Standard Bank sees ‘significant’ earnings boost

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Standard Bank announced on Tuesday that it expects a significant increase in earnings for the six months to June on improved performance, but also because of disposals of operations in London and Brazil.

The bank said in a statement that headline earnings per share are expected to rise by up to 32 percent. During the period under review, the Standard Bank group sold off the controlling interest in Standard Bank Plc (recently renamed ICBC Standard Bank Plc) as well as its entire interest in Banco Standard de Investimentos S.A in Brazil.

Following these transactions, Standard Bank says earnings attributable to ordinary shareholders include approximately R3 billion of net disposal gains excluded from headline earnings. These net disposal gains consist primarily of releases from the group’s foreign currency translation reserve.

The transactions were accompanied by recovery for an insurance claim in China, writing of off losses to January from the London operations and release from currency hedges from the transactions.

Earnings per share, measured by the International Financial Reporting Standard, are expected to rise from 519 cents a year ago to between 805,2 cents and 857,2 cents, an increase of between 55 percent and 65 percent. Headline earnings per share will rise from 518,9 cents to between 633 and 685 cents, an increase of between 22 percent and 32 percent.

On a normalised basis, diluted headline earnings per share will increase from 507,3 cents to between 618,9 cents and 669,6 cents.

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