactional and deposit gathering opportunities Service and internal efficiencies drive has left the bank well positioned Build on solid foundation to gather more customers in profitable markets/segments Continued focus on rehabilitations, recoveries and debt review Cautiously increase focus on good quality asset growth Continued investment in IT and infrastructure Extraction of growth from operations outside of South Africa 40 20 Standard Bank Group (SBG) financial results presentation 31 December 2009
Corporate & Investment Banking Rob Leith Operating environment Markets rebounded with government support measures but remain fragile Emerging markets, including South Africa, slipped into recession - Corporate defaults increased Distribution markets remain limited Increased government and regulatory intervention - Higher levels of uncertainty - Increased capital and liquidity idit requirements - Compensation challenges - Fiscal responses 42 Standard Bank Group (SBG) financial results presentation 31 December 2009 21
Corporate & Investment Banking approach to the environment Cautious on risk, capital and liquidity management Intensive attention to credit exposures Retained strategic focus on geographies, clients and products Continued investment spend on people and platforms Extended integrated Corporate & Investment Banking operating model 43 Corporate & Investment Banking performance Total income Headline earnings FY09 Rm change FY09 Rm change Global markets 12 834 11 4 413 26 Investment banking 9 145 6 1 711 (36) Transactional products and services 5 722 (5) 1 383 (21) Corporate & Investment Banking 27 701 6 7 507 (6) Resilient performance - Headline earnings 6 below all time high levels in 2008 Diversified income across products and geographies 44 22 Standard Bank Group (SBG) financial results presentation 31 December 2009
Strong performance from Global markets Reflects performance across footprint - All geographies and major product lines performed well Strong contribution from foreign exchange, interest rates and credit trading Business benefitting from combination of domestic and cross border capabilities Strength of client franchise reflected in result Prudent market risk levels maintained Investment in key people and platform continuing 45 Trading revenue strong performance and well diversified 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 (500) Rm Forex Interest rate Commodities Credit Equities Other FY08 FY09 46 Standard Bank Group (SBG) financial results presentation 31 December 2009 23
Volatility increased in 2009 but risk was well contained 300 Income of trading units and VaR 250 200 150 100 50 0 (50) (100) (150) Rm Jan 2009 Dec 2009 Income of trading units 95 VaR (including diversification benefits) 47 Distribution of daily trading profit and loss remains positively skewed 120 100 80 60 40 20 days 0 < 30 30 to 0 0 to 30 30 to 60 60 to 90 > 90 Daily trading revenue in Rm FY08 FY09 48 24 Standard Bank Group (SBG) financial results presentation 31 December 2009
Investment banking better second half 1H09 held back by impairments and restriction of new business pipeline Over 75 of total headline earnings delivered in 2H09 Good performances from project finance and structured products Overall performance reflects - Improved net interest income levels in 2H09 as pipeline reopened - Net fees and commissions down on FY08 due to lower client activity - Credit impairment charges increased by R1bn as a result of the continuing ing economic market conditions - Fair value gains on unlisted equity portfolios Strong rebound in client activity levels across product spectrum 49 Impairments rose in line with deteriorating economic conditions Gross loans and advances (Rbn) Credit loss ratio () 411.6 0.73 361.66 0.46 FY08 FY09 FY08 FY09 Credit impairment charge up 64 - Charge for performing loans fell overall - Charge for NPLs up significantly, lower in 2H09 NPLs as a of loan book increased to 3.0 (FY08: 1.3) - Lower level of loans and advances - More recent NPLs highly collateralised 50 Standard Bank Group (SBG) financial results presentation 31 December 2009 25
Resilient performance in Transactional products and services Solid income performance although down on 2008 - Margin income down due to the negative endowment effect and lower account balances - Fees up higher transaction volumes in Rest of Africa Important component of Corporate & Investment Banking - Key to long term client relationships - Stability and diversity of revenues Significant investment in platform and people - Retain market leadership in South Africa - Capitalise on growth opportunity in Africa 51 Maintained investment in Corporate & Investment Banking platform Total expenses up 9 - Driven by investment in people and technology - Seeking to capitalise on strong relative position in the market - Staff costs increased 9 Headcount growth notably across Rest of Africa - Other operating costs up 10 Investment tin premises and dit infrastructure t Cost-to-income ratio moved to 52.3 from 50.6 52 26 Standard Bank Group (SBG) financial results presentation 31 December 2009
