Standard Bank Plc

Standard Bank Plc annual report 2008 �

Standard Bank Plc


Annual financial statements 4 Directors’report

9 Directors’responsibilityforfinancialreporting

10 Independentauditors’report

11 Consolidatedbalancesheet

12 Consolidatedincomestatement

13 Consolidatedstatementofchangesinshareholders’equity

14 Consolidatedcashflowstatement

15 Companybalancesheet

16 Companystatementofchangesinshareholder’sequity

17 Companycashflowstatement

18 Accountingpolicies

32 Notestotheannualfinancialstatements

80 Acronymsandabbreviations

Table of contents

Standard Bank Plc annual report 2008�

The directors present their report and accounts for the yearended31December2008.

Standard Bank Group profileTheStandardBankGroupLimited,based in Johannesburg, isthe ultimate holding company for the global activities of theStandard Bank Group. With total assets in excess of US$160billionandemploying50,000peopleworldwide,theStandardBank Group is one of Africa’s leading banking and financialservicesorganisations.InNovember2007StandardBankGroupannounced a major strategic partnership with Industrial andCommercialBankofChinaLimited(‘ICBC’),theworld’slargestbankbymarketcapitalisation,whichresultedinICBCbecominga20%shareholderintheStandardBankGroup.

TheStandardBankGroupoperateswithin threekeybusinesssegments:Personal&BusinessBanking,Corporate&InvestmentBankingandInvestmentManagement&LifeInsurance.Theseglobal business segments operate across South Africa, Africaand other international locations outside of Africa. StandardInternational Holdings S.A. (‘SIH’) is a Luxembourg basedholdingcompanywhichtogetherwithitssubsidiaries,comprisesthe international segment of the Corporate & InvestmentBanking business. SIH’s principal operating subsidiary isStandardBankPlc(‘SBPlc’).

Principal activities and product areas Standard Bank Plc is a bank authorised and regulated bythe United Kingdom Financial Services Authority providinga range of banking and related financial services. It is amember of the London Stock Exchange, the London BullionMarket Association, the London Metal Exchange and theLondon Platinum and Palladium Market and is Chairman oftheLondonPlatinumandPalladiumFixing.StandardBankPlcis a shareholder in LCH.Clearnet Group Limited and has twoseatsontheNewYorkMercantileExchange(Comexdivision).The franchise of Standard Bank Plc and its subsidiaries(together ‘the group’) focuses on emerging marketsprimarily debt, interest rate, equity and currency products,andnaturalresources.

Principal product areas Global Markets DivisionThe Global Markets division comprises all customer-drivenmarket-making activities across the full spectrum of tradedrisknamely,thetradingofinterestrate,FX,credit,equityandcommodityrisktogetherwiththefundingactivitiesofthegroup.Thedivisionseekstooriginateexposuresdirectlyfromclientsormarket-makingactivitieswhicharerepackagedandtradedwithmarketparticipants,assetmanagersandotherclientsthroughthe group’s distribution network. A comprehensive range offoreignexchange,moneymarkets,interestrateandcommodityproducts are provided, ranging from simple risk managementtools to sophisticated investment structures. The division’sexpertiseextendsacrossallthemajormetalsandthemajoranddevelopingmarketcurrencies.

Investment Banking DivisionInvestment Banking The Investment Banking division provides a full suite of crossborderadvisoryandfinancingsolutionstoclients,rangingfromcorporate loans and bond issues to highly structured productsacrosstheequityanddebtcapitalmarkets.KeystructuredproductareasincludeProjectFinance,StructuredTradeandCommodityFinance, Acquisition and Leverage Finance, Asset and LeaseFinance,IslamicFinanceandSecuritisation.Thebusinessfocusesonemergingeconomiesandoffers specialisedexpertise in thegroup’s key coverage sectors. The division works closely withthe Client Coverage and Distribution team to provide bespokeclientsolutions.

Emerging Markets Asset ManagementThe Emerging Markets Asset Management business housesthe group’s alternative investment related activities of PrivateEquity, Real Estate, Special Situations and Asset Management(TradedMarkets).

Private Client ServicesPrivateClientServices(‘PCS’)leveragesthegroup’sexpertiseinemergingmarketsandhighyieldassetsintoinvestmentproductsthat can be distributed to individual investors on a wholesalebasis.ThePCSbusinessserveshighnetworthclientsthroughthegroup’sdevelopingbankingnetwork.Bydistributingacombinationof the group’s specialist developing markets and resourcesproduct range, the PCS business complements the establishedprivatebanking,assetmanagementandfiduciaryactivitiesintheStandardBankGroup.

Client Coverage and DistributionThe Client Coverage and Distribution division entrenchesclientcentricity intothebusinessoperatingmodelofthebank.It is responsible for the servicing of the group’s core clientrelationships both for Global Markets and Investment Banking.The division locates itself across the globe to be close to andhelpkeyclientsexploitrelevantmarketopportunitiesandideasacross the group’s emerging markets footprint. The divisioncentresonclientinteractionandadvicebutwillprovidesolutionsonthefinancing,hedgingofmarketexposures,andanabilitytodistributerisktothegroup’sglobalinvestorbase.TheCoverageteamhasanumberofspecialisedsectorteams,namelyOil,GasandRenewables;TelecomsandMedia;FinancialInstitutions;andPowerandInfrastructure.ThegroupissupportedbyaResearchteam, which provides relevant market and corporate researcharound the relevant core sectors and market driven researcharoundAfricaandcommodities.

Market conditions and developmentsTheStandardBankPlcbusinessdeliveredastrongperformancefor theyear,upon2007.Achieving this levelofperformancewas especially pleasing given the chaotic events in the rapidlydeteriorating market place that was the feature of 2008. Allbanks were fully tested throughout the year and the groupwas not immune to the significant market turbulence and

Directors’ report


de-leveraging of the financial markets which took place. Theseniormanagement,workingcloselyasaglobalteam,ensuredthenecessarymanagementactionswereexecutedswiftlyanddiligentlyandthatthegroup’s liquidityandcapitalratioswererobustatalltimes.

Lookingforwarditisanticipatedthattheinternationalmarketswillremainverychallenginginarecessionaryenvironmentwiththelikelihoodofcontinueddepressedcommodityprices.Intheemergingmarkets,capitalinvestmentislikelytodeclineoverthecoming year but thequantumof thiswill varyby region.Thegroupwillensureitsstrategyandoperatingmodelisresponsivetothemarketconditionsitmayfaceoverthecomingyearandwilltakeadvantageoftheopportunitieswhichwillbeforthcominginitskeymarkets.

The group is particularly well positioned to take advantageof any cross border flows notably between Africa and China,India and Brazil, and Russia and China respectively. TheICBC relationship has proved to be an important driver forbusinessin2008anditisanticipatedthiswillcontinueformanyyearstocome.

Goodprogresswasmadeontheinvestmentintheinfrastructurewith further trading platforms being implemented during theyear including a major system roll out of the Rates and FXbusinesstradingplatform.ThegroupalsoappliedtotheFSAformodel accreditation for itsCreditTradingbusiness at theendoftheyearwhich,ifapprovedwillenablethebusinesstomoveto a CAD2 capital adequacy environment. This together withpreviouslyobtainedmodelapprovalaswellastheaimtoachieveBaselIIAIRBregulatoryapprovalswillprovidethebusinesswithan enhanced risk management platform and a more capitalefficientoperatingmodelgoingforward.

Standard Bank Plc’s long-term credit ratings from Moody’sInvestors Service (A3) and from Fitch Ratings (A-) remainedunchanged during the year, as well as the short-term ratingsremainingunchanged.

Performance Global Markets DivisionDuring the year, as part of the group’s overall divisionalrestructuring, the sales and trading capabilitiesof thegroup’sPrecious & Base Metals and Energy trading businesses weretransferred to Global Markets. These trading desks now sitalong side the Foreign Exchange, Local Markets and CreditTradingbusinessestoprovideacentralisedtradinggroupwithasinglemanagementplatformandacommonapproachtoriskmanagementacrossalltradingaspectsofthebusiness.

This newly enlarged trading group performed exceptionallywellduringtheyear,increasingrevenuesandreturnssubstantiallywhen compared to the prior year. The division’s client driventrading model continued to operate successfully despite thedifficult market conditions and was well positioned to take

advantageofthewideningcreditspreadenvironmentandvolatilemarket conditions which existed. The geographic and productdiversityofthedivisionbuiltoverprioryearsalsoprovidedamorestableincomestreamthanwouldotherwisehavebeenthecasewithcountries suchasArgentina,RussiaandSingaporeprovingparticularlyresilientandPrecious&BaseMetalsandLocalMarketsprovingkeyproductrevenuegeneratorsovertheyear.

Investment Banking DivisionInvestment BankingInspiteofthechallengingmarketconditions,InvestmentBankingpostedstrongresults,aheadoftheprioryear.

Business development achieved during the year included thesuccessfulconsolidationandrestructuringofthevariousfinancingandadvisoryfunctionsintoasingleInvestmentBankingdivisionwhich is now fully aligned globally. In addition, a Merger andAcquisition team was established to facilitate clients’ needs interms of cross border transactions between the group’s coregeographiesofAfrica,China,Brazil,TurkeyandRussia.

The structured product teams performed well and generatedconsiderable revenue using a diverse number of structuresincluding a number with equity-linked performance fees.The Commodity Finance business in Asia and the ProjectFinance team also posted strong results. The divisioncontinues to be supported by the Business Administration andTransaction Management Unit which came into its ownduring the year and proved its worth as a highly effectivefront office risk management, deal execution and transactionmonitoringfunction.

Looking ahead to 2009, the division will focus on developingitscrossborderAdvisorycapabilitygloballyandconsolidatingitscoreproductcapabilityandclientrelationshipswiththeviewtomaximizinganycross-sellpotentialacrossitsproducts.

Emerging Markets Asset Management The Private Equity business continued to grow its emergingmarketfranchisebasedontwokeycomponents; thecallibreofitsteamanditsinvestmenttrackrecordanditsfocusonmarketswhere,throughStandardBankGroup’sfranchiseandnetwork,thebankhasrealdifferentiation.

The Special Situations team produced pleasing positive resultsfor2008,anachievement inayearwhere thevastmajorityoffundsandproprietarydesksweredownsignificantly.GeographicdiversificationplayedakeyrolewiththeAsianNPL/distresseddebt portfolio performing particularly well, offset by negativeperformanceinAfricanandLatinAmericanlocalcurrencyassets.Given the recent proliferation of distressed assets and sellersthereof,itisanticipatedthattherewillbeanumberofextremelyattractivedebtinvestmentopportunitiesfortheteamtoconsideroverthenexttwoyears.

Directors’ report continued



During the year the Asset Management (Traded Markets)businesswasbuffetedbymarketconditionsinitscoremarketsofemergingmarketdebtandcorporatehighyieldbondsandbyclientredemptions,whichnegativelyimpactedresults.

Private Client Services In spiteof theunprecedentedfinancialevents thatprevailedduring 2008, Private Client Services experienced revenuegrowthovertheyear.GoodprogresswasmadeattheFamilyOffice client level across the key target regions of EasternEuropeandtheMiddle-East.

The team worked closely with the other divisions on thewholesale side of the bank to enhance its product capabilitytoprivateclients.AnumberoftheFamilyOfficeclientshavebeen included in the wholesale bank client coverage modelwith a view to working more closely with other divisions inthefuture.

Lookingaheadto2009,PrivateClientServiceswillcontinuetoactivelymarketkeyFamilyOfficesanddeepenitscoverageoftargetgeographies.

Client Coverage and DistributionTheCoverage teams in theOil,Gas&Renewables,Power&InfrastructureandTelecoms&Mediasectorsallshowedstronggrowth during the year. The group was on hand to offer itsservices to thecompanieswithin thesesectorsas they facedthefinancialchallengesoftheyearwhichrequired, interalia,strategic advice, innovative financing structures and hedgingagainstvolatilemarketexposures.

TheDistributionteamalsoperformedwell,asfixedincomeandcreditmarketvolatilityhelpedcustomerflow.Theunwindingoflocalcurrencyexposuresanddistressedsellingofhighyieldingassets were the dominant themes, with the team’s ability tointermediatetheseflowstoselectivevalueinvestorscontinuingtobeaverystrongsourceoflowornon-riskrevenue.

Greateremphasiswasplacedonsupportingthegroup’sstrongChina and Africa link. Specifically, a client coverage teamwithinChinahasbeenestablishedandisworkingcloselywithcolleaguesinICBC,tohelpunlockthepotentialtoparticipateintrade and investment flows between China, Africa and otheremergingmarkets.

Lookingaheadinto2009,thestrongdriversofactivitywillbearoundadvice,financingandhedgingwithin thecoresectorsof Oil, Gas & Renewables, Telecoms & Media and Power &Infrastructure. It is expected that thedistributionmarketwillremain tough, but will slowly open up as the market beginsto regain confidence. The group’s connectivity to specialistinvestors will continue to allow the bank to find buyers forproperlypricedandwellstructuredrisk.

Financial results Thegroup’sresultsfortheperiodareshownintheconsolidatedincome statement on page 12. Profit attributable to equityshareholders of US$57.8 million was US$10.2 million up onthe prior year. Notwithstanding significantly increased creditimpairment charges and losses incurred on equity portfoliosheld,attributableprofitincreasedfollowingstrongperformanceby thecorebusinesseswithinGlobalMarketsand InvestmentBanking.Thereturnonequityof5.1%(2007:6.0%)decreasedasaconsequenceofanincreasedequitybase.Thesubstantiallyimprovedcosttoincomeratioof72.6%(2007:81.6%)reflectsthe increase in operating revenue and the benefits of costmanagement initiatives. The effective tax rate increased intheyearto47.2%(2007:38.7%)duemainlytohighernon-deductiblecostsbeingincurredinthegroup.

TheamendmenttotheaccountingstandardIAS39recognisedtheimpactoftheextrememarketconditionsonassettradingstrategiesandallowed for the transferof tradingbookassetstothebankingbook.TradingassetswithavalueofUS$412.9millionattransferdate,arenowheldatamortisedcost.

TotalassetsincreasedtoUS$35176.9millionfromUS$32272.1millionintheprioryear,primarilyasaresultofselectiveincreasesinlendingandsubstantiallyhigherderivativesbalancesfollowingincreased trading activity and market volatility. Reductionsin trading assets and loans granted under resale agreementsreflectriskreductionmanagementactions.

Capital resourcesAttheyear-endthegroup’sequitycapitalresourcesamountedtoUS$1506.8million(2007:US$918.3million)andtotalcapitalresources qualifying for prudential purposes amounted toUS$2040.7million(2007:US$1702.8million).Thesubstantialincreaseintheregulatorycapitalbasehasbeeninresponsetothe extreme market conditions and potential impacts on thegroup’scapitalposition.Thegroupremainswellcapitalisedwithacapitaladequacyratioof14.0%(2007:16.7%)andacoreTierIratioof9.6%(2007:8.3%).

During the year the company increased its share capital byUS$571 million through three share issues to Standard BankLondon Holdings at an average share price of US$1.45 pershare. Subordinated debt instruments of US$100 million and€43millionheldbyStandardBankGroupentities, andwhichqualifiedasregulatorycapital,wereredeemedduringtheyear.In December 2008 the group bought back SubordinatedFloating Rate Notes redeemable in 2015 and PerpetualSubordinated Notes with notional values of US$10.4 millionand US$58.3 million respectively, held by parties external totheStandardBankGroup.



We expect to maintain the Core Tier 1 ratio at levels whichsignificantlyexceedtheminimumrequirementsoftheFinancialServices Authority, for the duration of the current period offinancialandeconomicstress.

Risk managementThe effective management of risk is fundamental to thebusiness activities of the group as we remain committed tothe objective of increasing shareholder value by developingand growing business that is consistent with our agreedriskappetite.

The group had a strong focus on managing credit risk in thecurrent environment by means of a number of managementactions including early response to credit changes, creditportfolioanalysisandstresstesting,specificreviewsandsectoranalysis. This process has been enhanced in 2008 by theformation of a Credit Risk Review team in late 2007 who in2008undertookareviewofallcreditportfoliosandthecreditapproval processes in every region where assets are booked.Thishasprovedtobeparticularlyhelpfulinearlyidentificationofproblemconcentrationswithinspecificportfoliosandallowedthegrouptotakeproactiveactiontominimiseloss.

A strong liquidity profile was maintained throughout therapidlydeterioratingmarketplacethatwasafeatureof2008,specifically takinganumberofmanagementactions followingthemarket crisis of September2008 toensure that liquiditycushions above the minimum requirements were maintainedat a high level, on precautionary grounds. In the currentmarketenvironment,access toand theshortage inwholesaleterm funding has been one of the key challenges for allfinancialinstitutions.Ourdiversifiedfundingbasecomprisedacombinationof corporateand institutionaldeposits, interbankdeposits and longer term funding from a variety of StandardBankGroupsourceshasgrownovertheyearandhasallowedus to meet these market challenges. The Standard BankGroupwillensurethat,exceptinthecaseofpoliticalrisk,andunless specifically excluded by local public notice, that thebanking entities within the group are able to meet theircontractualliabilities.

Thekeyrisksandriskmanagementprocessesandpoliciesaresetoutinnote31ofthisreport.

Dividends Thedirectorsdonotrecommendthepaymentofadividend.

DirectorsThedirectorswhocurrentlyholdofficeareasfollows:

BJKruger (Chairman)MEAustenDPHBurgessDECooperDJDuffy (ChiefExecutive)JKKnottRAGLeithJHMaree CJSheridanHEStaunton

On 14 February 2008, Ms J K Knott was appointed to theBoard.BJKrugertookoverasChairmanofthecompanyfromJHMareeon8May2008.JHMaree remainsadirectorofthecompany.

None of the directors held any beneficial interest in theordinary share capital of the group during the year or at31December2008.

The directors who held office at the date of approval of thisdirectors’ report confirm that, as far as they are each aware,thereisnorelevantaudit informationofwhichthecompany’sauditorsareunaware;andthateachdirectorhastakenallstepsthattheyoughttohavetakenasdirectorstomakethemawareof any relevant audit information and to establish that thecompany’sauditorsareawareofthatinformation.

CommitteesTheBoardofStandardBankPlcdelegatescertainfunctionsandresponsibilitiestothefollowingboardcommittees.

Executive CommitteeThiscommitteeisresponsiblefortheday-to-daymanagementof the bank. Subject to the overall authority of the board, itmeetsregularly,todevelopbusinessstrategy,initiateandreviewstrategicinitiatives,reviewandapproveannualbusinessplans,monitor financial performance against budget, approve theintroductionofnewproducts,authoriseandapproveappointmentofstafftoseniormanagerialpositionsandreviewtheactivitiesofexecutivesub-committees.

Membership:Thecommitteecomprises theexecutivedirectorsandcertainseniorexecutives,namelyDavidDuffy(Chairman),Paul Hartwell, Jenny Knott, Robert Leith, Simone MacLeod-Nairn,PhilipHurleyandMarkGheerbrant.

Themajorexecutivesub-committees,supportingtheExecutiveCommittee in fulfilling its responsibilities, are the CreditCommittee, the Capital Management Committee and theBusinessInfrastructureCommittee.

Standard Bank Plc annual report 20088


Audit CommitteeThis non-executive Board committee monitors the processfor identifying,evaluatingandmanagingrisksandcontrols. Inparticular, this includes the quality, integrity and reliability ofcompliance,financialandaccountingcontrolsystems.Itsotherresponsibilitiesaretoreviewthescopeofexternalandinternalaudit,toreceiveregularreportsfromInternalAuditandKPMGAudit Plc, and to review the financial statements focusing inparticularonaccountingpolicies,areasofmanagementjudgmentandestimates.Thecommitteemeetsquarterly.

Membership:HenryStaunton(Chairman),MarkAusten,PatrickBurgess,DerekCooperandChristopherSheridan.

Risk Management CommitteeThe objective of this Board Committee is to provide anindependentreviewandchallengetothegroup’s riskpoliciesandthecompositionoftheriskportfolio,itsconcentrationsandthe risk-takingdecisionsof thegroup,coveringall aspectsofrisk and include market, credit, country and operational risk.ItcomplementstheAuditCommitteewhichalsostudies, interalia, risk controls and their operation, but from a differentperspective.Thecommitteemeetsquarterly.

Membership: Ben Kruger (Chairman), Mark Austen, PatrickBurgess, Derek Cooper, Jacko Maree, Christopher SheridanandHenryStaunton.

Remuneration CommitteeThis non-executive committee approves remuneration policyandlong-termincentiveschemesforstaff,setstheremunerationofexecutivedirectorsandotherseniorexecutivesandapprovesguidelines for the company’s annual salary and incentivereviews.

Membership:ChristopherSheridan(Chairman),DerekCooper,JackoMareeandHenryStaunton.

Transactions with directors and related partiesThereareno loans,arrangementsoragreements that requiredisclosure under the Companies Act 1985 or InternationalAccounting Standard IAS24 regarding transactions withrelated parties, other than those shown in the notes to thefinancialstatements.

Directors’ liability insuranceThegroupmaintaineddirectors’andofficers’liabilityinsuranceduringthetwelvemonths.

Employees It is the group’s policy to ensure that all employees and jobapplicantsaregivenequalopportunitiesandthat theydonotface discrimination on the grounds of ethnic origin, colour,religion,sexordisability.Shouldanemployeebecomedisabledduring his or her career with the group every effort will bemade to ensure continued employment, with appropriatetrainingifnecessary.

Employee involvement in the group’s business is encouragedandinformationdisseminatedthroughcommunicationmeetings,andaninternalstaffpublication.

The group recognises its responsibilities to provide a safeworkingenvironmentforallitsstaffandmeasuresareinplaceto ensure that the Health and Safety at Work regulationsareobserved.

Charitable DonationsThegroupmadecharitabledonationsofUS$134243duringtheyear.

Payment of Suppliers PolicyThe group does not follow a formal policy with respecttopayments to suppliers but will negotiate specific termswhenapplicable.

AuditorsKPMGAuditPlchasindicatedtheirwillingnesstocontinueasauditorsofthegroup.Accordingly,aresolutionistobeproposedatthenextannualgeneralmeetingforthere-appointmentofKPMGAuditPlcasauditorsofthegroup.

Byorderoftheboard

SCSmollettSecretary25February2009

CannonBridgeHouse25DowgateHillLondonEC4R2SBRegisteredinEnglandNo.2130447


Directors’ responsibility for financial reporting

ThedirectorsareresponsibleforpreparingtheDirectors’Reportandthefinancialstatementsinaccordancewithapplicablelawandregulations.

Company law requires the directors to prepare group andparent companyfinancial statements foreachfinancial year.Underthatlawtheyhaveelectedtoprepareboththegroupand the parent company financial statements in accordancewithIFRSsasadoptedbytheEUandapplicablelaw.

The group and parent company financial statements arerequiredby lawand IFRSsas adoptedby theEU topresentfairly the financial position of the group and the parentcompanyandtheperformanceforthatperiod;theCompaniesAct 1985 provides in relation to such financial statementsthat references in the relevant part of that Act to financialstatementsgivingatrueandfairviewarereferencestotheirachievingafairpresentation.

Inpreparingeachofthegroupandparentcompanyfinancialstatements,thedirectorsarerequiredto:

•select suitable accounting policies and then apply themconsistently;

•make judgements and estimates that are reasonableandprudent;

•statewhethertheyhavebeenpreparedinaccordancewithIFRSsasadoptedbytheEU;and

•preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethatthegroupandtheparentcompanywillcontinueinbusiness.

Thedirectorsare responsible forkeepingproperaccountingrecords that disclose with reasonable accuracy at any timethe financial position of the parent company and enablethemtoensurethat itsfinancialstatementscomplywiththeCompaniesAct1985.Theyhaveageneral responsibility fortakingsuchstepsasarereasonablyopentothemtosafeguardtheassetsofthegroupandtopreventanddetectfraudandotherirregularities.

Standard Bank Plc annual report 2008�0

Independent auditors’ report to the members of Standard Bank Plc

We have audited the group and parent company financialstatements (the ‘financial statements’)ofStandardBankPlcfor theyearended31December2008whichcomprise thegroup Income Statement, the group and parent companyBalance Sheets, the group Cash Flow Statement, the groupandparentcompanyStatementsofChangesinShareholder’sEquityandtherelatednotes.Thesefinancialstatementshavebeenpreparedundertheaccountingpoliciessetouttherein.

Thisreportismadesolelytothecompany’smembers,asabody,inaccordancewithsection235oftheCompaniesAct1985.Ourauditworkhasbeenundertakensothatwemightstatetothecompany’smembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.To the fullestextentpermittedby law,wedonotacceptorassumeresponsibilitytoanyoneotherthanthecompanyandthecompany’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

Respective responsibilities of directors and auditorsThe directors’ responsibilities for preparing the Directors’ReportandthegroupfinancialstatementsinaccordancewithapplicablelawandInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEUaresetoutintheStatementofDirectors’Responsibilitiesonpage9.

Our responsibility is to audit the financial statements inaccordance with relevant legal and regulatory requirementsandInternationalStandardsonAuditing(UKandIreland).

We report to you our opinion as to whether the financialstatementsgiveatrueandfairviewandwhetherthefinancialstatements have been properly prepared in accordancewith the Companies Act 1985 and Article 4 of the IASRegulation.Wealsoreport toyouwhether inouropiniontheinformationgivenintheDirectors’Reportisconsistentwiththefinancialstatements.Inadditionwe report toyou if, inouropinion, thecompanyhas not kept proper accounting records, if we have notreceived all the information and explanations we requirefor our audit, or if information specified by lawregarding directors’ remuneration and other transactionsisnotdisclosed.WereadtheotherinformationcontainedintheconsolidatedAnnual Report and consider whether it is consistentwith the audited financial statements. We consider theimplications for our report if we become aware of anyapparent misstatements or material inconsistencies with thefinancial statements. Our responsibilities do not extend toanyotherinformation.

