Standard Bank Group Limited · JSE:SBK
Standard Bank — Debt Investor Presentation (March 2025)
27 slides from Standard Bank's debt investor presentation, March 2025
Slide 1: Investor Briefing
INVESTOR BRIEFING STANDARD BANK GROUP MARCH 2025
Slide 2: Contents
CONTENTS 1.0 2.0 3.0 4.0 5.0 FY24 Financial Market update Funding & liquidity Capital management Rate reform performance highlights and outlook 6.0 7.0 Tier 2 transaction & Contact details & pricing considerations disclaimer STANDARD BANK GROUP INVESTOR BRIEFING | MARCH 2025 2
Slide 3: FY24 Financial performance highlights and outlook
FY24 Financial 1.0 performance highlights and outlook
Slide 4: SBG overview – FY24, FY25 and beyond
SBG overview – FY24, FY25 and beyond FY24 franchise performance – continued strong franchise momentum 1.0 • Our purpose, strategy and targets are unchanged • The global macroeconomic backdrop was challenging, but Africa’s fundamentals were favourable • We have a large and growing client base that is
Slide 5: Performance highlights – continued good operational performance with progress across key metrics
Performance highlights – continued good operational performance with progress across key metrics Group headline earnings Net interest income1 Non-interest revenue1 FY24: R57.8bn FY24: R44.5bn FY24: R100.8bn FY23: R57.9bn FY23: R42.9bn FY23: R97.5bn 4% ZAR 3% ZAR 0% ZAR 14% CCY 14% CCY 10% CCY Credit
Slide 6: Market update
Market update 2.0
Slide 7: Market update
Market update Short term rates (%) US election and SA budget outcomes 9.5 • President Trump’s tariffs policy, if fully enforced, is expected to keep inflation high and 9 drive global growth lower 8.5 • Uncertainty and market volatility has reversed interest rate cut expectations previously priced in
Slide 8: Market update continued
Market update continued US treasuries (%) Implied fed policy rate Oil and currency movement 6.0 4.4 0.0 20.5 100 Number of Hikes/Cuts Priced In -1.0 20 90 Implied Policy Rate (%) 5.0 4.2 -2.0 19.5 80 4.0 4.0 -3.0 19 70 3.0 -4.0 18.5 60 3.8 -5.0 18 50 2.0 17.5 40 3.6 -6.0 1.0 -7.0 17 30 3.4 16.5 20 -
Slide 9: Funding & liquidity
Funding & liquidity 3.0
Slide 10: Strong liquidity position
Strong liquidity position Basel III Liquidity Coverage Ratio (3-month simple avg.1) 160.0% 144.3% 146.8% 138.4% 134.8% 129.1% 136.2% 140.0% 129.1% 124.4% 127.4% 123.2% Liquidity Coverage Ratio (LCR) 112.6% 110.8% 120.0% • The group maintained LCR compliance throughout 2024 in excess of the 100.0% 10
Slide 11: Funding sources and redemption profile
Funding sources and redemption profile Diversified sources of liquidity, prudent redemption profile Standard Bank redemption profile (ZARbn) SBG and SBSA’s funding sources3 63 2% 1% 58 48 45 36 3% SBG 9% 4% 20% 30% 11% 2025 2026 2027 2028 2029 2% 1% 5% Structured Notes (ZAR & FCY) Senior debt AT1 ca
Slide 12: Bank senior vs NCD pricing levels
Bank senior vs NCD pricing levels 3-Year 5-Year 140 170 160 130 150 120 140 110 130 120 Spread (bps) Spread (bps) 100 110 90 100 80 90 80 70 70 60 60 50 50 40 40 Jan 22 May 22 Sep 22 Jan 23 May 23 Sep 23 Jan 24 May 24 Sep 24 Jan 25 Jan 22 May 22 Sep 22 Jan 23 May 23 Sep 23 Jan 24 May 24 Sep 24 Jan 2
Slide 13: Capital management
Capital 4.0 management
Slide 14: Capital adequacy
Capital adequacy Robust capital position, materially above regulatory requirements SBG and SBSA meet the PA’s Basel III aligned requirements Target capital adequacy ratios SBG capital adequacy SBSA capital adequacy 16.50% 16.20% • SBG: CET1: >12.5% | Tier 1: >13.5% | Total Capital: >15.5% 14.60% 13.
