Standard Bank Group Limited · JSE:SBK
Standard Bank — Investor Presentation (October 2022)
33 slides from Standard Bank's investor presentation, October 2022
Slide 1: Strategy Update
iL STRATEGY UPDATE Sim Tshabalala, Group Chief Executive Officer, Standard Bank Group (SBG)
Slide 2: Key take-aways
Key take-aways Why invest in the Standard Bank Group? e e e e We have updated our strategic We have changed We are creating We have set priorities. We will Wahavenowerfal our structures and new solutions and ambitious new transform client oatoa Fit — ways of working to new partnerships financial tar
Slide 3: Agenda
“ay Agenda iS) 1 SBG today and strategic progress Context and trends 3 Our 2025 ambition Translating ambition into execution 3 ITCANBE..
Slide 4: SBG today and strategic progress
-SBG TODAY AND STRATEGIC PROGRESS
Slide 5: Standard Bank Group today
Strategy update | SBG today and strategic progress =a >. “ay Standard Bank Group TODAY _— W Our purpose: Africa is our home, we drive her growth ae ITCANBE..
Slide 6: We are the largest financial services group in Africa
Strategy update | SBG today and strategic progress = Weare the largest financial services group in Africa! 58 years R215bn R1.3trn R1.6trn of serving our clients Capital Lending Deposits in Africa USD15bn USD87bn USDI11bn clients 7 R1.2trn Supported by Leading pension fund AUA/AUN? _ international o
Slide 7: High Net Worth clients growing existing investments and preserving wealth
High Net Worth clients are predominately growing their existing investments and are preserving inter-generational wealth. Affluent clients have high disposable income and are growing assets Main market clients have a need for simple, low cost but meaningful solutions
Slide 8: We recognise that we have had our challenges
Strategy update | SBG today and strategic progress We recognise that we have had our challenges... W aah Client attrition and loss of market share in Consumer and High Net Worth South Africa client franchise Ef) South Africa core banking modernisation journey too long and costly 8X Slow progress on
Slide 9: But we have made good strategic progress
Strategy update | SBG today and strategic progress ... but we have made good strategic progress W fe) 20 {)}) Consumer and High Net Worth South Africa client franchise growing again, +4% in 1H21 =>) i) Ongoing client acquisition, deposit gathering and lending growth in Africa Regions Ef) Modern core
Slide 10: Our intention to buy out Liberty minority shareholders
Strategy update | SBG today and strategic progress “=” Our intention to buy out Liberty minority shareholders iS) Transaction highlights (~ ~ » Standard Bank to acquire all remaining ordinary shares in Liberty, not held by the Group N S f~ ‘\ > Liberty minority shareholders will hold circa 3.5% of S
Slide 11: Unlocking the potential through Liberty integration
Strategy update | SBG today and strategic progress “=v Unlocking the potential through Liberty integration STANLIB | @) | iS) Transaction imperatives Business case drivers ( ) ( ~ ) Aligning and leveraging our strengths Risk business Asset management Se J rc ~ NS J \ J Enhancing our client value pro
Slide 12: Context and trends
CONTEXT AND TRENDS
Slide 13: 2010-2019: Key trends underpinning recent developments in Africa
Strategy update | Context and trends “=v 2010 — 2019: Key trends underpinning recent developments in Africa Growing Shaped by increasing Expanding markets Rapid and sustained F r mobile penetration 7 focus on for financial en economic 7 canis and digital payment aye sustainable solutions adoption 8
Slide 14: 2020-2030: Fundamental drivers remain intact
Strategy update | Context and trends “=v 2020 - 2030: The fundamental drivers remain intact, which will support ongoing economic growth, as well as strong growth in financial services r Growing F 7 Increasing Expanding markets mobile penetration Rapid and sustained Aran Ol for financial en economic
Slide 15: Financial service firms must navigate change, challenge and complexity
Strategy update | Context and trends — However, financial service firms will have to navigate change, challenge and complexity * Constantly changing + Threats from incumbents + Significant regulatory, + “Basics” set by digital native + Threats from adjacent governance and compliance corporates indus
Slide 16: Maintaining the status quo would mean decline
Strategy update | Context and trends “7” Maintaining the status quo would mean decline; there are attractive opportunities for us as we embrace change No change Undifferentiated, narrow offering + Lose clients to competitors — traditional and non-traditional Be disintermediated from clients and beco
Slide 17: Our 2025 ambition
OUR 2025 AMBITION
Slide 18: SBG 2025 is centred around serving the needs of our clients
Strategy update | Our 2025 ambition SBG 2025 is centred around serving the needs of our clients W CONSUMER AND HIGH NET WORTH BUSINESS AND COMMERCIAL CLIENTS WHOLESALE CLIENTS CLIENTS CLIENT SOLUTIONS ENGINEERING Capabilities INNOVATION en 17 CAN BE.