Basis of audit opinion We conducted our audit in accordance with InternationalStandardsonAuditing(UKandIreland)issuedbytheAuditingPractices Board. An audit includes examination, on a testbasis, of evidence relevant to the amounts and disclosuresin the financial statements. It also includes an assessmentof the significant estimates and judgements made by thedirectors in the preparation of the financial statements, andof whether the accounting policies are appropriate to thegroup’sandcompany’scircumstances,consistentlyappliedandadequatelydisclosed.

We planned and performed our audit so as to obtain all theinformationandexplanationswhichweconsiderednecessary inordertoprovideuswithsufficientevidencetogivereasonableassurance that the financial statements are free from materialmisstatement, whether caused by fraud or other irregularityor error. In forming our opinion we also evaluated theoverall adequacy of the presentation of information in thefinancialstatements.

Opinion Inouropinion:

•thegroupfinancialstatementsgiveatrueandfairview,inaccordancewithIFRSsasadoptedbytheEU,ofthestateofthegroup’saffairsasat31December2008andofitsprofitfortheyearthenended;

•the parent company financial statements give a true andfairview,inaccordancewithIFRSsasadoptedbytheEUasappliedinaccordancewiththeprovisionsoftheCompaniesAct1985,ofthestateoftheparentcompany’saffairsasat31December2008;

•the financial statements have been properly prepared inaccordancewiththeCompaniesAct1985andArticle4oftheIASregulation;

•theinformationgivenintheDirectors’Reportisconsistentwiththefinancialstatements.

KPMG Audit Plc CharteredAccountantsLondonRegisteredAuditor25February2009

Standard Bank Plc annual report 2008 ��

Consolidated balance sheet at31December2008

2008 2007

Note $m $m

Assets Derivativeassets 3 �� 2.� 7111.5

Tradingassets 4 � �0�.� 8667.3

Pledgedassets 5 20�.� 26.2

Financialinvestments 6 8�.0 44.8

Loansandadvances 7 �� .� 16002.5

Loansandadvancestobanks 7 8 0��.� 6515.8

Loansandadvancestocustomers 7 � ��.� 9486.7

Otherassets 9 ��.� 340.2

Currenttaxasset 10 - 9.2

Deferredtaxasset 10 2�.� 12.2

Intangibleassets 12 ��.0 49.1

Propertyandequipment 13 8.� 9.1

Total assets �� .� 32272.1

Liabilities and equity Liabilities �� 0.� 31353.8

Derivativeliabilities 3 �� 02�.2 8057.8

Tradingliabilities 14 2 0�2.� 3492.6

Depositandcurrentaccounts 15 �� 2�.� 18216.5

Depositsfrombanks 15 �� 8�.0 15057.6

Depositsfromcustomers 15 � ��.� 3158.9

Otherliabilities 16 �2�.� 681.2

Currenttaxliability 17 �0.� 30.2

Deferredtaxliability 17 2.� 0.8

Subordinateddebt 18 ��.� 874.7

Equity � �0�.8 918.3

Equityattributabletoordinaryshareholders � ��.� 913.8

Ordinarysharecapital 23 � 0�8.� 645.5

Ordinarysharepremium 2��.� 78.8

Reserves 20�.� 189.5

Minorityinterest �.� 4.5

Total liabilities and equity �� .� 32272.1

Theaccountingpoliciesandnotesonpages18to79shouldbereadaspartofthefinancialstatements.

ApprovedbytheBoardofDirectorsandsignedonitsbehalfon25February2009.

B.J.Kruger,Chairman D.J.Duffy,ChiefExecutive


Consolidated income statementfortheyearended31December2008

2008 2007

Note $m $m

Net interest income 2�0.� 99.3

Interestincome 25.1 �8�.� 618.7

Interestexpense 25.2 ( ��.�) (519.4)

Non-interest revenue 25.3 ��.� 411.1

Netfeesandcommission ( ��.�) (55.1)

Feesandcommissionrevenue ��.� 137.4

Feesandcommissionexpenses ( �82.8) (192.5)

Tradingrevenue ��.� 460.3

Otherrevenue �8.� 5.9

Net income �2�.� 510.4

Creditimpairmentcharges 25.4 ( ��.2) (13.7)

Net income after impairment charges ��.2 496.7

Operating expenses ( ��.�) (416.3)

Staffcosts 25.5 ( 2��.�) (293.2)

Otheroperatingexpenses 25.6 ( ��.�) (123.1)

Profit before income tax �0�.� 80.4

Incometaxexpense 26 ( ��.�) (31.1)

Profit for the period �8.0 49.3

Profitattributabletominorities ( 0.2) (1.7)

Profit attributable to equity shareholders ��.8 47.6



Ordinary share capital Cash flow Long-term Ordinary and share hedging incentive Translation Retained shareholder Minority Total premium � reserve reserve 2 reserve earnings funds interest � equity

$m $m $m $m $m $m $m $m

Balanceat1January2007 524.3 8.6 14.4 (0.1) 124.8 672.0 - 672.0

Totalrecognisedincomefortheyear - (9.4) 2.1 1.5 47.6 41.8 4.5 46.3

Profitattributabletoequityshareholders - - - - 47.6 47.6 1.7 49.3

Itemsrecogniseddirectlyinreserves - (9.4) 2.1 1.5 - (5.8) 2.8 (3.0)

-Cashflowhedgefairvaluechange - 2.5 - - - 2.5 - 2.5

-Cashflowhedgetransfertoincomestatement - (15.9) - - - (15.9) - (15.9)

-Deferredtaxonhedges - 4.0 - - - 4.0 - 4.0

-Directreservemovements - - - - - - 2.8 2.8

-Long-termincentivetransactions - - 2.1 - - 2.1 - 2.1

-Translationofsubsidiarycompanies - - - 1.5 - 1.5 - 1.5

Issueofsharecapitalandpremium 200.0 - - - - 200.0 - 200.0

Balanceat31December2007 724.3 (0.8) 16.5 1.4 172.4 913.8 4.5 918.3

Balance at � January 2008 �2�.� ( 0.8) ��.� �.� ��2.� ��.8 �.� ��8.�

Totalrecognisedincomefortheyear - ( ��.�) ( �.�) �.� ��.8 ��.� 2.� ��.�

Profitattributabletoequityshareholders - - - - ��.8 ��.8 0.2 �8.0

Itemsrecogniseddirectlyinreserves - ( ��.�) ( �.�) �.� - ( �2.�) 2.2 (�0.�)

-Cashflowhedgefairvaluechange - ( ��.2) - - - ( ��.2) - (��.2)

-Cashflowhedgetransfertoincomestatement - 2�.0 - - - 2�.0 - 2�.0

-Deferredtaxonhedges - ��.� - - - ��.� - ��.�

-Directreservemovements - - - - - - 2.2 2.2

-Long-termincentivetransactions - - ( �.�) - - ( �.�) - ( �.�)

-Translationofsubsidiarycompanies - - - �.� - �.� - �.�

Issueofsharecapitalandpremium ��.0 - - - - ��.0 - ��.0

Balance at �� December 2008 � 2��.� ( ��.�) ��.8 2.� 2�0.2 � ��.� �.� � �0�.8

1During theyear thecompany raisedUS$571.0millionsharecapitalbywayof threeseparateshare issues to itsholdingcompanyStandardBankLondonHoldingsPlc.

2Thisreserveformspartofthecapitalcontributionfromtheultimateparentandisincludedasacomponentofordinaryshareholderfunds.

3ThisminorityinterestarisesontheconsolidationofentitiesrelatedtotheNPLbusinessasdescribedinnote2.4.

Consolidated statement of changes in shareholders’ equityfortheyearended31December2008

Standard Bank Plc annual report 2008��

Consolidated cash flow statementfortheyearended31December2008

2008 2007

Note $m $m

Cash flows from operating activitiesProfitfortheperiod �0�.� 80.4

Adjustedfor:

Amortisationofintangibleassets �.� 3.1

Cash-settledshare-basedpayments ( ��.�) 1.9

Creditimpairmentchargesagainstloansandadvances ��.2 17.9

Depreciation-propertyandequipment 2.� 1.3

Discountelementrecognisedfromcreditimpairmentsagainstloansandadvances ( 2.�) (0.4)

Equity-settledshare-basedpayments �.0 6.2

Impairmentofpropertyandequipment �.� -

Provisionforleavepay ( 0.�) 1.6

Changesinoperatingfunds � ��8.0 358.6

Decrease/(increase)inincome-earningassets 27.2 � �0�.2 (4808.2)

(Decrease)/increaseindepositsandotherliabilities 27.3 (� ��.2) 5166.8

Taxpaid 27.4 ( 2�.�) (30.6)

Net cash flows from operating activities 2 08�.� 440.0

Investing activities Capitalexpenditureon -intangibleassets ( ��.�) (28.5)

-propertyandequipment ( �.�) (2.7)

Proceedsondisposal -intangibleassets 0.� -

Net cash flows used in investing activities ( �0.�) (31.2)

Financing activitiesProceedsfromissueofordinarysharecapitaltoshareholders ��.0 200.0

(Redemption)/issueofsubordinateddebt 18 ( 2��.�) 330.9

RedemptionofSubordinatedFloatingRateEURLoanStock2008 ( �8.�) -

IssueofSubordinatedFloatingRateNotes2009 - 50.0

IssueofSubordinatedUnsecuredFloatingRateLoanStock2009 - 35.0


RedemptionofStep-UpSubordinatedFloatingRateNotes2015 ( �0.�) -

(Redemption)/issueofSubordinatedFloatingRateLoan2017 ( �00.0) 100.0

RedemptionofStep-UpPerpetualSubordinatedNotes ( �8.�) -

Net cash flows generated from financing activities ��.� 530.9

Effects of exchange rate changes on cash and cash equivalents 0.� 7.5

Net increase in cash and cash equivalents 2 �8�.� 947.2

Cash and cash equivalents at beginning of the year � ��0.0 992.8

Cash and cash equivalents at end of the year 27.5 � �2�.� 1940.0


Company balance sheetat31December2008

2008 2007

Note $m $m

Assets Derivativeassets 3 �� .0 7111.5

Tradingassets 4 � �02.2 8665.2

Pledgedassets 5 20�.� 26.2

Financialinvestments 6 8�.0 44.8

Loansandadvances 7 �� .0 15988.3

Loansandadvancestobanks 7 8 0��.0 6511.6

Loansandadvancestocustomers 7 � �20.0 9476.7

Otherassets 9 ��2.� 337.4

Currenttaxasset 10 - 8.6

Deferredtaxasset 10 2�.� 12.2

Investmentsingroupcompanies 11 0.8 1.2

Intangibleassets 12 ��.0 49.1

Propertyandequipment 13 �.� 8.3

Total assets �� .� 32252.8

Liabilities and equity Liabilities �� .� 31347.6

Derivativeliabilities 3 �� 0��.� 8057.8

Tradingliabilities 14 2 0�2.� 3492.6

Depositandcurrentaccounts 15 �� 2�.� 18216.5

Depositsfrombanks 15 �� 8�.� 15057.6

Depositsfromcustomers 15 � ��0.0 3158.9

Otherliabilities 16 �0�.� 678.8

Currenttaxliability 17 �0.� 27.2

Deferredtaxliability 17 2.� -

Subordinateddebt 18 ��.� 874.7

Equity

Equityattributabletoordinaryshareholders � ��8.� 905.2

Ordinarysharecapital 23 � 0�8.� 645.5

Ordinarysharepremium 2��.� 78.8

Reserves 20�.� 180.9

Total liabilities and equity �� .� 32252.8


ApprovedbytheBoardofDirectorsandsignedonitsbehalfon25February2009.

B.J.Kruger,Chairman D.J.Duffy,ChiefExecutive


Company statement of changes in shareholder’s equityfortheyearended31December2008

Ordinary share capital Cash flow Long-term and share hedging incentive Retained Total premium � reserve reserve 2 earnings equity

$m $m $m $m $m

Balanceat1January2007 524.3 8.6 14.4 119.0 666.3

Totalrecognisedincome - (9.4) 2.1 46.2 38.9

Profitattributabletoequityshareholders - - - 45.8 45.8

Itemsrecogniseddirectlyinreserves - (9.4) 2.1 0.4 (6.9)

-Cashflowhedgefairvaluechange - 2.5 - - 2.5

-Cashflowhedgetransfertoincomestatement - (15.9) - - (15.9)

-Deferredtaxonhedges - 4.0 - - 4.0

-Long-termincentivetransactions - - 2.1 - 2.1

-Otherdirectreservemovements - - - 0.4 0.4

Issuesofsharecapitalandpremium 200.0 - - - 200.0

Balanceat31December2007 724.3 (0.8) 16.5 165.2 905.2

Balance at � January 2008 �2�.� ( 0.8) ��.� ��.2 �0�.2

Totalrecognisedincome - ( ��.�) ( �.�) ��.� 22.�

Profitattributabletoequityshareholders - - - ��.� ��.�

Itemsrecogniseddirectlyinreserves - ( ��.�) ( �.�) 0.2 ( ��.�)

-Cashflowhedgefairvaluechange - ( ��.2) - - ( ��.2)

-Cashflowhedgetransfertoincomestatement - 2�.0 - - 2�.0

-Deferredtaxonhedges - ��.� - - ��.�

-Long-termincentivetransactions - - ( �.�) - ( �.�)

-Otherdirectreservemovements - - - 0.2 0.2

Issuesofsharecapitalandpremium ��.0 - - - ��.0

Balance at �� December 2008 � 2��.� ( ��.�) ��.8 2��.� � ��8.�

1DuringtheyearthecompanyraisedUS$571.0millionsharecapitalbywayofshareissuestoitsholdingcompanyStandardBankLondonHoldingsPlc.

2Thisreserveformspartofthecapitalcontributionfromtheultimateparentandisincludedasacomponentofequity.


Company cash flow statementfortheyearended31December2008

2008 2007

Note $m $m

Cash flows from operating activities

Profitfortheperiod ��.2 75.2

Adjustedfor:

Amortisationofintangibleassets �.� 3.1

Cash-settledshare-basedpayments ( ��.�) 1.9

Creditimpairmentchargesagainstloansandadvances ��.2 17.9

Depreciation-propertyandequipment 2.� 1.1

Discountelementrecognisedfromcreditimpairmentsagainstloansandadvances ( 2.�) (0.4)

Equity-settledshare-basedpayments �.0 6.2

Impairmentofpropertyandequipment �.� -

Provisionforleavepay ( 0.�) 1.6

Changesinoperatingfunds � ��.� 380.5

Decrease/(increase)inincome-earningassets 27.2 � ��.8 (4782.9)

(Decrease)/increaseindepositsandotherliabilities 27.3 (� ��.2) 5163.4

Taxpaid 27.4 ( 22.�) (29.0)

Net cash flows from operating activities 2 0��.� 458.1

Investing activities

Capitalexpenditureon -intangibleassets ( ��.8) (28.5)

-propertyandequipment ( �.�) (1.8)

Proceedsonsaleofintangibles 0.� -

Investmentinsubsidiary 0.� (0.5)

Net cash flows used in investing activities ( ��.�) (30.8)

Financing activities

Proceedsfromissueofordinarysharecapitaltoshareholders ��.0 200.0

(Redemption)/issueofsubordinateddebt 18 ( 2��.�) 330.9

RedemptionofSubordinatedFloatingRateEURLoanStock2008 ( �8.�) -


IssueofSubordinatedUnsecuredFloatingRateLoanStock2009 - 35.0


RedemptionofStep-UpSubordinatedFloatingRateNotes2015 ( �0.�) -

(Redemption)/issueofSubordinatedFloatingRateLoan2017 ( �00.0) 100.0

RedemptionofStep-UpPerpetualSubordinatedNotes ( �8.�) -

Net cash flows generated from financing activities ��.� 530.9

Effects of exchange rate changes on cash and cash equivalents ( 0.�) 6.0

Net increase in cash and cash equivalents 2 ��0.� 964.2

Cash and cash equivalents at beginning of the year � ��.� 988.9

Cash and cash equivalents at end of the year 27.5 � ��.0 1953.1


Theprincipalaccountingpoliciesappliedinthepresentationofthefinancialstatementsaresetoutbelow.

� Basis of preparation

Boththeparentcompanyfinancialstatementsandthegroupfinancial statements have been prepared in accordance withInternationalFinancialReportingStandards(‘IFRSs’)asadoptedbytheEUandtheinterpretationsoftheInternationalFinancialReporting Interpretations Committee (‘IFRIC’). In publishingthe parent company financial statements here together withthe group financial statements, the company has takenadvantage of the exemption in s230 of the CompaniesAct1985nottopresent its individual incomestatementandrelatednotesthatformapartofthesefinancialstatements.

The consolidated financial statements are prepared inaccordance with the going concern principle under thehistoricalcostbasisexceptasmodifiedbytherevaluationof:

•financialassetsandliabilitiesheldatfairvaluethroughprofitorloss;and

•liabilitiesforcash-settledshare-basedpaymentarrangements.

The consolidated financial statements include the parentcompanyandallsubsidiarycompanies.

Theultimateparentcompany,StandardBankGroup(‘SBG’)hasmadecertainaccountingpolicyelections in termsof IFRS, inthepreparationoftheSBGconsolidatedfinancialstatements.AccordinglyStandardBankPlchasmadethefollowingelectionsin terms of IFRS with reference to the detailed accountingpoliciesshowninbrackets:

•transactions with minority shareholders are treated astransactionswithequityownersandaccountedfordirectlyinequity(accountingpolicy2);

•purchase or sale of financial assets are recognised andderecognised using trade date accounting (accountingpolicy5);

•jointlycontrolledentitiesareaccountedforusingtheequitymethod(accountingpolicy6);and

•property and equipment are accounted for using the costmodel(accountingpolicy8).

Theaccountingpoliciesareconsistentwith thoseadopted inthepreviousyear,exceptforthefollowing:

Adoption of new interpretation effective for the current financial yearIFRIC �� - IFRS 2 Group and Treasury Share Transactions The group has adopted IFRIC 11, an interpretation whichprovidesguidanceonapplying IFRS2Share-basedPayment.Thegroup’spreviousaccountingtreatmentcomplieswiththisinterpretationand it has thereforenot impacted thegroup’sresults or position. Refer to accounting policy 14 for thedetailedpolicyrelatingtolong-termincentiveschemes.

IFRIC �2 - Service Concession ArrangementsThestandardisnotapplicabletothegroup.

IFRIC �� - IAS 19 - The limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction.Thestandardisnotapplicabletothegroup.

IAS �� Amendment - Reclassification of Financial AssetsDuring October 2008, the IASB issued amendments to IAS39, ‘Financial Instruments: Recognition and Measurement’,and IFRS 7, ‘Financial Instruments: Disclosures’, titled‘ReclassificationofFinancialAssets’.TheamendmentstoIAS39 allow reclassifications of non-derivative financial assets(otherthanthosedesignatedunderthefairvalueoption)outof thefairvaluethroughprofitor losscategorytothe loansandreceivablescategory,applicabletoassetswithfixedanddeterminablerepayments,notactivelyquotedortradedinthemarket,wheretheintentandabilityistoholdtheassetfortheforeseeablefutureoruntilmaturity.

The amendment is effective retrospectively from 1 July2008 provided the decision to reclassify was made prior to1November2008.Allotherreclassificationsshallbeeffectivefrom the date of reclassification. This amendment has hadanimpactontheresultsofthegroup,buthashadnoeffectonthecomparativeperiod.Refertonote20andaccountingpolicy5forthedetailedpolicyrelatingtothereclassificationoffinancialassets.

Early adoption of standardIFRS 8 - Operating SegmentsThe group has chosen to early adopt IFRS 8 in 2008. Thisstandardiseffectiveforannualperiodsbeginningonorafter1January2009,withearlyadoptionpermitted.IFRS8replacesIAS14SegmentReporting.This standard requires anentitytoadoptthe‘managementapproach’whenreportingonthefinancialperformanceofitsoperatingsegments.Thereportingisbasedontheinformationthatmanagementusesinternallyforevaluatingsegmentperformanceandwhendecidinghowto allocate resources to operating segments. The standardhasno impacton the resultsof thegroupbuthas impactedthe format of disclosure and measurement of the results ofreportablesegmentsforthecurrentandcomparativeperiod.Refertoaccountingpolicy17forthedetailedpolicyrelatingtosegmentreporting.

IAS 2� - Borrowing costsThe revision of IAS 23 requires the capitalisation ofborrowingcoststhatrelatetoqualifyingassets,i.e.assetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfor their intended use or sale. Previously the group appliedthe alternative treatment of expensing the borrowing costsontheseassets.Theamendmenthasbeenearlyadoptedbythegroupanditdidnothaveamaterialeffectonthecurrentyear’sresults.

Accounting policies


2 Basis of consolidation

SubsidiariesThefinancialstatementsofsubsidiariesareconsolidatedfromthedateonwhichthegroupacquiresthepowertocontrol,uptothedatethatsuchcontrolceases.Forthispurpose,subsidiariesarecompaniesoverwhichthegroup,directlyorindirectly,hasthe power to govern the financial and operating policies toobtainthebenefitsfromitsactivities.Theexistenceandeffectof potential voting rights that are currently exercisable orconvertibleareconsideredwhenassessingwhetherthegroupcontrolsanotherentity.

The purchase method of accounting is used to account forthe acquisition of subsidiaries by the group. The cost of anacquisition ismeasuredasthefairvalueoftheassetsgiven,equity instruments issuedand liabilities incurredorassumedat the date of exchange, plus costs directly attributable totheacquisition.Identifiableassetsacquiredandliabilitiesandcontingent liabilities assumed in a business combination aremeasured initiallyat their fairvaluesat theacquisitiondate,irrespectiveoftheextentofanyminorityinterest.Theexcessofthecostofanacquisitionoverthegroup’sshareofthefairvalueofidentifiablenetassetsacquiredisrecordedasgoodwillandaccountedforintermsofaccountingpolicy7.Ifthecostoftheacquisitionislessthanthefairvalueofthenetassetsofthesubsidiaryacquired,thedifference,referredtoasnegativegoodwill,isrecogniseddirectlyintheincomestatement.

Inter-company transactions and balances are eliminated onconsolidation and consistent accounting policies are usedthroughoutthegroupforthepurposeofconsolidation.

Special purpose entitiesSpecial purpose entities are entities created to accomplish anarrowandwell-definedobjectivesuchasthesecuritisationoffinancialassets.Theseentitiesmaytakedifferentlegalforms.Aspecialpurposeentityisconsolidatedwhenthesubstanceoftherelationshipbetweenthegroupandthespecialpurposeentity’srisksandrewardsindicatethatthegroupeffectivelycontrolstheentityandisre-assessedinresponsetomarketconditions.

Transactions with minority shareholdersThegroupappliesapolicyoftreatingtransactionswithminorityshareholdersthatdonotresultinthegainorlossofcontrol,astransactionswithequityownersofthegroup.Forpurchasesofadditionalinterestsfromminorityshareholders,theexcessofthepurchaseconsiderationoverthegroup’sproportionateshare of the additional net asset value of the subsidiaryacquired is accounted fordirectly inequity.Fordisposals tominority shareholders, the profit or loss on partial disposalof the group’s interest in a subsidiary is also accounted fordirectlyinequity.

� Foreign currency translations

Functional and presentation currencyItems included in the financial statements of each of thegroup’s entities are measured using the currency of theprimary economic environment in which the entity operates(functionalcurrency).StandardBankPlc’sfunctionalandthegroup consolidated presentation currency is US dollars andallamounts,unlessotherwiseindicated,arestatedinmillionsofdollars($m).

Group companiesThe results and financial position of all foreign operationsthat have a functional currency different from the group’spresentation currency are translated into the presentationcurrencyasfollows:

•assetsandliabilitiesaretranslatedattheclosingrateonthebalancesheetdate;and

•income and expenses are translated at average exchangerates for the year, to the extent that such average ratesapproximateactualrates.

On consolidation, exchange differences arising from thetranslation of the net investment in foreign operations areaccounted for directly in a separate component of equity.Onthepartialdisposalofaforeignoperation,aproportionateshareofthebalanceoftheforeigncurrencytranslationreserveistransferredtothesamereserveinwhichtheprofitorlossonpartialdisposalisrecognised,i.e.thistransferismadedirectlytoretainedearnings.Ondisposalofaforeignoperation,anygainsandlossesthatremaindeferredinequityarerecognisedintheincomestatementatthetimeatwhichtheprofitorlossondisposaloftheforeignoperationisrecognised.

Goodwillandfairvalueadjustmentsarisingontheacquisitionofforeignoperationsaretreatedasassetsandliabilitiesoftheforeign operation and translated at closing rates at balancesheetdate.

Transactions and balancesForeigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingtheexchangeratesprevailingatthedateofthetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationatyear-endexchangeratesofmonetaryassetsandliabilitiesdenominated in foreign currencies, are recognised in theincomestatementexceptwhendeferredinequityasqualifyingcashflowhedgesandqualifyingnetinvestmenthedges.

Non-monetary assets and liabilities denominated in foreigncurrenciesthataremeasuredathistoricalcostaretranslatedusing the exchange rate at the transaction date. Foreignexchangegainsandlossesonequitiesclassifiedasavailable-for-salefinancialassetsareincludedintheavailable-for-salereserveinequitywhereastheexchangedifferencesonequitiesheldatfairvaluethroughprofitorlossarereportedaspartofthefairvaluegainorloss.

Accounting policies continued


Interestearnedanddividendsreceivedwhileholdingtradingassets at fair value through profit or loss are included intradingrevenue.

Persuant to the amendments to IAS39 issued in October2008, the group reclassified certain non-derivative financialassetsoutoftradingassetsandintoloansandadvances(refertonote20).

