Standard Bank Group Limited anticipates robust growth in its earnings for the fiscal year ended 31 December 2023 (FY23). The bank, in its recent trading statement, announced that it is in the final stages of preparing its financial results for FY23 and is confident in the accuracy of its projections.
Expected Financial Performance
According to the trading statement, Standard Bank expects its headline earnings per share (HEPS) for FY23 to be between 23% and 28% higher than the previous fiscal year, translating to a range of 2 522.0 to 2 624.5. Similarly, the bank anticipates its earnings per share (EPS) to increase by 25% to 30% compared to FY22, with a projected range of 2 592.6 to 2 696.3.
Restated Ratios Reflecting Methodology Amendment
During the finalization of FY23 results, Standard Bank made adjustments to its methodology for recognizing interest on Stage 3 loans. While this adjustment led to an increase in net interest income and credit impairment charges, it has no impact on HEPS or EPS. The bank applied this amendment retrospectively to its FY22 financials, resulting in restated ratios as follows:
| Ratio | 2022 As Reported | Adjustment | Restated |
|---|---|---|---|
| Net interest margin | 425 basis points | 7 basis points | 432 basis points |
| Credit loss ratio | 75 basis points | 8 basis points | 83 basis points |
| Cost-to-income ratio | 54.4% | 0.5% | 53.9% |
Impact on FY23 Results
This methodology amendment will also affect related figures and ratios for FY23, resulting in a higher net interest margin and credit loss ratio than previously anticipated.
Upcoming Announcement
Standard Bank is scheduled to release its FY23 results on 14th March 2024. Investors and stakeholders can find details about the presentation on the bank’s Investor Relations website.
Conclusion
With its strong growth expectations for FY23, Standard Bank continues to demonstrate resilience and strategic adaptability in navigating the ever-evolving financial landscape. As the bank prepares to unveil its financial performance for the year, all eyes are on the anticipated results, which are poised to reflect the bank’s commitment to delivering value to its shareholders and stakeholders alike.
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