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STANDARD BANK GROUP LIMITED – Provisional results and dividend announcement for the year ended 31 December 2016

SENS announcement for JSE listed company: SBK
                        

SBK 201703020012A
Provisional results and dividend announcement for the year ended 31 December 2016

Standard Bank Group Limited
Registration number 1969/017128/06
Incorporated in the Republic of South Africa
JSE share code: SBK ISIN: ZAE000109815
NSX share code: SNB ZAE000109815

Provisional results and dividend announcement for the year ended 31 December 2016

The Standard Bank Group Limited’s (group) summary consolidated financial statements, for the year ended
31 December 2016 (results) are prepared in accordance with the requirements of the JSE Limited (JSE) Listings
Requirements for provisional reports, the requirements of International Financial Reporting Standards (IFRS)
and its interpretations as adopted by the International Accounting Standards Board, the South African
Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices
Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, the
presentation requirements of IAS 34 Interim Financial Reporting (excluding paragraph 16 A(j) as permitted by
the JSE Listings Requirements) and the requirements of the South African Companies Act, 71 of 2008 applicable
to summarised financial statements. A full analysis of the results for the year, which includes the full IAS 34
disclosure requirements, is available for viewing at www.standardbank.com/reporting or from the company’s
registered office upon request.

The accounting policies applied in the preparation of these consolidated financial statements from which the
results have been derived are in terms of IFRS and are consistent with the accounting policies applied in the
preparation of the group’s previous consolidated annual financial statements with the exception of changes
referred to below.

While this report is itself not audited, the consolidated annual financial statements from which the summary
consolidated annual financial statements below have been derived were audited by KPMG Inc. and PricewaterhouseCoopers
Inc., who expressed an unmodified opinion thereon. That audit report does not necessarily report on all of the
information contained in this report.

Shareholders are therefore advised that, in order to obtain a full understanding of the nature of the auditor’s
engagement and, more specifically, the nature of the information that has been audited, they should obtain a copy
of the auditors’ report together with the accompanying audited consolidated annual financial statements, both of
which are available for inspection at the company’s registered office. The group’s reporting suite, including the
Standard Bank Group’s annual integrated report and risk and capital management report and annual financial statements
will be made available during April 2017. Copies can be requested from our registered office or downloaded from the
company’s website following announcement in April 2017 on the JSE’s Stock Exchange News Service (SENS).

The directors of Standard Bank Group Limited take full responsibility for the preparation of this report and that the
selected financial information has been correctly extracted from the underlying audited consolidated annual financial
statements.

The results discussed in this announcement are presented in terms of IFRS. For financial periods up to the end of
December 2015, the group also presented normalised results to reflect the group’s view of the economics of the Black
Economic Empowerment Ownership (Tutuwa) initiative and the group’s share exposures entered into to facilitate client
trading activities and for the benefit of Liberty policyholders.

The preparation of the group’s results was supervised by the group financial director, Arno Daehnke BSc, MSc, PhD,
MBA, AMP.

The results were made publicly available on 2 March 2017.

This report contains pro forma constant currency financial information. For further details see below.

In line with changes to the JSE’s Listings Requirements, the group no longer posts a physical copy of this announcement
to its shareholders. Investors are referred to www.standardbank.com/reporting where a detailed analysis of the group’s
financial results, including an income statement and a statement of financial position for The Standard Bank of South
Africa Limited, can be found.

Highlights

– R23 009 million
Headline earnings
2015: R22 187 million
up 4%

– 1 440 cents
Headline earnings per share
2015: 1 389 cents
up 4%

– R22 062 million
Banking activities headline earnings
2015: R20 323 million
up 9%

– 780 cents
Dividend per share
2015: 674 cents
up 16%

– 15.3%
Return on equity
2015: 15.6%

– 13.9%
Common equity tier 1 ratio
2015: 12.9%

– 56.3%
Cost-to-income ratio
2015: 56.5%

– 0.86%
Credit loss ratio
2015: 0.87%

Overview of financial results
Group results
Group headline earnings and headline earnings per share increased by 4% to R23 009 million and 1 440 cents
respectively. At year end, the group’s capital position was in excess of the upper-end of the group’s target
range, which supported our decision to increase the dividend payout ratio to 54.2%. A final dividend of
440 cents per share has been declared bringing the total dividend for the year to 780 cents per share,
representing an increase of 16% on 2015.

We were particularly pleased that our banking activities (which exclude our investments in Liberty Holdings,
ICBC Standard Bank Plc (ICBCS) and ICBC Argentina) headline earnings grew by 9% to R22 062 million. This
translates into an ROE of 16.8%, an improvement from a level of 16.3% in the previous year. Group ROE, impacted
by Liberty’s performance, was 15.3%, down from 15.6% in 2015.

Despite the elevated levels of macro, political and policy uncertainty experienced in many of the markets in
which the group operates, we continued to grow our businesses both in South Africa and in our Africa Regions
franchise, which in the 2016 financial year contributed 30% to the group’s total income and 25% to the group’s
headline earnings.

In the prior year, group earnings were positively impacted by certain items which were non-recurring in nature.
More specifically, 2015 earnings attributable to ordinary shareholders included R2.8 billion of earnings that
were non-recurring, of which R1.6 billion were excluded from headline earnings.

Operating environment
2016 was a tumultuous year. Globally, two key events stole the limelight – the UK’s ‘Brexit’ vote and the US
election. The ambiguity in the run-up to these events as well as the contrarian outcomes drove uncertainty and
volatility. Overall, global growth is expected to have been in line with the International Monetary Fund’s (IMF)
expectations, at 3.1% for the year. This growth was supported by a stronger than expected trend in advanced
economies, driven primarily by better than expected outcomes in the US and UK, while emerging markets growth
plateaued. During the year, China’s policy stimulus continued and growth stabilised, providing some support to
commodity prices, whilst OPEC’s decision to trim output helped to lift oil prices. In December 2016, the US
Federal Reserve Bank raised rates by 25bps and, more importantly, provided a strong indication that it was the
start of further increases to come, cementing views around the strength of the US economy.

Although sub-Saharan African growth is expected to have fallen to 1.6% (2015: 3.4%), the regional and country specific
dynamics drove divergent outcomes. Widespread drought in east, central and southern Africa continued, which placed
strain on food supply and drove inflation. Oil-export reliant countries remained constrained on the back of low prices,
exacerbated in the case of Nigeria by supply interruptions. Many countries tightened monetary policy in an attempt to
control inflation. In addition, specific issues and policy decisions, such as the Mozambique IMF review, illiquid currency
markets in Angola and Nigeria, Kenya rate caps and floors, and geo-political issues, including elections and political
unrest, impacted specific countries. Despite these headwinds, the more diversified oil-importing east African countries
continued to offer better macro prospects, attract investment and outperform.

In South Africa, the threat of a sovereign downgrade by rating agencies to sub-investment grade persisted throughout
the year. This in turn negatively impacted the already weak business and consumer confidence and further delayed much
needed domestic investment and job creation opportunities. Idiosyncratic politically driven actions added to uncertainty
and heightened international investor caution. Inflationary pressures brought about by the drought and the weak exchange
rate placed additional pressure on already constrained consumers. Demand for credit was weaker year-on-year and displayed
a decelerating trend over the year, with household demand broadly flat. Overall GDP growth for 2016 is expected to have
been 0.4%, a marginal improvement on the 0% forecast at the start of the year. In certain sectors, such as manufacturing,
agriculture and mining, growth oscillated between expansion and contraction over the year, while other sectors, such as
finance, real estate and business services and personal services, continued to report growth quarter-on-quarter despite
the difficult conditions. In 2H16, on the back of positive global sentiment, firmer commodity prices and some recovery
in the currency, South Africa’s economic outlook improved. This momentum, combined with the fiscal rectitude shown by
the Treasury, the fortitude shown by our key institutions, and the progress made on certain of the other areas of concern
raised by the rating agencies, aided the country in maintaining an investment grade rating. There remains a broad
recognition that there is still considerable work to be done, not only to avoid a downgrade in June 2017, but more
importantly, to deliver the inclusive growth required to tackle poverty and unemployment and transform the economy into
one in which everyone can share in its benefits.

The commentary which follows refers to the group’s banking activities. Other banking interests and Liberty’s results
are discussed separately.

Revenue
Total income grew by 10% in 2016, supported by strong growth in net interest income (NII). NII increased by 15% on the
back of stronger margins, up 31bps to 383bps. The margin expansion drivers noted in 1H16 continued into 2H16, namely a
positive endowment impact of higher average interest rates and improved loan pricing and funding margin.

