Summarised annual financial statements

Transcription

1 79 Summarised annual financial statements The summary presented on pages 81 to 85 of this report has been extracted from the audited annual consolidated financial statements. This report is itself not audited. The annual consolidated financial statements, from which the summary was derived, was audited by KPMG Inc. and PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon. The annual consolidated financial statements and the auditor s report thereon are available for inspection at the company s registered office. The directors of Standard Bank Group Limited take full responsibility for the preparation of the summary and that the has been correctly extracted from the underlying consolidated annual financial statements. Significant accounting policies 80 Consolidated income statement IFRS 81 Consolidated statement of financial position IFRS 82 Consolidated statement of other comprehensive income IFRS 83 Headline earnings IFRS 84 Financial statistics IFRS 85 RCM AFS The full 2013 annual financial results and related notes can be found in the risk and capital management report and annual financial statements.

2 80 Standard Bank Group Annual integrated report 2013 Our performance Summarised annual financial statements continued Significant accounting policies Basis of preparation The group s annual financial statements are prepared in accordance with IFRS, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Listings Requirements of the JSE, and the South African Companies Act. Basis of consolidation The group controls an investee when it has power over the investee; has exposure or rights to variable returns from its involvement with the investee; and has the ability to use its power to affect the returns from its involvement with the investee. Investees are consolidated from the date the group acquires control up to the date that control is lost. Functional and presentation currency The annual financial statements are presented in South African rand (rand). All foreign-denominated transactions are recognised at the rate at which the transaction arose and all foreign-denominated balances are translated at the closing exchange rate with any differences recognised in the income statement. The assets and liabilities of the group s foreign operations are translated into rand using the closing exchange rate and the income statement at the average exchange rate. Any resultant exchange differences are recognised in the group s foreign currency translation reserve. Financial instruments Financial instruments, which include all financial assets and liabilities, are initially recognised at fair value. Subsequent to initial recognition, financial instruments are measured either at fair value or amortised cost depending on the classification of the financial instrument which takes into account the purpose for which the group acquired or originated the financial instrument, the group s intention and various other accounting elections. RCM AFS Non-current assets held for sale, disposal groups and discontinued operations Equity compensation plans The fair value of equity-settled share options is determined on the grant date and recognised in staff costs over the vesting period with a corresponding increase in the share-based payment reserve. Cash-settled share-based payments are accounted for as liabilities at fair value until settled with the liability being recognised over the vesting period through staff costs. Revenue and expenditure Revenue is derived substantially from the business of banking and related activities. Interest income and expense are recognised in profit or loss on an accrual basis using the effective interest method for all interest-bearing financial instruments, except for those classified at fair value through profit or loss. Fee and commission revenue are recognised as the related services are performed. Trading revenue comprises all gains and losses from changes in the fair value of trading assets and liabilities. Other revenue typically includes gains and losses on equity instruments designated at fair value through profit or loss, underwriting profit from the group s short-term insurance operations and related insurance activities. Policyholder insurance and investment contracts Long-term insurance contracts and investment contracts with discretionary participation features (DPF), being discretionary bonuses provided by the group, are valued using actuarial cash flow methodologies in accordance with actuarial guidance requirements. For short-term insurance, premiums are accounted for as income when the risk related to the insurance policy commences and are amortised over the contractual period of risk cover by using an unearned premium provision. A liability adequacy provision is recognised when it is anticipated that the unearned premium is insufficient to cover future claims. Investment contracts without DPF are accounted Refer to the annual financial statements for the for as liabilities at fair value with all changes recognised in the full accounting policies, estimates and judgments income statement. All of these contracts are reflected as liabilities in the statement of financial position. PG The accounting treatment for non-current held for sale assets and discontinued operations is explained on pages 73 to 74. RCM AFS Further detail on restatements and reclassifications can be found in annexure A of the annual financial statements.

3 81 Consolidated income statement IFRS % Continuing operations Income from banking activities Net interest income Non-interest revenue Income from investment management and life insurance activities Total income Credit impairment charges Benefits due to policyholders Income after credit impairment charges and policyholders benefits Revenue sharing agreements with group companies Income before operating expenses Operating expenses in banking activities Staff costs Other operating expenses Restructure costs Operating expenses in investment management and life insurance activities Net income before goodwill impairment and gains on disposal of subsidiary Goodwill impairment (100) 777 Gains on disposal of subsidiary (66) Net income before share of profits from equity accounted earnings Share of profit from associates and joint ventures (2) Net income before indirect taxation Indirect taxation Profit before direct taxation Direct taxation Profit for the year from continuing operations Discontinued operations (>100) (1 022) 817 Profit for the year Attributable to non-controlling interests Continuing operations Discontinued operations (100) 227 Attributable to preference shareholders (1) Attributable to ordinary shareholders Basic earnings per share (cents) (2) 1 034, ,6 Continuing operations , ,8 Discontinued operations (>100) (65,2) 38,8 Diluted earnings per share (cents) (1) 1 008, ,0 Continuing operations ,2 982,5 Discontinued operations (>100) (63,6) 37,

