Note 1

1  

Segment reporting
 
    Domestic Banking   Corporate &         Elimination    
    Personal & Corporate & Other     Investment         of treasury    
    Business Investment domestic     Banking   Central Standard Bank   shares and Standard Bank  
    Banking SA Banking SA operations Total   Rest of Africa International Stanlib funding operations Liberty Life Tutuwa Group  
2005   Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm  
Income from banking operations   16 434 6 451 (99) 22 786 2 955 3 130 762 72 29 705 – – 29 705  
Net interest income   8 474 2 400 (191) 10 683 1 609 630 (28) 93 12 987 – – 12 987  
Interest income   19 899 19 541 (5 494) 33 946 2 499 3 111 72 (931) 38 697     38 697  
Interest expense   11 425 17 141 (5 303) 23 263 890 2 481 100 (1 024) 25 710     25 710  
Non-interest revenue   7 960 4 051 92 12 103 1 346 2 500 790 (21) 16 718 – – 16 718  
Fee and commission revenue   7 445 1 412 (27) 8 830 898 731 753 (40) 11 172     11 172  
Trading revenue   – 1 577 4 1 581 378 1 770 21 (8) 3 742     3 742  
    515 1 062 115 1 692 70 (1) 16 27 1 804     1 804  
                              
Income from life insurance operations   – – – – – – – – – 51 821 (694) 51 127  
Net insurance premiums                     18 979 – 18 979  
Investment income and gains                     31 676 (694) 30 982  
Management and service fee income                     1 166 – 1 166  
                             
Total income   16 434 6 451 (99) 22 786 2 955 3 130 762 72 29 705 51 821 (694) 80 832  
Credit impairment charges   1 273 (2) (21) 1 250 38 (100) – 19 1 207     1 207  
Benefits due to policyholders   – – – – – – – – – 41 004 – 41 004  
Net insurance benefits and claims   – – – – – – – – – 32 816 – 32 816  
Fair value adjustment to policyholders’ liabilities under investment contracts   – – – – – – – – – 6 834 – 6 834  
Fair value adjustment on third party fund interests   – – – – – – – – – 1 354 – 1 354  
                             
Income after credit impairment charges and policyholders’ benefits   15 161 6 453 (78) 21 536 2 917 3 230 762 53 28 498 10 817 (694) 38 621  
Operating expenses in banking operations   9 727 2 649 (319) 12 057 1 854 2 525 414 (33) 16 817 – – 16 817  
Staff costs   3 172 1 455 2 051 6 678 850 1 776 243 66 9 613     9 613  
Other operating expenses   6 555 1 194 (2 370) 5 379 1 004 749 171 (99) 7 204     7 204  
Operating expenses in life insurance operations   – – – – – – – – – 7 222 – 7 222  
Acquisition costs – insurance and investment contracts   – – – – – – – – – 3 594 – 3 594  
Other operating expenses   – – – – – – – – – 3 628 – 3 628  
                             
Net income before goodwill   5 434 3 804 241 9 479 1 063 705 348 86 11 681 3 595 (694) 14 582  
Goodwill impairment   13 – – 13 – 11 – – 24 397 – 421  
Net income from banking and insurance   5 421 3 804 241 9 466 1 063 694 348 86 11 657 3 198 (694) 14 161  
Income from associates and joint ventures   141 58 – 199 1 – – – 200 26 – 226  
Net income before indirect taxation   5 562 3 862 241 9 665 1 064 694 348 86 11 857 3 224 (694) 14 387  
Indirect taxation   222 75 165 462 52 36 3 12 565 213 – 778  
Profit before direct taxation   5 340 3 787 76 9 203 1 012 658 345 74 11 292 3 011 (694) 13 609  
Direct taxation   1 686 528 (98) 2 116 241 204 142 (25) 2 678 1 634 – 4 312  
Profit for the year   3 654 3 259 174 7 087 771 454 203 99 8 614 1 377 (694) 9 297  
Attributable to minorities   – 1 (1) – 49 – 106 2 157 997 (515) 639  
Attributable to preference shareholders   – – – – – – – 226 226 – – 226  
Attributable to ordinary shareholders   3 654 3 258 175 7 087 722 454 97 (129) 8 231 380 (179) 8 432  
                             
Headline earnings   3 664 3 213 114 6 991 721 465 97 (129) 8 145 498 (179) 8 464  
Return on equity (%)   31,2 40,6   33,6 27,4 8,2 57,7   28,2 17,8   27,8  
Average ordinary shareholders’ equity   11 757 7 913 1 110 20 780 2 630 5 667 168 (317) 28 928 2 791 (1 235) 30 484  
Cost-to-income ratio (%)   59,2 41,1   52,9 62,7 80,7 54,3   56,6     56,6  
Net interest margin (%)   4,81 1,56   3,16 5,78 0,59     2,93     2,93  
Credit loss ratio (%)   0,73 (0,00)   0,50 0,28 (0,22)   (0,15) 0,41     0,41  
Total assets   197 897 246 674 7 467 452 038 30 043 122 660 787 (11 800) 593 728 161 950   755 678  
Average assets (excluding derivatives)   176 181 154 044 7 319 337 544 27 837 106 124 1 433 (29 649) 443 289        
Total liabilities   184 922 238 122 5 923 428 967 26 155 117 924 528 (14 335) 559 239 156 475   715 714  
Interest in associates and joint ventures   203 561   764 2   3 46 815 4 170   4 985  
Capital expenditure   435 154 488 1 077 148 72 9   1 306 346   1 652  
Depreciation and amortisation   328 130 206 664 130 38 25 1 858 327   1 185  
Impairment of non-financial assets   13     13   11     24 397   421  
Number of employees   17 653 3 213 7 652 28 518 6 119 1 494 551   36 682 3 563   40 245  
    