Financial assets and liabilities designated at fair value through profit or lossThegrouphasdesignatedfinancialassetsandliabilities,otherthanthoseheldfortrading,asatfairvaluethroughprofitorlosswhen:

•doingsoeliminatesorsignificantlyreducesmeasurementorrecognitioninconsistenciesthatwouldotherwisearisefrommeasuringfinancialassetsorliabilities,orrecognisinggainsandlossesonthemondifferentbases.Underthiscriterion,the main class of financial instruments designated by thegroup are loans and advances to customers where doingso significantly reduces measurement inconsistencies thatwouldarise if the relatedderivativeswere treatedasheldfor trading and the underlying financial instruments werecarriedatamortisedcost;and

•groups of financial assets, financial liabilities or both aremanaged,andtheirperformanceevaluated,onafairvaluebasisinaccordancewithadocumentedriskmanagementorinvestmentstrategy,andinformationaboutgroupsoffinancialinstruments is reported to the group’s key managementpersonnelonthatbasis.Underthiscriterion,certainprivateequity, acquired non-performing loan portfolios and otherinvestment portfolios have been designated at fair valuethrough profit or loss. The group has documented riskmanagementandinvestmentstrategiesdesignedtomanagesuchassetsatfairvalue.

The fair value designation, once made, is irrevocable.Subsequent to initial recognition, the fair values areremeasured,andgainsandlossesarisingfromchangesthereinarerecognisedininterestincomeforalldatedfinancialassetsand in other revenue within non-interest revenue for allundatedfinancialassets.

Loans and receivablesLoans and receivables are non-derivative financial assetswithfixedordeterminablepayments that arenotquoted inanactivemarket,otherthanthoseclassifiedbythegroupasat fair value throughprofitor lossor available-for-sale.Thiscategoryincludespurchasedloans.

Loansand receivablesaremeasuredatamortisedcostusingthe effective interest method, less any impairment losses.Origination transaction costs and origination fees receivedarecapitalisedtothevalueoftheloanandamortisedthroughinterest income. The majority of the group’s advances areincludedintheloansandreceivablescategory.

� Cash and cash equivalents

Cashandcashequivalentsdisclosedinthecashflowstatementconsistofcashandbalanceswithcentralbanks,alongwithotherhighly liquid short-term placements. Cash flows arising fromoperatingfundsarestatedafterexcludingtheimpactofforeigncurrencytranslationdifferencesonassetandliabilityclasses.

Cashandbalanceswithcentralbankscomprisecoinsandbanknotesandbalanceswithcentralbanks,whereasothershort-term placements are disclosed under loans and advances.These balances are subject to insignificant changes in fairvalueandarereportedatamortisedcost.

� Financial instruments

Initial recognition and measurementFinancialinstrumentsincludeallfinancialassetsandliabilitiesheld for liquidity, investment, trading or hedging purposes.All financial instruments are initially recognised at fair valueplus transaction costs, except those carried at fair valuethroughprofitorlosswheretransactioncostsarerecognisedimmediately through the income statement. Financialinstrumentsarerecognisedonthedatethegroupcommitstopurchaseorselltheinstruments(tradedate).

Subsequent measurementSubsequentto initialmeasurement,financial instrumentsaremeasuredateitherfairvalueoramortisedcost,dependingontheirclassification:

Held-to-maturityHeld-to-maturityinvestmentsarenon-derivativefinancialassetswithfixedordeterminablepaymentsandfixedmaturitiesthatmanagementhasboth thepositive intent and ability toholdtomaturity.Werethegrouptosellmorethananinsignificantamountofheld-to-maturityassets,theentirecategorywouldbe tainted and reclassified as available-for-sale assets andthedifferencebetweenamortisedcost and fair valuewill beaccountedforinequity.

Held-to-maturity investments are carried at amortised cost,using the effective interest method, less any provisionsforimpairment.

Trading assets and liabilitiesTrading assets and liabilities are those financial assets andliabilities that the group has acquired or incurred principallyforthepurposeofsellingorrepurchasinginthenearterm,ortheyformpartofaportfolioofidentifiedfinancialinstrumentsthataremanagedtogetherandforwhichthereisevidenceofarecentactualpatternofshort-termprofit-taking.Derivativesare also categorised as held for trading unless they aredesignatedashedginginstruments.

Subsequenttoinitialrecognition,thefairvaluesareremeasured,and all gains and losses arising from changes therein arerecognisedintheincomestatementintradingrevenueundernon-interestrevenue.


Standard Bank Plc annual report 2008 2�

Available-for-saleFinancial assets classified by the group as available-for-salefinancial assets are strategic capital investments held for anindefinite period of time, which may be sold in response toneedsforliquidityorchangesininterestrates,exchangeratesorequityprices.

Available-for-salefinancialassetsaresubsequentlycarriedatfairvalue.Unrealisedgainsorlossesarisingfromchangesinthefairvalueofavailable-for-salefinancialassetsarerecogniseddirectlyintheavailable-for-salereserveuntilthefinancialassetisderecognisedorimpaired.Whenavailable-for-salefinancialassetsaredisposedof,thefairvalueadjustmentsaccumulatedinequityarerecognisedintheincomestatement.

Interestincome,calculatedusingtheeffectiveinterestmethod,isrecognisedintheincomestatement.Dividendsreceivedonavailable-for-sale instruments are recognised in the incomestatementwhenthegroup’srighttoreceivepaymenthasbeenestablished.Foreignexchangegainsorlossesonavailable-for-saledebtinstrumentsarerecognisedintheincomestatement.

Fair valueFairvalueistheamountforwhichanassetcouldbeexchanged,or liability settled, betweenknowledgeablewilling parties inan arms length transaction on the measurement date. Thebest evidence of the fair value of a financial instrument oninitial recognition is the transaction price, i.e. the fair valueoftheconsiderationpaidorreceived,unlessthefairvalueisevidencedbycomparisonwithotherobservablecurrentmarkettransactions in thesame instrument,withoutmodificationorrepackaging, or based on discounted cash flow models andoption pricing valuation techniques whose variables includeonlydatafromobservablemarkets.

When such valuation models, with only observable marketdata as input, indicate that the fair value differs from thetransactionprice,thisinitialdifference,commonlyreferredtoasdayoneprofitorloss,isrecognisedintheincomestatementimmediately.Ifnon-observablemarketdataisusedaspartofthe input to the valuation models, any resulting differencebetweenthetransactionpriceandthemodelvalueisdeferred.The timingof recognitionofdeferreddayoneprofitor lossisdeterminedindividually. It iseitheramortisedoverthelifeof the transaction,deferreduntil the instrument’s fair valuecanbedeterminedusingmarketobservableinputs,orrealisedthroughsettlement,dependingonthenatureoftheinstrumentandavailabilityofmarketobservableinputs.

Subsequent to initial recognition, the fair values of financialassets and liabilities are based on quoted market prices ordealer price quotations for financial instruments traded inactivemarkets.Ifthemarketforafinancialassetisnotactiveor the instrument is an unlisted instrument, the fair value isdetermined by using applicable valuation techniques. Theseincludetheuseofrecentarmslengthtransactions,discounted

cash flow analysis, pricing models and valuation techniquescommonlyusedbymarketparticipants.Assetsandlongpositionsaremeasuredatabidprice; liabilitiesandshortpositionsaremeasured at an asking price. Where the group has positionswith offsetting risks, mid-market prices are used to measuretheoffsettingriskpositionsandabidoraskingpriceadjustmentisappliedonlytothenetopenpositionsasappropriate.

Wherediscountedcashflowanalysisareused,estimatedfuturecashflowsarebasedonmanagement’sbestestimatesandthediscountrateisamarket-relatedrateatthebalancesheetdateforafinancialassetwithsimilar termsandconditions.Wherepricingmodelsareused,inputsarebasedonobservablemarketindicatorsat thebalancesheetdateandprofitsor lossesareonly recognised to theextent that they relate to changes infactorsthatmarketparticipantswillconsiderinsettingaprice.

Impairment of financial assetsAssets carried at amortised costThegroupassessesateachbalancesheetdatewhetherthereisobjectiveevidencethatafinancialassetorgroupoffinancialassetsisimpaired.Afinancialassetorgroupoffinancialassetsisimpairedandimpairmentlossesareincurredonlyifthereisobjectiveevidenceofimpairment,resultingfromoneormoreeventsthathaveoccurredaftertheinitialrecognitionoftheasset(alossevent)andthatlosseventhasanimpactontheestimatedfuturecashflowsofthefinancialassetorgroupoffinancialassetsthatcanbereliablyestimated.

Thegroupfirstassesseswhetherthereisobjectiveevidenceofimpairmentindividuallyforfinancialassetsthatareindividuallysignificant,and individuallyorcollectivelyforfinancialassetsthatarenotindividuallysignificant.

Non-performing loans are impaired for doubtful debtsidentified during periodic evaluations of advances. Retailloans and advances are considered non-performing whenamounts are due and unpaid for three months. Corporateloans are analysed on a case-by-case basis taking intoaccountbreachesofkey loanconditions.The impairmentofnon-performing loans takes account of past loss experienceadjusted for changes in economic conditions and thenatureand levelof riskexposure since the recordingof thehistoric losses. The methodology and assumptions usedfor estimating future cash flows are reviewed regularly toreduce any differences between loss estimates and actuallossexperience.

Whenaloancarriedatamortisedcosthasbeenidentifiedasimpaired the carrying amount of the loan is reduced to anamountequal to thepresentvalueofestimated futurecashflows, including the recoverable amount of any collateral,discounted at the financial assets’ original effective interestrate. The carrying amount of the asset is reduced throughtheuseofanallowanceaccountandtheamountofthelossisrecognisedasacreditimpairmentintheincomestatement.



If the group determines that no objective evidence ofimpairmentexistsforan individuallyassessedfinancialasset,whether significant or not, it includes the asset in a groupof financial assets with similar credit risk characteristicsand collectively assesses them for impairment. Assets thatare individually assessed for impairment and for which animpairment loss is or continues to be recognised are notincludedinacollectiveassessmentforimpairment.

Impairmentofperformingloanscanonlybeaccountedfor ifthereisobjectiveevidencethatalosseventhasoccurredafterthe initial recognition of the financial asset but before thebalancesheetdate. Inordertoprovidefor latent losses inaportfolioofloansthathavenotyetbeenindividuallyidentifiedasimpaired,acreditimpairmentforincurredbutnotreportedlosses is recognisedbasedonhistoric losspatterns,adjustedto reflect the impact of current economic conditions, andestimatedemergenceperiods.Loansarealso impairedwhenadverseeconomicconditionsdevelopafterinitialrecognitionwhichmayimpactfuturecashflows.

Increases in loan impairments and any subsequent reversalsthereof, or recoveries of amounts previously impaired, arereflected in the income statement. Previously impairedadvances are written off once all reasonable attempts atcollectionhavebeenmadeandthereisnorealisticprospectofrecoveringoutstandingamounts.Anysubsequent reductionsinamountspreviouslyimpairedarereversedbyadjustingtheallowanceaccountandtheamountofthereversalisrecognisedas a reduction in impairment for credit losses in the incomestatement. Subsequent recoveries of previously written offadvancesarerecognisedintheincomestatement.

Subsequenttoimpairment,theeffectsofdiscountingunwindovertimeisrecordedasinterestincome.

Renegotiated loansLoans that are either subject to collective impairmentassessment or individually significant and whose terms havebeenrenegotiatedarenolongerconsideredtobepastduebutareresettoperformingloanstatus.

Loans whose terms have been renegotiated are subject toongoing review to determine whether they are consideredimpaired or past due if the terms of renegotiation result inanyimpairment.

Available-for-sale financial assets Available-for-sale financial assets are impaired if there isobjectiveevidenceofimpairment,resultingfromoneormorelosseventsthatoccurredafterinitialrecognitionbutbeforethebalancesheetdate,thathaveanimpactonthefuturecashflowsoftheasset.Inaddition,anavailable-for-saleequityinstrumentis generally considered impaired if a significantorprolongeddecline in the fairvalueof the instrumentbelow itscosthasoccurred. Where an available-for-sale asset, which has been

remeasured to fair valuedirectly throughequity, is impaired,theimpairmentlossisrecognisedintheincomestatement.Ifanylossonthefinancialassetwaspreviouslyrecogniseddirectlyinequityasa reduction in fairvalue, thecumulativenet lossthathadbeenrecognisedinequityistransferredtotheincomestatementandisrecognisedaspartoftheimpairmentloss.Theamountofthelossrecognisedintheincomestatementisthedifference between the acquisition cost and the current fairvalue,lessanypreviouslyrecognisedimpairmentloss.

If,inasubsequentperiod,theamountrelatingtoanimpairmentlossdecreasesandthedecreasecanbelinkedobjectivelytoaneventoccurringaftertheimpairmentlosswasrecognisedintheincomestatement,wheretheinstrumentisadebtinstrument,theimpairmentlossisreversedthroughtheincomestatement.Animpairmentlossinrespectofanequityinstrumentclassifiedas available-for-sale is not reversed through the incomestatementbutaccountedfordirectlyinequity.

Offsetting financial instrumentsFinancialassetsand liabilitiesareoffsetand thenetamountreported on the balance sheet when there is a legallyenforceablerighttoset-offtherecognisedamountandthereisanintentiontosettleonanetbasis,ortorealisetheassetandsettletheliabilitysimultaneously.

Incomeandexpensesarepresentedonanetbasisonlywhenpermittedbytheaccountingstandards,orforgainsandlossesarisingfromagroupofsimilartransactions.

Derivative financial instruments and hedge accountingAderivative isafinancial instrumentwhosevaluechanges inresponse to anunderlying variable, that requires little or noinitialinvestmentandthatissettledatafuturedate.Derivativesareinitiallyrecognisedatfairvalueonthedateonwhichthederivativesareenteredintoandsubsequentlyremeasuredatfairvalueasdescribedundertheheading“Fairvalue’above.

Allderivative instrumentsarecarriedasassetswhenthefairvalueispositiveandasliabilitieswhenthefairvalueisnegative,subjecttooffsettingprinciplesasdescribedundertheheading‘Offsettingfinancialinstruments’above.

Embedded derivatives included in hybrid instruments aretreated and disclosed as separate derivatives when theireconomic characteristics and risks are not closely relatedto those of the host contract, the terms of the embeddedderivativeare the sameas thoseofa stand-alonederivativeandthecombinedcontractisnotrecognisedatfairvaluewithanygainsorlossesfromthechangeinfairvaluerecognisedinthe incomestatement.Thehostcontractsareaccountedforandmeasuredapplyingtherulesof therelevantcategoryofthatfinancialinstrument.

When hybrid instruments are reclassified to loans andadvances,theembeddedderivative isseparatedoutandnotreclassified.



Themethodofrecognisingfairvaluegainsorlossesdependsonwhetherderivativesareheldfortradingoraredesignatedashedginginstruments,andifso,thenatureofthehedgeditem.Allgainsandlossesfromchangesinthefairvalueofderivativesheld for trading are recognised in the income statement intradingrevenue.Whenderivativesaredesignatedinahedgingrelationship,thegroupdesignatesthemaseither:

•hedgesofthefairvalueofrecognisedassetsorliabilitiesorfirmcommitments(fairvaluehedge);

•hedgesofhighlyprobablefuturecashflowsattributabletoarecognisedassetorliability,oraforecasttransaction(cashflowhedge);or

•hedges of net investments in a foreign operation (netinvestmenthedge).

Hedgeaccountingisappliedtoderivativesdesignatedinthiswayprovidedcertaincriteriaaremetandhedgeeffectivenessisestablished.

The group documents, at the inception of the hedgingrelationship, the relationship between hedged itemsand hedging instruments, as well as its risk managementobjective and strategy for undertaking various hedgingrelationships.Thegroupalsodocumentsitsassessment,bothathedge inceptionandonanongoingbasis,ofwhetherthederivatives that are used in hedging relationships are highlyeffective in offsetting changes in fair values or cash flowsofhedgeditems.

Fair value hedgesWhere a hedging relationship is designated as a fair valuehedge, the hedged item is adjusted for the change in fairvalueinrespectoftheriskbeinghedged.Gainsorlossesonthe remeasurement of both the derivative and the hedgeditem are recognised in the income statement. Fair valueadjustmentsrelatingtothehedginginstrumentareallocatedtothesameincomestatementcategoryastherelatedhedgeditem.Anyineffectivenessisalsorecognisedinthesameincomestatementcategoryastherelatedhedgeditem.

If the derivative expires, is sold, terminated, exercised, nolongermeetsthecriteria for fairvaluehedgeaccounting,orthedesignationisrevoked,hedgeaccountingisdiscontinued.Anyadjustmentuptothatpoint,toahedgeditemforwhichthe effective interest method is used, is amortised to theincomestatementaspartoftherecalculatedeffectiveinterestrateovertheperiodtomaturity.

Cash flow hedgesTheeffectiveportionofchangesinthefairvalueofderivativesthat are designated and qualify as cash flow hedges arerecognisedinthecashflowhedgingreserve.Theineffectivepartofanygainorlossisrecognisedimmediatelyintheincomestatementastradingrevenue.

Amountsaccumulatedinequityaretransferredtotheincomestatement in the periods in which the hedged item affectsprofit or loss. However, when the forecast transaction thatis hedged results in the recognition of a non-financial assetor a non-financial liability, the cumulative gains or lossespreviously deferred in equity are transferred from equityandincludedintheinitialmeasurementofthecostoftheassetorliability.

When a hedging instrument expires or is sold, or when ahedge no longer meets the criteria for hedge accounting,the cumulative gains or losses recognised in equity remainin equity until the forecast transaction is recognised in theincome statement. If the forecast transaction is no longerexpectedtooccur,thecumulativegainsorlossesrecognisedinequityareimmediatelytransferredtotheincomestatementandclassifiedastradingrevenue.

Net investment hedgeWhere considered appropriate, the group hedges netinvestmentsinforeignoperationsusingderivativeinstruments.Forsuchhedges,theforeignexchangedifferencearisingonthehedginginstrumentandrelatingtotheeffectiveportionofthehedge,isrecogniseddirectlyinthe‘foreigncurrencyhedgeofnetinvestmentreserve’.Anyineffectiveportionisimmediatelyrecognised in the income statement in non-interest revenue.Onthepartialdisposalofaforeignoperation,theproportionateshare of those deferred gains and losses is recogniseddirectly inprofitor loss.Ondisposalofaforeignoperation,allremainingdeferredgains and lossesare recogniseddirectly inprofitorloss.

Derivatives that do not qualify for hedge accountingAllgainsandlossesfromchangesinthefairvaluesofderivativesthat do not qualify for hedge accounting are recognisedimmediately in the income statement as trading revenue.However,thegainsandlossesarisingfromchangesinthefairvalues of derivatives that are managed in conjunction withfinancial instrumentsdesignatedat fairvalueare included innetincomefromfinancialinstrumentsdesignatedatfairvalueunderothernon-interestrevenue.

Borrowings Borrowings are recognised initially at fair value, generallybeingtheir issueproceeds,netoftransactioncosts incurred.Borrowings are subsequently stated at amortised cost andinterestisrecognisedovertheperiodoftheborrowingusingtheeffectiveinterestmethod.



Financial guarantee contractsAfinancialguaranteecontract isacontractthatrequiresthegroup (issuer) tomakespecifiedpayments to reimburse theholder fora loss it incursbecauseaspecifieddebtor fails tomake payment when due in accordance with the original ormodifiedtermsofadebtinstrument.

Financial guarantee liabilities are initially recognised at fairvalue, which is the premium received, and then amortisedoverthelifeofthefinancialguarantee.Subsequenttoinitialrecognition,thefinancialguaranteeliabilityismeasuredatthehigherofthepresentvalueofanyexpectedpayment,whenapaymentundertheguaranteehasbecomeprobable,andtheunamortisedpremium.

Derecognition of financial instrumentsFinancialassetsarederecognisedwhenthecontractualrightsto receivecashflowsfromthefinancialassetshaveexpired,or where the group has transferred its contractual rightsto receive cash flows on the financial asset such that it hastransferredsubstantiallyalltherisksandrewardsofownershipof the financial asset. Any interest in transferred financialassetsthat iscreatedorretainedbythegroupisrecognisedasaseparateasset.

Financialliabilitiesarederecognisedwhentheyareextinguished,thatiswhentheobligationisdischarged,cancelledorexpires.

Thegroupentersintotransactionswherebyittransfersassetsrecognised on its balance sheet, but retains either all risksand rewards of the transferred assets or a portion of them.If all or substantially all risks and rewardsare retained, thenthetransferredassetsarenotderecognisedfromthebalancesheet.Transfersofassetswithretentionofallorsubstantiallyall risks and rewards include, for example securities lendingandrepurchaseagreements.

Whenassetsaresoldtoathirdpartywithaconcurrenttotalrateofreturnswaponthetransferredassets,thetransactionis accounted for as a secured financing transaction similarto repurchase transactions. In transactions where the groupneither retains nor transfers substantially all the risks andrewardsofownershipofafinancialasset,itderecognisestheassetifcontrolovertheassetislost.

The rights and obligations retained in the transfer arerecognisedseparatelyasassetsand liabilitiesasappropriate.Intransferswherecontrolovertheassetisretained,thegroupcontinuestorecognisetheassettotheextentofitscontinuinginvolvement,determinedbytheextenttowhichitisexposedtochangesinthevalueofthetransferredasset.

Sale and repurchase agreements and lending of securitiesSecuritiessoldsubjecttolinkedrepurchaseagreements(repos)arereclassified inthefinancialstatementsaspledgedassetswhenthetransfereehastherightbycontractorcustomtosell

orrepledgethecollateral.Theliabilitytothecounterpartyisincludedunderdepositandcurrentaccounts.

Securities purchased under agreements to resell (reverserepos)arerecordedasloansgrantedunderresaleagreementsand included under loans and advances to other banks orcustomersasappropriate.Thedifferencebetweenthesaleandrepurchasepriceistreatedasinterestandamortisedoverthelifeoftherepurchaseagreementusingtheeffective interestmethod.

Securities lent to counterparties are retained in the financialstatements and are classified and measured in accordancewith the measurement policy above. Securities borrowed arenot recognised in the financial statements unless these aresold to third parties. In these cases, the obligation to returnthe securities borrowed is recorded at fair value as atradingliability.

Incomeandexpensesarisingfromthesecuritiesborrowingandlendingbusinessarerecognisedonanaccrualbasisovertheperiodofthetransactions.

� Interest in associates and joint ventures

Associates and jointly controlled entitiesAnassociate isanentity,notbeingasubsidiary, inwhichaninvestment is held and over whose financial and operatingpoliciesthegroupisabletoexercisesignificantinfluencebutnotcontrol,generallyaccompanyingashareholdingofbetween20%and50%ofthevotingrights.

A jointly controlled entity is one where a contractualarrangement establishes joint control over the economicactivityoftheentity.

Interestinassociatesandjointlycontrolledentitiesareaccountedforusingtheequitymethodandarecarriedinthebalancesheetatanamountthatreflectsthegroup’sshareofthenetassetsoftheassociateorjointlycontrolledentityandincludesgoodwill.Equityaccountinginvolvesrecognisingtheinvestmentinitiallyat cost, including goodwill, and subsequently adjusting thecarrying value for the group’s share of the associate’s profitorlossfortheyear,recognisedintheincomestatement,andotherdirectreservemovements.Equityaccountingoflossesinassociatesorjointventuresisrestrictedtotheinterestsintheseentities,includingunsecuredreceivablesorothercommitments.Inter-companyprofitsandlossesareeliminatedindeterminingthe group’s share of equity accounted profits. This methodisappliedfromthedateonwhichtheenterprisebecomesanassociate,uptothedateonwhichitceasestobeanassociate.Accountingpoliciesofassociatesandjointventureshavebeenchangedwherenecessarytoensureconsistencywiththepoliciesofthegroup.



Jointly controlled operationsJointly controlled operations exist where two or moreventurerscombinetheiroperations,resourcesorexpertisetomarketordistributejointlyaparticularproduct.Eachventurerrecognisestheassetsitcontrols,theliabilitiesandexpensesthat it incurs, and its share of the income in respect of itsinterestinthejointventure.

� Intangible assets

GoodwillGoodwill represents the excess of the cost of an acquisitionover the group’s interest in the net fair value of theidentifiable assets, liabilities and contingent liabilities of theacquired subsidiary, associate or joint venture at the date ofacquisition. Acquisition costs include any directly attributabletransactioncosts.

Goodwill arisingon theacquisitionof subsidiaries is reportedin the balance sheet as an intangible asset, and goodwillarising on the acquisition of associates or joint ventures isincluded in interest in associates and joint ventures on thebalance sheet. Goodwill arising on acquisitions before or on31 December 2003 has been amortised using the straight-line method over its estimated useful life and is carried atcost less any accumulated amortisation recognised up to31December2003.

Goodwillarisingonacquisitionsafter31December2003andthecarryingvaluesofgoodwill thatexistedon thisdatearenotamortised,butallocatedtocashgeneratingunitsandaretestedannuallyforimpairment.Negativegoodwillisrecognisedasincomeintheperiodinwhichitarises.Gainsorlossesonthedisposalofanentityincludethecarryingamountofgoodwillrelatingtotheentitysold.

Computer softwareGenerally, costs associated with developing or maintainingcomputer software programs and the acquisition of softwarelicensesarerecognisedasanexpenseasincurred.However,directcomputersoftwaredevelopmentcoststhatareclearlyassociatedwithanidentifiablesystem,whichwillbecontrolledbythegroupandhaveaprobablefutureeconomicbenefitbeyondoneyear,arerecognisedasintangibleassets.Capitalisationisfurtherlimitedtodevelopmentcostwherethegroupisabletodemonstrateitsintentionandabilitytocompleteandusethesoftwareandcanreliablymeasurethecoststocompletethedevelopment.Directcosts include software development, employee costs and anappropriateportionofrelevantoverheads.