Slide 15: Capital adequacy
Capital adequacy Capital adequacy and RWA history Loss absorption provisions on debt capital instruments SBG capital adequacy (%) & RWA history (ZARbn)1 16.6 16.9 16.5 17.0 16.5 • Contractual PONV loss absorption provisions required to remain in place 16.1 following implementation of the statutory r
Slide 16: Flac requirements and issuance strategy
Flac requirements and issuance strategy Illustration of rules Transition Schedule Total Loss Absorbing Capacity (“TLAC”) = Minimum Capital Adequacy Effective Date - 01 January 2026 Requirement ("minCAR ”) + Minimum Flac Requirement (MFR) Effective Date End of year 3 End of year 4 End of year 5 End o
Slide 17: Flac instruments
Flac instruments Eligibility criteria Loss absorption Status / ranking Statutory loss absorption – achieved through In accordance with the ranking set out in section “recognition of RSA Bail-in power” clause 166W(2) of the Financial Sector Regulation Act Issuer Legal External Flac issued by an ultim
Slide 18: Rate reform
Rate reform 5.0
Slide 19: High level MPG industry timeline
High level MPG industry timeline End Q3 January December April H2 March • Publication of • Cash Market • Communication MPG Adopts ZARONIA • ZARONIA First - Cash • No New JIBAR ZARONIA Conventions published around future JIBAR CAS 1st Market • Possible early cessation • Quantitative for consultation.
Slide 20: Transition approach
Transition approach Transition considerations for the markets and products Derivative Money Markets Bond Markets Loan Markets Retail Markets Markets Market participants should be guided by MPG transitioning timelines as well setting internal Timing for transition milestones. Aim to reduce significan
Slide 21: Credit adjustment spreads
Credit adjustment spreads SARB MPG recommended methodology aligns to the ISDA fallback methodology. Credit adjustment calculation methodology based on the 5-year historical median difference of ZARONIA and JIBAR Credit adjustment spreads per JIBAR index tenor • Considering 31 Dec’25 as the cessation
Slide 22: Tier 2 transaction & pricing considerations
Tier 2 transaction & 6.0 pricing considerations
Slide 23: Bank pricing trends – big banks
Bank pricing trends – big 4 banks Spread pickup Senior spread (c.5- Spread ratio Tier Tier 2 spread 5-year senior c.10NC5 tier 2 AT1 (c.5-year call) Issue date (Tier 2 - senior) Commentary year FRN) 2/senior (x) c.10NC5 (bps) Mar-25 105 At-issue spread Feb-25 108 At-issue spread 500 Dec-24 114 56 /
Slide 24: Salient Transaction Details (Tier 2)
Salient Transaction Details (Tier 2) Proposed term sheet Previous tier 2 outcomes Nominal DMTN PROGRAMME Spread at Placement Issue/Tap Issuer Bond code issued Tenor Issue (bps) Method settlement (ZARm) Issuer Standard Bank Group Limited Firstrand FRB40 1,298 170 PP 19-Dec-24 11NC6 Standard Bank SST2
Slide 25: Contact details & disclaimer
Contact details & 7.0 disclaimer
Slide 26: Contact details
Contact details Jan Brits Paul Burgoyne Marc Hearn Head: Group Capital Management Head: Treasury and Money Markets Head: Strategic Funding Tel: +27 11 721 5902 Tel: +27 11 415 6010 Tel: +27 11 344 5004 Email: Jan.Brits2@standardbank.co.za Email: Paul.Burgoyne@standardbank.co.za Email: Marc.Hearn@st
Slide 27: Disclaimer
Disclaimer This presentation has been prepared by Standard Bank Group Limited and its subsidiaries, including but not limited to The Standard Bank of South Africa Limited (“SBSA”) (collectively referred to as the “Group”). This presentation is strictly confidential and is being provided to you solel
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