Standard Bank achieved what it called ”satisfactory” results in the first half of 2008, it said on Wednesday.
The results reflect ”the diversification and resilience of our businesses amidst continued global financial market turmoil”, the bank said in a statement.
The group grew headline earnings per share by 10% to 529,2 cents, increased net asset value per share by 44% and achieved a return on equity of 21,4% on an International Financial Reporting Standards (IFRS) basis.
On a normalised basis, headline earnings per share grew by 7%, net asset value per share increased by 40% and a return on equity of 19,8% was achieved.
The bank said its strategy to grow businesses in other emerging markets continued to deliver value in the period. Including Liberty Life, headline earnings from South Africa grew by 1%.
Financial pressure on South African consumers, brought about by interest-rate hikes and declining disposable income, affected the bank’s personal and business banking ”acutely”. These factors combined to drive up impaired loans by 122% since June 2007 and by 75% on December 2007.
This increased the charge for impaired loans by 137% and resulted in a total credit loss ratio for personal and business banking of 2,18% compared with June 2007’s 1,31%. — Sapa