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  • Our business
    • OUR APPROACH TO INTEGRATED THINKING
    • WHO WE ARE
    • OUR OPERATING CONTEXT
    • OUR GROUP STRATEGY
    • OUR VALUE CREATION MODEL
    • MEASURING OUR STRATEGIC PROGRESS
    • WHY INVEST IN US
  • Our performance
    • CHAIRMAN’S STATEMENT
    • GROUP CHIEF EXECUTIVE’S REPORT
    • OUR STRATEGIC VALUE DRIVERS
  • Our accountability
    • OUR REPORTING SUITE
    • ABOUT THIS REPORT
    • GOVERNANCE OVERVIEW
    • REMUNERATION OVERVIEW
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  • Measuring our strategic progress

    A snapshot of our performance against strategy for 2018

    Our strategic value drivers help us focus our efforts and measure our progress on delivering our strategy, across all our business units and corporate functions, and our geographic footprint.

    CLIENT FOCUS
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    CLIENT
    FOCUS
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    EMPLOYEE
    ENGAGEMENT
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    RISK AND
    CONDUCT
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    FINANCIAL
    OUTCOME
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    SEE
    IMPACT

    Our clients are at the centre of everything we do. We strive to meet their individual needs by seamlessly delivering holistic, relevant financial services offerings through the channels of their choice.

                   
        2018     Medium-term target    
        Actual   Achievement        
    Net promoter score (NPS)
    PBB South Africa channel   70   Met     Continually improve    
    PBB Africa Regions   25   Met        
    Wealth NPS   69   Met        
    Client satisfaction index (CSI)                  
    CIB   8.0   Met          
                       
    NET PROMOTER SCORE
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    CLIENT SATISFACTION INDEX
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    • NET PROMOTER SCORE
    • CLIENT SATISFACTION INDEX
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    Understanding our clients

    Our on-the-ground presence in 20 countries in Africa and client-focused approach, connected by our enhanced IT platforms, supports our large, diverse client base. As we become more digitised and integrated, we are better able to understand our client’s financial services needs and match them with personalised experiences and solutions. We have made progress in improving service delivery across multiple channels, including faster account origination and online lending.

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    Leveraging technology

    Digitisation has had a significant impact in improving client experience, and the pace at which our business units and clients are leveraging technology continues to gain momentum. Having completed the transformation of our core banking platforms, we have moved our focus to simplifying our IT estate and leveraging our data while continuing to deliver an ‘always on, always secure’ client experience.

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    Transforming our business

    Our presence across Africa and in key financial centres around the world provides our clients with access to international markets and capital, supporting our ability to drive Africa’s growth and development. Changes in organisational design are driving greater integration across geographies and financial offerings, be they retail, investment banking, wealth management or insurance, and delivering greater value.

    EMPLOYEE ENGAGEMENT
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    CLIENT
    FOCUS
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    EMPLOYEE
    ENGAGEMENT
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    RISK AND
    CONDUCT
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    FINANCIAL
    OUTCOME
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    SEE
    IMPACT

    How our people think and feel about their work correlates directly with how satisfied our clients are, and how successful we are in delivering our strategy and performance aspirations.

                   
        2018     Benchmarks    
        Actual   Achievement        
    Employee net promoter score (eNPS)
    Standard Bank Group   +23   Met     +24    
    Employee turnover
    Overall employee turnover rate (%)   8.3   Met     14.41    
    Voluntary employee turnover rate (%)   4.9   Met     9.91    
    Voluntary regrettable employee turnover rate (%)   2.3   Met        

    1. Gartner CEB Global benchmarks: 2017.

    EMPLOYEE NET PROMOTER SCORE
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    EMPLOYEE TURNOVER
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    • EMPLOYEE NET PROMOTER SCORE
    • EMPLOYEE TURNOVER
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    OUR EMPLOYEE BASE
    PERMANENT EMPLOYEES (EXCLUDING LIBERTY)
    47 419
    2017: 48 322
    2016: 48 622
    NON-PERMANENT EMPLOYEES (EXCLUDING LIBERTY)
    4 728
    2017: 5 725
    2016: 5 726
    EMPLOYMENT EQUITY (SOUTH AFRICA)
    We continue to make steady progress in increasing the representation of black people at all management levels, and have achieved a notable increase in executive management representation.
    EXECUTIVE MANAGEMENT
    41.9%
     
    2017: 34.1%
    SENIOR MANAGEMENT
    46.3%
     
    2017: 43.1%
    MIDDLE MANAGEMENT
    71.3%
     
    2017: 69.5%
    JUNIOR MANAGEMENT
    88.3%
     
    2017: 87.5%
    GENDER TARGETS
    WOMEN ON THE BOARD
    33%
     
    by 2021
    WOMEN CHIEF EXECUTIVES IN THE AFRICA REGIONS
    20%
     
    by 2021
    WOMEN IN EXECUTIVE POSITIONS ACROSS THE GROUP
    40%
     
    by 2023
    WOMEN IN EXECUTIVE POSITIONS IN SOUTH AFRICA
    40%
     
    by 2021
    RISK AND CONDUCT
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    CLIENT
    FOCUS
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    EMPLOYEE
    ENGAGEMENT
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    RISK AND
    CONDUCT
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    FINANCIAL
    OUTCOME
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    SEE
    IMPACT

    Our licence to operate is a function of the trust our stakeholders place in us. Our ability to manage the risk inherent in our business and to ensure that our conduct reflects the highest standards of ethical and responsible business practice, underpin that trust.