Subsequentexpenditureoncomputer software iscapitalisedonlywhenitincreasesthefutureeconomicbenefitsembodiedinthespecificassettowhichitrelates.

Direct computer software development costs recognised asintangible assets are amortised on the straight-line basis atrates appropriate to the expected useful lives of the assets

(twotofiveyears),andarecarriedatcostlessanyaccumulatedamortisation and any accumulated impairment losses. Thecarryingamountofcapitalisedcomputersoftwareisreviewedannuallyandiswrittendownwhenthecarryingamountexceedstherecoverableamount.

8 Property and equipment

Equipment, furniture, vehicles and other tangible assetsare stated at historic cost less accumulated depreciationand accumulated impairment losses. Historic cost includesexpenditure that isdirectlyattributable to theacquisitionofpropertyandequipment.

Subsequentcostsareincludedintheasset’scarryingamountor are recognised as a separate asset, as appropriate, onlywhenitisprobablethatfutureeconomicbenefitswillflowtothegroupandthecostoftheitemcanbemeasuredreliably.Maintenanceandrepairs,whichdonotmeetthesecriteria,arechargedagainstincomeasincurred.Depreciation,impairmentlossesandgainsorlossesondisposalofassetsareincludedintheincomestatement.

Owner-occupiedpropertiesareheldforuse inthesupplyofservicesorforadministrativepurposes.

Property and equipment are depreciated on the straight-linebasisovertheestimatedusefullivesoftheassetstothecurrentvaluesof theirexpected residual values.Land isnotdepreciated.The assets’ residual values anduseful lives arereviewed,andadjusted ifappropriate,ateachbalancesheetdateandthedepreciationmethodisreviewedannually.

Freehold buildings, comprising mainly offices and branches,are generally classified as owner-occupied properties andaccounted for in termsof the costmethod.Thesebuildingsaredepreciatedonthestraight-linebasisovertheirestimateduseful lives to the current value of their estimated residualvalue.Thefreeholdlandportionisnotdepreciated.

Theestimateduseful livesof tangibleassets for thecurrentfinancialyearareasfollows:

Property 50yearsComputerequipment 2to5yearsOfficeequipment 5to7yearsMotorVehicles 5yearsFurnitureandfittings 5to7years

Therehasbeennochangetousefullivesfromthoseappliedinthepreviousfinancialyear.

� Impairment of non-financial assets

Intangibleassetsthathaveanindefiniteusefullifeandgoodwillare not subject to amortisation and are tested annually forimpairment.Intangibleassetsthataresubjecttoamortisationand other non-financial assets are reviewed for impairment



whenever events or changes in circumstances indicate thatthecarryingamountmaynotberecoverable.An impairmentloss is recognised in the income statement for the amountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.The recoverableamount is thehigherofanasset’sfairvaluelesscoststosellandvalueinuse.Fairvaluelesscoststosellisdeterminedbyascertainingthecurrentmarketvalueofanassetanddeductinganycostsrelatedtotherealisationof theasset. Inassessingvalue inuse, theestimated futurecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthe timevalueofmoneyand the risks specific to theasset.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflowsfromcontinuinguse(cashgeneratingunits).

�0 Leases

Group as lesseeLeases,wherethegroupassumessubstantiallyalltherisksandrewardsofownership,areclassifiedasfinanceleases.Financeleases are capitalised at the leases’ inception at the lowerofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepayments.Leasepaymentsareseparatedusingthe interest rate implicit in the lease to identify the financecost, which is charged against income over the lease period,and the capital repayment, which reduces the liability tothelessor.

Leasesofassetsareclassifiedasoperatingleasesifthelessoreffectively retains all the risks and rewards of ownership.Paymentsmadeunderoperatingleases,netofanyincentivesreceivedfromthelessor,arechargedtotheincomestatementon a straight-line basis over the period of the lease. Whenanoperating lease is terminatedbefore the leaseperiodhasexpired,anypaymentrequiredtobemadetothelessorbywayofpenaltyisrecognisedasanexpenseintheperiodinwhichterminationtakesplace.

Group as lessorLease and instalment sale contracts are primarily financingtransactionsinbankingactivities,withrentalsandinstalmentsreceivable, lessunearnedfinancecharges,being included inloansandadvancesonthebalancesheet.

Finance charges earned are computed using the effectiveinterest method which reflects a constant periodic return onthe investment in the finance lease. Initial direct costs paidare capitalised to the value of the lease amount receivableandaccountedforovertheleasetermasanadjustmenttotheeffectiverateofreturn.Thebenefitsarisingfrominvestmentallowancesonassetsleasedtoclientsareaccountedforintax.

�� Provisions

Provisionsarerecognisedwhenthegrouphasapresentlegalorconstructiveobligationasa resultofpasteventsand it isprobable that an outflow of resources embodying economic

benefitswillberequiredtosettletheobligationandareliableestimate of the amount of the obligation can be made.Provisionsaredeterminedbydiscountingtheexpectedfuturecashflowsusingapre-taxdiscountratethatreflectscurrentmarketassessmentsof the timevalueofmoneyand,whereappropriate,therisksspecifictotheliability.

Contingent liabilities, which include certain guarantees andletters of credit pledged as collateral security, are possibleobligations that arise from past events whose existence willbe confirmed only by the occurrence, or non-occurrence,of one or more uncertain future events not wholly withinthe group’s control. Contingent liabilities are notrecognisedinthefinancialstatementsbutaredisclosedunlesstheyareremote.

�2 Tax

Incometaxontheprofitorlossfortheyearcomprisescurrentand deferred tax. Current tax represents the expectedtax payable on taxable income for the year, using tax ratesenacted, or substantively enacted at the balance sheetdate,andanyadjustmentstotaxpayableinrespectofpreviousyears.

Deferredincometaxisprovidedforonthecomprehensivebasisusingthebalancesheetmethod,foralltemporarydifferencesarisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingvaluesforfinancialreportingpurposes.Deferredtaxismeasuredatthetaxratesthatareexpectedtobeappliedto the temporary differences when they reverse, based onthe laws thathavebeenenactedor substantiallyenactedatthebalancesheetdate.Deferredtaxisnotrecognisedforthefollowingtemporarydifferences:

•theinitialrecognitionofgoodwill;

•the initial recognitionofassetsand liabilities (outsideofabusinesscombination)whichaffectneitheraccountingnortaxableprofitsorlosses;and

•investments in subsidiaries and joint ventures where thegroup controls the timing of the reversal of temporarydifferencesanditisprobablethatthesedifferenceswillnotreverseintheforeseeablefuture.

Deferred tax assets are recognised to the extent that it isprobable that future taxable income will be available againstwhich the unused tax losses can be utilised. The amount ofdeferred tax provided is based on the expected manner ofrealisationorsettlementofthecarryingamountoftheassetorliabilityandisnotdiscounted.Deferredtaxassetsarereviewedat each balance sheet date and are reduced to the extentthat it is no longer probable that the related tax benefit willberealised.

Currentanddeferredtaxrelatingtoitemswhicharechargedorcrediteddirectlytoequity,arealsochargedorcrediteddirectlyto equity and are subsequently recognised in the incomestatementwhentherelateddeferredgainorlossisrecognised.



�� Equity

Share issue costIncrementalexternalcostsdirectlyattributabletoatransactionthatincreasesordecreasesequityaredeductedfromequity,netof related tax.Allother share issuecosts areexpensedimmediately.

Dividends on ordinary sharesDividends are recognised in the period in which they aredeclared.Dividendsdeclaredafterthebalancesheetdatearedisclosedinthedividendsnote.

�� Long-term incentive scheme

The group operates both cash-settled and equity-settledshare-basedcompensationplans.

Thecash-settledincentiveschemegrantemployeesnotional‘shadow’ share options, the value of which is derived fromthe SIH’s current and future performance. Throughout thelifeof thescheme, the liability is valuedat theendofeachperiod based on a defined formula. The changes in liabilityareaccountedforthroughtheincomestatementoverthelifeoftheshadowshareoptionsandincludesassumptionsaboutfutureperformanceandleavers.

TheStandardBankGroupQuantoStockschemeawardsanumberofQuantoStockunitsdenominatedinUS$andisacashsettledincentive scheme. The value is based on the Standard BankGroupsharepriceandmovesinparalleltothechangeinpriceoftheSBGshareslistedontheJohannesburgStockexchange.Theawardsvestattheendofathreeyearperioddependentontheemployeebeinginservicefortheperiodandareaccruedoverthevestingperiod.Theschemeprovidesforanincrementalamounttobepaidiftheemployeeisinserviceforfouryears.Theamountoftheaccruedliabilityisvaluedattheendofeachperiod,takingintoaccountassumptionsaboutleavers.ThechangesinliabilityareaccountedforthroughtheincomestatementoverthelifeoftheQuantoStockunits.Thechangesintheliabilityarisingfromsharepricemovementshavebeenhedged.

The equity-settled share-based compensation plan awardsoptionsovertheStandardBankGroupLtdshares.Throughoutthelifeofthescheme,theobligationisvaluedattheendofeachperiodbasedonavaluationoftheoption.Thechangesinliabilityareaccountedforthroughtheincomestatementoverthevestingperiodoftheshareoptionswithacorrespondingincrease in the long-term incentive reserve. Non-marketvestingconditionsarenotconsideredinthevaluationbutareincludedintheestimateofthenumberofoptionsexpectedtovest.Ateachbalancesheetdatetheestimateofthenumberofoptionsexpectedtovestisreassessedandadjustedagainstincomeandequityoverthevestingperiod.

�� Revenue

Revenues described below represent the most appropriateequivalentofturnover.Revenueisderivedsubstantiallyfromthebusinessofbankingand relatedactivitiesandcomprisesnetinterestincomeandnon-interestrevenue.

Net interest incomeInterestincomeandexpensesarerecognisedintheincomestatement on an accrual basis using the effective interestmethod for all interest-bearing instruments, except forthoseclassifiedasheldfortrading.Intermsoftheeffectiveinterestmethod,interestisrecognisedataratethatexactlydiscountsestimatedfuturecashpaymentsorreceiptsthroughthe expected life of the financial instrument or, whereappropriate, a shorter period, to the net carrying amountofthefinancialassetorfinancialliability.Directincrementaltransaction costs incurred andorigination fees receivedasa result of bringing margin-yielding assets or liabilities onbalance sheet, are capitalised to the carrying amount offinancialinstruments,excludingfinancialinstrumentsatfairvaluethroughprofitorloss,andamortisedthroughinterestincomeorexpenseoverthelifeoftheassetaspartoftheeffectiveinterestrate.

Interest income and expense presented in the incomestatementinclude:

•interestonfinancialassetsand liabilitiesatamortisedcostonaneffectiveinterestratebasis;and

•interestandfairvaluechangesoninterestbearingfinancialinstrumentsdesignatedasheldatfairvalue.

Where financial assets have been impaired, interest incomecontinues to be recognised on the impaired value based ontheoriginaleffectiveinterestrate.

Gainsandlossesonthedisposalofdatedfinancialinstruments,includingamountsremovedfromequityinrespectofavailable-for-salefinancialassets,andexcludingthoseclassifiedasheldfortrading,areincludedinnetinterestincome.

Dividends received on preference share investments formpart of the group’s lending activities and are included ininterestincome.

Non-interest revenueNet fee and commission revenueFee and commission revenue, including transactional fees,account servicing fees, investment management fees,sales commission, placement fees and syndication feesare recognised as the related services are performed. Loancommitment fees for loans that are not expected to bedrawndownarerecognisedonastraight linebasisoverthecommitmentperiod.Loansyndicationfees,wherethegroupdoesnotparticipate in the syndicationorparticipateat thesame effective interest rate for comparable risk as other



participants,arerecognisedasrevenuewhenthesyndicationhasbeencompleted.

The fair value of issued financial guarantee contracts oninitial recognition is amortised as income over the term ofthecontract.

Other fee and commission expense included in net fee andcommission revenue are mainly transaction and service feesrelating to financial instruments, which are expensed as theservicesarereceived.

Trading revenueTradingrevenuecomprisesallgainsandlossesfromchangesinthefairvalueoffinancialassetsandfinancialliabilitiesheldfor trading, together with related interest income, expenseanddividends.

Other revenueOtherrevenueincludesgainsandlossesonequityinstrumentsdesignatedatfairvaluethroughprofitorloss,gainsandlosseson realised undated available-for-sale financial assets anddividendsrelatingtothesefinancialinstruments.

Netincomefromfinancialinstrumentsdesignatedatfairvalueincludesallgainsandlossesfromchangesinthefairvalueoffinancialassetsandliabilitiesdesignatedatfairvaluethroughprofit or loss, including dividend income arising on thesefinancialinstruments.

Gains and losses on undated available-for-sale financialassets are removed fromequity and included in the incomestatement on realisation of the investments. Dividends ontheseinstrumentsarerecognisedintheincomestatement.

Gains and losses on all other undated financial instruments,excludingthoseclassifiedasheldfortrading,arerecognisedinotherrevenue.

Dividend incomeDividends are recognised in the income statement in theperiodinwhichrighttoreceiptisestablished.

�� Post-retirement benefits

Thegroupoperatesadefinedcontributionplan,basedonapercentageofpensionableearningsfundedbybothemployercompanies and employees, the assets of which are held inseparate trustee-administered funds. Contributions to theseplansare charged to the incomestatement in theperiod towhichtheyrelate.

�� Segment reporting

Anoperatingsegmentisacomponentofthegroupengagedinbusinessactivities,whoseoperatingresultsareregularlyreviewedbymanagementinordertomakedecisionsaboutresourcestobeallocatedtosegmentsandassessingsegmentperformance.The group’s identification of segments and the measurementofsegmentresultsarebasedonthegroup’sinternalreportingtomanagement. It represents theclassificationof thegroup’sactivitiesinsegmentsthatreflecttheriskandreturnofthegroup’sproduct offerings in different product markets. Transactionsbetweensegmentsarepricedatmarket-relatedrates.



Standards and interpretations not yet effective

Standard / interpretation Effective date�

IFRS2amendment Share-based Payment – Vesting Conditions and Cancellations TheamendmenttoIFRS2clarifiesthatvestingconditionsareserviceconditionsandperformanceconditionsonly.Otherfeaturesofashare-basedpaymentagreementshouldbetreatedasnon-vestingconditionsandshouldbeincludedinthegrantdatefairvalueoftheshare-basedpayment.Italsospecifiesthatcancellationsbypartiesotherthantheentityshouldbeaccountedforinthesamewayascancellationsbytheentity.Thisamendmentisnotexpectedtoimpactthegroup’sresultssignificantly.

Annualperiodscommencingonorafter1January2009

IFRS3 Business Combinations

TheprincipalamendmentstoIFRS3include:

•therequirementtoexpenseallacquisition-relatedcosts;

•recognitionoffairvaluegainsandlossesintheincomestatementoninterestsinanacquireeatthetimeatwhichcontrolislost;

•recognitionofallincreasesanddecreasesinownershipinterestsoveranacquireewithinequitywhilstcontrolisheld;

•theoptiontorecogniseanynon-controllinginterestintheacquireeeitheratfairvalueoratthenon-controllinginterest’sproportionateshareofthenetidentifiableassetsoftheentityacquired;

•restrictionofadjustmentstotheinitialmeasurementofcontingentconsiderationsonabusinesscombination,withsubsequentmeasurementofsuchitemsbeingrecognisedintheincomestatement;and

•therequirementatacquisitiontoreclassifyandredesignateallcontractualarrangements,excludingleasesandinsurancecontracts.

Theamendmentsareexpectedtoaffectthegroup’saccountingforbusinesscombinationsthatariseafterthedateonwhichtheamendmentsareadopted.Theeffectonthefinancialstatementswillbeafunctionofthenumberandvalueofanybusinesscombinationstransactedaftertheeffectivedate.

Annualperiodscommencingonorafter1July2009

IAS1 Presentation of Financial StatementsTherevisedIAS1supersedesthe2003versionofIAS1.ThemainchangeintherevisedIAS1istherequirementtopresentallnon-ownerchangesinequityineither:

•asinglestatementofcomprehensiveincomewhichincludesincomestatementlineitems;or

•astatementofcomprehensiveincomewhichincludesonlynon-ownerequitychanges.Inaddition,anincomestatementisalsodisclosed.

Astatementoffinancialposition,preferredtermfor‘balancesheet’,alsohastobepresentedatthebeginningofthecomparativeperiodwhentheentityrestatesthecomparativesasaresultofachangeinaccountingpolicy,thecorrectionofanerror,orthereclassificationofitemsinthefinancialstatements.TherevisedIAS1willnotimpacttheresultsofthegroupbutwillimpacttheformatoftheincomestatementandstatementofchangesinequity.


1Itisexpectedthatthegroupwillcomplywiththenewstandardsandinterpretationsfromtheeffectivedate





IAS27 Consolidated and Separate Financial StatementsTheamendmentstoIAS27requirechangesinaparent’sownershipinterestinasubsidiarythatdoesnotresultinalossofcontroltobeaccountedforwithinequityastransactionswithownersintheircapacityasowners.Atthetimeatwhichcontrolislost,aparentshallderecogniseallassets,liabilitiesandnon-controllinginterestattheircarryingamounts.Anyretainedinterestintheformersubsidiaryisrecognisedatitsfairvalueatthedatecontrolislost.Againorlossonthelossofcontrolisrecognisedinprofitorloss.Therevisedstandardalsorequiresanentitytoattributeitsshareoftotalcomprehensiveincometothenon-controllinginterestevenifthisresultsinthenon-controllinginteresthavingadeficitbalance.

Theeffectonthefinancialstatementswillbeafunctionofthenumberandvalueoftransactionsthatresultinthelossofcontroloversubsidiariesaftertheimplementationofthenewstandard.


IAS32andIAS1amendments

Financial Instruments: Preparation and IAS � Presentation of Financial Statements – Puttable Financial Instruments and Obligations Arising on LiquidationTheamendmenttoIAS32requirestheclassificationofcertainputtablefinancialinstrumentsandfinancialinstrumentsthatimposeontheissueranobligationtodeliverapro-ratashareoftheentityonlyonliquidationasequity.Theamendmentsetsoutspecificcriteriathataretobemettopresenttheinstrumentsasequitytogetherwithrelateddisclosurerequirements.Thisamendmentisnotexpectedtohaveasignificantimpactonthegroup’sresults.


IFRIC13 Customer Loyalty ProgrammesTheinterpretationaddressestherecognitionandmeasurementofobligationstoprovidecustomerswithfreeordiscountedgoodsorservicesifandwhentheychoosetoredeemtheirloyaltyawardcredits.Theinterpretationrequiresentitiestoallocatesomeoftheproceedsoftheinitialsaletotheawardcreditsandrecognisetheseproceedsasrevenueonlywhentheobligationshavebeenfulfilled.Theymayfulfiltheirobligationsbysupplyingawardsthemselves,orengagingandpayingathirdpartytodoso.Thisinterpretationisinaccordancewiththegroup’sexistingpolicyandisthereforenotexpectedtoimpactthegroup’sresults.


IFRIC15 Agreements for the Construction of Real EstateIFRIC15providesguidanceontherecognitionofrevenueamongrealestatedevelopersforsalesofunits.Thisstandardisnotapplicabletothebusinessofthegroup.


1Itisexpectedthatthegroupwillcomplywiththenewstandardsandinterpretationsfromtheeffectivedate.



IFRIC16 Hedges of a Net Investment in a Foreign OperationIFRIC16providesguidanceonaccountingforthehedgeofanetinvestmentinaforeignoperationinanentity’sconsolidatedfinancialstatements.ThemainchangeintroducedbyIFRIC16istoeliminatethepossibilityofanentityapplyinghedgeaccountingforahedgeofforeignexchangedifferencesbetweenthefunctionalcurrencyofaforeignoperationandthepresentationcurrencyoftheparent’sconsolidatedfinancialstatements.Thisinterpretationisinaccordancewiththegroup’sexistingpolicyandisthereforenotexpectedtoimpactthegroup’sresults.

Annualperiodscommencingonorafter1October2008

1Itisexpectedthatthegroupwillcomplywiththenewstandardsandinterpretationsfromtheeffectivedate.



Notes to the annual financial statements

� Segment reporting

�.� Business segments

Global Markets Investment Banking Total

2008 2007 2008 2007 2008 2007

$m $m $m $m $m $m

Profit for the period ��.� 13.2 �.� 36.1 �8.0 49.3

Includedinprofitfortheperiod:

Netinterestincome ��.� 18.1 ��.� 81.2 2�0.� 99.3

Creditimpairmentcharges ( 2�.�) - ( ��.�) (13.7) ( ��.2) (13.7)

Depreciation ( �.�) (0.7) ( �.�) (0.6) ( 2.�) (1.3)

Amortisationofintangibleassets ( �.�) (1.7) ( �.�) (1.4) ( �.�) (3.1)

Incometaxexpense ( 2�.�) (20.5) ( 22.8) (10.6) ( ��.�) (31.1)

Global Markets Investment Banking Other services Total

2008 2007 2008 2007 2008 2007 2008 2007

$m $m $m $m $m $m $m $m

Other information

Totalassets 2� ��.� 24121.0 8 �20.� 6624.9 � 88�.� 1526.2 �� .� 32272.1

Totalliabilities 2� ��.0 24035.4 � ��.2 6504.7 80�.� 813.7 �� 0.� 31353.8

The group relies primarily on net interest income to assess the performance of the segments, not interest income andinterestexpense.Centrallyincurredexpensesareallocatedtobusinessunitsbasedprimarilyondirectexpenses. Thegroupisstructuredonthebasisofproductsandservicesandthesegmentshavebeenidentifiedonthisbasis.Theprincipalbusinessunitsinthegroupareasfollows:

Business unit

GlobalMarkets GlobalMarkets-Includesforeignexchange,fixedincome,derivatives,equitiesandcommoditiestradingbusinesses,

debtorigination,moneymarketfundingunitsandresourcebanking.

InvestmentBanking Commercial and investment banking services to corporates and financial institutions include equity

investmentandadvisorybusinesses,projectfinance,structuredlendingaswellasassetmanagement.

Otherservices Supportfunctionstobusinessunitsandcentralfundingservices.

ThecentraltreasuryishousedwithinGlobalMarketsandbusinessunitspayandreceiveinterestonanarmslengthbasistoreflecttheallocationoffundingcosts.

�.2 Geographical analysisThegeographicalanalysishasbeencompiledonthebasisoflocationofofficewherethetransactionsarerecorded. United Kingdom Outside the UK Total

2008 2007 2008 2007 2008 2007

$m $m $m $m $m $m

Totalincome ��2.� 502.0 ��.� 8.4 �2�.� 510.4

Non-currentassets 8�.� 57.9 0.� 0.3 8�.� 58.2

NocountriesoutsidetheUKaredeemedtobeindividuallymaterial.Therehasbeennorelianceonanymajorcustomersandnoonecustomermakesupamaterialportionoftherevenuestreams.


2 Key management judgements and estimates

Inpreparingthefinancialstatementsestimatesandassumptionsare made that could affect the reported amounts of assetsand liabilities within the next financial year. Estimates andjudgementsarecontinuallyevaluatedandarebasedonfactorssuch as historical experience and current best estimates ofuncertain future events that are believed to be reasonableunderthecircumstances.2.� Credit impairment losses on loans and advancesPerforming loans Thegroupassessesitsloanportfoliosforimpairmentateachbalance sheet date. In determining whether an impairmentlossshouldberecorded inthe incomestatement, thegroupmakes judgements as to whether there is observable dataindicating a measurable decrease in the estimated futurecashflowsfromaportfolioof loansbeforethedecreasecanbeallocatedtoan individual loan inthatportfolio.Estimatesare made of the duration between the occurrence of a losseventandtheidentificationofalossonanindividualbasis.Theimpairment for performing loans is calculated on a portfoliobasis, based on calculated loss ratios, adjusted for specificeconomicconditionsandotherindicatorsofpotentialdefault.These annual loss ratios are applied to loan balances in theportfolioandscaledtotheestimatedlossemergenceperiod.At year end, the group applied a loss emergence period of6months.Non-performing loans Corporate loansareanalysedona case-by-casebasis takingintoaccountbreachesofkeyloanconditions.Management’sestimatesof futurecashflowson individually impaired loansarebasedonhistoricallossexperienceforassetswithsimilarcreditriskcharacteristics.Themethodologyandassumptionsused for estimating both the amount and timing of futurecash flows are reviewed regularly to reduce any differencesbetweenlossestimatesandactuallossexperience.

2.2 Income taxes Thegroupissubjecttodirectandindirecttaxationinanumberof jurisdictions. There may be transactions and calculationsfor which the ultimate tax determination has an element ofuncertaintyduringtheordinarycourseofbusiness.Thegrouprecognises liabilities based on estimates of the quantum oftaxes that may be due. Where the final tax determinationis different from the amounts that were initially recorded,suchdifferenceswill impacttheincometaxanddeferredtaxexpenseintheperiodinwhichsuchdeterminationismade.

2.� Determining fair value The best evidence of fair value of financial instruments isquoted prices in an active market. A financial instrument isregardedasquoted inanactivemarket ifquotedpricesarereadilyandregularlyavailableandthesepricesrepresentactualandregularlyoccurringmarkettransactionsonanarmslengthbasis.Inmarketsorinstrumentsthatexhibitverylowtrading

volumesandintermittenttradingpatternsitcanbedifficulttoestablishifapricereflectsafullyactivemarket.Ifthemarketforfinancialinvestmentsisnotactivethegroupestablishesfairvalueusingvaluationtechniques.Thedeterminationoffairvalueforfinancialassetsandliabilitiesforwhichthereisnoobservablemarketpricerequirestheuseof valuation techniques. For financial instruments that tradeinfrequentlyandhavelittlepricetransparency,fairvalueislessobjective,andrequiresvaryingdegreesofjudgementdependingonliquidity,concentration,uncertaintyofmarketfactors,pricingassumptionsandotherrisksaffectingthespecificinstrument.