Non-interest revenue (NIR) grew by 3%, supported by net fees and commission revenues and CIB trading revenue, which
both grew by 8%. Other revenue was 23% lower than in the prior year due to the non-recurrence of certain gains on real
estate investment related disposals and investment portfolio revaluations.

Credit impairment charges
Overall total credit impairment charges were largely flat and the total credit loss ratio (CLR) of 86bps was in line
with the 87bps recorded in the prior year. In South Africa, the CLR declined on the back of lower impairments in
mortgages and vehicle and asset finance, as the performance of those portfolios continued to improve, combined with
the non-recurrence of large corporate impairments. In contrast, the Africa Regions CLR deteriorated primarily as a
result of increased impairments in Nigeria and Mozambique. The group’s coverage and non-performing loan (NPL) ratios
remained broadly in line with prior years.

CIB’s credit impairment charges increased from R1 279 million to R1 603 million and its CLR to customers increased
from 39bps to 44bps, driven by higher provisions in the Africa Regions portfolio, in particular Nigeria. CIB’s NPLs
declined, reflective of a combination of write-offs, successful restructurings and the impact of currency translation.
PBB’s CLR reduced marginally from 127bps to 125bps, driven predominantly by a decline in mortgage-related impairment
charges year-on-year, reflective of the good performance of the book and collection-related actions taken. Vehicle
and asset finance impairments declined by 11%, whilst business and commercial lending impairments were 41% higher,
primarily within the Africa Regions. Overall personal unsecured impairments rose, reflective of constrained consumer
affordability.

Operating expenses
Operating expenses increased by 9% year-on-year and the group’s cost-to-income ratio improved from 56.5% to 56.3%.
Staff costs increased by 11% while other operating expenses increased by 8%. Growth in staff costs was driven by
salary increases, the impact of the conversion of temporary staff to permanent employment and increases in headcount
in the Africa Regions. On the back of a conscious focus on costs, the business was able to absorb the R300 million
loss related to a fraud incident in Japan in May and the R496 million increase in capitalised software related
amortisation, as well as the adverse translation impact of a weaker ZAR exchange rate in 1H16. Continued focus on
IT cost saving initiatives helped contain growth in IT-related costs to 2% over the year. Despite inflationary
pressures, the group was able to deliver positive JAWs of 30bps.

The currency-related headwinds experienced in 1H16 on the back of a weak ZAR largely reversed in 2H16 on the back
of a combination of ZAR strength and weakness in various African currencies. On a constant currency basis, the group
recorded positive JAWs of 60bps.

Loans and advances
Gross loans and advances to customers grew by 1% year-on-year, and 4% on a constant currency basis. PBB loans to customers
grew 2% year-on-year, underpinned by a 3% growth in residential mortgages and partially offset by a 1% decline in business
lending and a 5% decline in personal unsecured lending on the back of tighter risk appetite. The CIB portfolio declined 1%
year-on-year; but would have reflected growth of 3% on a constant currency basis. Corporate loans contracted 4%. The CIB
South Africa portfolio continued to grow, but the Africa Regions portfolio recorded a decline year-on-year, exacerbated by
currency weakness in our key markets.

Capital, funding and liquidity
The group remains well capitalised with common equity tier I ratio at 13.9% (2015: 12.9%) and total capital adequacy
at 16.6% (2015: 15.7%). The group’s capital position remains strong and in excess of capital requirements as prescribed
by the South African Reserve Bank (SARB) and the group’s own target ranges. In January 2017, post receipt of the necessary
approvals required, ICBC and the group injected additional regulatory capital into ICBCS, with the group’s pro rata portion
amounting to USD106 million. Given that the injection was made in January 2017 the impact thereof is not included in the
group’s capital position as at 31 December 2016.

Deposits and current accounts from customers increased 4% year-on-year, and 12% on a constant currency basis. Retail-priced
deposits declined 1% whilst wholesale-priced funding grew by 7%. On a constant currency basis, retail-priced deposits
increased by 11% and wholesale-priced funding increased by 12%.

The group’s liquidity position remained strong and within approved risk appetite and tolerance limits. As at 31 December 2016,
the group’s total contingent liquidity amounted to R335.9 billion (2015: R312.7 billion), and remains adequate to meet all
internal stress testing, prudential and regulatory requirements. As at 31 December 2016 the group’s quarterly average Basel III
liquidity coverage ratio (LCR) amounted to 117.1%, exceeding the 70% minimum phased-in Basel III LCR requirement. From January
2018, the group will be required to comply with the Basel III net stable funding ratio (NSFR). The group supports the amended
framework issued by the SARB in August 2016, whereby funding received from financial corporates, excluding banks, maturing
within six months receives an available stable funding factor of 35%. The group, together with the local banking industry,
continues to engage, through the Banking Association South Africa (BASA), with the SARB on the remaining items requiring
clarification and to explore market-based solutions to ensure that the NSFR framework aligns to local industry conditions
and requirements.

Gross loans and advances to customers
Change 2016 2015
% Rm Rm
Personal & Business Banking 2 588 353 576 078
Mortgage loans 3 336 451 325 867
Vehicle and asset finance 1 81 035 80 278
Card debtors 31 229 31 174
Other loans and advances 1 139 638 138 759
Corporate & Investment Banking (1) 360 336 363 596
Corporate loans (4) 294 817 307 546
Commercial property finance 17 65 519 56 050
Central & other (5 056) (5 033)
Gross loans and advances to customers 1 943 633 934 641

Deposits and current accounts from customers
Change 2016 2015
% Rm Rm

Personal & Business Banking 497 558 498 189
Retail priced deposits (1) 401 497 404 341
Wholesale priced deposits 2 96 061 93 848
Corporate & Investment Banking 8 616 601 572 635
Central & other 32 (4 413) (6 477)
Deposits and current accounts from customers 4 1 109 746 1 064 347
Comprising:
Retail priced deposits and current accounts (1) 401 497 404 341
Wholesale priced deposits 7 708 249 660 006
Deposits and current accounts from customers 4 1 109 746 1 064 347

Headline earnings by business unit
Change 2016 2015
% Rm Rm

Personal & Business Banking 12 12 630 11 280
Corporate & Investment Banking 16 10 558 9 076
Central & other (>100) (1 126) (33)
Banking activities 9 22 062 20 323
Other banking interests 99 (8) (569)
Liberty (61) 955 2 433
Standard Bank Group 4 23 009 22 187

Overview of business unit performance
Personal & Business Banking
PBB’s headline earnings grew by 12% to R12 630 million. Strong NII growth of 14% and NIR growth of 8% translated into
total income growth of 11% to R67 480 million. Credit impairment charges were 3% higher than in 2015. Operating expenses
increased by 11%, of which the Japan fraud incident, the increase in permanent employees to comply with legislation,
and higher information technology systems related amortisation contributed 2% to the operating expenses growth. PBB’s ROE
increased to 18.7% from 18.2%. PBB South Africa’s headline earnings rose by 11% to R11 769 million, PBB International
increased by 21% to R558 million and the PBB Africa Regions headline earnings increased by 66% to R303 million. On a
constant currency basis, total income and operating expenses both grew by 12%.

Transactional products headline earnings grew by 5% to R3 500 million, net of the operational risk losses associated
with the Japan fraud incident. Total income increased by 12% driven by a steady growth in balances, a positive endowment
impact and higher transactional volumes.

Mortgage lending headline earnings grew by 20% to R2 964 million. Total income grew 10% driven by underlying growth
in new registrations and a slight decrease in prepayments. The roll-off of older lower-margin vintages written in the
period 2006 to 2008 assisted portfolio margins. Credit impairments fell 9% and the CLR declined from 66bps to 58bps on
the back of the continued roll-off of the older vintages combined with optimised collection strategies.

Vehicle and asset finance headline earnings grew by 38% to R421 million. Total income increased by 12% supported by
both portfolio growth and improved margins. Credit impairments were lower on the back of improved collections and asset
disposal processes. Good book growth and lower impairments led to a decrease in the CLR from 150bps to 124bps.

Card products headline earnings grew by 4% to R1 550 million, slightly dampened by higher impairments. Total income
growth slowed to 5% on the back of muted balance growth, interchange reform related headwinds and account attrition.
Ongoing consumer strain associated with the worsening macro-economic environment was reflected in the slight increase
in NPLs, with the CLR increasing from 462bps in the prior year to 470bps.

Lending products headline earnings grew by 21% to R1 720 million. Total income increased by 14%, resulting from growth
in revolving credit plans and term loans, and better pricing. Lending products’ CLR increased from 169bps to 184bps in
line with the constrained macro-economic environment.

