Corporate and Investment Banking. Transactional Products and Services for the Bank Sector TPS Bank Sector brochure1.indd /05/09 3:29 PM

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1 Corporate and Investment Banking Transactional Products and Services for the Bank Sector TPS Bank Sector brochure1.indd /05/09 3:29 PM

2 TPS Bank Sector brochure1.indd /05/09 3:29 PM

3 Transactional Products and Services for the Bank Sector location of optional horizontal pic Your financial partner linking Africa and the rest of the world Standard Bank in brief 150 Years of experience in Africa 18 Number of countries Standard Bank operates in USD 183 billion Total assets per 31 December 2012 in sub-saharan Africa ZAR 15 billion (USD 1.8 billion) Headline earnings for Number of employees in Africa and select emerging markets Over Branches across Africa 8464 ATMs in Africa 20% ICBC shareholding TPS Bank Sector brochure1.indd /05/09 3:29 PM

4 Connect with the largest banking group in Africa Proudly African with true global capabilities, Standard Bank is the ideal banking partner for international corporate and financial institutions looking to succeed in Africa. Our expertise and insight are rooted in the African experience, with operations in 18 countries across the continent. Through this global footprint we have become an established leader in the complex emerging market financial services arena. Headquartered in Johannesburg, the financial heart of Africa, Standard Bank has been a mainstay of South Africa s banking system since In addition to our corporate and institutional offering, we also offer personal and business banking, corporate and investment banking, investment management and life insurance services TPS Bank Sector brochure1.indd /05/09 3:29 PM

5 Transactional Products and Services for the Bank Sector Connecting Africa and the world TPS Bank Sector brochure1.indd /05/09 3:29 PM

6 The Standard Bank story Constant growth TPS Bank Sector brochure1.indd /05/09 3:29 PM

7 Transactional Products and Services for the Bank Sector TPS Bank Sector brochure1.indd /05/09 3:29 PM

9 Transactional Products and Services for the Bank Sector Standard Bank Group financial highlights Headline earnings (ZAR million) Standard Bank Group Analysis of financial results for the year ended 31 December Overview of business unit performance Headline earnings by business units Change % Rm Rm Personal & Business Banking Corporate & Investment Banking (13) Discontinued operation (Argentina) Central and other Banking activities Liberty Total In November 2012, the group finalised the disposal of its controlling stake in SBA to ICBC. The transaction resulted in a profit of R1 525 million, which is not included above as it is accounted for outside of headline earnings. Up until November 2012 the group s 75% investment in SBA was classified as a discontinued operation and the earnings for the 11 months are recognised above. Personal & Business Banking (PBB) PBB s headline earnings of R7,5 billion were 27% higher than the prior year driven mainly by strong risk-adjusted NII and good cost control. An ROE of 20.0% was achieved, a slight improvement on the 19.2% posted in the prior year. PBB in South Africa delivered an excellent performance with headline earnings of R7,6 billion up 25%, and PBB in the rest of Africa reported a loss, albeit the end of The write back of portfolio provisioning in 2011 did not recur and a credit loss ratio of 0.85% was incurred for 2012, compared to 0.72% in the prior year. Headline earnings in South Africa improved 14% to R408 million. However, business expansion and the higher cost of funding resulted in a headline loss for instalment sale and finance leases in the rest of Africa. Card products recorded a commendable increase in headline earnings to over a billion rand for the first time, 46% higher than in the comparable year. The number of credit card accounts in South Africa grew 7%, and the overall credit card debtors book grew 16% to R24,1 billion, partly attributable to new account growth and improved limit utilisation on existing accounts. Increasing the number of point-of-sale devices within high-value corporate merchants in South Africa contributed to the higher sales. Fraud losses decreased as a result of improved fraud detection and prevention measures. The credit loss ratio improved to 1.73%, compared to 1.90% in the prior year, as a result of focused collection strategies. Total income from transactional products improved by 14%, mainly driven by customer acquisition in a very competitive environment coupled with increased online banking volumes. The number of current accounts in South Africa grew 11% and other transactional and savings accounts grew 18%. Our strategy to grow our deposit base proved effective with retail-priced deposit and current account year-end balances increasing to R248 billion, 9% higher than in the prior year. Growth in the business segment was mainly as a result of public sector account acquisitions as well TPS Bank Sector brochure1.indd /05/09 3:29 PM 9

10 Standard Bank Group financial highlights Headline earnings (contribution by business unit) 4% 32% 14% 50% Financial strength Standard Bank Group s growth strategy is underpinned by solid balance sheet strength Customer and bank deposits continued to provide dominant source of funding TPS Bank Sector brochure1.indd /05/09 3:29 PM

11 Transactional Products and Services for the Bank Sector TPS Bank Sector brochure1.indd /05/09 3:29 PM

12 Comprehensive cash management across the continent Country Standard Bank branches ATM's Corporate Banking Retail Banking Investor Services Investment Banking South Africa Angola Botswana DRC 3 Ghana Kenya Lesotho Malawi Mauritius 1 1 Private Clients Mozambique Namibia Nigeria South Sudan 1 Swaziland 9 48 Tanzania Uganda Zambia Zimbabwe TOTAL Commitment through presence TPS Bank Sector brochure1.indd /05/09 3:29 PM