Slide 19: SBG is transforming beyond financial services
Strategy update | Our 2025 ambition “av SBG is transforming beyond financial services PAST PRESENT ie) Trusted financial services provider across sub-Saharan Africa Trusted bank in South Africa 1A coordinated network of participants and devices (Internet of Things) combining Standard Bank Group's ow
Slide 20: Our prioritised ecosystems: value pools of USD1.0trn-1.2trn
Strategy update | Our 2025 ambition “=” Our 10 prioritised ecosystems: accessing value pools totaling USD1.0trn - USD1.2trn 5 ecosystems we will drive Trader Home Global citizen Trade Agriculture Activities of small Sale and rent of personal Participation in a global International and All agricultur
Slide 21: Ecosystems we will drive / contribute to
Ecosystems we will drive Ecosystems we will contribute to
Slide 22: Our strategic priorities are the framework for delivery
Strategy update | Our 2025 ambition “=v Our strategic priorities are the framework for delivery @ = Dp Our Client Segments will: + DEFEND our current client Our Client Solutions, Engineering and Innovation capabilities will: We will be purposeful in: + Having a POSITIVE IMPACT 22 franchise and marke
Slide 23: Translating ambition into execution
TRANSLATING AMBITION INTO EXECUTION
Slide 24: Transform client experience: client segments
Strategy update | Translating-ambition into execution | Transform client experience “=” Our client segments are focused on defending and growing their franchises (=) z ; q Global MNC2 client franchise Lu Sain item oer enaliniNocltant South African SME! client franchise Tr GEINeAlet Leading position
Slide 25: Execute with excellence: Client Solutions capability
Strategy update | Translating ambition into execution | Execute with excellence “=” Our Client Solutions capability will deliver innovative, open architecture iS) and cost-effective solutions to the Client Segments and our partners Service the Solution Build Solution Build Distribution needs of the
Slide 26: Our Engineering capability enables the Group's platform
Strategy update | Translating ambition into execution | Execute with excellence “=v Our Engineering capability enables the Group’s platform iS) Engineering provides the always Technology and Operations on, always secure, digital foundation required to enable new revenues and a superior client experi
Slide 27: Our dedicated Innovation capability
Strategy update | Translating-ambition into execution | Execute with excellence “=v Our dedicated Innovation capability will generate and incubate new solutions and business models with speed and rigour Culture of innovation Promote and foster a culture of innovation and provide expertise and skills
Slide 28: Partnerships with FinTechs to enhance disruption
Strategy update | Translating ambition into execution | Execute with excellence We have developed a number of partnerships with FinTechs to enhance W our ability to be disruptive |G) | wssus | oR FOUNDERS investments FACTORY AFRICA . to enhance FOUNDERS FACTORY. 1 | IDENTITY eazy: AFRICA be, @ REWIR
Slide 29: Accelerating skills development
Strategy update | Translating-ambition into execution | Execute with excellence “=v Weare focused on accelerating skills development in key areas to develop, attract and retain critical skills and drive platform-thinking Xv Fostering a growth-mindset across the Group Defined a set of priority future
Slide 30: Committed to making a positive impact
Strategy update | Translating-ambition into execution | Drive sustainable growth and value “=v Weare committed to making a positive impact — delivering sustainable iS) social, economic and environmental (SEE) value across sub-Saharan Africa * Drive positive impact across * Published a number of * Co
Slide 31: ESG commitments embedded in risk management framework
Strategy update | Translating ambition into execution | Drive sustainable growth and value “=v Our ESG commitments are embedded in our day-to-day decisions via our iS) thorough and robust ESG risk management framework and processes © 8Griskassessment Thorough process with multi-stage assessment + Un
Slide 32: Execution requires capital re-allocation
Strategy update | Translating-ambition into execution | Drive sustainable growth and value “=v Execution requires capital re-allocation iS) Resource allocation approach to deliberately tilt our portfolio Protect, Grow capital Invest in high Scale new streamline and efficient growth markets business
Slide 33: Committed to delivering our 2025 financial targets
Strategy update | Translating-ambition into execution | Drive sustainable growth and value “= Weare committed to delivering our challenging 2025 financial targets * Banking 7% - 9%! + Beyond financial services ~50% Approaching 50% Disciplined cost and risk management 70 bps-100bps 4 17% —- 20% ~) _
Standard Bank Group — Investor Presentation (October 2022) on 6ix