Standard Bank Group Standard Bank Group ANNUAL INTEGRATED ANNUAL INTEGRATED REPORT REPORT 2020 2020 standardbank.com MENU STANDARD BANK GROUP Annual integrated report 2020 1 Our reporting suite Contents Introduces the group, our competitive advantages, and our approach to integrated thinking, which Our integrated report 2 Who we are Our primary report to stakeholders, frames our value story. 4 Our approach to integrated thinking providing a holistic view of our ability to create sustainable shared 6 About our report value in the short, medium and long term. Our leaders discuss the dynamics in our markets and how these are influencing our strategic 10 Chairman’s statement priorities and our progress in achieving them. We produce a full suite of reports to cater for the diverse needs of our stakeholders. 14 Group chief executive officer’s review Our integrated report contextualises and connects to information in the following reports, which provide additional disclosure and satisfy compliance reporting requirements: Connects the emerging trends affecting our Governance Annual Environmental, Report to Subsidiary business and our continent, and the issues that Risk and 22 Our operating context and capital financial social and society annual reports matter most to our stakeholders, to how we 30 Our material issues remuneration management statements governance (RTS) Our subsidiaries are accelerating our strategy and organising 32 Our strategy report report Sets out the (ESG) report Assesses the provide an account the group to deliver sustainable shared value. to their 34 Our delivery model Discusses Sets out group’s full An overview of the group's social, stakeholders 38 Our strategic outcomes the group’s the group’s audited annual group's processes economic and through their own governance approach to risk financial and governance environmental 40 Allocating our resources annual reports, approach and management. statements, structures, (SEE) priorities, as including the including task force impacts. available on their well as the report of the on climate-related respective Our progress for the year and prospects remuneration group audit financial disclosures websites. for the year ahead in relation to our 44 Client focus policy and committee. (TCFD). • The Standard strategic value drivers. implementation Bank of South 66 Employee engagement report. Intended Africa (SBSA) 74 Risk and conduct readers • Liberty 86 Financial outcome Our clients, • Other subsidiary 100 SEE impact Intended readers employees reports, including and broader Our shareholders, debt providers and regulators legal entities in society Africa Regions. Describes our approach to good governance and how we reward our leaders. 112 Governing value creation 128 Rewarding value creation We urge our stakeholders to make use of our reporting site The invitation to the annual general meeting (AGM) at https://reporting.standardbank.com/. All our reports and notice of resolutions to be tabled is sent and latest financial results presentations, booklets and separately to shareholders and is also available online. SENS announcements are available here, along with a glossary of financial and other definitions, acronyms and 142 Pro forma financial information abbreviations used in our reports. 142 Standard Bank Group Limited credit ratings 143 Bibliography AIR GOV/REM RCM AFS ESG RTS IBC Contact and other details Key frameworks applied The International Integrated Reporting <IR> Framework Companies Act, 71 of 2008, as amended (Companies Act) Johannesburg Stock Exchange (JSE) Listings Requirements How to navigate our report This interactive PDF provides active links to sections within King IV Report on Corporate Governance for South Africa 2016™* the report and to external websites. Access to the internet International Financial Reporting Standards (IFRS) is required to navigate to website content and use the South African Banks Act, 94 of 1990 (Banks Act) download function. Basel Committee on Banking Supervision’s public disclosure framework The navigation tool for this interactive electronic report is at CDP (previously Carbon Disclosure Project) the top of each page. Selecting these will take you to the relevant section within this report. Additional navigation The Financial Stability Board's TCFD tools within this report are as follows: United Nations (UN) Sustainable Development Goals (SDGs) * Also known as the King Code and King IV. Copyright and trademarks are owned by the Institute of Directors in Southern Africa NPC and all of its rights Refers readers to information Refers readers online, to information within this report. across our suite of reports. are reserved. Back to contents page Print Previous Next MENU INTRODUCTION 2 STANDARD BANK GROUP Annual integrated report 2020 3 GROUP HEADLINE EARNINGS (%) 2020 Compelling competitive advantages Who we are 2020 2019 South Africa 34 59 2019 Africa Regions 58 30 The key attributes that differentiate us from our peers and protect Wealth International 4 4 us from competitors are outlined below. We are an African-focused, client- Liberty (4) 7 centric, digitally enabled, Other 8 0 integrated financial services Purpose-driven organisation GROUP NET ASSET VALUE (%) group with compelling We are committed to driving sustainable, inclusive growth 2020 across Africa. competitive advantages. 