The Standard Bank Group said this week that for the full year to 31 December 2007, headline earnings were N$13 billion, up 22% on the prior year. Corporate and Investment Banking grew headline earnings by 34%, while Personal and Business Banking grew by 18%. Group headline earnings per share grew by 21% to 960.6 cents per share and the group achieved a return on equity of 24.8%.

Meanwhile, the growth contribution to headline earnings from the South African operations slowed to 15%, while the businesses in the rest of Africa grew their contribution by 58% and operations outside Africa by 98%.
“It is rewarding to see our contribution reflected in the success of the Group as a whole. The challenge for us now, is to raise the bar in our performance into the current financial year,” Mpumzi Pupuma, Managing Director of Standard Bank Namibia.
In 2007, the bank entered into a transaction with the Industrial and Commercial Bank of China, the world’s largest bank by assets.
“Geographic diversification has paid off for us in 2007 and will continue to do so into the future. The new capital injection from ICBC is dilative in the short term, but extends our growth horizons in the longer term. We believe that strong capital ratios are a competitive advantage right now allowing us to consider further acquisitions,” commented chief executive Jacko Maree.
The group obtained approval from both South African and Argentinean regulators for its acquisition of the assets and liabilities of BankBoston Argentina, with effect from 1 April 2007.
Further, IBTC Chartered Bank Plc in Nigeria has been consolidated in the group with effect from 1 October 2007 and added N$65 million to the group’s headline earnings in the three months to 31 December 2007.
The acquisition of CFC Bank in Kenya is subject to regulatory approval and unlikely to have a significant impact on group results. It will, however, expand the group’s African network and create a stronger presence in East Africa.