Where valuation techniques (for example, models) are usedto determine fair values, they are validated and periodicallyreviewedbyindependentqualifiedseniorpersonnel.Allmodelsareapprovedbeforetheyareused,andmodelsarecalibratedandbacktestedtoensurethatoutputsreflectactualdataandcomparativemarketprices.Totheextentpractical,modelsuseonlyobservabledata,howeverareassuchascreditrisk(bothown and counterparty), volatilities and correlations requiremanagementtomakeestimates.

Such assumptions include risk premiums, liquidity discountrates, credit risk, volatilities and correlations. Changes inthese assumptions could affect the reported fair valuesof financial instruments. For example, if the discount rateused in determining the fair values was decreased by 1%,the mark-to-market would have increased by US$23.0million (2007: US$11.5 million). If the discount rate wasincreased by 1% the impact on profit would have been aUS$22.6milliondecrease(2007:US$11.4milliondecrease).Thetotalamountofthechangeinfairvalueestimatedusinga valuation technique not based on observable market datathat was recognised in profit or loss for the year ended31 December 2008 was a profit of US$27.2 million(2007:US$42.5million).2.� Special purpose entities Thegroup sponsors the formationof special purposeentities(‘SPEs’) primarily for the purpose of allowing clients to holdinvestmentsforassetsecuritisationtransactionsandforbuyingor selling credit protection. The group consolidates SPEsthat itcontrols.As itcansometimesbedifficult todeterminewhether the group controls an SPE, it makes judgementsabout its exposure to the risks and rewards. All aspects ofcontrol are considered in making these judgements. Thegroup makes investments in portfolios of non-performingloans and other distressed debt, primarily in the Asia region.TheportfoliosareacquiredbySPEsspecificallysetupineachjurisdiction to acquire these loans. The group is exposed tothe major risks on these portfolios and a substantial portionofeconomicbenefitandaccordinglyconsolidatestheentities.The total assets consolidated amount to US$271 million(2007:US$218million).

Notes to the annual financial statementscontinued



� Derivative instruments

Allderivativesareclassifiedaseitherderivativesheldfortradingorderivativesheldforhedging.

�.� Notional amount Thegrossnotionalamountisthesumoftheabsolutevalueofallboughtandsoldcontracts.Theamountcannotbeusedtoassessthemarketriskassociatedwiththepositionandshouldbeusedonlyasameansofassessingthegroup’sparticipationinderivativecontracts.

�.2 Derivative assets and liabilitiesGroup 2008 2007 Maturity analysis Fair Fair Contract/ Fair Fair Contract/ < � � - � > � Net fair value of value of notional Netfair valueof valueof notional year years years value assets liabilities amount value assets liabilities amount

$m $m $m $m $m $m $m $m $m $m $m

Derivatives held for trading

Foreign exchange derivatives ( ��.�) ( ��.2) �.� ( �8�.�) 2 ��.0 (2 8��.�) �� 8�2.� (767.5) 917.5 (1685.0) 60968.7

Forwards ( ��.�) ��8.0 �.� ��2.� 2 ��8.� (� �8�.0) �� 0��.2 104.0 894.1 (790.1) 36019.4

Options ( ��.8) ( �2�.2) - ( 8��.0) ��.� ( 8��.�) �� 8�8.� (871.5) 23.4 (894.9) 24949.3

Interest rate derivatives ��0.8 2�.2 ( ��.�) �8�.� 2 ��.� (2 ��.�) �� .� 34.8 690.6 (655.8) 234112.9

Bondsandoptions - ( �.�) 0.� ( 0.�) ��.8 ( ��.�) � ��.� 1.8 3.1 (1.3) 87832.4

Futureoptions ��.� ��.� �.8 �8.8 ��2.� ( ��.�) �8� ��.� 5.1 26.3 (21.2) 75964.9

Forwards ( �.0) - - ( �.0) �.2 ( �.2) � �28.2 0.3 2.2 (1.9) 10495.1

Swaps ��0.� ��.� ( ��.8) �28.� 2 �82.8 (2 0��.�) �� 22.� 27.6 659.0 (631.4) 59820.5

Commodity derivatives ��.2 ��.8 �.� ��0.� � �0�.2 (� ��.�) �0� �00.� 337.4 4881.5 (4544.1) 283751.3

Forwards ��.� �0.� - 82�.� � 80�.� (� �8�.0) �� .2 205.8 4107.5 (3901.7) 275277.9

Options ( �8.�) ( 2.�) �.� ( �2.�) ��.� ( ��2.�) �2 08�.� 131.6 774.0 (642.4) 8473.4

Credit derivatives 2.� ��.8 ( ��.�) ( �0�.�) � 0��.� (� 20�.�) �� 2.� (559.6) 407.9 (967.5) 16101.7

Creditdefaultswaps ( 0.2) 2�2.8 2�.� 2�0.� ��.8 ( �2�.�) �� .0 78.5 298.5 (220.0) 14294.0

Totalreturnswaps 2.8 ( ��8.0) ( 20�.8) ( �80.0) ��.8 ( ��.8) � 2��.� (638.1) 109.4 (747.5) 1807.7

Equity derivatives 2�.0 �.� - �0.� ��.� ( 2�.8) �8 8�2.� 9.7 214.0 (204.3) 97242.8

Forwards �.0 - - �.0 �.� ( 0.�) ��.� - - - -

Options 28.0 �.� - 2�.� ��.8 ( 2�.�) �8 8��.� 9.7 214.0 (204.3) 97242.8

Total derivative assets / (liabilities) held for trading ��.2 ( �.�) ( ��.�) ��.� �� 2.� (�0 ��8.8) � 0�� 2�.� (945.2) 7111.5 (8056.7) 692177.4

Derivatives held for hedging

Derivatives designated as cash flow hedges ( ��.�) 0.� - ( ��.�) 0.� ( ��.�) �2�.� (1.1) - (1.1) 443.5

Exchangetradedcurrencyoptionsbought ( ��.�) 0.� - ( ��.�) 0.� ( ��.�) �2�.� (1.1) - (1.1) 443.5

Total derivative assets / (liabilities) held for hedging ( ��.�) 0.� - ( ��.�) 0.� ( ��.�) �2�.� (1.1) - (1.1) 443.5

Total derivative assets / (liabilities) ��8.� ( �.�) ( ��.�) ��8.� �� 2.� (�� 02�.2) � 0�� 2�8.� (946.3) 7111.5 (8057.8) 692620.9

Included above are the following amounts with related parties:

Groupundertakings-fellowsubsidiaries (� 22�.�) �2�.� (� ��.0) (1036.1) 232.3 (1268.4)

IncludedinthecompanybalancesheetarederivativeassetsofUS$11153.0million(2007:US$7111.5million)andderivative liabilitiesof US$11014.5million(2007:US$8057.8million)representedbythetableabove,withthedifferencerecordedincommodityderivatives.


� Derivative instruments continued

�.� Use and measurement of derivative instrumentsIn the normal course of business, the group enters into avarietyofderivativetransactionsforbothtradingandhedgingpurposes.Derivativefinancialinstrumentsareenteredintofortradingpurposesandforhedgingforeignexchangeandinterestrateexposures.Derivative instrumentsusedby thegroup inboth trading and hedging activities include swaps, options,forwards,futures,andothersimilartypesofinstrumentsbasedonforeignexchangerates, interestrates,creditriskandthepricesofcommoditiesandequities.

Therisksassociatedwithderivativeinstrumentsaremonitoredinthesamemanneras for theunderlying instruments.Risksarealsomeasuredacrosstheproductrange inordertotakeintoaccountpossiblecorrelations.

The fair value of all derivatives is recognised on thebalance sheet and is only netted to the extent that a legalright of set-off exists and there is an intention to settle onanetbasis.

Swaps are transactions in which two parties exchange cashflows on a specified notional amount for a predeterminedperiod.Themajor typesof swap transactionsundertakenbythegroupareasfollows:

•Interestrateswapcontractsgenerallyentailthecontractualexchangeoffixedandfloatingrate interestpayments inasinglecurrency,basedonanotionalamountandaninterestreferencerate.

•Crosscurrencyinterestrateswapsinvolvetheexchangeofinterestpaymentsbasedontwodifferentcurrencyprincipalbalances and interest reference rates and generally alsoentailexchangeofprincipalamountsatthestartand/orendofthecontract.

•Creditdefaultswapsarethemostcommonformofcreditderivative,underwhichthepartybuyingprotectionmakesone or more payments to the party selling protectionduringthelifeoftheswapinexchangeforanundertakingbytheseller tomakeapaymenttothebuyer followingacredit event, as defined in the contract, with respecttoathirdparty.

•Total return swaps are contracts in which one party (thetotalreturnpayer)transferstheeconomicrisksandrewardsassociatedwithanunderlyingassettoanothercounterparty(thetotal returnreceiver).Thetransferofriskandrewardisaffectedbywayofanexchangeofcashflowsthatmirrorchangesinthevalueoftheunderlyingassetandanyincomederivedtherefrom.

Options are contractual agreements under which the seller(writer)grantsthepurchasertheright,butnottheobligation,eithertobuy(calloption)ortosell(putoption)byoratasetdate,aspecifiedamountofafinancialinstrumentorcommodityatapredeterminedprice.Thesellerreceivesapremiumfrom

thepurchaserforthisright.Optionsmaybetradedover-the-counter(‘OTC’)oronaregulatedexchange.

Forwards and futures are contractual obligations to buy orsellfinancialinstrumentsorcommoditiesonafuturedateataspecifiedprice.Forwardcontractsaretailor-madeagreementsthataretransactedbetweencounterpartiesintheOTCmarket,whereas futures are standardised contracts transacted onregulatedexchanges.

�.� Derivatives held for trading Thegrouptradesderivativeinstrumentsonbehalfofcustomersand for its own positions. The group transacts derivativecontracts to address customer demands both as a marketmaker in the wholesale markets and in structuring tailoredderivatives for customers. The group also takes proprietarypositions for its own accounts. Trading derivative productsincludethefollowingderivativeinstruments:

�.�.� Foreign exchange derivatives Foreign exchange derivatives are used to hedge foreigncurrency risks on behalf of customers and for the group’sownpositions.Foreignexchangederivativesprimarilyconsistofforwardexchangecontracts,foreignexchangefuturesandforeignexchangeoptions.

�.�.2 Interest rate derivatives Interestratederivativesareusedtomodifythevolatilityandinterest rate characteristics of interest-earning assets andinterest-bearing liabilities on behalf of customers and forthegroup’sownpositions. Interest ratederivativesprimarilyconsist of forward rate agreements, caps and floors, swaps,swaptions,futureoptionsandbondoptions.

�.�.� Commodity derivatives Commodity derivatives are used to address customercommodity demands and to take proprietary positions forthe group’s own account. Commodity derivatives primarilyconsist of commodity forwards, commodity futures andcommodityoptions.

�.�.� Credit derivatives Creditderivativesareusedtohedgethecreditriskfromonecounterparty to another andmanage the credit exposure toselected counterparties on behalf of customers and for thegroup’s ownpositions.Credit derivativesprimarily consist ofcreditdefaultswapsandtotalreturnswaps.

�.�.� Equity derivatives Equity derivatives are used to address customer equitydemandsandtotakeproprietarypositionsforthegroup’sownaccounts.Equityderivativesprimarilyconsistofoptions,indexoptions, forwards, futures, swaps and other equity relatedfinancialderivativeinstruments.




� Derivative instruments continued

�.� Derivatives held for hedging

�.�.� Derivatives designated as cash flow hedges Thegroupentersintoderivativecontractswhicharedesignatedascashflowhedges.Theincomestatementvolatilityassociatedwith futurehighlyprobableexpenses incurred in currenciesother than the functional currency, arehedgedutilising forwardexchangecontracts.

Gainsand losseson theeffectiveportionsofderivativesdesignatedascashflowhedgesof forecast transactionsare initiallyrecogniseddirectlyinequity,inthecashflowhedgingreserve,andaretransferredtotheincomestatementwhentheforecastcashflowsaffecttheincomestatement.

Thescheduleofforecastcashflowsthatwillresultinthereleaseofthecashflowhedgingreserveat31December2008isasfollows:

Group Company

2008 2007 2008 2007

$m $m $m $m

3monthsorless ��.8 52.5 ��.8 52.5

Morethan3monthsbutlessthan1year ��.� 157.5 ��.� 157.5

Morethan1yearbutlessthan5years �8.2 57.8 �8.2 57.8

2��.� 267.8 2��.� 267.8

Reconciliation of movements in the cash flow hedging reserve Balanceatbeginningoftheyear ( 0.8) 8.6 ( 0.8) 8.6

Amountsrecogniseddirectlyinequityduringtheyear ( ��.2) 2.5 ( ��.2) 2.5

Less:amountsreleasedintheincomestatement(operatingcosts) 2�.0 (15.9) 2�.0 ( 15.9)

Less:deferredtax ��.� 4.0 ��.� 4.0

Balance at end of the year ( ��.�) (0.8) ( ��.�) ( 0.8)

Therewerenotransactionsforwhichcashflowhedgeaccountinghadtobeceasedin2008or2007asaresultofhighlyprobablecashflowsnolongerexpectedtooccur.Nogainorlossonineffectiveportionsofsuchderivativeswererecognisedintheincomestatementin2008or2007.

�.� Unobservable inception profitsAnyinitialgainorlossonfinancialinstrumentsinasituationinwhichvaluationisdependentonunobservableparametersisnotrecognised inprofitor loss immediatelybut is recognisedoverthe lifeofthe instrumentonanappropriatebasisoruntil theinstrumentisredeemed,transferredorsold,orthefairvaluebecomesobservable.

Thetablebelowsetsouttheaggregatedifferenceyettoberecognisedinprofitorlossatthebeginningandendoftheyearwithareconciliationofchangesinthebalanceduringtheyear:

Group Company

2008 2007 2008 2007

$m $m $m $m

Unamortisedbalanceatbeginningoftheyear ( 0.�) (0.9) (0.�) ( 0.9)

Deferralonnewtransactions �.� (0.2) �.� ( 0.2)

Recognisedintheincomestatementduringtheyear 0.� 0.5 0.� 0.5

Unamortised balance at end of the year �.� (0.6) �.� ( 0.6)



� Trading assets Group Company

2008 2007 2008 2007

$m $m $m $m

Government,municipalityandutilitybonds � 008.� 2728.5 � 008.� 2728.5

Corporatebonds � ��.� 2975.1 � ��.� 2975.1

Listedequities ��.� 317.1 ��.� 317.1

Unlistedequities �20.� 202.7 �20.� 202.7

Commodities � ��.� 1770.5 � ��2.2 1768.4

Otherunlistedinstruments ��.� 673.4 ��.� 673.4

� �0�.� 8667.3 � �02.2 8665.2

Maturity analysis

Thematuritiesrepresentperiodstocontractualredemptionofthetradingassetsrecorded.

-Redeemableondemand � 8�2.2 2095.3 � 8�2.2 2095.3

-Maturingwithin1month ��.� 386.9 ��.� 386.9

-Maturingafter1monthbutwithin6months 2��.� 1288.1 2��.� 1286.0

-Maturingafter6monthsbutwithin12months 2�0.� 758.0 2�0.� 758.0

-Maturingafter12months 2 ��.0 3703.9 2 ��.0 3703.9

-Undatedassets ��.� 435.1 ��.� 435.1

� �0�.� 8667.3 � �02.2 8665.2

� Pledged assets

�.� Financial assets that may be repledged or resold by counterparties

Government,municipalityandutilitybonds 2�.8 6.3 2�.8 6.3

Corporatebonds �8�.� 19.9 �8�.� 19.9

20�.� 26.2 20�.� 26.2

Maturity analysis

Thematuritiesrepresentperiodstocontractualredemptionofthepledgedassetsrecorded.

-Maturingwithin1month �2.8 - �2.8 -

-Maturingafter1monthbutwithin6months ��.� 19.7 ��.� 19.7

-Maturingafter6monthsbutwithin12months ��.2 - ��.2 -

-Maturingafter12months ��.� 6.5 ��.� 6.5

20�.� 26.2 20�.� 26.2

TheassociatedliabilitiesrelatingtopledgedassetsamounttoUS$196.5million(2007:US$6.4million).Riskstowhichthegroupremainsexposedincludecreditandinterestraterisk.

�.2 Total assets pledged Thecarryingamountof totalfinancial assets thathavebeenpledgedas collateral for liabilities (includingamounts reflectedin5.1)at31December2008wasUS$1005.0million(2007:US$581.0million).

Theassetspledgedbythegrouparestrictlyforthepurposeofprovidingcollateraltothecounterparty.Totheextentthatthecounterpartyispermittedtoselland/orre-pledgetheassets,theyareclassifiedonthebalancesheetaspledgedassets.



� Pledged assets continued

�.� Collateral accepted as security for assets Aspartofthereverserepurchaseandsecuritiesborrowingagreements,thegrouphasreceivedsecuritiesthatitisallowedtosellorrepledge.ThefairvalueofthefinancialassetsacceptedascollateralthatthegroupispermittedtosellorrepledgeintheabsenceofdefaultisUS$6635.7million(2007:US$3977.2million).

The fair value of financial assets accepted as collateral that have been sold or repledged is US$1116.9 million(2007:US$1921.5million).Thegroupisobligedtoreturnequivalentsecurities.

Thesetransactionsareconductedundertermsthatarecustomarytostandardsecuritiesborrowingandlendingactivitiesaswellasrequirementsdeterminedbyexchangeswherethebankactsasanintermediary.

� Financial investments

Group Company

2008 2007 2008 2007

$m $m $m $m

Corporatebonds �.� - �.� -

Unlistedequities ��.� 44.8 ��.� 44.8

8�.0 44.8 8�.0 44.8

Maturity analysis

Thematuritiesrepresentperiodstocontractualredemptionofthefinancialinvestmentrecorded.

-Maturingafter12months �.� - �.� -

-Undatedinvestments ��.� 44.8 ��.� 44.8

8�.0 44.8 8�.0 44.8

� Loans and advances

Loans and advances net of credit impairments

Loansandadvancestobanks 8 0��.� 6515.8 8 0��.0 6511.6

Grossloansandadvancestobanks 8 0�0.� 6515.8 8 0�2.� 6511.6

-Callloans � ��.2 3811.5 � ��.� 3803.3

-Loansgrantedunderresaleagreements � �0�.� 2704.3 � �0�.� 2708.3

Creditimpairmentsagainstloansandadvancestobanks ( �.�) - ( �.�) -

Loansandadvancestocustomers � ��.� 9486.7 � �20.0 9476.7

Grossloansandadvancestocustomers �0 02�.8 9522.7 �0 0�0.� 9512.7

-Termlending � �0�.0 4615.1 � ��.� 4614.4

-Loansgrantedunderresaleagreements � 8��.� 4542.9 � 8��.� 4543.5

-Otherloansandadvances � 0�8.� 364.7 80�.� 354.8

Creditimpairmentsagainstloansandadvancestocustomers ( �0.�) (36.0) ( �0.�) ( 36.0)

�� .� 16002.5 �� .0 15988.3



� Loans and advances continued

Group Company

2008 2007 2008 2007

$m $m $m $m

Maturity analysis

Thematurityanalysisisbasedontheremainingperiodstocontractualmaturityfromyearend.

-Redeemableondemand � 8�2.� 1762.2 � ��.� 1545.3

-Maturingwithin1month � 8�2.� 4921.5 � �00.� 4921.2

-Maturingafter1monthbutwithin6months � ��.� 5028.4 � ��.2 5028.4

-Maturingafter6monthsbutwithin12months � ��.0 1407.9 � ��.� 1407.9

-Maturingafter12months � 80�.� 2918.5 � ��2.0 3121.5

�8 0�2.� 16038.5 �8 0��.� 16024.3

Segmental analysis - industry

Agriculture ��.� 177.3 ��.� 177.3

Construction ��.� 62.9 ��.� 62.9

Electricity ��.� 140.6 ��.� 140.6

Finance �� 8��.8 12489.1 �2 ��.8 12583.4

Individuals �0�.� 226.0 �8.0 226.0

Manufacturing ��.8 556.0 ��.8 556.0

Mining � ��.� 613.0 � ��.� 613.0

Otherservices1 2 0�8.� 1576.2 2 0�8.� 1470.7

Transport ��8.� 138.9 ��8.� 138.9

Wholesale 200.� 58.5 200.� 55.5

�8 0�2.� 16038.5 �8 0��.� 16024.3

1Generallyincludetelecommunications,hospitality,recreationalandotherindustries.

Included above are the following amounts due from related parties:

Groupundertakings-fellowsubsidiaries

Loansandadvancestobanks-Callloans � ��.� 221.3 � ��8.� 221.3

Loansandadvancestobanks-Loansgrantedunderresaleagreements 22�.� 208.0 22�.� 208.0

Loansandadvancestocustomers-Loansandoverdrafts 2��.8 53.9 2��.8 53.9

2 2�8.� 483.2 2 2��.8 483.2

Minimumamountduringtheyear ��8.� 483.2 ��8.� 483.2

Maximumamountduringtheyear 2 2�8.� 1328.1 2 2��.8 1328.1



8 Credit impairments against loans and advances

Group Company

2008 2007 2008 2007

$m $m $m $m

8.� Non-performing loans Balanceatbeginningoftheyear 2�.2 55.3 2�.2 55.3

Amountswrittenoff - (44.8) - ( 44.8)

Discountelementrecognisedininterestincome(note25.1) ( 2.�) (0.4) ( 2.�) ( 0.4)

Netimpairmentsraisedandreleased(note25.4) ��.0 11.1 ��.0 11.1

Balanceatendoftheyear ��.� 21.2 ��.� 21.2

8.2 Performing loans Balanceatbeginningoftheyear ��.8 12.2 ��.8 12.2

Netimpairmentsraisedandreleased(note25.4) ��.2 2.6 ��.2 2.6

Balanceatendoftheyear ��.0 14.8 ��.0 14.8

Total ��.� 36.0 ��.� 36.0

Segmental analysis of impairments for non-performing loans - industry

Agriculture 8.� - 8.� -

Finance 2�.� 1.6 2�.� 1.6

Mining - 5.7 - 5.7

Otherservices 2�.� 2.9 2�.� 2.9

Wholesale �.� 11.0 �.� 11.0

��.� 21.2 ��.� 21.2

� Other assets

Unsettleddealingbalances ��.� 179.4 ��.� 179.4

Otherreceivables ��.0 160.8 ��.2 158.0

��.� 340.2 ��2.� 337.4

Included above are the following amounts due from related parties:

Groupundertakings-fellowsubsidiaries ��.0 108.0 ��.0 110.2

Minimumamountduringtheyear 20.� 25.6 ��.0 23.2

Maximumamountduringtheyear 2��.0 127.7 2�0.8 127.9



�0 Current and deferred tax assets

Group Company

2008 2007 2008 2007

$m $m $m $m

�0.� Summary Currenttaxassets - 9.2 - 8.6

Deferredtaxasset(note10.2) 2�.� 12.2 2�.� 12.2

2�.� 21.4 2�.� 20.8

�0.2 Deferred tax analysis Deferredtaxliability(note17) ( 2.�) (0.8) ( 2.�) -

Deferredtaxasset 2�.� 12.2 2�.� 12.2

2�.� 11.4 2�.� 12.2

The major components of the deferred tax asset are as follows:

Timingdifferenceson:

-Capitalallowances ( 0.�) (2.3) ( 0.�) ( 2.3)

-Baddebtsprovision 2.2 2.7 2.2 2.7

-Othershort-termtimingdifferences 2�.� 11.8 2�.� 11.8

2�.� 12.2 2�.� 12.2

Includedinothershort-termtimingdifferencesisanincreaseofUS$17.1million

recogniseddirectlyinequityinrelationtoahedgeonSterlingdenominated

expenses(2007increaseofUS$0.3million).

The movements in the deferred tax balance were as follows:

Balanceatbeginningoftheyear �2.2 12.0 �2.2 12.0

Amountsrecognisedintheincomestatement ( �.�) (0.1) ( �.�) 0.2

Amountschargeddirectlytoequity ��.� 0.3 ��.� -

Balance at end of the year 2�.� 12.2 2�.� 12.2

�� Investments in group companies

Company

2008 2007

$m $m

Carryingvalueatendoftheyear 0.8 1.2

Thesubsidiaryundertakingsareasfollows:

Company Activity Country of Incorporation Interest %

StandardCapitalJapanCoLimited Otherfinance Japan 100

StandardCommodities(Asia)Limited1 Introducingbroker HongKong 100

StandardResources(China)Limited Tradingcompany ThePeople’sRepublicofChina 100

StandardAvals.r.o.wasliquidatedduringtheyear

EquityishelddirectlybyStandardBankPlcforallsubsidiarycompanies.

1Inliquidation



�2 Intangible assets

Group Company

2008 2007 2008 2007

$m $m $m $m

Computer software

Balanceatbeginningoftheyear ��.2 24.7 ��.2 24.7

Additions ��.� 28.5 ��.� 28.5

Disposals ( 0.�) - ( 0.�) -

Balance at end of the year 8�.0 53.2 8�.0 53.2

Accumulatedamortisationatbeginningoftheyear ( �.�) (1.0) ( �.�) ( 1.0)

Amortisation ( �.�) (3.1) (�.�) (3.1)

Accumulated amortisation at end of the year ( ��.0) (4.1) ( ��.0) ( 4.1)

Net intangible assets ��.0 49.1 ��.0 49.1

Capitalisedcomputersoftwarerepresentsinformationtechnologycomputersoftwareanddevelopmentcostswhichareofastrategicnaturewith

anexpectedusefullifeofatleast3years.Theycomprisemainlyofcorefrontofficetradingsystemsandbackofficesettlementorrisksystems

andcompriseacombinationofinternalandexternalcostswhicharenotseparable.Theassetsareamortisedonthestraight-linebasisovertheir

expectedlife.

