Avior Capital Markets - Standard Bank Group Limited (101M) Standard Bank | A tough quarter

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Avior Capital Markets

Harry Botha

Standard Bank | A tough quarter

Standard Bank's (SBK) Q3 '19 trading update reflected a disappointing trend, as headline earnings declined 1% y/y in Q3 '19 (+2% y/y for the first nine months of 2019). While most of the decline in earnings was probably due to continued losses in ICBCS Plc, we believe the result implies a weaker quarter for SBK's Banking activities (or SA / African banking operations). Despite the Q3 result, we believe the bank's earnings growth prospects remain strong. SA retail credit growth, advances and client growth outside SA, and group-wide cost containment drive our earnings growth forecasts.

23/10/2019 11 EN

Underlying

Standard Bank Group Limited

Standard Bank Group is a financial services company. Co.'s business units include: Personal & Business Banking, which comprised of Mortgage lending, Instalment sale and finance leases, Card products, Transactional and lending products, and Bancassurance and wealth; Corporate & Investment Banking, which comprised of Global markets, Transactional Products and services, Investment banking, and Real estate and principal investment management; Liberty, which include life insurance and investment management activities; and Central and other, which include the Tutuwa initiative, group hedging activities, group capital instruments and group surplus capital and strategic acquisition costs.

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ZAE000109815 Johannesburg Stock Exchange South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Harry Botha

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