STANDARD BANK HAS HEALTHY FIRST QUARTER GROWTH IN ATTRIBUTABLE EARNINGS

STANDARD Bank Group, in an update it regularly provides to the Industrial and Commercial Bank of China (ICBC), said yesterday that it lifted attributable earnings by 28 percent for the three months to March 31. The performance was supported by continued core franchise and balance sheet momentum, as well as a strong performance from ICBC Standard Bank plc, following an insurance recovery. Movements in Standard Bank’s ordinary share capital in the three months related to the issue of 58 million of its shares in terms of the Liberty minority buyout. Interest rates were higher in Angola, Ghana, Mauritius, Mozambique, Namibia, South Africa and Zambia as well as the UK and US. Locally, higher interest rates and a larger balance sheet supported the net interest margin and net interest income growth. There was higher transactional activity. Global market volatility and higher commodity prices drove client activity and trading revenue. First quarter trading revenue was slightly ahead of the comparative period. Operating expenses increased, driven by annual salary rises, performance-linked incentives, annual contract increases, and normalisation of certain costs as activities returned to prepandemic levels, such as communication, travel and marketing. Credit performance was in line with expectations. Credit impairment charges were lower. The Corporate and Investment Banking Client segment credit charges reverted from a net recovery to a net charge, driven by loan book growth. The credit loss ratio was at the lower end of the group’s targets. Liberty Holdings recorded a small profit in the first quarter. ICBC Standard Bank plc had exposure to certain entities that were impacted by developments in Ukraine and Russia. |