Strategic partnerships ICBC - Strategic partnership bearing fruit - Related revenues totalling $78m generated from the relationship - ICBC led $1bn 5-year term facility for Standard Bank from a consortium of Chinese banks Troika Dialog - Strong partnership with a market leader in Russia - Opportunity to establish a substantial domestic and cross border franchise - Earnings equity accounted from 2010 53 Outlook Operating environment remains uncertain - Further regulatory changes likely - Government responses unclear - Market nervousness continues Corporate & Investment Banking well positioned - Maintain improving trend in impairments - Manage operating costs while continuing ing to invest - Geographic footprint and product capabilities - Opportunity to grow revenues and client franchise 54 Standard Bank Group (SBG) financial results presentation 31 December 2009 27
Liberty Jacko Maree Financial results summary BEE normalised headline earnings R135m for the full year - marked recovery from 1H09 loss of R1.2bn Capital adequacy level increased to 2.8 times cover Cash distribution maintained Embedded value down 11 to R24bn Cash flows net positive No further lapse assumption adjustments required on major product lines Solid financial performance by STANLIB, Africa, Health and Properties 56 28 Standard Bank Group (SBG) financial results presentation 31 December 2009
2H09 earnings significantly improved offsetting the 1H09 loss 1H09 2H09 1 500 1 342 1 000 500 0 ( 500) (1 000) (1 500) Rm Insurance Asset management (1 207) LibFin shareholder asset base Growth initiatives Other BEE normalised headline (loss)/earnings 57 Headline earnings business unit view yoy 1H09 2H09 FY09 FY08 change Rm Rm Rm Rm Retail insurance (75) 246 171 1 255 Liberty Corporate 36 (43) (7) 152 LibFin (1 299) 1 051 (248) (67) STANLIB 159 201 360 395 Liberty Properties 34 46 80 64 Liberty Africa 14 15 29 (1) Liberty Health (9) (56) (65) Other (67) (118) (185) (225) Headline earnings (1 207) 1 342 135 (91) 1 573 SBG approximate shareholding h for the period () 54 54 54 40 (647) 719 72 (89) 641 58 Note: FY08 Liberty Group adjusted comparative Standard Bank Group (SBG) financial results presentation 31 December 2009 29
Strategic issues Retail insurance - Persistency strategy confirmed - Retention initiatives gaining traction - New business reasonable given economic conditions Liberty Corporate - Economic conditions impacted new business - Retrenchments in SA resulted in decrease in total fund membership LibFin - Convinced that balance sheet, capital and risk management strategy is correct STANLIB - New appointments - Investment performance acceptable Poor performance limited to certain equity funds 59 Strategic issues Liberty Properties - Continued good performance - Mandated to manage and develop properties in Africa on behalf of third parties Liberty Africa - Contributed positively to earnings - Assets under management up 22 - Key growth area going forward Liberty Health - Acquisition strategy delivering exponential growth - Lives under administration in SA 327 000 and in Africa 244 000 - Profitability expected by end 2010 60 30 Standard Bank Group (SBG) financial results presentation 31 December 2009
Outlook Difficult first half, return to profit in second half Action taken to address - Persistency - Balance sheet management - Investment performance Growth strategy delivering results 61 Conclusion Jacko Maree Standard Bank Group (SBG) financial results presentation 31 December 2009 31
Strategy Vision and strategy remain unchanged Resilience in the face of severe challenges of the past two years - confirms group is well positioned Emerging markets accounted for two-thirds thirds of global growth in 2009 Africa s growing ties to other emerging markets bodes well for growth Innovation increasingly being encouraged 63 Nigeria Difficult operating environment in Nigeria - 2008 was an extraordinary year characterised by capital raising - 2009 witnessed a significant decline in advisory, margin lending business and closure of forex markets Looking at acquisitions as part of government recapitalisation process Existing organic growth strategy is viable Franchise well positioned in 2010 to capitalise on market opportunities 64 32 Standard Bank Group (SBG) financial results presentation 31 December 2009
External pressures Political pressures - Compensation Regulatory pressures - Currently evaluating ating capital and liquidity idit requirements Proposed by the Basel Committee on Banking Supervision 65 Risk appetite Tightening during 2008 affected asset growth in 2009 Extensively reviewed throughout 2009 Committed to writing good quality business and supporting economic recovery Staying close to customers so we are ready to lend responsibly when demand arises 66 Standard Bank Group (SBG) financial results presentation 31 December 2009 33
Outlook Recovery in normalised headline earnings from 2009 base Aim to restore earnings to 2008 levels Strong capital base and client franchise position us well 67 34 Standard Bank Group (SBG) financial results presentation 31 December 2009