South Africa’s Standard Bank Group said on Wednesday full-year headline earnings per share rose 23,4% to R1 033,4 cents, but it warned it would take a short-term hit from its deal to sell a 20% stake to China’s biggest lender ICBC.
Africa’s biggest bank by assets said normalised headline earnings per share rose 20,6%, and normalised return on equity was 24,8%.
Last month, the bank said it expected full-year headline earnings per share to be between 18% and 22% higher than the previous year.
The bank said its medium-term financial targets remained intact, but it expected 2008 returns to be impacted by economic conditions and the short-term financial effects of the ICBC deal, in which its shares in issue increased, leading to some earnings dilution.
”Consequently, the group’s financial objectives for the year ahead have been revised downwards to 21% for normalised return on equity and to average South African inflation (CPIX) plus five percentage points for growth in normalised headline earnings per share,” Standard Bank said.
South Africa’s CPIX gauge of inflation was 8,8% in January.
The bank’s credit impairment charge soared 68% to R4,6-billion.
The bank said net interest income grew 35%, driven by growth in average assets across the group’s banking operations. Trading revenue rose 49%. – Reuters