Wealth (including bancassurance) headline earnings grew by 9% to R2 475 million. Total income increased by 12%, driven
by growth in deposit balances and increased client activity in Wealth International as well as growth in assets under
management in the Nigeria pension business. Actions taken to improve the claims experience have improved insurance
returns and underwriting profits.

Corporate & Investment Banking
CIB’s headline earnings grew by 16% to R10 558 million. Total income grew by 12% to R35 249 million, with client
revenue growing by 10%, indicative of the resilience of our strong, diversified CIB client franchise. Our focus on
multinational corporates is paying dividends and revenue from these customers contributed more than half our total
revenues. Partnering with local corporates in their respective markets has resulted in a strong performance across
our franchise with revenue from local corporates within the South African franchise growing by 18%. NII increased
25%, reflecting the successes of the liability-led model complemented by targeted credit growth within selected
sectors such as consumer, industrials and real estate. The CLR to customers of 44bps, although up on the prior year
ratio of 39bps, is within risk appetite and in line with expectations. Diligent cost management delivered cost growth
of 7% and strong positive JAWs of 5%. CIB’s continued disciplined approach to capital allocation resulted in ROE
improving to 20.0% from 18.0% in the prior year.

Global markets headline earnings growth was robust at 23% to R4 655 million. Total income increased by 13%, supported
by continued client activity across all our regions despite the market volatility and dislocations in some currency
markets.

Transactional products and services headline earnings grew by 17% to R3 073 million. Total income was 19% higher than
the prior year due to the positive endowment impact and a strong performance from our investor services business.
Impairment charges increased >100%, driven primarily by the Africa Regions where we saw the most stress. Cost growth was
well contained at 10%, translating into positive JAWs of 9%.

Investment banking headline earnings increased 15% to R3 098 million. Total income increased 6% year-on-year, impairment
charges declined 6% and good cost discipline resulted in flat cost growth, delivering positive JAWs of 6% for the year.

Real estate and principal investment management (PIM) recorded a headline earnings loss of R268 million, reflective of
the associated business’ wind-down costs.

Central & other
In the current year, the segment recorded a R1 126 million headline earnings loss, attributable to group hedging
activities and costs of servicing group capital requirements. In the prior year, the central & other segment included
a R515 million gain related to the cash flow hedge release on disposal of the group’s operations in Brazil and the
controlling interest in Standard Bank Plc. Excluding this amount, and other one-off items in 2015, prior year headline
earnings would have been a R1 181 million loss.

Other banking interests
Headline earnings loss from the group’s other banking interests improved to a net loss of R8 million, from R569 million
in the prior year. The headline earnings contribution from the group’s 20% interest in ICBC Argentina declined 3%
year-on-year to R583 million on the back of a weaker Argentinian Peso (on a constant currency basis ICBC Argentina headline
earnings increased by 37%). The equity-accounted headline earnings loss from the group’s interest in ICBCS more than
halved in 2016 to R591 million from R1 294 million in 2015 (excluding one-offs related to the insurance recovery linked
to the aluminium fraud in China and the deferred prosecution agreement fine agreed with the UK’s Serious Fraud Office).

Liberty
The financial results reported are the consolidated results of the group’s 55% investment in Liberty, adjusted
for the group’s shares held by Liberty for the benefit of Liberty policyholders and treated as treasury shares
in the group’s consolidated accounts. Liberty’s normalised headline earnings for the year decreased by 39% to
R2 527 million, affected by lower returns from investment markets and a challenging consumer environment.
Liberty’s IFRS headline earnings, post the impact of the BEE preference shares and the Liberty Two Degrees (L2D)
listed Real Estate Investment Trust (REIT) accounting mismatch, decreased by 46% to R2 207 million. Shareholders
are referred to the full Liberty announcement dated 24 February 2017 for further detail. Liberty’s IFRS headline
earnings attributable to the group, adjusted for the impact of the Liberty deemed treasury shares, decreased by
61% to R955 million.

Prospects
The economic growth momentum that built towards the end of 2016, driven by China and the US, has continued into the
start of 2017. The IMF is forecasting an uptick in global growth from 3.1% in 2016 to 3.4% and 3.6% in 2017 and 2018
respectively. Global trade activity should pick up on the back of policy stimulus and a gradual normalisation of large
economies, such as Brazil and Russia. However, uncertainty surrounding US policy direction under the new administration,
Brexit negotiations and the broader European macro outlook may pose downside risks to global growth prospects.

Sub-Saharan Africa’s GDP growth is expected to be 2.8%, buoyed by global trade, resource demand and improved economic
prospects generally. Rains in late 2016 and early 2017 bode well for the agriculture sectors in the countries previously
afflicted by the drought. Commodity exporters will welcome higher prices. Nigeria is expected to return to positive
growth, post a contraction of 1.5% in 2016, subject to oil supply and foreign exchange restrictions being eased. South
Africa’s forecast growth at 1.5% is an improvement, but remains subject to idiosyncratic event risk, such as rating agency
and political decision points during the year. Lastly, the SARB has indicated that it expects rates to remain on hold,
subject to inflation and exchange rate developments, which is likely to continue to constrain household consumptions and
fixed investment.

With these dynamics in mind, we look to our clients, to the challenges and opportunities they may face, and seek ways
to partner with them on their journeys in 2017 and beyond. As we focus on delivering market-leading client experiences,
we continue to invest in our client-facing digital capabilities to enable our clients to transact independently and
safely anytime anywhere. We recognise and value the trust that our clients place in us and remain vigilant in our efforts
to protect our clients’ resources and data. Accordingly, we continue to monitor developments and potential threats, engage
with industry bodies and invest in our defences to enhance our resilience.

The businesses we operate are complex and we rely on our people across our network to navigate the challenges each
business faces and make appropriate decisions in line with strategic priorities and our values. To this end, we
continue to invest and equip our people with the skills required, empower them to make decisions, hold them accountable
and celebrate their successes. Furthermore, we are seeking opportunities to use technology to leverage our data to inform
decisions, deliver client specific solutions and drive process efficiency and productivity gains.

With regards to Liberty, we are working closely with its board and management and are supportive of their efforts to
address their shorter term challenges relating to sales, the competitiveness of Liberty’s product suite and ongoing cost
management.

In April 2015 the South African Competition Commission announced that it had initiated a complaint against Standard
New York Securities Inc. (SNYS) and 21 other institutions concerning possible contravention of the Competition Act in
relation to USD/ZAR trading between 2007 and 2013. No mention was made of The Standard Bank of South Africa Limited (SBSA).
On 15 February 2017 the Competition Commission lodged five complaints with the Competition Tribunal against 18 institutions,
including SBSA and SNYS, in which it alleges unlawful collusion between those institutions in the trading of USD/ZAR. We only
learned of the SBSA-related complaints at this time and are engaging with the Competition Commission to better understand the
basis for the complaints and the appropriate response. We consider these allegations in an extremely serious light and remain
committed to maintaining the highest levels of control and compliance with all relevant regulations. The allegations are
confined to USD/ZAR trading activities within SBSA and do not relate to the conduct of the group more broadly.

As we look to the year ahead, we remain steadfast in our commitment to doing the right business the right way. In
this context, we continue to embed a culture of responsible business practices. We remain committed to delivering
through-the-cycle headline earnings growth and ROE within our target range of 15% – 18% over the medium term. In
order to do so, we recognise the need to balance prudent capital management with appropriate return-based resource
allocation and leverage.

Lastly, we wish to highlight that banks play an important role in society which is broader than creating shareholder
value. We seek to create value for all our stakeholders – clients, employees, shareholders, government and communities
alike. In doing so, we continue to contribute meaningfully to the social, economic and environmental prosperity and
wellbeing in the markets in which we operate.

Sim Tshabalala Ben Kruger
Group chief executive Group chief executive

Thulani Gcabashe
Chairman

1 March 2017

Declaration of dividends
Shareholders of Standard Bank Group Limited (the company) are advised of the following dividend declarations out of
income reserves in respect of ordinary shares and preference shares.

Ordinary shares
Ordinary shareholders are advised that the board of directors (the board) has resolved to declare a final gross cash
dividend No. 95 of 440,00 cents per ordinary share (the cash dividend) to ordinary shareholders recorded in the register
of the company at the close of business on Friday, 31 March 2017. The last day to trade to participate in the dividend
is Tuesday, 28 March 2017. Ordinary shares will commence trading ex dividend from Wednesday, 29 March 2017.

The salient dates and times for the cash dividend are set out in the table that follows.

Ordinary share certificates may not be dematerialised or rematerialised between Wednesday, 29 March 2017, and Friday,
31 March 2017, both days inclusive. Ordinary shareholders who hold dematerialised shares will have their accounts at
their Central Securities Depository Participant (CSDP) or broker credited on Monday, 3 April 2017.

Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders’ bank
accounts on the payment date. In the absence of specific mandates, dividend cheques will be posted to shareholders.

Preference shares
Preference shareholders are advised that the board has resolved to declare the following interim distributions:
– 6.5% first cumulative preference shares (first preference shares) dividend No. 95 of 3,25 cents (gross) per first
preference share, payable on Monday, 27 March 2017, to holders of first preference shares recorded in the books of
the company at the close of business on the record date, Friday, 24 March 2017. The last day to trade to participate
in the dividend is Monday, 20 March 2017. First preference shares will commence trading ex dividend from Wednesday,
22 March 2017.
– Non-redeemable, non-cumulative, non-participating preference shares (second preference shares) dividend No. 25 of
407,57 cents (gross) per second preference share, payable on Monday, 27 March 2017, to holders of second preference
shares recorded in the books of the company at the close of business on the record date, Friday, 24 March 2017. The
last day to trade to participate in the dividend is Monday, 20 March 2017. Second preference shares will commence
trading ex dividend from Wednesday, 22 March 2017.

The salient dates and times for the preference share distributions are set out in the table that follows.

Preference share certificates (first and second) may not be dematerialised or rematerialised between Wednesday, 22
March 2017 and Friday, 24 March 2017, both days inclusive. Preference shareholders (first and second) who hold
dematerialised shares will have their accounts at their CSDP or broker credited on Monday, 27 March 2017.

Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders’ bank
accounts on the payment date. In the absence of specific mandates, dividend cheques will be posted to shareholders.

The relevant dates for the payment of dividends are as follows:
Non-redeemable,
non-cumulative,
6.5% cumulative non-participating
preference shares preference shares
Ordinary (First preference (Second
shares shares) preference shares)
JSE Limited
Share code SBK SBKP SBPP
ISIN ZAE000109815 ZAE000038881 ZAE000056339
Namibian Stock Exchange (NSX)
Share code SNB
ISIN ZAE000109815
Dividend number 95 95 25
Dividend per share (cents) 440,00 3,25 407,57
Last day to trade in order to Tuesday, Monday, Monday,
be eligible for the cash dividend 28 March 2017 20 March 2017 20 March 2017
Shares trade ex the cash dividend Wednesday, Wednesday, Wednesday,
29 March 2017 22 March 2017 22 March 2017
Record date in respect of the cash Friday, Friday, Friday,
dividend 31 March 2017 24 March 2017 24 March 2017
Dividend cheques posted and CSDP/broker Monday, Monday, Monday,
account credited/updated (payment date) 3 April 2017 27 March 2017 27 March 2017

The above dates are subject to change. Any changes will be released on the SENS and published in the South African and
Namibian press.

Tax implications
The cash dividend received under the ordinary shares and the preference shares is likely to have tax implications for
both resident and non-resident ordinary and preference shareholders. Such shareholders are therefore encouraged to
consult their professional tax advisers.

In terms of the South African Income Tax Act, 58 of 1962, the cash dividend will, unless exempt, be subject to dividends
tax that was introduced with effect from 1 April 2012. South African resident ordinary and preference shareholders
that are not exempt from dividends tax, will be subject to dividends tax at a rate of 20% of the cash dividend, and this
amount will be withheld from the cash dividend with the result that they will receive a net amount of 352 cents per
ordinary share, 2,6 cents per first preference share and 326.056 cents per second preference share. Non-resident ordinary
and preference shareholders may be subject to dividends tax at a rate of less than 20% depending on their country of
residence and the applicability of any Double Tax Treaty between South Africa and their country of residence.

The issued share capital of the company, as at the date of declaration, is as follows:
– 1 618 421 166 ordinary shares
– 8 000 000 first preference shares
– 52 982 248 second preference shares.

The company’s tax reference number is 9800/211/71/7 and registration number is 1969/017128/06.

Financial statistics
for the year ended 31 December 2016
Change
% 2016 2015
Number of ordinary shares in issue (000’s)
End of period 1 596 583 1 601 417
Weighted average 1 597 739 1 597 399
Diluted weighted average 1 619 444 1 611 522
Cents per ordinary share
Headline earnings 4 1 440.1 1 388.9
Continuing operations 3 1 440.1 1 394.5
Discontinued operation 100 (5.6)
Diluted headline earnings 3 1 420.8 1 376.8
Continuing operations 3 1 420.8 1 382.4
Discontinued operation 100 (5.6)
Dividend 16 780 674
Net asset value 9 442 9 433
Financial performance (%)
ROE 15.3 15.6
Net interest margin on continuing banking activities 3.83 3.52
Credit loss ratio on continuing banking activities 0.86 0.87
Cost-to-income ratio on continuing banking activities 56.3 56.5
Capital adequacy ratios (%)
Basel III
Tier I capital adequacy ratio 14.3 13.3
Total capital adequacy ratio 16.6 15.7
Common equity tier 1 capital adequacy ratio 13.9 12.9

Condensed consolidated statement of financial position
as at 31 December 2016
Change3 2016 20151 20141
% Rm Rm Rm
Assets
Cash and balances with central banks 3 77 474 75 112 64 302
Derivative assets (38) 68 620 111 089 61 633
Trading assets 51 129 845 86 219 72 040
Pledged assets (45) 18 777 34 429 14 185
Financial investments (1) 483 774 486 704 450 921
Current tax assets (10) 479 534 498
Loans and advances (1) 1 065 405 1 076 917 928 241
Non-current assets held for sale2 219 958
Policyholders’ assets (3) 7 314 7 579 6 507
Other assets (12) 21 547 24 552 20 691
Interest in associates and joint ventures (16) 8 196 9 703 3 727
Investment property 2 31 155 30 508 27 022
Property and equipment (9) 16 041 17 670 16 737
Goodwill and other intangible assets (2) 23 675 24 031 21 175
Deferred tax assets 6 1 988 1 881 1 715
Total assets (2) 1 954 290 1 986 928 1 909 352
Equity and liabilities
Equity 179 359 178 908 161 634
Equity attributable to ordinary shareholders 150 757 151 069 136 985
Preference share capital and premium 5 503 5 503 5 503
Non-controlling interests 3 23 099 22 336 19 146
Liabilities (2) 1 774 931 1 808 020 1 747 614
Derivative liabilities (44) 75 083 133 958 72 281
Trading liabilities 11 47 867 43 304 43 761
Current tax liabilities 28 5 522 4 304 4 505
Deposits and debt funding 2 1 213 621 1 186 514 1 047 212
Non-current liabilities held for sale2 182 069
Policyholders’ liabilities 1 307 230 305 194 293 617
Subordinated debt (4) 25 997 27 141 25 521
Provisions and other liabilities (6) 96 816 102 511 74 277
Deferred tax liabilities (45) 2 795 5 094 4 475
Total equity and liabilities (2) 1 954 290 1 986 928 1 909 352

1 Refer to the accounting policy elections and restatements regarding details of the change in presentation
policy.
2 The group’s controlling interests in Standard Bank Plc (SB Plc) and Standard de Investimentos S.A.’s
(now ICBCS Argentina) total assets and liabilities are presented as non-current assets and liabilities
held for sale in 2014 in accordance with IFRS. Both were disposed of during 2015. During 2015, the group’s
associate interest in Ünlü Menkul Degerler A.S. was classified as a non-current asset held for sale and
disposed of on 21 October 2015.
3 Change percentage between 2015 and 2016.

