By GIFT NDOLWANE in Johannesburg , SA
JOHANNESBURG, (CAJ News) – STANDARD Bank Group has produced solid results for 2015, a year the company said was impacted by moderate global economic growth and weakening business and consumer confidence in South Africa.
The group reported headline earnings increased by 27 percent to over R22 billion.
Headline earnings per share (HEPS) increased by a similar margin to 1 359 cents.
During this period, the group completed the disposal of its controlling interest in Standard Bank Plc (the disposal), which was renamed ICBC Standard Bank Plc (ICBCS) and was designated as discontinued operations within the group’s income statement.
As a result of the completion of the transaction, earnings attributable to ordinary shareholders includes R2,8 billion of net disposal gains which have been excluded from headline earnings.
Sim Tshabalala, Standard Bank Group Chief Executive, said the year ahead was likely to provide a demanding operating environment in which consumers and businesses would have to adapt to higher interest rates and the full effect of currency weakness.
“The group’s strategic market positioning, well-capitalised and liquid balance sheet, and committed employees are able to withstand uncertain macro developments and volatile markets for the sustained benefit of our customers,” said Tshabalala.
The bank’s medium-term return of earnings (ROE) target of between 15 percent and 18 percent remained intact.
Standard however said factors such as economic growth in South Africa and the rest of Africa, and the retention of a South African investment grade sovereign credit rating would affect ROE.
“As such, we are working closely with the authorities to promote a stable, growth-friendly domestic environment,” Tshabalala said.
– CAJ News