STANDARD BANK GROUP

1H23 RESULTS PRESENTATION

17 August 2023

Agenda

01 02 03

1H23

1H23 financial

Delivering against

highlights

performance and

our 2025 targets

2023 outlook

2 | STANDARD BANK GROUP 1H23 FINANCIAL RESULTS PRESENTATION | 17 AUGUST 2023

1H23

01 highlights

1H23 highlights - continued strong earnings growth, higher returns, and increased dividend per share

Strategic progress - delivering on what we set out to do

01

• Competitiveness sharpened - reflected in our growing franchise and higher transaction volumes

  • Strong momentum in our sustainable finance business - partnered clients to deliver several market-leading deals in 1H23
  • Capital optimised and Liberty integrated - all insurance and asset management businesses grouped together in a new business unit (IAM)

Financial performance - in line with our 2025 targets

02

• Strong revenue growth driven by client activity, endowment tailwinds, and market volatility

  • Moderated by higher credit charges as we bolstered existing provisions, and elevated cost growth linked to business activity and inflation
  • Positive jaws of >11% resulted in a significant decline in cost-to-income ratio to 50.5%

Shareholder returns - delivering increasing shareholder value

  • Headline earnings grew by 35% to over R21 billion

03

• Returns improved to 18.9%, inside our 2025 target range of 17% to 20%

  • Maintained our robust capital position, with a CET 1 ratio of 13.4%
  • Declared an interim dividend of 690 cents per share, a 34% increase

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A difficult geopolitical and macroeconomic backdrop

Global

  • Elevated geopolitical tensions, linked to the war in Ukraine and tensions between the US and China, though reducing towards the end of the half
  • Banking sector vulnerabilities emerged in certain markets
  • Policy rates continued to increase
  • Global inflation moderated, particularly in the US where inflation dropped to 3% in July (July 2022: 9%)

Sub-Saharan Africa

  • Public debt continued to increase, while public aid decreased
  • Inflation and interest rates remained high
  • Trade and growth still relatively strong
  • Normalisation of sovereign risk
  • Currencies remained under pressure - relative to the USD, NGN and AOA devalued significantly in the period

South Africa

  • Energy supply remained unreliable and logistics-related constraints weighed on sentiment, but progress made in diversifying the electricity supply and on logistics
  • Foreign policy stance of active non- alignment and support for peaceful resolution of conflicts considerably clarified
  • Inflation remained high over the period, but appears to have peaked
  • 125 bps increase in repo rate since beginning of 2023 (450 bps increase since the start of 2022)

5 | STANDARD BANK GROUP 1H23 FINANCIAL RESULTS PRESENTATION | 17 AUGUST 2023

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Standard Bank Group Ltd. published this content on 17 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2023 06:53:07 UTC.