Capitaliseddevelopmentcostsarenottreatedasarealisedlossforthepurposeofdeterminingthecompany’sprofitsasthecostsmeetthe

conditionsrequiringthemtobetreatedasanassetinaccordancewithIAS38.

�� Property and equipment

2008 2007 Cost Accumulated Carrying Cost Accumulated Carrying depreciation value depreciation value

$m $m $m $m $m $m

Group

��.� Summary Equipment

Computerequipment 28.� 2�.� �.0 23.2 22.6 0.6

Motorvehicles 0.8 0.� 0.� 0.7 0.7 -

Officeequipment �0.� �.� �.� 9.8 6.8 3.0

Furnitureandfittings ��.� ��.8 0.� 10.9 5.4 5.5

��.� �2.� 8.� 44.6 35.5 9.1

200� 2008

Carrying Depreciation Carrying value Additions Disposals charge Impairments value

$m $m $m $m $m $m

��.2 Movement Equipment

Computerequipment 0.� �.� - ( 0.�) - �.0

Motorvehicles - 0.� - - - 0.�

Officeequipment �.0 0.� - ( 0.�) - �.�

Furnitureandfittings �.� �.0 - ( �.�) ( �.�) 0.�

�.� �.� - ( 2.�) ( �.�) 8.�


�� Property and equipment continued

��.2 Movement continued 2006 2007


$m $m $m $m $m $m

Equipment

Computerequipment 0.6 0.4 - (0.4) - 0.6

Motorvehicles 0.1 - - (0.1) - -

Officeequipment 1.8 1.8 - (0.6) - 3.0

Furnitureandfittings 5.2 0.5 - (0.2) - 5.5

7.7 2.7 - (1.3) - 9.1

2008 2007

Cost Accumulated Carrying Cost Accumulated Carrying depreciation value depreciation value

$m $m $m $m $m $m

Company ��.� Summary Equipment

Computerequipment 28.� 2�.� �.0 23.2 22.6 0.6

Motorvehicles 0.� 0.� 0.� 0.6 0.6 -

Officeequipment �.� �.� 2.� 8.8 6.6 2.2

Furnitureandfittings ��.8 ��.8 - 10.9 5.4 5.5

�0.� �2.� �.� 43.5 35.2 8.3

200� 2008


$m $m $m $m $m $m

��.� Movement Equipment

Computerequipment 0.� �.� - ( 0.�) - �.0

Motorvehicles - 0.� - - - 0.�

Officeequipment 2.2 0.� - ( 0.�) - 2.�

Furnitureandfittings �.� 0.� - ( �.�) ( �.�) -

8.� �.� - ( 2.�) ( �.�) �.�

2006 2007


$m $m $m $m $m $m

Equipment

Computerequipment 0.6 0.4 - (0.4) - 0.6

Motorvehicles - - - - - -

Officeequipment 1.8 0.9 - (0.5) - 2.2

Furnitureandfittings 5.2 0.5 - (0.2) - 5.5

7.6 1.8 - (1.1) - 8.3




�� Trading liabilities

Group Company

2008 2007 2008 2007

$m $m $m $m

��.� Classification Government,municipalityandutilitybonds �2�.� 691.7 �2�.� 691.7

Corporatebonds 22.� 389.0 22.� 389.0

Listedequities �.� 5.3 �.� 5.3

Unlistedequities �8.� 148.0 �8.� 148.0

Otherunlistedinstruments � 2��.� 2258.6 � 2��.� 2258.6

2 0�2.� 3492.6 2 0�2.� 3492.6

Maturity analysis

Thematuritiesrepresentperiodstocontractualredemption

ofthetradingliabilitiesrecorded.

-Redeemableondemand 2�.� 11.2 2�.� 11.2

-Maturingwithin1month 80.� 93.5 80.� 93.5

-Maturingafter1monthbutwithin6months ��.� 517.6 ��.� 517.6

-Maturingafter6monthsbutwithin12months 208.� 411.9 208.� 411.9

-Maturingafter12months � ��.� 2035.6 � ��.� 2035.6

-Undatedliabilities �0.2 422.8 �0.2 422.8

2 0�2.� 3492.6 2 0�2.� 3492.6

Included above are the following amounts due to related parties:

Groupundertakings-fellowsubsidiaries ��.� 91.5 ��.� 91.5

Minimumamountduringtheyear ��.� 91.5 ��.� 91.5

Maximumamountduringtheyear ��.0 604.3 ��.0 604.3

�� Deposit and current accounts

Deposits from banks �� 8�.0 15057.6 �� 8�.� 15057.6

Depositsfrombanks �� 8��.� 14240.1 �� 8�0.0 14240.1

Depositsfrombanksunderrepurchaseagreements ��.� 752.5 ��.� 752.5

Negotiablecertificatesofdeposit ��.0 65.0 ��.0 65.0

Deposits from customers � ��.� 3158.9 � ��0.0 3158.9

Calldeposits 2 8��.� 2308.4 2 8��.2 2308.4

Termdeposits � �8�.� 406.9 � �8�.� 406.9

Repurchaseagreements ��.� 443.6 ��.� 443.6

�� 2�.� 18216.5 �� 2�.� 18216.5



�� Deposit and current accounts continued

Group Company

2008 2007 2008 2007

$m $m $m $m

Maturity analysis

Thematurityanalysisisbasedontheremainingperiodstocontractualmaturityfromyearend.

-Repayableondemand � ��2.� 5744.9 � ��.2 5744.9

-Maturingwithin1month � ��2.� 6687.4 � ��2.� 6687.4

-Maturingafter1monthbutwithin6months � 2�2.� 2647.2 � 2�2.� 2647.2

-Maturingafter6monthsbutwithin12months 2 �8�.0 1376.4 2 �8�.0 1376.4

-Maturingafter12months � ��.� 1760.6 � ��.� 1760.6

�� 2�.� 18216.5 �� 2�.� 18216.5


Groupundertakings-fellowsubsidiaries

Depositsfrombanks � ��.2 10510.2 � ��.8 10510.2

Otherdepositsandloanaccounts �0�.� 227.4 �0�.� 227.4

� ��0.� 10737.6 � ��.� 10737.6

Minimumamountduringtheyear 8 ��.� 7044.7 8 ��.� 7044.7

Maximumamountduringtheyear �2 �0�.� 10737.6 �2 �0�.� 10737.6

�� Other liabilities

Unsettleddealingbalances 2�0.� 308.6 2�0.� 308.6

Other �8�.0 372.6 ��.� 370.2

�2�.� 681.2 �0�.� 678.8

Comprising:

Duewithinoneyear �0�.� 631.5 ��0.0 629.1

Dueafteroneyear ��.� 49.7 ��.� 49.7

�2�.� 681.2 �0�.� 678.8


Groupundertakings-fellowsubsidiaries �2.� 40.7 ��.� 40.7

Minimumamountduringtheyear �2.� 40.7 ��.� 40.7

Maximumamountduringtheyear 2�0.� 148.7 2��.� 148.7

�� Current and deferred tax liabilities

Currenttaxliabilities �0.� 30.2 �0.� 27.2

Deferredtaxliabilities(note10.2) 2.� 0.8 2.� -

��.� 31.0 �2.� 27.2

The major components of the deferred tax liability are as follows:

Timingdifferenceson:

-Capitalallowances - - - -

-Othershort-termtimingdifferences 2.� 0.8 2.� -

2.� 0.8 2.� -

The movements in the deferred tax liability were as follows:

Balanceatbeginningoftheyear 0.8 3.7 - 3.7

Amountsrecognisedintheincomestatement �.8 0.8 2.� -

Amountschargeddirectlytoequity - (3.7) - ( 3.7)

Balance at end of the year 2.� 0.8 2.� -



�8 Subordinated debt

Group Company

2008 2007 2008 2007

$m $m $m $m

Carrying value

SubordinatedFloatingRateEURLoanStock20081 - 62.7 - 62.7

SubordinatedFloatingRateNotes20092 �0.0 50.0 �0.0 50.0

SubordinatedUnsecuredFloatingRateLoanStock20093 ��.0 35.0 ��.0 35.0

SubordinatedFloatingRateNotes20124 ��.� 145.9 ��.� 145.9

Step-UpSubordinatedFloatingRateNotes20155 2��.� 250.0 2��.� 250.0

SubordinatedFloatingRateLoan20176 - 100.0 - 100.0

Step-UpPerpetualSubordinatedNotes7 ��.� 200.0 ��.� 200.0

SubordinatedFloatingRateLoanStock20508 ��.2 19.2 ��.2 19.2

Accruedinterest ��.0 11.9 ��.0 11.9

��.� 874.7 ��.� 874.7


Groupundertakings-fellowsubsidiaries 22.� 183.6 22.� 183.6

Minimumamountduringtheyear ��.2 75.1 ��.2 75.1

Maximumamountduringtheyear �8�.� 183.6 �8�.� 183.6

1BondsissuedinEuros(€43.0million)wereredeemedatparon21April2008.

2Bonds issued inUSDollars(US$50.0million)atafloatingrateequaltotheaggregateof1.85%perannumandtheLondon interbankofferrateforthree-monthUSDollardeposits,untilmaturityon13December2009.

3Bonds issued inUSDollars(US$35.0million)atafloatingrateequaltotheaggregateof2%perannumandtheLondon interbankofferrateforthree-monthUSDollardeposits,untilmaturityon27December2009.

4BondsissuedinEuros(€100.0million)atafloatingrateequaltotheaggregateof4%perannumandtheinterbankofferrateforthree-monthEuro deposits, until maturity on 28 December 2012. The bonds carry an option to be redeemed in full at their nominal value on or after29December2009.

5Bonds issued in US Dollars (US$239.6 million; 2007: US$250.0 million) bearing interest equal to the aggregate of 1.15% per annum and theLondoninterbankofferedrateforthree-monthUSDollardeposits.Thebondscarryanoptiontoberedeemedinfullattheirnominalvalueonorafter8October2010.Afterthisoptiondate,thebondsbearinterestattheaggregateof1.65%perannumandtheLondoninterbankofferrateforthree-monthUSDollardeposits,untilmaturityon7October2015.DuringDecember2008,bondswithanominalvalueofUS$10.4millionwereboughtbackatmarketprice.

6BondsissuedinUSDollars(US$100.0million)atafloatingrateequaltotheaggregateof3.75%perannumandtheLondoninterbankofferrateforthree-monthUSDollardepositswereredeemedon30September2008.

7BondsissuedinUSDollars(US$141.7million;2007:US$200.0million)atafixedrateequalto8.012%perannum.Thebondscarryanoptiontoberedeemedinfullattheirnominalvalueonorafter27July2016.Afterthisoptiondate,thebondsbearinterestattheaggregateof3.25%perannumandtheLondoninterbankofferrateforthree-monthUSDollardeposits.Theprincipalhasnofixedrepaymentdate.DuringDecember2008,bondswithanominalvalueofUS$58.3millionwereboughtbackatmarketprice.

8BondsissuedinUSDollars(US$19.2million)atafloatingrateequaltotheaggregateof1.25%perannumandtheLondoninterbankofferrateforsix-monthUSDollardepositsuntilmaturityon30September2050.Thebondscarryanoptiontoberedeemedinfullattheirnominalvaluesubjecttofiveyearsandtwodaysnotice.Asatthedateofsignatureoftheseaccounts,nosuchnoticehadbeengivenorreceived.

Claimsinrespectoftheloancapitalaresubordinatedtotheclaimsoftheothercreditors.Thegrouphasnothadanydefaultsofprincipal,interestorotherbreacheswithrespecttoitssubordinatedliabilitiesduring2008and2007.


�� Classification of assets and liabilities

Thetablebelowsetsoutthegroup’sclassificationofeachclassofassetsandliabilities,andtheirfairvalues: Loans and Other non- receivables/ financial Total Held for Designated amortised Available- assets/ carrying Fair Note trading at fair value cost for-sale liabilities amount value

$m $m $m $m $m $m $m

�� December 2008

Assets

Derivativeassets 3 �� 2.� - - - - �� 2.� �� 2.�

Tradingassets 4 � �0�.� - - - - � �0�.� � �0�.�

Pledgedassets 5 20�.� - - - - 20�.� 20�.�

Financialinvestments 6 - 8�.0 - - - 8�.0 8�.0

Loansandadvancestobanks 7 - � 2��.0 � ��.� - - 8 0��.� 8 0��.�

Loansandadvancestocustomers 7 - ��.� � 2��.� - - � ��.� � 8�2.�

Financial assets �� 2��.� � ��.� �� 0�2.� - - �� 2�.� �� 0�.8

Othernon-financialassets - - - - 8��.8 8��.8

Total assets �� 2��.� � ��.� �� 0�2.� - 8��.8 �� .�

Liabilities

Derivativeliabilities 3 �� 02�.2 - - - - �� 02�.2 �� 02�.2

Tradingliabilities 14 2 0�2.� - - - - 2 0�2.� 2 0�2.�

Depositsfrombanks 15 - � ��8.0 � 8��.0 - - �� 8�.0 �� 8.�

Depositsfromcustomers 15 - � 2��.� � ��.0 - - � ��.� � ��8.�

Subordinateddebt 18 - - ��.� - - ��.� ��.�

Financial liabilities �� 0��.� � �82.� �� .� - - �2 ��.� �2 ��.�

Othernon-financialliabilities - - - - ��.� ��.�

Total liabilities �� 0��.� � �82.� �� .� - ��.� �� 0.�

�� December 200�

Assets

Derivativeassets 3 7111.5 - - - - 7111.5 7111.5

Tradingassets 4 8667.3 - - - - 8667.3 8667.3

Pledgedassets 5 26.2 - - - - 26.2 26.2

Financialinvestments 6 - 44.8 - - - 44.8 44.8

Loansandadvancestobanks 7 - - 6515.8 - - 6515.8 6515.8

Loansandadvancestocustomers 7 - 213.1 9273.6 - - 9486.7 9522.8

Financial assets 15805.0 257.9 15789.4 - - 31852.3 31888.4

Othernon-financialassets - - - - 419.8 419.8

Total assets 15805.0 257.9 15789.4 - 419.8 32272.1

Liabilities

Derivativeliabilities 3 8057.8 - - - - 8057.8 8057.8

Tradingliabilities 14 3492.6 - - - - 3492.6 3492.6

Depositsfrombanks 15 - 4007.2 11050.4 - - 15057.6 15057.6

Depositsfromcustomers 15 - 688.6 2470.3 - - 3158.9 3158.9

Subordinateddebt 18 - - 874.7 - - 874.7 874.7

Financial liabilities 11550.4 4695.8 14395.4 - - 30641.6 30641.6

Othernon-financialliabilities - - - - 712.2 712.2

Total liabilities 11550.4 4695.8 14395.4 - 712.2 31353.8




20 Reclassification of financial assets

2008 2007

$m $m

Amount reclassified from held as trading to loans and receivables at amortised cost

FollowingtheamendmentstoIAS39andIFRS7,‘ReclassificationofFinancialAssets’,certaintrading

assetswerereclassifiedtoloansandreceivablesforwhichtherewasaclearchangeofintenttohold

theassetsfortheforeseeablefutureratherthantoexitortradeintheshort-term.

Carryingvalueatdateoftransfer ��2.� -

Carryingvalueatyear-end ��.� -

Fairvalueatyear-end �28.� -

Asatthereclassificationdate,theaverageeffectiveinterestrateonthereclassifiedassetswas4.8%

withexpectedrecoverablecashflowsofUS$494.8million.Ifthereclassificationhadnotbeenmade,

theincomestatementwouldhaveincludedunrealisedfairvaluelossesofUS$75.9million.

Reclassificationsweremadewitheffectfrom1July2008(transfervalueofUS$251.2million)and

1October2008(transfervalueofUS$161.7million).

Thetablebelowsetsouttheamountsactuallyrecognisedinprofitorloss:

Period before reclassification

Tradingincome ( �2.�) 8.2

Period after reclassification

Netinterestincome �.0 -

Net income ( �.�) 8.2

2� Fair values of financial instruments

2�.� Estimation of fair valuesFairvalueestimatesaregenerallysubjectiveinnature,andaremadeasofaspecificpointintimebasedonthecharacteristicsofthefinancialinstrumentsandrelevantmarketinformation.Whereavailable,themostsuitablemeasureforfairvalueisthequotedmarketprice.Intheabsenceoforganisedsecondarymarketsforfinancialinstruments,suchasloans,deposits,illiquidsecuritiesandunlistedderivatives,directmarketpricesarenotalwaysavailable.Thefairvalueofsuchinstrumentswasthereforecalculatedonthebasisofwell-establishedvaluationtechniquesusingcurrentmarketparameters.Inparticular,thefairvalueisatheoreticalvalueapplicableatagivenreportingdate,andhencecanonlybeusedasanindicatorofthevaluerealisableinafuturesale.

Allvaluationmodelsarevalidatedbeforetheyareusedasabasisforfinancialreporting,byqualifiedpersonnelindependentoftheareathatcreatedthemodel.Whereverpossible,thegroupcomparesvaluationsderivedfrommodelswithquotedpricesofsimilarfinancialinstruments,andwithactualvalueswhenrealised,inordertofurthervalidateandcalibratethemodels.Thesetechniquesinvolveuncertaintiesandaresignificantlyaffectedbytheassumptionsusedandjudgementsmaderegardingriskcharacteristicsofvariousfinancialinstruments,discountrates,estimatesoffuturecashflows,futureexpectedlossexperiencesandotherfactors.Changesinassumptionscouldaffecttheseestimatesandtheresultingfairvalues.Derivedfairvalueestimatescannotnecessarilybesubstantiatedbycomparisontoindependentmarketsandmaynotberealisedinanimmediatesaleoftheinstruments.

Thefollowingmethodsandsignificantassumptionshavebeenappliedindeterminingthefairvaluesoffinancialinstruments:

•Thefairvalueofdemanddepositswithnospecificmaturityisassumedtobetheamountpayableondemandatthebalancesheetdate.

•Thefairvalueofvariableandfixedratefinancialinstrumentscarriedatamortisedcostisestimatedbycomparingmarketinterestrateswhentheloansweregrantedwithcurrentmarketratesofferedonsimilarloans.

•Forsecuredloansanddepositsarisingfromsaleandrepurchaseagreementsandforbondtransactionsthatareduetosettleonadatebeyondthemarketnorm(forwardtransactions),thegroupreceivescollateralintheformofcashorsecurities.Thecollateralisvaluedusingestablishedvaluationtechniquesandvariationmarginiscalledorpaid.Balancesheetcarryingamountsthereforecloselyreflectfairvalues.


2� Fair values of financial instruments continued

2�.� Estimation of fair values continued

•Thefairvalueofderivatives isestimatedeitherusingbrokerquotesorbydiscountingfuturecashflows.Futurecashflowsareestimatedbasedonmanagement’sbestestimatesoftheamountitwouldreceiveorpaytoterminatethecontractatthebalancesheetdatetakingintoaccountcurrentmarketconditionsandthecurrentcreditworthinessofthecounterpartiesifapplicable.Thediscountrateusedisamarketrateforasimilarinstrumentatthebalancesheetdate.ThefairvalueofanoptioncontractisdeterminedbyapplyingtheBlack-Scholesoptionvaluationmodel.Inputsarebasedonmarketrelateddataatthebalancesheetdate.

•Thefairvaluesofportfoliosofnon-performingloansacquiredarebasedondiscountedcashflowmodels,determinedbytheunderlyingnatureofeachportfolio.Thediscountratesappliedreflecttheinternalrateofreturnbasedoninitialprojectedcashflowsusedinpricingallocations.Theactualvsprojectedcashflowsarereviewedonaloanbyloanbasis.

22 Financial assets and financial liabilities designated at fair value through profit or loss

22.� Loans and advances Thegroup’smaximumexposuretocreditriskforloansandadvancesdesignatedatfairvaluethroughprofitorlossisUS$4895.4million(2007:US$213.1million).Nocreditderivativeswereusedtomitigatecreditriskontheseinstruments.

RecordedintheincomestatementisUS$153.4million(2007:US$22.0million)relatingtoloansandadvancesdesignatedatfairvaluethroughprofitorloss.Thechangeinfairvalueofthedesignatedloansandadvancesattributabletochangesintheircreditriskisdeterminedastheamountofchangeinfairvaluethatisnotattributabletochangesinmarketconditions.

22.2 Financial liabilities ThechangeinfairvalueofthefinancialliabilitiesdesignatedatfairvaluethroughprofitorlossattributabletochangesincreditriskamountstoUS$11.5million.TheamountthegroupwouldcontractuallyberequiredtopayatmaturityofthefinancialliabilitiesdesignatedatfairvaluethroughprofitorlossamountstoUS$8004.7million(2007:US$4044.0million).

Thechanges in fair valueof thedesignatedfinancial liabilitiesattributable tochanges incredit riskhavebeencalculatedbyreferencetothechangeinthecreditriskimplicitinthemarketvalueofthebank’sseniornotes.

2� Ordinary share capital 2008 2007

$m $m

Authorised

1‘A’ordinaryshareofUS$1 - -

1‘A’ordinaryshareof£1 - -

1000,000,000ordinarysharesofUS$1each � 000.0 700.0

299,999,999ordinarysharesof£1each ��.� 536.4

500,000,000undesignatedsharesofUS$1each1 �00.0 -

Issuedandfullypaid

1‘A’ordinaryshareofUS$1 0.0 0.0

1038611069ordinarysharesofUS$1each(2007:645385048) � 0�8.� 645.4

50000ordinarysharesof£1each(2007:50000) 0.� 0.1

� 0�8.� 645.5

138611069issuedasordinaryshares.

Therightsoftheordinarysharesandthe‘A’ordinarysharesareidenticalwithregardtovotingrightsandamountsreceivableuponwindingup.The‘A’ordinarysharecarriesapreferentialrighttodividends,theextentofwhichmaybedeterminedbythedirectorsattheircompletediscretion.

During2008thecompanyissued393226021ordinarysharesofUS$1eachatapremiumofUS$0.45pershare.




2� Contingent liabilities and commitments

2008 2007

$m $m

Group and company

2�.� Contingent liabilities Guarantees 2�0.0 273.9

2�0.0 273.9

2�.2 commitments Lettersofcredit ��.� 660.3

Unutilisedfacilities

-Lessthanoneyear �0�.0 35.3

-Oneyearandover ��.� 603.1

��2.� 1298.7

Nomateriallossesareanticipatedasaresultofthesetransactions.

Fromtimetotimethegroupisinvolvedinlitigation,receivesclaimsfromtaxauthoritiesorclaimsarisingfromtheconductofitsbusiness.Based

uponavailableinformationandwhereappropriate,legaladvice,thedirectorsdonotbelievethatthereareanypotentialproceedingsorother

claimswhichwillhaveamaterialadverseimpactonthegroup’sfinancialposition.

2008 2007

$m $m

2�.� Operating lease commitmentsThefutureminimumpaymentsundernon-cancellableoperatingleasesareasfollows:

Properties

Within1year �.� 8.5

After1yearbutwithin5years ��.� 10.9

After5years �02.� 1.0

��.� 20.4



2� Supplementary income statement information

2008 2007

$m $m

Group

2�.� Interest income Interestonloansandadvancesandshort-termfunds 8��.� 596.3

Designatedasheldatfairvalue ��.� 22.0

Unwindingofdiscountelementofcreditimpairmentsforloansandadvances(note8.1) 2.� 0.4

�8�.� 618.7

Included above are the following amounts received from related parties:

Groupundertakings-fellowsubsidiaries �2.� 31.2

2�.2 Interest expense Subordinateddebt ��.� 37.4

Otherinterest-bearingliabilities ��.� 294.1

Designatedasheldatfairvalue ��0.� 187.9

��.� 519.4

Included above are the following amounts paid to related parties:

Groupundertakings-fellowsubsidiaries ��.� 498.6

2�.� Non-interest revenue Knowledgebasedfeesandcommissionrevenue1 ��.� 137.4

Knowledgebasedfeesandcommissionexpenses1 ( �82.8) (192.5)

Tradingrevenue ��.� 460.3

-Foreignexchange ��.� 50.8

-Debtsecurities ��0.� 199.9

-Commodities 2�0.2 169.8

-Equities ( ��.�) 39.8

Otherrevenue �8.� 5.9

��.� 411.1

1Inordertoprovideacomparablebase,prioryearincludesareclassificationofUS$39.0millionbetweenfeesandcommissionrevenueandfeesandcommissionexpenses.

Included above are the following amounts from related parties:

Groupundertakings-fellowsubsidiaries ( ��.�) ( 30.1)

NetfeesandcommissionincludespaymentsmadetoStandardBankGroupcompaniesundertransferpricingarrangements.

Tradingrevenuearisefromtheuseofthefollowingcustomerfacilitationandproprietarytradingactivities:

-Foreignexchange:foreignexchangespot,forwardsandoptioncontracts.-Debtsecuritiesandinterestrate:debtsecurities,interestratefutures,swaps,forwardrateagreementsandcreditderivatives.-Commodities:physical,forward,futuresandoptioncontractsinpreciousmetals,basemetalsandenergy.-Equities:equityandequityderivatives.-Tradingrevenuesincluderelatedfeeandinvestmentincomeaswellasassociatedfundingcostsasaresultoftradingoperations.

Otherrevenuerepresentsagainonrevaluationofprivateequityfundsandagainontherepurchaseofsubordinateddebtinstruments(note18).