2020 2019 Significant proven reach South Africa 56 59 2019 Africa Regions 26 24 Unrivalled, African-focused capabilities Our on-the-ground presence Wealth International 5 4 Our on-the-ground capabilities across 20 countries in sub- Valued people Valued clients and relationships across Africa, Liberty 6 7 Saharan Africa, links to international capital and funding pools with networks in international Other 7 6 and a unique partnership with the Industrial and Commercial finance hubs position us well Bank of China (ICBC). 50 115 14.8 m to solve client problems and satisfy their needs in BANKING REVENUE (%) GROUP PERMANENT ACTIVE CLIENTS a fast-changing environment. 2020 EMPLOYEES 2019: 14.6 million Established, fit-for-purpose franchise with modern 2019: 50 691 We provide integrated 2020 2019 digital core South Africa 61 65 banking, insurance, Our franchise strength is underpinned by our strong brand, 2019 Africa Regions 36 32 investment and advisory excellent people, fit-for-purpose physical distribution network Modernised International and other 3 3 solutions that drive the and digital platforms. Strategic banking platforms SUPPORT financial wellbeing of partnership ACCELERATING our clients and our with ICBC DIGITISATION continent. Diversified client base, service offering and revenue Africa Regions contributed 58% streams Our businesses and revenue streams are well-diversified of banking activities’ headline earnings across client, sector, product and geography, which provides Well capitalised protection in times of volatility. 13.3% Robust capital and liquidity position Branches COMMON EQUITY East Africa Our strong and liquid balance sheet provides flexibility to TIER 1 (CET 1) RATIO manage uncertainty, change, innovation and growth. 7 South Sudan 2019: 14.0% 8 Ethiopia 1 124 (representative Strong growth prospects 2019: 1 114 office) Market Our prospects for future growth are driven by regional capitalisation 9 Uganda economic fundamentals and increasing financial inclusion and 10 Kenya penetration providing opportunities to increase our market 1 2 3 8 ATMs* 7 share, particularly in some of the large markets in which we 11 Tanzania US14 bn operate where we have relatively small market shares. West Africa 9 10 4 East Africa 6 774 Recognised South & 11 2019: 8 976 Central Africa Appetite to invest, deliver and partner brand West Africa 5 We have the resources and appetite to expand on our own and 12 16 * ATMs – automated Namibia 14 1 Côte d’Ivoire through partnerships and alliances. teller machines. 13 17 Botswana South & 15 18 2 Ghana 12 Central Africa 13 14 Zambia Standard Bank 3 Nigeria 20 15 Zimbabwe 19 South Africa Stanbic Bank 4 Democratic 6 Republic of 16 Malawi Congo (DRC) 17 Mozambique 5 Angola 18 Mauritius 19 Lesotho Presence in International 6 South Africa 20 eSwatini international financial markets: services: As an established African-focused group we have: On-the-ground presence in • Beijing • Isle of Man • Dubai 20 countries in sub-Saharan Africa • Jersey • London • Mauritius • New York Trusted Client Digital assets Established Africa Deep sector • São Paulo brand community and data partners knowledge expertise MENU INTRODUCTION 4 STANDARD BANK GROUP Annual integrated report 2020 5 Our approach to integrated thinking Our approach to integrated thinking is dynamic and evolves as we respond to ORGANISING OUR BUSINESS the challenges of the present while preparing the group for the future. Our delivery model We secure the inputs required to transform, grow, innovate and compete effectively and through our business INFORMING OUR THINKING activities we deliver the outcomes for the benefit of all our stakeholders. Our operating context Our material issues Read more on page 34. The Covid-19 crisis is compounding the forces Shaped by the expectations of our stakeholders and impacting financial services and changing prevailing economic, social and environmental trends, stakeholder expectations of value, challenging our material issues are those that have the potential MEASURING OUR STRATEGIC PROGRESS us to deepen our resilience and re-imagine our to substantially impact on our commercial viability, relevance to our clients and our continent