Condensed consolidated income statement
for the year ended 31 December 2016
Change 2016 2015
% Rm Rm
Continuing operations
Income from banking activities 10 99 857 91 113
Net interest income 15 56 892 49 310
Non-interest revenue 3 42 965 41 803
Income from investment management and life insurance (11) 21 365 23 997
activities
Total income 5 121 222 115 110
Credit impairment charges (2) (9 533) (9 371)
Net income after credit impairment charges 6 111 689 105 739
Operating expenses in banking activities (9) (56 235) (51 434)
Operating expenses in insurance activities (7) (17 374) (16 184)
Net income before non-trading and capital related
items and equity accounted earnings 38 080 38 121
Non-trading and capital related items 26 (1 123) (1 512)
Share of post tax profit/(loss) from associates and
joint ventures >100 187 (323)
Net income before indirect taxation 2 37 144 36 286
Indirect taxation 12 (2 418) (2 739)
Net Income before direct taxation 4 34 726 33 547
Direct taxation (9) (8 932) (8 187)
Profit for the year from continuing operations 2 25 794 25 360
Profit from discontinued operation1 (100) 2 741
Profit for the year (8) 25 794 28 101
Attributable to non-controlling interests (20) 3 182 3 970
Attributable to preference shareholders 8 406 377
Attributable to ordinary shareholders (7) 22 206 23 754
Earnings per share from continuing operations and
discontinued operation
Basic earnings per ordinary share (cents) 1 389.8 1 487.0
Diluted earnings per ordinary share (cents) 1 371.2 1 474.0
Earnings per share from continuing operations
Basic earnings per ordinary share (cents) 1 389.8 1 315.5
Diluted earnings per ordinary share (cents) 1 371.2 1 303.9

1 Gains and losses relating to SB Plc have been presented as a single amount relating to its post tax profit.

Headline earnings
for the year ended 31 December 2016
2016 2015
Change % Rm Rm
Profit for the year from continuing operations 6 22 206 21 013
Headline adjustable items added 989 1 687
Goodwill impairment – IAS 36 482 333
Gains on a disposal of a business – IAS 27/IAS 28 (11) (195)
Loss on sale of property and equipment – IAS 16 50 48
Realised foreign currency translation profit on foreign
operations – IAS 21 (62) (5)
Impairment of associate – IAS 28 / IAS 36 10 112
Impairment of intangible assets – IAS 36 654 1 330
Realised (gains)/losses on available-for-sale assets – IAS 39 (134) 64
Taxation on headline earnings adjustable items (178) (381)
Non-controlling interests’ share of headline earnings
adjustable items (8) (42)
Standard Bank Group headline earnings from
continuing operations 3 23 009 22 277
Profit for the year from discontinued operation (100) 2 741
Headline adjustable items reversed (2 831)
Loss on disposal of subsidiary – IFRS 10 1 303
Realised foreign currency translation profit on foreign
operation – IAS 21 (4 054)
Net investment hedge gain – IAS 391 (68)
Realised gains on available-for-sale assets – IAS 391 (12)
Standard Bank Group headline earnings from
discontinued operation (100) (90)
Standard Bank Group headline earnings 4 23 009 22 187

1 In the previous year, a total of R80 million of net investment hedge gains were disclosed as being
excluded from headline earnings. This amount included realised gains on available-for-sale assets.
The comparative period has been restated to reflect the correct amounts and descriptions. The
restatement only affects this disclosure table.

Condensed consolidated statement of other comprehensive income
for the year ended 31 December 2016
2016 2015
Rm Rm
Profit for the year 25 794 28 101
Other comprehensive income after tax for the year (14 647) 3 009
Items that may be reclassified subsequently to profit and loss (14 773) 3 109
Exchange (loss)/profit on translating foreign operations (14 680) 4 103
Net change on hedges of net investments in foreign operations (197) (325)
Movements in the cash flow hedging reserve 227 (903)
Net change in fair value of cash flow hedges (1 122) 1 551
Realised fair value adjustments of cash flow hedges transferred
to profit or loss 1 349 (2 454)
Movements in the available for sale revaluation reserve (123) 234
Items that may not be reclassified to profit and loss 126 (100)
Defined benefit fund remeasurements 128 (121)
Other (losses)/gains (2) 21
Total comprehensive income for the year 11 147 31 110
Attributable to non-controlling interests (141) 5 227
Attributable to preference shareholders 406 377
Attributable to equity holders of the parent 10 882 25 506

Condensed consolidated statement of changes in equity
for the year ended 31 December 2016
Preference
Ordinary share Non-
shareholders’ capital and controlling
equity premium interest Total equity
Rm Rm Rm Rm
Balance at 1 January 2015 136 985 5 503 19 146 161 634
Total comprehensive income for the year 25 506 377 5 227 31 110
Transactions with owners, recorded directly in equity (11 422) (377) (1 893) (13 692)
Equity-settled share-based payment transactions (1 392) 73 (1 319)
Deferred tax on share-based payment transactions (72) (72)
Transactions with non-controlling shareholders (369) (778) (1 147)
Net decrease in treasury shares 66 49 115
Net repurchase of share capital and share premium and
capitalisation of reserves (641) (641)
Redemption of preference shares 1 317 1 317
Net Dividends paid (10 331) (377) (1 237) (11 945)
Unincorporated property partnerships capital
reductions and distributions (144) (144)
Balance at 31 December 2015 151 069 5 503 22 336 178 908
Balance at 1 January 2016 151 069 5 503 22 336 178 908
Total comprehensive income for the year 10 882 406 (141) 11 147
Transactions with owners, recorded directly in equity (11 194) (406) 1 123 (10 477)
Equity-settled share-based payment transactions 126 48 174
Deferred tax on share-based payment transactions 207 207
Transactions with non-controlling shareholders (648) 2 105 1 457
Net decrease in treasury shares 741 68 809
Net repurchase of share capital and share premium and
capitalisation of reserves (252) (252)
Redemption of preference shares 95 95
Net dividends paid (11 463) (406) (1 098) (12 967)
Unincorporated property partnerships capital
reductions and distributions (219) (219)
Balance at 31 December 2016 150 757 5 503 23 099 179 359

Condensed consolidated statement of cash flows
for the year ended 31 December 2016
2016 2015
Rm Rm
Net cash flows from operating activities 40 255 35 504
Direct taxation paid (9 232) (8 012)
Other operating cash flows 49 487 43 516
Net cash flows used in investing activities (13 377) (31 828)
Capital expenditure (7 537) (9 527)
Other investing cash flows (5 840) (22 301)
Net cash flows used in financing activities (12 030) (11 509)
Cash outflow from share buybacks net of issue of share capital (252) (641)
Net cash flow from equity transactions with non-controlling interests1 1 575 (1 118)
Release of empowerment reserve 95 1 317
Subordinated debt issued 2 694 4 005
Subordinated debt redeemed (3 175) (3 127)
Dividends paid (12 967) (11 945)
Effect of exchange rate changes on cash and cash equivalents (12 486) 2 066
Net increase/(decrease) in cash and cash equivalents 2 362 (5 767)
Cash and cash equivalents at beginning of the year 75 112 80 879
Cash and cash equivalents at the end of the year 77 474 75 112
Comprising:
Cash and balances with central banks 77 474 75 112
1 Materially comprises of the following:
– Proceeds from the sale of units in L2D to external third party investors. Refer to other reportable items
and post balance sheet event for further information.
– The purchase of an additional interest of 17.65% by Stanbic IBTC Holdings Plc in its subsidiary Stanbic
IBTC Pensions Managers Limited (SIPML) during December 2016.

Notes
Condensed segment report
For the year ended 31 December 2016
Change 2016 20151
% Rm Rm
Revenue contribution by business unit
Personal & Business Banking 11 67 480 60 637
Corporate & Investment Banking 12 35 249 31 388
Central & other (>100) (2 872) (912)
Banking activities 10 99 857 91 113
Other banking interests2
Liberty (11) 21 365 23 997
Standard Bank Group 5 121 222 115 110
Profit or loss attributable to ordinary shareholders
Personal & Business Banking 17 12 519 10 681
Corporate & Investment Banking 21 10 466 8 660
Central & other (>100) (1 726) 2 600
Banking activities (3) 21 259 21 941
Other banking interests2 (99) (8) (569)
Liberty (60) 955 2 382
Standard Bank Group (7) 22 206 23 754
Total assets by business unit
Personal & Business Banking 1 689 183 682 080
Corporate & Investment Banking (4) 897 565 930 644
Central & other 2 (42 990) (42 114)
Banking activities (2) 1 543 758 1 570 610
Other banking interests2 (19) 6 445 7 933
Liberty (1) 404 087 408 385
Standard Bank Group (2) 1 954 290 1 986 928
Total liabilities by business unit
Personal & Business Banking 1 618 113 614 614
Corporate & Investment Banking (3) 842 751 871 597
Central & other 1 (62 425) (61 748)
Banking activities (2) 1 398 439 1 424 463
Other banking interests2
Liberty (2) 376 492 383 557
Standard Bank Group (2) 1 774 931 1 808 020

1 Where responsibility for individual cost centres and divisions within business units change, the comparative
figures have been reclassified accordingly.
2 For the group’s 2016 financial reporting period the group’s primary segments comprise the group’s banking
activities, which consist of PBB, CIB and central and other. The group’s banking activities, together with
the group’s other banking interests and Liberty, represent the group’s total activities and operations. The
group’s interests in ICBC Argentina, previously included in central and other, and ICBCS (previously known as
SB Plc) previously included in CIB’s results, are now included as part of the group’s other banking interests
and represent the group’s associate interests in previously consolidated entities that are held in terms of
strategic partnerships with ICBC. Comparative financial results have been restated to align with the current
year’s presentation.

