Standard lays out growth strategy

Johannesburg - Standard Bank Group [JSE:SBK] is eyeing Africa and other high growth regions to bolster its balance sheet and competitiveness.

Commenting on the group's interim results to end-June, CEO Jacko Maree said Standard Bank wants to become a link between international capital markets and Africa, focusing specifically on the oil, gas, telecommunications, power, infrastructure and mining industries as well as the financial sector.

"If you want to play in this game you need a strong dollar balance sheet - not just a strong rand one," said Maree.
 
Earnings at Standard Bank rose 11% to R5.9bn during the period under review on the back of improved market confidence and better returns from wealth management business Liberty Holdings [JSE:LBH]. The group also managed to nearly halve its impairment charge from R7bn in the first half of 2009 to R4bn.
 
The dividend was maintained at 141c.
 
Sim Tshabalala, who heads up Standard Bank South Africa, also played up the African strategy, pointing out that the group had strong distribution networks on the continent.
 
He said groups such as Barclays and Renaissance Capital were increasingly focusing their attention on Africa, using South Africa as a potential springboard to the rest of the continent.
 
"Expansion into Africa is still in a build phase and good progress has been made in Namibia and Botswana," said Tshabalala. "We have systems and infrastucture that can be exported."
 
Earnings from the rest of Africa contributed R509m to the group's profits.
 
By Thursday midday shares in Standard Bank were down 90c (-0.9%) to trade at 1 0460c, while the broader financial index was off 0.4%.
 
 - Fin24.com

*The writer holds ordinary and preference shares in Standard Bank.