4 82 Standard Bank Group Annual integrated report 2013 Our performance Summarised annual financial statements continued Consolidated statement of financial position IFRS as at 31 December 2013 % Assets Cash and balances with central banks (14) Financial investments, trading and pledged assets (3) Non-current assets held for sale 2 > Loans and advances Derivative and other assets (42) Interest in associates and joint ventures Investment property Goodwill and other intangible assets Property and equipment Total assets Equity and liabilities Equity Equity attributable to ordinary shareholders Preference share capital and premium Non-controlling interests Liabilities Deposit and current accounts Derivative, trading and other liabilities (23) Non-current liabilities held for sale Policyholders liabilities Subordinated debt (22) Total equity and liabilities The intended disposal of our global markets business outside Africa, RCS Investment Holdings Proprietary Limited (RCS) and Standard Bank Argentina S.A. (SBA) resulted in their respective assets and, where applicable, liabilities being classified as held for sale at 31 December 2013, 31 December 2012 and 31 December 2011, respectively. The group s controlling interest in SBA was disposed of during The group s associate interest in RCS was reclassified out of non-current assets held for sale during 2013 to interest in associates and joint ventures

5 83 Consolidated statement of other comprehensive income IFRS Ordinary shareholders equity Non-controlling interests and preference shareholders Total equity Total equity Profit for the year Other comprehensive income after tax for the year continuing operations Items that may be reclassified subsequently to profit or loss: Exchange rate differences on translating equity investments in foreign operations Foreign currency hedge of net investment (176) (176) 181 Cash flow hedges 298 (59) 239 (230) Available-for-sale financial assets Items that may not be reclassified to profit or loss: Defined benefit fund remeasurements (202) 16 (186) 383 Other losses (60) (90) (150) (2) Other comprehensive income after tax for the year discontinued operations 615 Total comprehensive income for the year Attributable to non-controlling interests Attributable to equity holders of the parent Attributable to preference shareholders Attributable to ordinary shareholders

6 84 Standard Bank Group Annual integrated report 2013 Our performance Summarised annual financial statements continued Headline earnings IFRS % Profit for the year from continuing operations Headline adjustable items added Goodwill impairment IAS Profit on sale of property and equipment IAS 16 (4) (31) Realised foreign currency translation profit on foreign operations IAS 21 (16) (119) Gains on the disposal of businesses and divisions IAS 27 (91) (188) Transactions with associates IAS 28/IFRS 3 (217) Impairment of intangible assets IAS Realised gains on available-for-sale assets IAS 39 (16) (595) Loss on net investment hedge reclassification on disposal of associate IAS Taxation on headline earnings adjustable items (88) 13 Non-controlling interests share of headline earnings adjustable items (85) 19 Standard Bank Group headline earnings from continuing operations Profit for the year from discontinued operations (>100) (1 022) 590 Headline adjustable items reversed 603 (1 547) Profit on sale of property and equipment IAS 16 1 Realised gains on available-for-sale assets IAS 39 (23) Gain on the disposal of discontinued operation IAS 27 (1 525) Impairment of non-current assets held for sale IFRS Taxation on headline earnings adjustable items 10 Non-controlling interests share of headline earnings adjustable items 2 Standard Bank Group headline earnings from discontinued operations (56) (419) (945) Standard Bank Group headline earnings

7 85 Financial statistics IFRS % Number of ordinary shares in issue (000 s) End of period Weighted average Diluted weighted average Cents per ordinary share Headline earnings ,2 957,2 Continuing operations , ,3 Discontinued operations (57) (26,7) (62,1) Diluted headline earnings ,1 925,8 Continuing operations ,2 985,8 Discontinued operations (57) (26,1) (60,0) Dividend ,0 455,0 Net asset value Financial performance (%) ROE Net interest margin on continuing operations Credit loss ratio on continuing operations Cost-to-income ratio Capital adequacy ratios (unaudited) (%) Basel III Tier I capital Total capital Banking activities. 3 Pro forma Basel III.