Contingent liabilities and commitments
as at 31 December 2016
2016 2015
Rm Rm
Letters of credit and bankers’ acceptances 12 607 11 437
Guarantees 64 076 67 161
Contingent liabilities 76 683 78 598
Investment property 633 835
Property and equipment 315 405
Other intangible assets 399 1 169
Commitments 1 347 2 409

Private equity associates and joint ventures
The following table provides disclosure of those private equity associates and joint ventures that are equity
accounted in terms of IAS 28 Investments in Associates and Joint Ventures and have been ring-fenced in terms
of the requirements of Circular 2/2015 Headline Earnings, issued by the SAICA at the request of the JSE. On
the disposal of these associates and joint ventures held by the group’s private equity division, the gain or
loss on the disposal will be included in headline earnings.

2016 2015
Rm Rm
Cost 48 48
Carrying value 389 492
Fair value 389 482
Realised gains on disposal for the year included in
headline earnings 45
Attributable income before impairment 3 51

Day one profit or loss
The table below sets out the aggregate net day one profits yet to be recognised in profit or loss at the
beginning and end of the year with a reconciliation of changes in the balances during the year.

Derivative Trading
instruments assets Total
Rm Rm Rm
Balance as at 1 January 2015 61 418 479
Additional net profit on new transactions during the year 346 268 614
Recognised in profit or loss during the year (159) (104) (263)
Exchange differences 47 47
Balance as at 31 December 2015 295 582 877
Balance as at 1 January 2016 295 582 877
Additional net profit on new transactions during the year 2 137 139
Recognised in profit or loss during the year (16) (131) (147)
Exchange differences (120) (120)
Balance as at 31 December 2016 161 588 749

Related party transactions
Tutuwa related parties
Tutuwa participants were allowed to access their underlying equity value post the expiry of the lock-in
period on 31 December 2014.
Tutuwa share movement since lock-in period ended
2016 2015
Weighted Weighted
Issued number number of Issued number number
of shares shares of shares of shares
000’s 000’s 000’s 000’s
Shares financed by Standard Bank Group – beginning of the year 5 751 5 751 27 726 27 726
Less: sale of shares by participants (21 975) (20 127)
Shares financed by Standard Bank Group – end of the year 5 751 5 751 5 751 7 599

Post-employment benefit plans
Details of balances between the group and the group’s post-employment benefit plans are listed below:

2016 2015
Rm Rm

Value of assets under management 11 918 11 776
Investments held in bonds and money market instruments 947 667
Value of ordinary group shares held 570 471

Balances and transactions with ICBCS
The following significant balances were entered into between the group and ICBCS, an associate of the group.

2016 2015
Rm Rm
Derivative assets 1 856 4 780
Trading assets 24 35
Loans and advances 30 111 29 902
Other assets 232 158
Derivative liabilities (2 271) (5 351)
Deposits and debt funding (1 315) (6 756)
Provisions and other liabilities (287) (218)

The group entered into certain transitional service level arrangements with ICBCS in order to manage the orderly
separation of ICBCS from the group post the sale of 60% of SB Plc to ICBC. In terms of these arrangements, services
are delivered to and received from ICBCS for the account of each respective party.

Balances and transactions with ICBC
The following significant balances were entered into between the group and ICBC, a 20.1% shareholder of the group.

2016 2015
Rm Rm
Trading assets 7
Loans and advances 246 153
Other assets1 656 918
Deposits and debt funding (6 583)
Provisions and other liabilities (71)

1 The group recognised losses in respect of certain commodity reverse repurchase agreements with third parties prior
to the date of conclusion of the disposal of a controlling interest in SB Plc to ICBC. As a consequence of the
disposal of SB Plc, the group holds the right to 60% of insurance and other recoveries, net of costs, relating to
claims for those recognised losses prior to the date of conclusion of the transaction. Settlement of these amounts
will occur based on audited information on pre-agreed anniversaries of the completion of the transaction and the
full and final settlement of all claims in respect of losses incurred. As at 31 December 2016, a balance of
R656 million (2015: R619 million) is receivable from ICBC in respect of this arrangement. In 2015 an amount of
R595 million was recognised as part of the group’s results from the discontinued operation in respect of this right.

Change in group directorate
The following changes in directorate took place during the 2016 financial year:

Appointments
Dr ML Oduor-Otieno As director 1 January 2016
Dr A Daehnke As financial director 1 May 2016
JH Maree As deputy chairman 21 November 2016
G Fraser-Moleketi As director 21 November 2016
G Kennealy As director 21 November 2016
N Matyumza As director 21 November 2016
J Vice As director 21 November 2016
Retirements
S Ridley As financial director 30 April 2016

Offsetting and other similar arrangements
Financial instruments subject to offsetting, enforceable master netting arrangements or similar agreements
IFRS requires a financial asset and a financial liability to be offset and the net amount presented in the
statement of financial position when, and only when, the group has a current legally enforceable right to set
off recognised amounts, as well as the intention to settle on a net basis or to realise the asset and settle
the liability simultaneously. There are no instances where the group has a current legally enforceable right
to offset without the intention to settle on a net basis or to realise the asset and settle the liability
simultaneously.

The following table sets out the impact of offset, as well as the required disclosures where financial assets
and financial liabilities that are subject to enforceable master netting arrangements, or similar agreements,
irrespective of whether they have been offset in accordance with IFRS. It should be noted that the information
below is not intended to represent the group’s actual credit exposure nor will it agree to that presented in
the statement of financial position.

Net amounts
Financial of financial
liabilities set assets
Gross amount off in the presented in
of recognised statement the statement
financial of financial of financial Collateral Net
assets1 position2 position3 recieved4 amount
Assets Rm Rm Rm Rm Rm
31 December 2016
Derivative assets 45 972 (38) 45 934 (41 316) 4 618
Trading assets 48 153 48 153 (45 370) 2 783
Loans and advances5 111 072 (33 190) 77 882 (76 589) 1 293
205 197 (33 228) 171 969 (163 275) 8 694
31 December 2015 (restated)7
Derivative assets 74 455 74 455 (68 533) 5 922
Trading assets 23 577 23 577 (21 242) 2 335
Loans and advances5 110 748 (34 862) 75 886 (74 256) 1 630
208 780 (34 862) 173 918 (164 031) 9 887

Net amounts
Financial of financial
assets set liabilities
Gross amount off in the presented in
of recognised statement the statement
financial of financial of financial Collateral Net
liabilities1 position2 position3 pledged6 amount
Liabilities Rm Rm Rm Rm Rm
31 December 2015
Derivative liabilities 53 915 (38) 53 877 (46 424) 7 453
Trading liabilities 31 147 31 147 (31 147)
Deposit and current accounts5 39 374 (33 190) 6 184 6 184
124 436 (33 228) 91 208 (77 571) 13 637
31 December 2015 (restated)7
Derivative liabilities 90 316 90 316 (72 405) 17 911
Trading liabilities 34 225 34 225 (31 890) 2 335
Deposit and current accounts5 45 463 (34 862) 10 601 (4 417) 6 184
170 004 (34 862) 135 142 (108 712) 26 430

1 Gross amounts are disclosed for recognised financial assets and financial liabilities that are either offset
in the statement of financial position or are subject to a master netting arrangement or a similar agreement,
irrespective of whether the offsetting criteria is met.
2 Gross amounts of recognised financial assets or financial liabilities that qualify for offset in accordance
with the criteria per IFRS.
3 Related amounts not offset in the statement of financial position that are subject to a master netting
arrangement or similar agreement, including financial collateral (whether recognised or unrecognised) and
cash collateral.
4 In most cases the group is allowed to sell or repledge collateral received.
5 The most material amounts offset in the statement of financial position pertain to cash management accounts.
The cash management accounts allow holding companies (or central treasury functions) to manage the cash flows
of a group by linking the current accounts of multiple legal entities within a group of companies. It allows
for cash balances of the different legal entities to be offset against each other to arrive at a net balance
for the whole group. In addition, it should be noted that all repurchase agreements and reverse repurchase
agreements, subject to a master netting arrangement (or similar agreement), have been included.
6 In most instances, the counterparty may not sell or repledge collateral pledged by the group.
7 The 2015 previously reported amounts were erroneously duplicated in this disclosure. Consequently, the
amounts presented at 31 December 2015 have been restated. The restatement improves the comparability of the
financial information and did not affect the group’s statement of financial position.

The table below sets out the nature of the agreements and the rights relating to items which do not qualify
for offset but that are subject to either a master netting arrangement or similar agreement.