13 Transactional Products and Services for the Bank Sector Corporate and Investment Banking leading global financial connectivity in Africa Our Corporate and Investment Banking division (CIB) offers a wide range of banking, finance, trade, investment, risk management and advisory services, with a specific focus on industry sectors that are most relevant to emerging markets. CIB has led Standard Bank s international expansion in 18 countries across the continent and around the globe, creating a client focused business model that supports a seamless client service and multi product offering. There is a need for sophisticated, targeted financial solutions in high-growth markets. Our specialist transactional banking teams are well versed in using best-of-breed technology to customise innovative products to suit the exact requirements of corporate and institutional clients. The result is a client-centric approach that leads to highly personalised service. Our global presence and firm commitment to doing business with financial institutions drives the coordination and execution of financing and banking requirements within and across continents TPS Bank Sector brochure1.indd /05/09 3:29 PM

14 Transactional products and services Close day-to-day management of funds is key to the success of any business. Standard Bank s comprehensive range of transactional banking solutions allow you to transact in various currencies with confidence and convenience. As a pan-africa bank and a committed player in the field of correspondent banking, Standard Bank is absolutely focused on connecting the world and Africa through our cash, trade and securities services in the region. Cash management Standard Bank has a long history of providing tailored, end-to-end cash management services to corporate and institutional clients. These include a range of payment solutions to foreign banks, non-bank financial institutions and corporates in Africa. We are well placed to partner with global financial institutions to facilitate the transactions that arise out of the combined trade flows, investment flows and aid-related cash transfers between Africa and the rest of the world. A niche focus on financial institutions and correspondent banking requirements has allowed Standard Bank to build a client base of global financial institutions that represents a major share of the cash payments flowing into South Africa. This success is replicated in other presence countries across the African continent. Service is delivered by our highly skilled bank sector/financial institutions team which consists of sales specialists, a dedicated coverage group, a centralised client service team, a centralised processing team and fully functional dual-sited technology. It is this unparalleled African value proposition that drives our strategy to connect Africa with the rest of the world. It gives greater realisation to our vision to be the preferred regional provider of cash management products and services in Africa. Our consolidated basket of solutions includes a range of cash clearing (or Nostro account) services, ranging from South African rand clearing to clearing accounts denominated in various African and world currencies, including the Chinese renminbi (RMB). Our re-routing capability across the continent provides direct access to various niche markets without the need for numerous clearing accounts. We offer a number of account and liquidity management services to ensure end-to-end management of your cash across Africa. Standard Bank has been helping African companies with their transactional banking requirements for 150 years TPS Bank Sector brochure1.indd /05/09 3:29 PM

15 Transactional Products and Services for the Bank Sector Trade finance Standard Bank holds the largest share of the South African domestic trade market. Our local on-the-ground presence gives us unique insight into the benefits and risks associated with transacting on the continent. We are well represented in Africa and strategically positioned to handle our global correspondents trade flows. Our extensive footprint allows us to assist with international transactions into Africa and to facilitate trade flows originating on the continent. Our major African transactional focus is on documentary credits and trade payments. As the continent s regulatory framework evolves, Standard Bank is geared to take advantage of new business opportunities in the rest of Africa and beyond. Our teams across Africa have all the skills required to develop trade solutions that suit the specific business needs of our clients.. Standard Bank as your bank of choice is positioned either to partner with our correspondents already active in this area or to offer assistance to new entrants to the market TPS Bank Sector brochure1.indd /05/09 3:29 PM

16 Key strategic influences: A specialist African team with significant bank sector and trade/country risk experience and expertise Extensive trade lines with various African and global financial institutions to support vast trade flows between Africa and the rest of the world, with a particular interest in the BRICS nations Brazil, Russia, India, China and South Africa Client base of global banks, including 350 in Africa Preferred supplier for the provision of transactional support across our South African and African network A comprehensive range of solutions encompassing the following key categories of trade business: Vanilla trade Documentary credits Structured trade solutions for banks Guarantees. Risk mitigation and distribution Particular strength in commodities, telecommunications, food and resources, manufactured goods and capital goods imports into Africa TPS Bank Sector brochure1.indd /05/09 3:29 PM

17 Investor Services As a leading provider of financial services and a trusted banking partner, Standard Bank offers local and foreign institutional investors a comprehensive range of settlement and safekeeping services across Africa. Our expert Investor Services team provides specialist strategic and operational advice and assistance, ensuring a holistic service offering at global, regional and domestic level. Standard Bank s success in this arena is underpinned by solid relationships built through exceptional client service and a flexible product range. This, together with ongoing investment in technology, people and risk mitigation, helps us to deliver a full range of services to support our clients in the post-trade environment. Regular communications keep clients fully updated on market developments and corporate action events, as well as past and future shareholder meetings. As a result, our leadership is evident across market segments and product offerings. Our service offering incorporates a range of client-driven solutions including: Local, regional and global custody Derivatives clearing Securities lending Trustee services Issuer services TPS Bank Sector brochure1.indd /05/09 3:29 PM

