Standard Bank 1st Half Net Down 31% As Impairments Rise
August 13 2009 - 3:07AM
Dow Jones News
Standard Bank Group Ltd. (SBK.JO), Africa's largest lender by
assets, Thursday said its first-half net profit fell 31% as loan
impairments rose amid the global economic slump.
Net profit fell to 5.11 billion rand ($639 million) from ZAR7.4
billion a year earlier.
Basic earnings per share dropped 34.4% to 354.7 cents, from
540.5 cents. Standard Bank in late July forecast a 30%-35% decline
in earnings per share, fleshing out a warning in May that it was
unlikely to match the previous year's performance.
Still, net interest income was 15% higher on the year at
ZAR16.52 billion and non-interest revenue was up 6% at ZAR15.28
billion.
Absa Group Ltd. (ASA.JO), South Africa's biggest retail lender,
earlier this month said it expects to remain under pressure for the
rest of the year due to rising arrears and non-performing loans.
The bank, majority owned by the U.K.'s Barclays PLC (BCS), posted a
39% drop in its first-half net profit after impairments rose and
business volumes fell.
Standard Bank's shares ended Wednesday at ZAR95.70, up about 15%
since the start of the year and in line with a rise in
Johannesburg's blue chip Top 40 index.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848;
robb.stewart@dowjones.com