Financial asset/liability Nature of agreement Related rights to offset
Derivative assets and liabilities International swaps and derivatives The agreement allows for offset
associations in the event of default.
Trading assets and trading liabilities Global master repurchase agreements The agreement allows for offset
in the event of default.
Loans and advances Customer agreement and Banks Act In the event of liquidation or
bankruptcy, offset shall be
enforceable subject to Banks Act
requirements being met.
Deposits and debt funding Customer agreement and Banks Act In the event of liquidation or
bankruptcy, offset shall be
enforceable subject to Banks Act
requirements being met.

Other reportable items and post balance sheet event
Foreign currency translation reserve (FCTR)
During the year ended 31 December 2016 the group’s share of FCTR decreased by R11.4 billion (2015: increase
of R2.9 billion). This decrease was partly attributable to the weakening of the Nigerian naira (79%),
Mozambican metical (69%), and British Pound (35%) against the South African rand which resulted in an FCTR
loss of R3.6 billion, R1.4 billion and R1.7 billion respectively.

Impairment of Stanbic IBTC Holdings PLC (SIBTC Holdings) (Nigeria)
The group’s goodwill materially comprises of goodwill relating to the group’s investment in SIBTC Holdings which
is denominated in Nigerian naira (NGN). The group, in terms of IFRS, reviewed its investment in Nigeria for
impairment due to the weakening of the NGN which resulted in impairment to the group’s investment in SIBTC Holdings
of R482 million (2015: R333 million).

Japan fraud
As announced by the group on 23 May 2016 on SENS, the group’s South African banking operations were the victim of
a sophisticated, coordinated fraud incident that involved the withdrawal of cash using a number of fictitious
cards at various ATMs in Japan. There was no financial loss to the group’s customers. Swift action was taken to
contain the matter and the gross loss (prior to any potential recoveries) is R300 million. The internal
investigation has been concluded and remediation is underway to strengthen current controls.

Liberty Two Degrees
Liberty Group Limited holds and invests, on behalf of policyholders and shareholders, investments in properties
in a ring-fenced on balance sheet asset portfolio, Liberty Property Portfolio (LPP). L2D, a REIT, was listed on
the JSE on 6 December 2016, raising R3.8 billion. L2D provided a solution to address the group’s policyholder’s
requirement to trade in and out of Liberty’s property exposure thereby creating flexibility and liquidity.

In terms of the transaction, Liberty sold undivided shares in each individual property that were held in the
LPP to L2D. Liberty is currently the most significant investor in L2D, with a 67% economic interest as at
31 December 2016. At both a Liberty and group level, L2D is required to be consolidated. As a result of
consolidating L2D, the group continues to recognise the fair value of L2D’s underlying assets. As the group’s
policyholder liabilities are now linked to L2D’s units, the policyholder liability valuation is calculated
as the aggregate unit value of L2D rather than the fair value of its underlying assets. On 31 December 2016
L2D traded at a premium to its net asset value which resulted in a negative headline earnings impact of
R167 million (post tax and non-controlling shareholders stake) at a group level.

Equity securities
During the year, the group allotted 2 646 456 shares (2015: 3 813 706 shares) in terms of the group’s share
incentive schemes and repurchased 2 477 472 shares (2015: 3 923 373 shares).

The total equity securities held as treasury shares at the end of the period was 16 086 916 shares
(2015: 11 084 016 shares). These treasury shares exclude group shares that are held by certain structured
entities (SEs) relating to the group’s Tutuwa initiative (refer to the related party transaction note for
more detail) since those SEs hold the voting rights on such shares and are accordingly not treasury shares
as defined by the JSE Listings Requirements.

Subordinated debt
During the period the group issued R2.7 billion (2015: R4 billion) and redeemed R3.2 billion (2015: R3.1 billion)
subordinated debt instruments.

The terms of the issued bonds include a regulatory requirement which provides for the write-off in whole or
in part on the earlier of a decision by the relevant regulator (SARB) that a write off, or a public sector
injection of capital or equivalent support is necessary, without which the issuer would have become non-viable.

SIBTC Holdings financial statements
SIBTC Holdings advised its shareholders through The Nigerian Stock Exchange (NSE) on 24 March 2016 that, due
to the Financial Reporting Council of Nigeria’s (FRC) allegations surrounding material misstatements of its
2013 and 2014 financial statements and the associated legal proceedings, it would be unable to complete its
2015 audit and issue its 2015 annual report before 31 March 2016.

In November 2016 SIBTC Holdings reached a settlement agreement with the FRC and the National Office
for Technology Acquisition and Promotion. This agreement entailed the FRC removing any restriction on the
external auditors from issuing their opinion on the financial statements of the entities within the SIBTC
group and a mutual modification of SIBTC Holdings’ legal applications to the court. The FRC has approved
all financial statements prepared by the SIBTC group and the audited 2015 SIBTC Holdings financial statements
were released to the market on 21 December 2016.

Legal proceedings
In the ordinary course of business, the group is involved as a defendant in litigation, lawsuits and other
proceedings. Management recognises the inherent difficulty of predicting the outcome of defended legal
proceedings. Nevertheless, based on management’s knowledge from investigation, analysis and after consulting
with legal counsel, management believes that there are no individual legal proceedings that are currently
assessed as being ‘likely to succeed and material’ or, ‘unlikely to succeed but material should they succeed’.
The group is also the defendant in some legal cases for which the group is fully indemnified by external third
parties, none of which are individually material. Management is accordingly satisfied that the legal proceedings
currently pending against the group should not have a material adverse effect on the group’s consolidated financial
position and the directors are satisfied that the group has adequate insurance programmes and, where required in
terms of IFRS for claims that are probable, provisions in place to meet claims that may succeed.

Competition Commission – trading of foreign currency
In April 2015 the South African Competition Commission announced that it had initiated a complaint against
SNYS and 21 other institutions concerning possible contravention of the Competition Act in relation to
USD/ZAR trading between 2007 and 2013. No mention was made of The Standard Bank of South Africa Limited
(SBSA). On 15 February 2017 the Competition Commission lodged five complaints with the Competition Tribunal
against 18 institutions, including SBSA and SNYS, in which it alleges unlawful collusion between those
institutions in the trading of USD/ZAR. The group only learned of the complaints at this time and is
engaging with the Competition Commission to better understand the basis for the complaints and the
appropriate response. The group considers these allegations in an extremely serious light and remain
committed to maintaining the highest levels of control and compliance with all relevant regulations.
The allegations are confined to USD/ZAR trading activities within SBSA and do not relate to the
conduct of the group more broadly.

Indemnities granted following disposal of SB Plc
Under the terms of the disposal of SB Plc on 1 February 2015, the group provided ICBC with certain
indemnities to be paid in cash to ICBC or, at ICBC’s direction, to any SB Plc (now ICBCS) group company,
a sum equal to the amount of losses suffered or incurred by ICBC arising from certain circumstances.
Where an indemnity payment is required to be made by the group to the ICBCS group, such payment would be
grossed up from ICBC’s shareholding at the time in ICBCS to 100%. These payments may, inter alia, arise
as a result of an enforcement action, the cause of which occurred prior to the date of disposal.
Enforcement actions include actions taken by regulatory or governmental authorities to enforce the
relevant laws in any jurisdiction. Whilst there have been no material claims relating to these
indemnification provisions during 2016, the indemnities provided are uncapped and of unlimited duration
as they reflect that the pre-completion regulatory risks attaching to the disposed-of business remain
with the group post completion. The indemnification provisions covered the Deferred Prosecution
Agreement (DPA) that ICBCS entered into with the United Kingdom Serious Fraud Office (SFO) (as more fully
set out in the announcement made to shareholders via the JSE’s SENS on 30 November 2015). In terms of
the DPA, prosecution has been suspended and will be withdrawn after three years provided that ICBCS has
complied with its obligations under the DPA. Any claims that may arise for SNYS with respect to the
Competition Commission matter are also likely to fall within the scope of this indemnity as the conduct,
which is the subject of the referral, pre-dates the disposal of SB Plc.

Post balance sheet event
ICBCS capital injection
On 13 January 2017, Standard Bank London Holdings Limited (SBLH), a wholly owned subsidiary of Standard
Bank Group Limited and ICBC jointly and pro rata to their shareholdings in ICBCS injected additional
regulatory capital in the form of ordinary equity into ICBCS. SBLH’s pro rata portion of this capital
injection amounted to US$106 million (ZAR1.44 billion).

This capital was provided in terms of the obligations of ICBC and SBLH under the shareholders’ agreement of
ICBCS pursuant to increasing regulatory capital requirements relating to ICBCS and was provided after the
receipt by both of ICBCS’ shareholders of the requisite approvals for such capital to be provided.