2� Supplementary income statement information continued 2008 2007 $m $m

2�.� Credit impairment charges Net credit impairments raised and released

Creditimpairmentchargesfornon-performingloans(note8.1) ��.0 11.1

Creditimpairmentchargesforperformingloans(note8.2) ��.2 2.6

��.2 13.7

2�.� Staff costs Salariesandallowances 2��.2 252.3

Otherdirectstaffcosts 2�.� 24.4

Long-termincentivescheme ( �0.�) 8.1

Retirementbenefitcosts �0.8 8.4

2��.� 293.2

Thefollowingtableindicatestheaveragenumberofpersonsemployed:

2008 2007 2008 2007 Number Number Number Number

Keymanagement �� 14 �� 14

Other �8� 876 ��2 865

� 00� 890 �8� 879

2008 2007 $m $m

2�.� Other operating expenses Amortisation of intangible assets �.� 3.1

Auditors’ remuneration �.� 2.5

Statutoryauditfees-Currentyear �.� 1.2

Nonauditfees-Assuranceservices �.8 0.2

Nonauditfees-Taxadvisoryservices 0.� 1.1

Depreciation (note ��.2) 2.� 1.3

Computerequipment 0.� 0.4

Motorvehicles - 0.1

Officeequipment 0.� 0.6

Furnitureandfittings �.� 0.2

Impairment of equipment

Furnitureandfittings �.� -

Indirect tax expense ��.2 14.0

Valueaddedtax ��.0 10.9

Duties �.2 3.1

Operating lease charges

Propertiesandother �2.2 11.5

Information technology and communication ��.� 31.6

Premises �.� 8.5

Other expenses �0.� 50.6

��.� 123.1


2� Supplementary income statement information continued

2�.� Long-term incentive schemes Theimmediateholdingcompany,StandardInternationalHoldingsS.A.hasalong-termincentivescheme(‘theScheme’)wherebycertainemployees,includingcertainexecutivedirectorsofStandardBankPlcgroup,aregrantednotional‘shadow’shareoptions.TheScheme,whichwassetupin1998,providesforeligibleemployeestoberewardedincash,thevalueofwhichisderivedfromcurrentandfutureperformanceofSIH.ThroughoutthelifeoftheScheme,theliabilityisvaluedattheendofeachperiodbasedonadefinedformula.Thenotionalshareoptionswhichhavea10yearlifearegenerallyfirstexercisableinaonemonthperiod,themonthafterthemonthinwhichtheStandardBankGroupLimited(‘SBG’)accountsareapproved,50%afterthreeyears,upto75%after4yearsand100%after5years.ExercisethereaftermaytakeplaceinthemonthafterthemonthinwhichthefinalorinterimaccountsofSBGareapprovedupuntiltheexpiryoftheshadowshareoptions.

TheSchemeupuntilandincludingoptionsissuedinMarch2004wereunderpinnedbyshareoptionsissuedbyStandardBankGroupLimited.FromMarch2005shadowshareoptionshavebeenissuedwithoutfundingfromStandardBankGroupoptions.Commencingin2005,certainshadowshareoptionshavebeenallocatedwithazerostrikepriceallofwhichcanbeexercisedafter4years.Allothertermsoftheseshadowshareoptionsarethesameasthosedescribedabove.Thechangeinliabilityundertheschemeisaccountedforthroughtheincomestatementoverthevestingperiodoftheshadowshareoptionsandincludeassumptionsaboutfutureperformanceandleavers.

The provision in respect of liabilities under the shadow share scheme amount to US$15.4 million at 31 December 2008(2007:US$35.3million),andthewritebackfortheyearisUS$11.4million(2007:US$7.0millioncharge). With effect from 2006, certain employees have been granted share options under the SBG equity settled share basedscheme.Theprovision inrespectof liabilitiesundertheSBGshareschemeamounttoUS$2.4millionat31December2008(2007:US$1.6million),andtheamountchargedfortheyearisUS$1.0million(2007:US$1.1million). In2007,anewlong-termincentiveschemewasintroducedtermedtheStandardBankGroupQuantoStockscheme.Intermsofthisscheme,qualifyingemployeesareawardedanumberofQuantoStockunitsdenominatedinUS$,thevalueofwhichmovesinparalleltothechangeinpriceoftheSBGshareslistedontheJohannesburgStockexchange.Theawardsvestattheendofathreeyearperioddependentontheemployeebeinginservicefortheperiodandtheemployeemaycallforpayment,termed‘exercise’atanypointupuntilthe10yearmaturityoftheunits(exceptforUStaxpayerswhereitisanautomaticsettlementdate).Theschemeincludesadiscretionaryoptionforanincrementalamounttobepaidiftheemployeeisinserviceforfouryearsandhasnotexercisedhis/herunits.Thecostoftheawardisaccruedoverthevestingperiod,commencingintheyeartheunitsareissued.





2�.� Long-term incentive schemes continued 2008 2007 Number Number (‘000) (‘000)

2�.�.� Shadow Share SchemeReconciliation of Shadow Share Scheme

Optionsoutstandingatbeginningoftheyear 2� �� 22628

Granted - 7911

Exercised (� 2��) (389)

Transfers(out)/in ( ��2) 533

Leavers/lapses (� ��) (1 519)

Options outstanding at end of the year 22 �� 29164

Ofwhichrelatestokeymanagement 2 �� 3116

Shadow Share Options granted not yet exercised at balance sheet date

Grantprice 2008 2007 perShadow Number NumberExpirydate Exerciseperiods Share(US$) (‘000) (‘000)

10/1/08 AprilandSeptember2004to2008 - - 391

10/1/08 AprilandSeptember2002to2008 1.15 - 2174

1/1/10 AprilandSeptember2003to2009 2.21 � 0�� 1378

1/1/11 AprilandSeptember2004to2010 2.79 � ��8 1782

1/1/12 AprilandSeptember2005to2011 2.38 � �� 2328



1/1/15 AprilandSeptember2008to2014 2.20 2 80� 3427

1/1/15 AprilandSeptember2009to2014 - � �� 1438

7/1/15 SeptemberandApril2008to2015 1.89 �2 42

1/1/16 AprilandSeptember2009to2015 1.79 2 8�� 3246

1/1/16 AprilandSeptember2010to2015 - �8 78

7/1/16 SeptemberandApril2010to2016 - �� 644

1/1/17 AprilandSeptember2010to2016 1.99 � �2� 7511

7/1/17 SeptemberandApril2010to2017 2.48 �0 141

22 �� 29164




2�.� Long-term incentive schemes continued

Details of Shadow Share Options granted during the year,

all of which were granted for nil consideration

Grantprice 2008 2007 perShadow Number NumberExercise periods Share(US$) (‘000) (‘000)

AprilandSeptember2004to2008 1.99 - 7770

AprilandSeptember2002to2008 2.48 - 141

- 7911

2008 2007 Number Number (‘000) (‘000)

2�.�.2 SBG equity schemeReconciliation of SBG equity settled share based scheme

Unitsoutstandingatbeginningoftheyear 2 �� 1763

Granted � 0�0 633

Exercised ( ��) ( 3)

Leavers/lapses ( �0�) (18)

� 28� 2375

Ofwhichrelatestokeymanagement �� 690

SBG options granted not yet exercised at balance sheet date

Optionprice 2008 2007 rangeper Number NumberExpiry date share(ZAR) (‘000) (‘000)

Yearto31December2014 17.50 - 50.91 ��8 489

Yearto31December2015 60.35 - 65.50 �00 425

Yearto31December2016 79.50 - 81.00 ��2 836

Yearto31December2017 92.05 -107.91 �0� 625

Yearto31December2018 89.00 - 92.00 � 0�� -

� 28� 2375

2008 2007 Units Units (‘000) (‘000)

2�.�.� Quanto Stock SchemeReconciliation of Quanto Stock Units

Unitsoutstandingatbeginningoftheyear - -

Granted 2�� -

Leavers/lapses ( 20) -

2�� -

Ofwhichrelatestokeymanagement 20 -




2�.� Long-term incentive schemes continued

Quanto units granted not yet exercised at balance sheet date

Grantprice 2008 2007 perunit Units UnitsExpiry date Exercise periods (US$) (‘000) (‘000)

1/22/18 January2011toJanuary2018 92.00 2�2 -

3/25/18 February2011toMarch2018 85.02-89.70 � -

6/9/18 April2011toJune2018 77.35-88.20 � -

9/8/18 July2011toSeptember2018 85.10-90.40 � -

11/4/18 November2011toNovember2018 77.00-79.00 � -

2�� -

Details of Quanto units granted during the year,

all of which were granted for nil consideration

Grantprice 2008 2007 perunit Units UnitsExercise periods (US$) (‘000) (‘000)

January2011toJanuary2018 92.00 2�0 -

February2011toMarch2018 85.02-89.70 � -

April2011toJune2018 77.35-88.20 8 -

July2011toSeptember2018 85.10-90.40 � -

November2011toNovember2018 77.00-79.00 � -

2�� -

2008 2007 $m $m

2�.8 Directors’ emoluments Executive directors

Emolumentsofdirectorsinrespectofservicesrendered

Emoluments �.� 5.4

Proceedsfromexerciseofoptions �.0 0.1

Pensioncontribution 0.� 0.1

Highestpaiddirector

Emoluments �.� 2.3

Proceedsfromexerciseofoptions �.0 0.1

Pensioncontribution 0.� 0.1

Numberofdirectorsforwhompensioncontributionsarepaid � 2

2008 2007 Number Number (‘000) (‘000)

Long-term benefits under the SIH shadow option scheme

Numberofoptionsbroughtforward 2 �� 2768

Issuedduringtheyeartothecurrentdirectors - 380

Retirementasdirectors - ( 295)

Exercised ( ��) ( 107)

2 2�0 2746




2�.8 Directors’ emoluments continued

Long-term benefits under the SBG equity settled share based scheme

2008 2007

Number Number

(‘000) (‘000)

Numberofoptionsbroughtforward �� 500

Issuedduringtheyeartothecurrentdirectors ��0 115

Newdirectorsexistingoptions 20 -

Retirementasdirectors - -

Exercised - -

�8� 615

Long-term benefits under the Quanto Stock Scheme

2008 2007

Units Units

(‘000) (‘000)

Numberofunitsbroughtforward - -

Issuedduringtheyeartothecurrentdirectors 20 -

20 -

2�.� Company profits Aspermittedbysection230oftheCompaniesAct1985,theincomestatementofStandardBankPlchasnotbeenpresented.Thecompany

profitofUS$66.3million(2007:US$45.8million)hasbeenincludedinthegroupincomestatement.

2�.�0 Dividends Nodividendsweredeclaredin2008(2007:nil).

2� Income tax expense

2008 2007

$m $m

Current year �8.2 31.3

-UKcorporationtax �0.� 29.3

-UKdeferredtax �.� 0.1

-Overseastax �.� 1.1

-Overseasdeferredtax - 0.8

Prior years �.� ( 0.2)

-UKcorporationtax �.� ( 0.2)

-UKdeferredtax - -

Total tax expense ��.� 31.1

Thecorporation tax liability for theyearhasbeenoffsetbyUS$7.0million (2007:US$4.9million)group relief for lossesofothergroup

companieswhichhavebeensurrendered.



2� Income tax expense continued

2008 2007

$m $m

UK tax rate reconciliation

ThetaxchargefortheyearishigherthanthestandardrateofcorporationtaxintheUK.

Thedifferencesareexplainedbelow:

Profit on ordinary activities before tax �0�.� 80.4

Corporationtax1 ��.� 24.1

Effects of:

Adjustmenttotaxchargeinrespectofprioryears �.� ( 0.2)

Changeinbaddebtprovisions 0.� 0.5

Differenttaxratesinothercountries ( 0.�) ( 0.6)

Groupreliefreceived ( 2.0) ( 4.9)

Non-deductibleexpenses ��.� 9.2

Paymentforgrouprelief �.� 3.5

Othershort-termtimingdifferences 2.� 0.4

��.� 32.0

Deferred tax ( �.�) (0.9)

Capitalallowances 2.2 (1.9)

Baddebtprovisions ( 0.�) (0.5)

Othershort-termtimingdifferences ( �.�) 1.5

��.� 31.1

Effectivetaxrate ��.2% 38.7%

1Theapplicabletaxratedecreasedduringtheperiodunderreviewfrom30.0%to28.5%.



2� Cash flow statement notes

Group Company

2008 2007 2008 2007

$m $m $m $m

2�.� Cash flows from operations Interest,feesandcommissionreceipts ��.� 563.6 ��.� 557.6

Interestreceipts �8�.8 618.7 � 00�.� 620.5

Netfeesandcommissionreceipts ( ��.�) (55.1) ( ��.2) ( 62.9)

Tradingreceipts ��.� 460.3 �0�.� 452.6

Otherreceipts �8.� 5.9 �8.2 5.9

Cashrecoveryofcreditimpairments - 3.8 - 3.8

Interestpayments ( ��.�) (519.4) ( ��.�) ( 519.5)

Cashpaymentstoemployeesandsuppliers ( ��.�) (402.2) ( ��.8) (393.8)

��.2 112.0 �82.� 106.6

2�.2 Decrease / (increase) in income-earning assets Tradingassets � ��.2 (555.1) � ��.0 ( 553.0)

Pledgedassets ( �8�.2) 82.1 ( �8�.2) 82.1

Financialinvestments ( ��.2) (21.3) ( ��.2) (21.3)

Loansandadvances ��.� (4291.0) ��.� (4 263.7)

Otherassets ( ��.�) (22.9) ( ��0.�) ( 27.0)

� �0�.2 (4808.2) � ��.8 (4 782.9)

2�.� (Decrease) / increase in deposits and other liabilities Depositsandcurrentaccounts � �0�.� 4269.2 � �08.� 4269.2

Netderivativeliabilities (� ��.2) 503.0 (� ��.0) 503.0

Tradingliabilities (� �80.�) 231.4 (� �80.�) 231.4

Otherliabilities ( ��.�) 163.2 ( ��.8) 159.8

(� ��.2) 5166.8 (� ��.2) 5163.4

2�.� Tax paid Amountsunpaidatbeginningoftheyear ( 2�.0) (18.6) ( �8.�) ( 18.1)

Directincometax ( ��.�) (33.0) ( ��.�) ( 29.5)

Amountsunpaidatendoftheyear �0.� 21.0 �0.� 18.6

( 2�.�) (30.6) ( 22.�) ( 29.0)

2�.� Cash and cash equivalents Cashandbalanceswithcentralbanks - - - -

Othercashequivalents(includedinloansandadvances)1 � �2�.� 1940.0 � ��.0 1953.1

Cash and cash equivalents at end of the year � �2�.� 1940.0 � ��.0 1953.1

1Othercashequivalentsincludeshort-termplacementsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.


28 Third party funds under management

Membersofthegroupprovidediscretionaryandnon-discretionaryinvestmentmanagementservicestoinstitutionalandprivateinvestors.Commissionsandfeesearned in respectof trustandmanagementactivitiesperformedare included in the incomestatement.Assetsmanagedonbehalfofthirdpartiesinclude: 2008 2007

$m $m

Fundmanagement ��0.0 947.9

2� Related party transactions

2�.� Subsidiaries Thesubsidiarycompaniesinthegroupcomprisealimitedpartofthegroup’sactivitiesandtransactionswiththeseentitiesarenotsignificant.Theprincipalnatureofthetransactionsarepaymentsforbusinessintroducedandtradingfacilitationactivities.Intercompanytransactions,balancesandunrealisedsurplusesanddeficitsareeliminatedonconsolidation.

2�.2 Fellow subsidiaries Thegroupentersintotransactionswithotherentitiesformingpartoftheultimateparentcompany,theStandardBankGroupLimited.

Thetransactionsareenteredintointhecourseofbankingoperationsandareconductedintheordinarycourseofbusinessatarmslength.Thesetransactionsincludelending,acceptanceorinterbankdepositsandcorrespondentbankingtransactions.Thetransactionsarepricedattheprevailingmarketratesatthetimeofthetransactions.

Asignificantportionofthisactivityinvolvestheplacementofexcessliquiditybyotherentitieswiththecompany.Theextentoftheseactivitiesispresentedinnote15.

Thegroupalsoadvancesfundstoothergroupentities,aspartofnormalactivity,theextentofwhichisdisclosedinnote7.

2�.� Key management compensation KeymanagementiscomprisedofdirectorsandthemembersoftheExecutivecommitteeoftheprincipaloperatingentities.

2008 2007

Directors and Directorsand

key management keymanagement

$’000 $’000

Salariesandothershort-termbenefits 8 �2�.0 10546.2

Post-employmentbenefits - 198.4

Gainsonexerciseoflong-termincentivesandotherpayments � �22.� 184.8

� ��.� 10929.4

Valueofshadowshareschemeoptionsvestedat31December2008wasUS$2.7million(2007:US$4.5million).

2�.� Transactions with key management Therewerenotransactionswithkeymanagementin2008(2007:nil).

�0 Pensions and other post-retirement benefits

Thecompanymakesdefinedcontributionstoemployees’pensionproviders.Theassetsoftheseprovidersareheldseparatelyfromthecompany.IncludedinotherpensioncostsarecontributionspaidbygroupcompanieswhichamountedtoUS$10.8million(2007:US$8.4million).Therewerenooutstandingcontributionsatyearend(2007:nil).



�� Financial risk management

��.� Overview and executive summaryThe effective management of risk is fundamental to thebusiness activities of Standard Bank Plc as we remaincommitted to the objective of increasing shareholder valueby developing and growing business that is consistent withour agreed risk appetite. We seek to achieve an appropriatebalance between risk and reward in our business, andcontinue to build and enhance the risk managementcapabilities that will assist in delivering our growth plansinacontrolledenvironment.

Riskmanagementisatthecoreoftheoperatingandmanagementstructuresofthegroup.Managingandcontrollingrisks,andinparticularavoidingundueconcentrationsofexposure,limitingpotential losses fromstressevents,and restrictingsignificantpositionsinlessquantifiableriskareas,areessentialelementsoftheriskmanagementandcontrolframeworkwhichultimatelyleads to the protection of the group’s reputation andbusinessfranchise.

Responsibilityandaccountabilityforriskmanagementresidesatalllevelswithinthegroup,fromtheexecutivedownthroughtheorganisationtoeachbusinessmanagerandriskspecialist.Thegroupusesthethreelinesofdefencemodel.

In the first line of defence, business unit management isprimarily responsible for riskmanagement.Their assessment,evaluation and measurement of risk is an ongoing processand is integrated with the day-to-day business activities.This includes the continued development of the group’s riskmanagement framework, identificationofmaterial issuesandtheimplementationofremedialactionwhererequired.Businessunitmanagementisalsoaccountableforappropriatereportingtothegovernancebodieswithinthebank.

Thesecondlineofdefenceisrepresentedbythegroup’sriskmanagementfunctionwhichisindependentoflinemanagementwithin the business areas. The risk function is primarilyaccountableforsettingthegroup’sriskmanagementframeworkand policy, and providing risk oversight and independentreportingofrisktothegroup’sexecutivemanagement,boardlevelcommitteesandtogroupboard.

The third line of defence consists of Internal Audit whichprovides an independent assessment of the adequacy andeffectivenessofthegroup’soverallsystemofinternalcontroland risk governance structures; the audit function reportsindependentlytotheBoardAuditCommittee.

External audit has a statutory duty to report its independentopiniononthegroup’sfinancialstatementstotheshareholders.

Duringtherecentfinancialcrisisthegroup’sriskmanagementcapabilities were proven to be appropriate and effective. Infact,thegroupanticipatedtheweakeningcreditenvironmentandasaresulthadinitiatedaseriesofmanagementactionstode-riskandde-leveragetheportfolioinresponsetoaseriesof‘deepdrill’reviewsthathighlightedpotentialareasofconcern.Specificactiontakeninthisregardincluded:

•reductioninthegroup’sexposuretoRussianandCISfinancialinstitutions;

•reductioninthegroup’sexposuretorealestate,especiallyinSouthEastAsia;

•reductioninthegroup’sexposureinBrazil;

•reductioninthegroup’sclientforwardsalebookaswellasa renegotiation in terms to improve pricing and collateralhaircuts;and

•reduction in the group’s exposure to the hedge fundsectorandagainsupportedbyarenegotiationinthetermsoftrade.

The group also has in place procedures which enable it toidentifyatanearlystageanydeteriorationinthequalityofitscreditportfoliosandtheseinclude:

•Portfolio Risk Management Committee which meetsmonthly to review the key performance indicators in theportfolio (e.g. PD, EAD, LGD, economic capital utilisation,concentration limits) and to stress the portfolio with aview to initiating management action where it isnecessary to curtail the portfolio risk tendency withinthestatedriskappetite.

•CreditRiskReviewfunctionwhichreviewsthequalityofthecreditdecisions takenwithindelegatedauthoritybasedontheinformationavailabletomakethosedecisions.

•WatchlistReview–anearlywarningmechanismunderwhichifanycounterparty/performingassetinthebankingbookbreaches, for example, a condition of sanction or a keyperformanceratio,itisimmediatelysubjecttoindependentscrutiny and, where necessary, a programme of intensivecareuntilsuchtimeasthepositioncanbetransferredbackto‘linemanagement’.

��.2 Risk management framework

Governance structureOverall responsibility for risk management within the grouprestswiththeBoardofDirectors.Day-to-dayresponsibilityisdelegatedtotheExecutiveCommitteeofStandardBankPlcand its sub-committees, which review, inter alia, summariesof market and liquidity, credit, operational, country andregulatoryrisks.

The Board of Standard Bank Plc delegates certain functionsand responsibilities to the Audit Committee and the RiskManagementCommittee.




Risk governance standards, policies and proceduresGovernanceStandards(‘standards’)foreachprincipalrisktypehavebeenestablishedasakeycomponentofgoodgovernanceand business practice in the group. The standards form anintegralpartofthegroup’scontrolinfrastructureandrepresentahigh levelarticulationof theexpectationand requirementsoftheBoardinrespectofriskappetite,riskreportingandkeyareasofcontrolactivitywithinthegroup.

The group’s primary objective is to protect and enhanceshareholdervalue.Assuch,thisobjectivedrivesthefocusanddevelopmentofitssystemofinternalcontrol.

Thegrouphasdevelopeda setof riskgovernance standardsforeachprincipalrisktype.Thestandardssetoutandensurealignment and consistency in themanner inwhich themajorrisktypesacrossthegrouparegoverned,identified,measured,managed,controlledandreported.

Allstandardsareappliedconsistentlyacrossthegroup.Itistheresponsibilityofbusinessunitexecutivemanagementtoensurethattherequirementsoftheriskgovernancestandards,policiesand procedures are implemented within the business unitsand independently monitored by the unit’s own riskmanagementteams.

Each standard is supported by both bank-wide and businessunitpoliciesandproceduraldocumentsasrequired.

Business units and group risk functions are required to selfassess at least annually their compliance with group riskstandardsandpolicies.

Risk appetiteRiskappetiteisanexpressionofthemaximumlevelofresidualriskthatthebankispreparedtoacceptinordertodeliveritsbusinessobjectives. It is reviewedbyExecutiveManagementandtheBoardatleastannuallyandisdefinedusinganumberofmeasures,including:

•atargetcreditratingforStandardBankPlc;

•thelevelofincomestatementvolatilitythebankispreparedtoaccept;and

•capital adequacy as measured by the ratio of availablefinancialresourcestoeconomiccapitalconsumption.

Theriskprofileofthegroupismonitoredagainstriskappetitebybalancing:

•budgetary provisions for expected loss that are consistentwiththeriskappetiteimpliedbythebusinessplans;

•an agreed tolerance for profit and loss volatility - anacceptablescenariothatislowerthanbudgetbyanamountthat is consistent with the risk appetite implied by thebusinessplans;

•the economic capital requirement implied by the businessplansbeingconsistentwiththeavailablecapital;

•the riskadjusted returnsgenerated fromrisk-takingbeingacceptable;and

•in the context of stress tests, portfolio analysis andconcentration limits, risk assessments, risk indicatorsand other measures devised by business unit riskfunctions which serve to identify and constrain threatsto earnings volatility, capital adequacy, or concentrationrisks, not being disproportionate to the group’scommunicatedstrategy.

The Board establishes the group’s parameters for riskappetiteby:

•providingstrategicleadershipandguidance;

•reviewing and approving annual budgets and forecastsforthegroupandeachdivision;and

•regularly reviewing and monitoring the group’sperformance in relation to risk through quarterlyboardreports.

Stress testingStresstestingservesasadiagnosticandforward-lookingtoolto improve thegroup’sunderstandingofhow its riskprofilemay change (i.e. the risk tendency) based on certain stressscenarios.

Arobuststresstestingframeworkguidestheregularexecution(monthly)ofscenarioanalysisonthegroup’sportfolios.Thestressscenariosarereviewedatleastquarterlytoensuretheircontinuedappropriatenessandapplicabilitytotheportfolios.A proprietary stress testing engine calculates the impactof the stress scenarios on earnings and capital adequacy.Management reviews the outcomes of stress tests at thePortfolioRiskManagementCommitteeandselectsappropriatemitigatingactionstominimiseandmanagetherisktendencyoftheportfolioswithinthegroup’sagreedriskappetite.

Examplesofactionstakeninclude:

•reviewingandchanginglimits;

•limiting exposures in specific sectors, countries, regionsorportfolios;

•influencingthetype,quantumandmaturityofnewbusinessthatcanbeoriginated;

•securitisationand/orrebalancingoftheportfoliotoreducerisksensitivity;and

•hedgingstrategies.

Residual risk is evaluated against the group’s riskappetite and informs the following processes on a forwardlookingbasis:

•improved understanding of risk tendency and the riskappetitesettingofthebank;

•thesettingofcapitalbuffersforthebank;

•theimpactofstressesonearningsvolatility;

•internalcapitalplanning;



•thebudgetingandstrategicplanningprocess;and

•ad-hocassessmentoftheimpactofshort-termmacroeconomicfactorsonthegroup’sperformance.

Risk profileThegroup’stradingactivitiescomprisebothcustomerrelatedandprincipalbusiness.Theseactivitiesresultinthebankholdingpositions in foreign exchange, commodities and marketablesecuritiesforitsownaccountandtofacilitateclientbusiness.