    Domestic Banking   Corporate &         Elimination    
    Personal & Corporate & Other     Investment         of treasury    
    Business Investment domestic     Banking   Central Standard Bank   shares and Standard Bank  
    Banking SA Banking SA operations Total  Rest of Africa International Stanlib funding operations Liberty Life Tutuwa Group  
2004   Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm  
Income from banking operations   13 734 6 188 (88) 19 834 2 666 3 308 663 65 26 536 – – 26 536  
Net interest income   7 144 2 374 (168) 9 350 1 520 562 (44) 104 11 492 – – 11 492  
Interest income   14 788 20 178 (3 733) 31 233 2 416 2 226 65 (693) 35 247     35 247  
Interest expense   7 644 17 804 (3 565) 21 883 896 1 664 109 (797) 23 755     23 755  
Non-interest revenue   6 590 3 814 80 10 484 1 146 2 746 707 (39) 15 044 – – 15 044  
Fee and commission revenue   6 250 1 265 100 7 615 779 805 662 (45) 9 816     9 816  
Trading revenue   – 1 516 (51) 1 465 296 1 941 38 48 3 788     3 788  
Other revenue   340 1 033 31 1 404 71 – 7 (42) 1 440     1 440  
                             
Income from life insurance operations   – – – – – – – – – 32 311 – 32 311  
Net insurance premiums                     12 406 – 12 406  
Investment income and gains                     18 830 – 18 830  
Management and service fee income                     1 075 – 1 075  
                             
Total income   13 734 6 188 (88) 19 834 2 666 3 308 663 65 26 536 32 311 – 58 847  
Credit impairment charges   786 31 (12) 805 45 146 – 54 1 050     1 050  
Benefits due to policyholders   – – – – – – – – – 24 809 – 24 809  
Net insurance benefits and claims   – – – – – – – – – 19 115 – 19 115  
Fair value adjustment to policyholders' liabilities under                            
   investment contracts   – – – – – – – – – 4 666 – 4 666  
Fair value adjustment on third party fund interests   – – – – – – – – – 1 028 – 1 028  
                             
Income after credit impairment charges and policyholders' benefits   12 948 6 157 (76) 19 029 2 621 3 162 663 11 25 486 7 502 – 32 988  
Operating expenses in banking operations   8 588 2 577 (83) 11 082 1 611 2 318 449 (76) 15 384 – – 15 384  
Staff costs   2 873 1 333 1 781 5 987 752 1 612 233 26 8 610     8 610  
Other operating expenses   5 715 1 244 (1 864) 5 095 859 706 216 (102) 6 774     6 774  
Operating expenses in life insurance operations   – – – – – – – – – 4 684 – 4 684  
Acquisition costs – insurance and investment contracts   – – – – – – – – – 1 920 – 1 920  
Other operating expenses   – – – – – – – – – 2 764 – 2 764  
                             
Net income before goodwill   4 360 3 580 7 7 947 1 010 844 214 87 10 102 2 818 – 12 920  
Goodwill impairment   – – – – (2) 50 – – 48 –   48  
Net income from banking and insurance   4 360 3 580 7 7 947 1 012 794 214 87 10 054 2 818 – 12 872  
Income from associates and joint ventures   85 10 2 97 – – – – 97 30   127  
Net income before indirect taxation   4 445 3 590 9 8 044 1 012 794 214 87 10 151 2 848 – 12 999  
Indirect taxation   171 50 99 320 50 7 – 12 389 262   651  
Profit before direct taxation   4 274 3 540 (90) 7 724 962 787 214 75 9 762 2 586 – 12 348  
Direct taxation   1 309 735 (105) 1 939 261 190 97 (3) 2 484 792   3 276  
Profit for the year   2 965 2 805 15 5 785 701 597 117 78 7 278 1 794 – 9 072  
Attributable to minorities   – – – – 64 – 61 (1) 124 1 264   1 388  
Attributable to preference shareholders   – – – – – – – – – –   –  
Attributable to ordinary shareholders   2 965 2 805 15 5 785 637 597 56 79 7 154 530   7 684  
                             
Headline earnings   2 985 2 805   5 790 616 647 56 78 7 187 351   7 538  
Return on equity (%)   34,7 37,8   32,0 29,1 12,1 35,0   27,2 13,5   26,0  
Average ordinary shareholders' equity   8 593 7 420 2 081 18 094 2 116 5 335 160 750 26 455 2 609 (114) 28 950  
Cost-to-income ratio (%)   62,5 41,6   55,9 60,4 70,1 67,7   58,0     58,0  
Net interest margin (%)   5,36 1,76   3,40 6,08 0,57     3,07     3,07  
Credit loss ratio (%)   0,59 0,05   0,41 0,38 0,37   (1,42) 0,43     0,43  
Total assets   154 205 229 407 8 056 391 668 25 348 107 128 1 868 (19 992) 506 020 114 153   620 173  
Average assets (excluding derivatives)   133 338 134 992 6 936 275 266 24 996 97 940 1 381 (24 869) 374 714        
Total liabilities   144 555 221 892 5 575 372 022 22 810 103 042 1 601 (23 322) 476 153 105 487   581 640  
Interest in associates and joint ventures   114 132   246     2 48 296 2 954   3 250  
Capital expenditure   397 134 256 787 263 60 16   1 126 257   1 383  
Depreciation and amortisation   297 84 341 722 115 51 25   913 186   1 099  
Impairment of non-financial assets   14   13 27 (2) 50     75     75  
Number of employees   17 587 3 029 7 492 28 108 5 799 1 376 537   35 820 3 260   39 080