                   
        2018     Medium-term target    
        Actual   Achievement        
    Risk LIB (Including Liberty)
    Common equity tier 1 ratio (CET 1) (%)   13.5   Met     11.0 – 12.5%    
    Liquidity coverage ratio (LCR) (%)   116.8   Met     Minimum of >100%    
    Return on risk-weighted assets (RoRWA) (%)   3.0   Met          
    Net stable funding ratio (NSFR) (%)   118.6   Met     Minimum of >100%    
    ConductLIB (Including Liberty)
    We manage conduct risk in accordance with our governance framework and are guided by our values, ethics and principles.

    RISK
    RISK
    • RISK
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    Risk and conduct

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    Doing the right business the right way

    We manage our business and associated risks in a manner that balances the interests of our clients and other key stakeholders with the protection of the group’s long-term sustainability and the stability of the financial systems within which we operate. Our objective to do the right business the right way extends from our compliance with laws and regulations, including the enforcement of measures to combat financial crime, financing of terrorism or other fraudulent practices, to our ethical conduct as individuals and a financial services organisation.

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    Leveraging technology to improve risk management

    The relationship between regulation and digitisation is complex and sometimes ambiguous. While digitisation strengthens regulatory control by increasing transparency and auditability and reducing manual errors, there is a concern among regulators that it may fail to protect clients and come at the expense of security compliance, risk management and business continuity.

    The risk management and audit teams focus on managing this complexity by embracing the vital role of digitisation in the execution of the group’s strategy and understanding the processes of digitisation to ensure that the associated risks are managed in a manner that protects client data and assets without increasing client friction.

    FINANCIAL OUTCOME
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    CLIENT
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    EMPLOYEE
    ENGAGEMENT
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    RISK AND
    CONDUCT
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    FINANCIAL
    OUTCOME
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    SEE
    IMPACT

    Delivering sustainable returns to our shareholders depends on the extent to which our investments in satisfied clients, engaged employees and managing risk and conduct are effective and efficient.

                   
        2018     Medium-term target    
        Actual   Achievement        
    Headline earnings (Rbn)LIB (Including Liberty)   27.9   Met     Sustainable growth    
    Return on equity (ROE) (%)LIB (Including Liberty)   18.0   Met     18 – 20%    
    Cost-to-income ratio (CTI) (%)   57.0   On track     Approaching 50%    
    Credit loss ratio (CLR) (%)   0.56   On track     80 – 100 bps    
    HEADLINE EARNINGS AND ROE
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    • HEADLINE EARNINGS AND ROE
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    We allocate our resources and align our relationships to support the disciplined delivery of our strategy, while continuing to focus on growth, resilience and returns to deliver a compelling investment case.
    ACHIEVED IN 2018:
    • Group headline earnings (HE) growth reflects strong franchise growth, growing client numbers and growing deposits and loans. Growth was further enhanced by an 11% increase in Liberty HE.
    • Currency movements continued to impact the group’s reported results, but less than in prior years. On a constant currency basis, group HE grew by 8%.
    • Banking activities’ HE grew by 7% to R25.8 billion and banking activities’ ROE improved to 18.8%, up from 18% in 2017.
    • Banking revenue growth remained steady, credit impairment charges decreased significantly while costs were carefully managed in a challenging environment.
    • Africa Regions contribution to banking HE increased to 31% from 28% in 2017. The top five contributors to Africa Regions’ HE were Angola, Ghana, Mozambique, Nigeria and Uganda.
    • PBB delivered satisfying results with a 10% increase in HE to R15.5 billion, contributing 56% to group HE, up from 44% in 2017. CIB HE decreased marginally to R11.2 billion, and a contribution of 40% to group HE in 2018, down from 44% in 2017.
    • Despite the challenging economic environment in South Africa, the Standard Bank of South Africa (SBSA) performed acceptably and maintained HE at R16 billion.
    • Liberty earnings attributable to the group were R1.6 billion, driven mainly by an improvement of 42% in operating earnings.
    • The group’s share of HE from ICBC Argentina increased by 19%, offset by a poor performance from ICBCS, where the group’s 40% share was a loss of R74 million, down from a profit of R152 million in 2017
    SOCIAL, ECONOMIC AND ENVIRONMENTAL (SEE) IMPACT
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    CLIENT
    FOCUS
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    EMPLOYEE
    ENGAGEMENT
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    RISK AND
    CONDUCT
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    FINANCIAL
    OUTCOME
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    SEE
    IMPACT

    In line with our purpose, we believe that financial services done well – with conscience and conscientiousness – can improve the lives of Africans by addressing the pertinent issues that face the continent.

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    Financial inclusion
    • Improving access and affordability – convenient digital products and services, accessible even without a bank account.
    • Rethinking security and collateral requirements for loans.
    • Providing consumer education to enable people to manage their finances more effectively.
    • Helping our customers save, invest and plan for the future, according to their individual needs.
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    Job creation and enterprise development
    • Helping Africa’s small businesses access the tools and resources they need to become viable and sustainable.
    • Providing financial products designed to meet the needs of SMEs and entrepreneurs.
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    Infrastructure

    Working with African governments and development institutions to structure appropriate funding instruments and mobilise funding for crucial developmental infrastructure:

    • Energy
    • Water
    • Transport (roads and railways, ports and harbours)
    • Telecommunications.
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    Africa trade and investment
    • Facilitating African trade and investment, particularly in the Africa-China corridor in conjunction with ICBC.
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    Education and skills development
    • Supporting early childhood development.
    • Supporting improved access to education and improved educational outcomes.
    • Improving access to student finance (including Feenix).
    • Supporting access to work opportunities and skills development.
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    Employee development and training
    • Building and retaining local skills in our countries of operation.
    • Development programmes for school leavers.