18 Recent Standard Bank Group accolades Best Africa Investment Bank 2012 Best Investment Bank in Africa 2012 Best Investment Bank in Angola 2012 Best Bank in Malawi 2012 Best Investment Bank in Malawi 2012 Best Investment Bank in Namibia 2012 Best Local Bank in South Africa 2012 Best Local Investment Bank in South Africa 2012 Best Investment Bank in Zambia (shared) 2012 Best Local Bank in Zimbabwe (Stanbic Bank Zimbabwe) 2012 Best Investment Bank in Zimbabwe (Stanbic Bank Zimbabwe) 2012 Best Investment Bank in Nigeria (Stanbic Bank IBTC) 2012 Best Broker in Nigeria (Stanbic IBTC Stockbrokers) 2012 Best cash management services in Africa 2012 Best syndicated loan house in Africa 2012 Best sovereign syndicated loan: Kenya 2012 Best supranational syndicated loan 2012: Afreximbank Best M&A house in Africa 2012 Best M&A deal in Africa 2012: Tiger Brands buys Dangote Flour Mills Best corporate bond in CEE 2012: Mongolian Mining Corporation Best corporate bond in Africa: JD Group 2012 Best local currency bond (shared) 2012: Lagos State Government Best IPO in Africa 2012: Umeme Limited Best follow-on funding in Africa 2012: Flour Mills of Nigeria Best securtisation house 2012 Best securitisation deal in EMEA 2012: SA Home Loans TPS Bank Sector brochure1.indd /05/09 3:29 PM

19 Transactional Products and Services for the Bank Sector Recent Standard Bank Group accolades Best Trade Finance Bank in Africa and South Africa 2013 and 2012 Best Risk Advisor in Africa 2012 Best Project Finance House in Africa 2012 Best Dept House in Africa 2012 Best M&A House in South Africa 2012 Best Bank in Uganda 2012 Best Local Trade Finance Bank in South Africa, Mozambique and Namibia 2012 Best Overall Bank for Cash Management in Africa 2013 and 2012 Best Provider of Money Market Funds in Africa 2013 and 2012 Best Bank for Payments & Collections in Africa 2013 and 2012 Best Sub-Custodian in Nigeria (Stanbic IBTC Bank) 2012 Best Trade Bank in South Africa and East Africa 2012 The Most Innovative Investment Bank from Africa 2012 Number 1 Bank Brand in South Africa and Africa Best Bank Risk Management Africa 2012 Sub-Custody Award from Global Investor 2013 Shoreline (Nigeria) (2012) Export Trade Group (Pan Africa) (2012) Commercial Deal of the Year 2012 Export Trading Group deal TPS Bank Sector brochure1.indd /05/09 3:29 PM

20 Global Investor Best Sub - Custodian in South Africa and Nigeria (2012) Contact us Others CNBC All Africa Business Leader Awards: Deputy Group CEO, Sim Tshabalala Business Sucess in Africa Award (2011) Newsweek Green Rankings: Ranked South Africa's greenest company 13 th globally in Financial Sector category, 45 th overall (2011) Ask Afrika Orange Index Survey: Best Bank for Service (2009, 2010) Empowerdex: Top empowerment company in South Africa (2011) PWC: First in Corporate Banking in South Africa (peer ranking) (2007, 2009, 2011) DealMaker: Top Investment Adviser by Deal Value (2012) African Business magazine's rankings of top companies in Africa 7 th overall and 1 st in Banks and Financial Industry sector (2012). For more information on these products and services contact our Bank Sector team: banksector@standardbank.co.za TPS Bank Sector brochure1.indd /05/09 3:29 PM

21 Notes TPS Bank Sector brochure1.indd /05/09 3:29 PM

22 Disclaimer: The Standard Bank of South Africa Limited ( SBSA ) has made every effort to ensure the accuracy and completeness of the information contained in this document. The information is not intended as advice and no warranty express or implied is made as to the accuracy, correctness or completeness of the information, which is subject to change at any time after publication without notice. Should the information lead you to consider entering into any transaction in relation to a financial product ( the product ) you must take note of the following: There are intrinsic risks involved in transacting in any products. No guarantee is provided for the investment value in a product. Any forecasts based on hypothetical data are not guaranteed and are for illustrative purposes only. Returns may vary as a result of their dependence on the performance of underlying assets and other variable market factors. Past performances are not necessarily indicative of future performances. Unless a financial needs analysis has been conducted to assess the appropriateness of the product, investment or structure to your unique particular circumstances, SBSA cautions you that there may be limitations on the appropriateness of the information for your purposes and you should take particular care to consider the implications of entering into the transaction, either on your own or with the assistance of an investment professional. There may be various tax implications to consider when investing in the product and you must be aware of these implications before investing. SBSA does not accept liability for the tax treatment by any court or by any authorities in any jurisdiction in relation to any transaction based on the information. It is strongly recommended that individual tax advice be sought before entering into any such transaction. Authorised financial services and registered credit provider (NCRCP15) The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA / TPS Bank Sector brochure1.indd /05/09 3:29 PM