Accounting policy elections and restatements
Basis of preparation
The group’s consolidated and company’s separate annual financial statements (annual financial statements) are prepared
in accordance with IFRS as issued by the IASB, its interpretations adopted by the IASB, the South African Institute of
Chartered Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices Committee and financial
pronouncements as issued by the Financial Reporting Standards Council, the presentation requirements of IAS 34, the JSE
Listings Requirements, and the South African Companies Act. The annual financial statements have been prepared on the
historical cost basis except for the following material items in the statement of financial position:
– available-for-sale financial assets, financial assets and liabilities classified at fair value through profit or
loss, investment property, liabilities for cash-settled share-based payment arrangements and interests in mutual
funds, policyholder investment contract liabilities and third-party financial liabilities arising on the
consolidation of mutual funds that are measured at fair value
– policyholder insurance contract liabilities and related reinsurance assets that are measured in terms of the
Financial Soundness Valuation (FSV) basis
– post-employment benefit obligations that are measured in terms of the projected unit credit method.

The following principal accounting policy elections in terms of IFRS have been made:
– purchases and sales of financial assets under a contract whose terms require delivery of the asset within the
time frame established generally by regulation or convention in the marketplace concerned are recognised and
derecognised using trade date accounting
– cumulative gains and losses recognised in other comprehensive income (OCI) in terms of a cash flow hedge
relationship are transferred from OCI and included in the initial measurement of the non-financial asset or
liability
– commodities acquired principally for the purpose of selling in the near future or generating a profit from
fluctuation in price or broker-traders’ margin are measured at fair value less cost to sell
– mutual fund investments held by investment-linked insurance funds, that do not meet the definition of a
subsidiary, are designated on initial recognition as at fair value through profit or loss
– intangible assets and property and equipment are accounted for at cost less accumulated amortisation and
impairment
– intercompany transactions between the group’s continuing and discontinued operation are not eliminated but
presented as part of the group’s respective continuing and discontinued operation’s results
– the portfolio exception to measure the fair value of certain groups of financial assets and financial
liabilities on a net basis
– investments in associates and joint ventures are initially measured at cost and subsequently accounted for
using the equity method in the separate financial statements.

Functional and presentation currency
The annual financial statements are presented in South African rand, which is the functional and presentation
currency of the group and the company. All amounts are stated in millions of rand (Rm), unless indicated
otherwise.

Changes in accounting policies
The accounting policies are consistent with those reported in the previous year except as required in
terms of the adoption of the following:

Adoption of new and amended standards and circular effective for the current financial period
The accounting policies are consistent with those reported in the previous year except as required in terms
of the adoption of the following amendments effective for the current period:
– IFRS 11 Joint Arrangements (IFRS 11): amendments which specify the appropriate accounting treatment for
acquisitions of interests in joint operations in which the activities of the joint operation constitute
a business
– SAICA Headline Earnings circular (Circular 2/2015): changes relate largely to amendments made to IFRS
since 2013, and specifically IFRS 9 Financial Instruments
– IAS 27 Separate Financial Statements (IAS 27): amendment which allows entities preparing separate financial
statements to utilise the equity method to account for investments in subsidiaries, joint ventures and
associates.

Early adoption of revised standards:
– Amendments to IAS 7 Statement of Cash flows (IAS 7): amendments require entities to provide disclosures that
enable users of financial statements to evaluate changes in liabilities arising from financing activities
– Amendments to IAS 12 Income Taxes (IAS 12): amendments clarify various accounting requirements with respect
to the recognition of deferred tax assets for unrealised losses.

The abovementioned amendments to the IFRS standards and circular, adopted on 1 January 2016, did not have any
effect on the group’s previously reported financial results or disclosures and had no material impact on the
group’s accounting policies.

Change in presentation policy for policyholders’ assets and liabilities
Reinsurance liabilities were previously included within the aggregate policyholder liabilities for insurance
contracts. To provide more relevant and useful information, these reinsurance liabilities have now been
included within the group’s provisions and other liabilities. These reinsurance liabilities have been disclosed
separately as this class of liabilities represents the effect of management’s risk mitigation action on
policyholder contracts.

In addition, certain individual pure risk contracts, where the present value of expected future inflows
exceeded the present value of expected future outflows at a portfolio level, were previously included as
negative liability amounts (policyholder assets) within the aggregate policyholder liabilities for insurance
contracts. A change in presentation was adopted for the year ended 31 December 2016 to disclose portfolio
level negative policyholder liabilities as policyholder assets.

The group is of the opinion that the change in presentation policy will provide more reliable and
meaningful information. The change brings the treatment of insurance contracts in line with the
reporting requirements expected under the new accounting standard on insurance contracts.

The financial impact of this change is:

2015 2014
As previously Revised As previously Revised
presented presentation presented presentation
Rm Rm Rm Rm
Description Asset/(liability) Asset/(liability) Asset/(liability) Asset/(liability)
Policyholders’ assets 7 579 6 507
Policyholders’ liabilities (298 232) (305 194) (287 516) (293 617)
Provisions and other
liabilities1 (101 894) (102 511) (73 871) (74 277)

1 Reinsurance liabilities of R617 million in 2015 and R406 million in 2014 were previously disclosed within
policyholders’ liabilities and are now included within the provisions and other liabilities line item.

Other information
Pro forma constant currency financial information
The pro forma constant currency information disclosed in these results is the responsibility of the group’s
directors. The pro forma constant currency information has been presented to illustrate the impact of changes
in currency rates on the group’s results and may not fairly present the group’s results of operations.
In determining the change in constant currency terms, the comparative financial year’s results for the period
ended 31 December 2015 have been adjusted for the difference between the current and prior period’s average
exchange rates (determined as the average of the daily exchange rates). The measurement has been performed
for each of the group’s material currencies.

The pro forma constant currency financial information contained in this announcement has been reviewed by
the group’s external auditors and their unmodified limited assurance report prepared in terms of IASE 3000
is available for inspection at the company’s registered office on weekdays from 09:00 to 16:00.

The following average rand exchange rates were used in the determination of the pro forma constant currency
information.
2016 average 2015 average
exchange rate exchange rate
US dollar 14,69 12,75
Pound sterling 19,96 19,49
Argentine peso 1,00 1,38
Nigerian naira 0,06 0,07
Kenyan shilling 0,15 0,13
Zambian kwacha 1,43 1,52

Johannesburg, 2 March 2017

Administrative and contact details

Registered office
9th Floor, Standard Bank Centre
5 Simmonds Street, Johannesburg, 2001
PO Box 7725, Johannesburg, 2000

Group secretary
Zola Stephen
Tel: +27 11 631 9106
Email: Zola.Stephen@standardbank.co.za

Head: Investor relations
Sarah Rivett-Carnac
Tel: +27 11 631 6897
Email: Sarah.Rivett-Carnac@standardbank.co.za

Group financial director
Arno Daehnke
Tel: +27 11 636 3756
Email: Arno.Daehnke@standardbank.co.za

Head office switchboard
Tel: +27 11 636 9111

Directors
TS Gcabashe (Chairman), Shu Gu** (Deputy Chairman), JH Maree (Deputy Chairman), Dr A Daehnke*,
RMW Dunne°, G Fraser-Moleketi, GMB Kennealy, BJ Kruger* (Chief Executive), KD Moroka, NNA Matyumza,
Dr ML Oduor-Otieno°°, AC Parker, ANA Peterside CON^, MJD Ruck, PD Sullivan^^,
BS Tshabalala, SK Tshabalala* (Chief Executive),
JM Vice, Wenbin Wang**, EM Woods

*Executive director ^^Australian °British **Chinese °°Kenyan ^Nigerian
All nationalities are South African, unless otherwise specified above.

Share transfer secretaries in South Africa
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196
PO Box 61051, Marshalltown, 2107

Share transfer secretaries in Namibia
Transfer Secretaries (Proprietary) Limited
4 Robert Mugabe Avenue
(entrance in Burg Street), Windhoek, Namibia
PO Box 2401, Windhoek

JSE independent sponsor
Deutsche Securities (SA) Proprietary Limited

Namibian sponsor
Simonis Storm Securities (Proprietary) Limited

JSE joint sponsor
The Standard Bank of South Africa Limited

Share and bond codes
JSE share code: SBK ISIN: ZAE000109815
NSX share code: SNB ZAE000109815

SSN series and CLN series (all JSE-listed bonds issued in terms of The Standard Bank of
South Africa Limited’s Domestic Medium Term Note Programme and Credit Linked Note Programme)

Please direct all customer queries and comments to:
information@standardbank.co.za

Please direct all shareholder queries and comments to:
InvestorRelations@standardbank.co.za

www.standardbank.com/reporting

Date: 02/03/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (‘JSE’).
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.

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