The group’s non-trading portfolios of financial instrumentsinclude loans, deposits and debt securities. Certificates ofdeposit are highly liquid and form an important part of thegroup’sliquidityportfolio.

Thegroup’screditandcountryriskiswelldiversified,althoughas anactiveparticipant inboth thedevelopedandemergingbanking markets, it has a sectoral concentration of risk tofinancial institutions.ThelargestexposuresaretotheUnitedStates, United Kingdom and European Union countries. Thelargest emerging market exposures are to China and Russia,bothinvestmentgradecountries.

��.� Risk categoriesTheprincipalriskstowhichthegroupisexposedandwhichitmanagesaredefinedasfollows:

Credit riskCredit Risk is the risk that a customer or counterparty willnotbeableorwillingtopayinterest,capitalorotherwisefulfiltheir contractual obligations under loan or other facilities astheyfalldue.

Country and cross-border riskCountryriskistheriskoflossarisingwhenpoliticaloreconomicconditionsoreventsinaparticularcountryreducetheabilityofcounterpartiesinthatcountrytomeettheirfinancialobligationstothebank.

Cross-borderriskistheriskthatactionstakenbyagovernmentmay restrict the transfer and convertibility of funds of localcurrencyintonon-localcurrency,therebyimpactingtheabilityto obtain payment from counterparties on their financialobligationstothebank.

Market riskMarketriskisdefinedastheriskofachangeintheactualoreffective market value or earnings of a portfolio of financialinstrumentscausedbyadversemovementsinmarketvariablessuchasequity,bondandcommodityprices,currencyexchangerates, interest rates, credit spreads, recovery rates andcorrelationsandimpliedvolatilitiesinalloftheabove.

Liquidity riskLiquidity risk arises when the bank is unable to meet itspaymentobligationswhentheyfalldue.Thismaybecausedbythegroup’sinabilitytoliquidateassetsortoobtainfundingtomeetitsliquidityneeds.

Operational riskOperationalriskisdefinedastheriskoflosssufferedasaresultof inadequacy of, or a failure in, internal processes, peopleandsystemsorfromexternalevents.Thisincludesinformationrisk and legal risk, but excludes reputational risk andstrategicrisk.

Business riskBusiness risk is the risk of loss due to adverse operatingconditions caused by market-driven pressures such asdecreaseddemand, increasedcompetition,orcost increases,orbyentityspecificcausessuchasapoorchoiceofstrategy,reputationaldamageorthedecisiontoabsorbcostsorlossesto preserve reputation. These losses may be exacerbatedthroughinflexiblecoststructuresorinefficiencies.

��.� Credit riskCredit risk arises mostly from lending and related bankingproduct activities, including their underwriting, and tradedproductssuchasderivativecontractsandsecuritiesborrowingand lending products. In lending transactions, credit riskarises through non-performance by a customer or marketcounterpartyforfacilitiesgranted.Thesefacilitiesaretypicallyloansandadvances, includingtheadvancementofsecuritiesandcontractstosupportcustomerobligationssuchaslettersof credit and guarantees. In trading activities, credit lossesariseduetonon-performancebyacounterpartyforpaymentslinkedtotrading-relatedfinancialobligations.

Marketriskwithintradedcreditproducts(whethertradedasprincipalorheldascollateral)includingdebtinstrumentsandcreditderivativesarisesthroughmarketpricesensitivity,issuerconcentration and default risks. All of which are managedthroughmarketriskprocesses.

In times of severe stress and market illiquidity, market riskmovesmuchclosertoadoptingcreditriskcharacteristics.

Framework and governanceStrategy and process to manage riskCredit risk is the group’s most significant risk as measuredbyabsoluteamount andquantumofcapitalconsumed; it ismanaged inaccordancewiththegroup’scomprehensiveriskmanagementcontrolframework,whichisconsistentwiththepreviousfinancialreportingperiod.Thegroup’screditstandardsetsout theprinciplesunderwhich it ispreparedtoassumecreditrisk.



The group’s Chief Credit Officer has functional responsibilityforcreditriskacrosstheorganisationandreportstotheChiefRiskOfficer.TheregionalHeadsofCreditreportfunctionallytotheChiefCreditOfficer.

Structure and organisation of credit risk management functionAformalstructureexistsfortheapprovalofcreditlimitswhichare agreed through delegated authority from the Global CIBCreditCommitteetoregionalcreditcommitteesandindividualdelegated authority. The committees have clearly definedmandates, memberships and delegated authorities that areregularly reviewed. Credit committee responsibilities includeoversight of governance; risk appetite; model performance,development and validation; counterparty and portfolio risklimits and approvals; country, industry, market, product,customer segment and maturity concentration risk; riskmitigation; impairments; stress testing; and risk usage andoptimisationofregulatoryandeconomiccapital.

Methodology to assign credit limitsThegroupusesinternalmodelsandpracticestomeasureandmanagecreditrisk,deployingconsiderableresourcestoensurethatitisproperlyunderstood,managedandcontrolled.Thecreditmodellingframeworkincludestheuseofprobabilityof default, loss given default, exposure at default andeconomicmeasures inthewaywerunourbusiness.Ongoingenhancementswillcontinueinthisfocusareaforthegroup.

Measuring credit risk requires an understanding of its corecomponents,whichareprobabilityofdefault,lossgivendefaultandexposureatdefault.Thewayinwhichthegroupmeasuresthesecomponentsisdescribedbelow.

Probabilityofdefaultmodelsareusedtoassesstheprobabilityof a counterparty not making full and timely repayment ofcredit obligations over a specific time horizon. The modelsuse a combination of forward-looking qualitative factors andquantitative inputs. Each customer is assigned an internalcreditratingwhichinturnismappedtoastatisticallycalibratedprobability of default. Different models are used for eachdiversecreditportfolioandcounterpartyinthegroupandeachmodelhasitsownparticularsetoffactorsandinputsusedforassessing the rating. All models are statistically tested andvalidated toensure that theyhavepredictivepower,provideanaccurateforward-lookingratingassessmentsuitableforuseinregulatoryandeconomiccapitalassessmentandarestablethrough an economic cycle. For regulatory capital purposestheseratingsareassociatedwith‘throughthecycle’probabilityof defaults. For economic capital management the groupuses forward-looking ratingsbutalsoexplores ‘point in time’versus‘throughthecycle’ impactsthroughstresstestinganddeploysacreditmigrationmodel toassessthe impactof riskratingdowngrades.

The group makes use of an internationally comparable21pointmasterratingscaleforallperformingcounterparties.This is shown below calibrated against External CreditAssessmentInstitutionsalphanumericalratingscalesandgroupgradingcategory.

Group master rating scale

Credit quality steps Moody’s

Standard and Poors Fitch

Group grading category

1-4 1 AaatoAa3 AAAtoAA- AAAtoAA-

Normalmonitoring

5-7 2 A1toA3 A+toA- A+toA-

8-13 3 Baa1toBa3 BBB+toBB- BBB+toBB-

14-16 4 B1toB3 B+toB- B+toB-

17-21 5 CaatoC CCC+toC- CCC+toC- Closemonitoring

Default 6 D D D Default

Credit risk mitigation and hedgingCollateral, guarantees, credit derivatives and on- and off-balancesheetnettingarewidelyusedbythegroupforcreditriskmitigation.Theamountandtypeofcreditriskmitigationdepends on the circumstances of each case. The CollateralManagement function for our Corporate & InvestmentBanking business is centrally managed, on a global basis byGlobalCollateralManagementinJohannesburgwithoversightbyandescalation to the relevantcreditdivisionas required.The amount and type of collateral required depends on anassessment of the credit risk of the counterparty as well asrequirementsorintentionswithrespecttoreductionsincapitalrequirements. Guidelines are implemented regarding theacceptabilityoftypesofcollateral,theirstrengthascreditriskmitigationandvaluationparameters.Collateralisgenerallynotheldoverloansandadvancestobanks,exceptwhensecuritiesareheldaspartofreverserepurchaseandsecuritiesborrowingactivity.

For derivative transactions, the group uses internationallyrecognised and enforceable International Swap DealersAssociation (ISDA) agreements with a credit support annex,where necessary, with most of the group’s largest tradingcounterparts.Generallyexposuresaremarkedtomarketdaily,netting is applied to the full extent contractually agreed tobetweentheparties,andcashandliquidcollateralpostedwherecontractuallyprovidedfor.Becausecounterpartycreditriskofderivativesgenerally can varyover timewith themovementofunderlyingmarketfactors,exposurestocounterpartycreditrisk are calculated by adding increases in future potentialexposuretothebalanceofpresentexposure.Wherethebankhas uncollateralised marked to market risk and/or potentialfutureexposurethisissubjecttoweeklyreviewatthebank’sCreditCommitteewiththe largestpositionsbeingsubjecttospecificscrutinyandlimitcontrol.



The group holds collateral against loans and advances tocustomers in the form of registered securities over assets,guarantees and mortgage interest over property. The maintypesof collateral requiredareplantandmachinery, chargesoverrealestateproperties,inventoryandtradereceivablesandotherassetssuchaslifepoliciesandphysicalcommoditiesheldtoourorder.

Guarantees and similar legal contracts are often requiredparticularly in support of credit extension to groups ofcompanies and weaker credits. Guarantor counterpartiesinclude banks, parent companies, shareholders andassociated counterparties. Creditworthiness is establishedfor the guarantor in the normal course for counterpartycreditapprovals.

To manage actual or potential portfolio risk concentrations,areas of higher credit risk and credit portfolio growth, thegroup from time to time implements hedging and otherstrategiestypicallyattheindividualcounterparty,sub-portfolioandportfoliolevels.Syndication,distributionandsaleofassets,assetandportfoliolimitmanagementandcreditderivativesandcredit protection are used. Implementation and performanceare measured regularly and reporting tools are in place toensureeffectiveongoingmonitoring.

Thegroupperformsmonthlystresstestsonitscreditportfolio.The appropriateness of the stresses applied are reviewedand approved quarterly at the Portfolio Risk ManagementCommittee(PRMC).Theoutputsfromthestressresultsinformmanagement of the expected risk tendency of the portfolioagainst the group’s stated risk appetite. Where necessary,PRMCisempoweredtoinitiatemanagementactiontocontaintherisktendencywithinriskappetite.Thisprocesshasbeeninplacethroughout2008andcontinuestobeacornerstoneofourriskmanagementdiscipline.

Wrong way risk exposureWrong way risk arises where there is positive correlationbetween counterparty default and transaction exposure.Examples of where this may arise are reverse repurchaseagreements and collateralised forward sale agreements. Thisrisk isaddressedbytakingintoconsiderationthehigherthannormalcorrelationbetweenthedefaulteventandtheexposuretothecounterpartywhencalculatingthepotentialexposureonthesetransactions.Counterpartyassessmentsareconductedatthe time the contract is entered into and a risk weighting isassignedbasedonthe lengthandvalueof thecontract.Thevalueofthecontractiscalculatedaccordingtomark-to-marketvalues.Onlonger-termcontractsfurtherperiodicassessmentsareconducted.

Collateral required in respect of a rating downgradeThe group enters into derivative contracts with rated andunrated counterparties. In order to mitigate counterpartycredit risk, thegroupstipulatescreditprotection termssuchas limitations on the amount of unsecured credit exposureit will accept, collateralisation if mark-to-market creditexposure exceeds those amounts and collateralisation and/or terminationof thecontract if certaincrediteventsoccur,includingbutnotlimitedtoadowngradeofthecounterparty’spubliccreditrating.

Certaincounterpartiesrequirethatthegroupprovidessimilarcredit protection terms. From time to time, the group mayagree to provide those terms on a restrictive basis. Ratingdowngrades as a collateralisation or termination event aregenerally conceded only to highly rated counterpartiesand, whenever possible, on a bilateral and reciprocal basis.Exceptionally, such rating downgrades may be conceded tounrated counterparties when their size, credit strength andbusiness potential are deemed acceptable. In these cases,the concessions must be approved by the responsible ChiefCreditOfficer.

Theimpactonthegroupoftheamountofcollateralitwouldhavetoprovidegivenacreditdowngradewouldbedeterminedbythethennegativemark-to-marketonderivativecontractswhere such a collateralisation trigger has been conceded.Where the impact on the group’s liquidity of a collateralcall linked to a downgrading is deemed to be material, thepotentialexposureistakenintoaccountinthebusinessunit’sAsset and Liability Committee (ALCO) model stress testing.Generally, however, the extent of legal commitments whichcouldresultincollateralcallstriggeredbyaratingdowngradeisnotmaterialandwouldnothaveanadverseeffectonthegroup’sfinancialposition.

Analysis of maximum exposure to credit riskThe quality of the exposures in terms of creditworthiness,varying from normal monitoring to close monitoring asdeterminedbytheinternalmodels,aredefinedintermsofthegroupmasterratingscale.



Credit quality based on the group’s credit rating system

Neither past due nor impaired Past due Gross Normal Close � but not credit monitoring monitoring impaired Impaired exposure

$m $m $m $m $m

2008

Derivativeassets �0 ��.0 �8�.� - - �� 2.�

Loansandadvancestobanks � 8��.8 �2�.� - �8.8 8 0�0.�

Loansandadvancestocustomers 8 �2�.� � 0��.0 �.� 2��.8 �0 02�.8

2� ��.2 � �00.8 �.� ��.� 2� 22�.2

2007

Derivativeassets 6926.7 184.8 - - 7111.5

Loansandadvancestobanks 6446.1 69.7 - - 6515.8

Loansandadvancestocustomers 9098.1 266.4 122.4 35.8 9522.7

22470.9 520.9 122.4 35.8 23150.0

1The majority of these balances relate to trading book financing products backed by collateral and margining or are structured such that the risk istransferredtoathirdparty.Ofthesebalances,US$435.7million(2007: US$139.1million)issubjecttoenhancedmonitoringunderthewatchlistprocess.

Includinggrossderivativesandcontingentexposures, themaximumcreditexposure for thegroupon31December2008 isUS$30387.9million(2007: US$24722.6million).Thevalueofcollateralheld isreviewedonaregularbasis,althoughit is impracticaltoobtainafairvaluetotalofallcollateralonaspecifieddateforreportingpurposes.

Past due loans and advances, but not impairedThetablebelowshowspastdueloansandadvancesbynumberofdaysaftertheduedatethatarenotduetotechnicalarrearsordelaysinpaymentduetotiming.Itemsthathavedefaultedbutdonothaveinterestinsuspenseand/oranimpairmentraisedagainstthemareconsideredpastduebutnotimpaired.

InadditiontotheamountsbelowisadistressedassetportfolioamountingtoUS$238.7million(2007: US$213.1million)whichhasnotbeenincludedinthetableasitwasacquiredintheordinarycourseofbusinessandiscarriedatfairvalue.

Age analysis of loans and advances past due but not impaired

Past due Less than �� to �0 �� to �0 �� to �80 More than but not �0 days days days days �80 days impaired

$m $m $m $m $m $m

2008

Loansandadvancestocustomers - - �.� - - �.�

- - �.� - - �.�

2007

Loansandadvancestocustomers 2.4 - - 8.0 112.0 122.4

2.4 - - 8.0 112.0 122.4

Impaired loans and advancesForindividuallyassessedaccounts,loansandadvancesaretreatedasimpairedwhereamountsaredueandunpaidforthreeormoremonthsand/orwherethereisobjectiveevidencethatanimpairmentlosshasbeenincurred.Thecriteriausedbythegrouptodeterminethatthereissuchobjectiveevidenceinclude:

•knowncashflowdifficultiesexperiencedbytheborrower;

•overduecontractualpaymentsofeitherprincipalorinterest;

•breachofloancovenantsorconditions;

•theprobabilitythattheborrowerwillenterbankruptcyorotherfinancialrealisation;and

•asignificantdowngradingincreditratingbyanexternalcreditratingagency.



Analysis of financial assets impaired

Security against impaired Balance sheet Sub standard � Doubtful 2 Loss � Total loans impairment

$m $m $m $m $m $m

2008

Loansandadvances 2��.� �.8 �8.� ��.� 28�.� �0.�

2��.� �.8 �8.� ��.� 28�.� �0.�

2007

Loansandadvances 13.1 6.4 16.3 35.8 17.0 21.2

13.1 6.4 16.3 35.8 17.0 21.2

1Itemsthatshowunderlyingwelldefinedweaknessesthatcouldleadtoprobablelossifnotcorrected.Theriskthattheseitemsmaybeimpairedisprobableandthegroupreliestoalargeextentontheavailablesecurity.

2Itemsthatareconsideredtobeimpaired,butarenotyetconsideredfinallossesbecauseofsomependingfactorswhichmaystrengthenthequalityoftheitems.

3Itemsthatareconsideredtobeuncollectableandwheretherealisationoflegalproceedingshavebeenunsuccessful.Theseitemsareconsideredofsuchlittlevaluethattheyshouldnolongerbeincludedinthenetassetsofthegroup.

Renegotiated loans and advancesRenegotiated loansandadvancesareexposureswhichhavebeenrefinanced, rescheduled, rolledoverorotherwisemodifiedbecause of weaknesses in the counterparty’s financial position and where it has been judged that normal repaymentwill probably continue after the restructure. Renegotiated loans that would otherwise be past due or impaired totalledUS$174.8millionasat31December2008(2007:US$5.0million).

Collateral repossessed during the year Carrying Carrying amount amount 2008 2007

$m $m

Coalmineandminingassets - 4.5

Total collateral in possession - 4.5

Disposal of collateral that is not readily realisable into cash is assessed on a case by case basis. The group’s objective is tomaximise cash recovery in the shortest time possible whilst minimising the risk of depreciation in the collateral value. Theproceeds are used to reduce or repay the outstanding claim. In general, the group does not use repossessed assets forbusinesspurposes.

��.� Country and cross-border riskCountryriskistheriskoflossarisingwhenpoliticaloreconomicconditionsoreventsinaparticularcountryreducetheabilityofcounterpartiesinthatcountrytomeettheirfinancialobligationstothegroup.Countryriskeventsmayincludesovereigndefaults,bankingorcurrencycrises,socialinstabilityandchangesingovernmentalpoliciessuchasexpropriation,nationalisationandtheconfiscationofassets.

Cross-borderriskistheriskthatactionstakenbyagovernmentmayrestrictthetransferandconvertibilityoffunds(oflocalcurrencyintonon-localcurrency),therebyimpactingtheabilitytoobtainpaymentfromcounterpartiesontheirfinancialobligationstothegroup.Examplesofrestrictionsonthetransferoffundsareexchangecontrolsanddebtmoratoria.

Cross-borderobligationsincludecross-borderclaimsonthirdpartiesaswellasinvestmentsinandfundingoflocalfranchises.Cross-borderclaimsonthirdpartiesincludecross-borderloansanddeposits,creditequivalentsofover-the-counterderivativesandsecuritiesfinancing,andthemarketvalueoftheinventoryofdebtsecurities.



ACountryRiskCommitteemeetsonamonthlybasistoapprovecountryriskappetitelimitsforcountriesotherthansub-SaharanAfrica.Limitsforsub-SaharanAfricaarereferredtotheparentinSouthAfricaforreviewanddecision.Acountry-ratingmodelisusedtodeterminetherelativerankingofeachcountry.Theinternalmodeliscontinuouslyupdatedtoreflecttheeconomicandpoliticalchangesinindividualcountries.Theresultsarecomparedwiththoseofreputableratingagenciestovalidatetheconsistencyofourmodel.

Countryrisklimitsaresettoforcediversificationandtoavoidabuildupofconcentrationrisk.Inthisregardthecountrylimitsarecalibratedtoariskappetitewhichconstrainsthelevelofunexpectedlossintheportfolio.

CountryriskisfurthermonitoredthroughreviewsofeconomicandpoliticaldatabycountryriskresourcesbasedinJohannesburg,London,NewYorkandHongKong.Use ismadeofthegroup’snetworkofoperations,countryvisitsandexternalsourcesofinformation.Countriesdesignatedashigherriskaresubjecttoincreasedcentralmonitoring.

Countryconcentrationriskismanagedandmonitoredbygeographicregionandcountry.

Geographical analysis of loans and advances �

2008 2007

% %

Region

Asia �.� 10.0

EasternEurope �.� 11.0

NorthAfrica&MiddleEast �.� 9.0

NorthAmerica ��.0 18.0

SouthAmerica �.� 2.0

Sub-SaharanAfrica �8.� 8.0

WesternEurope �8.� 42.0

�00.0 100.0

1Basedonthelocationofthecustomer

During theyearwe sawaprogressive shift inourexposures towards sub-SaharanAfricaas thispartof thegroup’sbusinesscontinuedtogrow,albeitfromarelativelylowbase.Atthesametimewealsowitnessedadecreasinglevelofprimaryexposurecompensatedbyagrowthinpre-settlementrisk.

��.� Market riskThe object of market risk management is to manage and control market risk exposures within acceptable parameters, whileoptimisingthereturnonrisk.Majorexposurestomarketriskoccurinmarketsservedbyformalfinancialexchangesandover-the-countermarkets.Theseexposuresariseprimarilyasaresultoftheexecutionofcustomers’orders,althoughthegroupalsoassumesproprietaryriskpositions.Thegroup’sexposuretomarketriskcanbecategorisedasfollows:

Trading market riskTheserisksariseintradingactivitieswherethegroupactsasaprincipalwithclientsinthemarket.

Banking book interest rate riskThese risks arise from the structural interest rate risk caused by the differing repricing characteristics of bankingassetsandliabilities.

Foreign currency riskThese risks arise as a result of changes in the fair value or future cash flows of financial exposures as a result of changesinforeignexchangeratesotherthanthosechangesincludedintheVaRanalysis.



Equity investmentsTheserisksarisefromequitypricechangescausedbylistedandunlistedinvestments,whichismonitoredandauthorisedbytheinvestmentcommittee.

Framework and governanceThe Standard Bank Group Board approves the market riskappetiteforalltypesofmarketrisk.TheBoardgrantsgeneralauthority to take on market risk exposure to GROC whichdelegates to the group ALCO. Group ALCO sets marketrisk standards to ensure that the measurement, reporting,monitoring and management of market risk associated withoperations across the group follow a common governanceframework.ThegroupCapitalManagementCommitteemonitorcompliancewiththesemarketriskstandardsandreporttotheInternationalALCO.

Market risk management units, independent of tradingoperations and accountable to business unit ALCO, monitormarket risk exposures due to trading activities and bankingactivities. These units monitor exposures and respectiveexcesses daily, report monthly to business unit ALCO andquarterlytoGroupALCO,GROCandGRCMC.

Market risk measurementThe techniques used to measure and control market riskinclude:

•dailyVaR;

•stresstests;

•othermarketriskmeasures;

•annualnetinterestincomeatrisk;

•economicvalueofequity;and

•ICAAP.

Daily value-at-riskThegroupgenerallyusesthehistoricalVaRapproachtoderivequantitativemeasures,specificallyformarketriskundernormalmarket conditions. Normal VaR is based on a holding periodof one day and a confidence interval of 95%. Daily lossesexceedingtheVaRarelikelytooccuronaverage13timesinevery 250 days. All business unit and legal entity level VaRlimitsrequirepriorapprovalfromALCO.

The use of historic VaR has limitations as it is based onhistorical correlations and volatilities in market pricesand assumes that future prices will follow the observedhistoricaldistribution.

Thegroupback-tests itsVaRmodels toverify thepredictiveability of the VaR calculations thereby ensuring theappropriateness of models. Back-testing compares the dailyhypotheticalprofitandlossesundertheone-daybuyandholdassumptiontothepriordayVaR.

Stress testsStress testing provides an indication of the potential lossesthat could occur in extreme market conditions. The stresstests carried out include individual market risk factor testingandcombinationsofmarket factorsper tradingdeskand forcombinationsoftradingdesks.Stresstestsincludeacombinationof historical and hypothetical type simulations. The potentiallosses indicated from the market risk stress testing programare all within the risk appetite of the group. This has beenthe case throughout the current period of market volatilityanduncertainty.

Other market risk measuresOthermarketriskmeasuresspecifictoindividualbusinessunitsinclude permissible instruments, concentration of exposures,gap limits,maximumtenorandstop loss triggers. Ingeneral,onlyapprovedproductsthatcanbeindependentlypricedandproperlyprocessedarepermittedtobetraded.

The Quantitative Analytics and Risk Methods (QARM)department independently validate and document newpricing models and perform an annual review of existingmodels to ensure models are still relevant and behavingwithinexpectations.

ICAAPThegroupmonitorstheusageofbothregulatoryandeconomiccreditcapitalaswellasincurredandexpectedlossesusingbothinternallyandexternallydevelopedmodelsandsystemsacrossitsportfolios.

Analysis of trading book market risk exposuresThetablebelowshowstheaggregatedhistoricalVaRfor thegroup’s trading positions. The maximum (and minimum) VaRamountsshowthebandsinwhichthevaluesatriskfluctuatedduring the periods specified. Stop loss triggers are designedto contain losses for individual business units by enforcingmanagement intervention at predetermined loss levelsmeasured against the individual ‘highwater mark’ year-to-date profit and loss. Other basic risk measures specific toindividualbusinessunitsarealsoused.Thesemeasuresincludepermissibleinstruments,concentrationofexposures,gaplimitsandmaximumtenor.

The agreed standard method for calculating VaR within thegroupistouseahistoricalsimulationusingthelast251daysof historical market data (to create 250 scenarios). Becauseof inconsistencies in the infrastructure across business lines,theVaRmaybecalculatedusingdifferentdatasetsorusingadifferentmethodologysuchasaparametricmodel.Inorderto aggregate these different VaR calculations we combineeithertheresultingP&Lvectorsorazerocorrelation(whichisconsistentwiththemannerinwhichthelimitsareallocated).Back-testing results indicate that the VaR is conservative atthe overall trading level and hence this is regarded as areasonableapproach.



Normal VaR2

2008 Maximum� Minimum� Average Year end

$m $m $m $m

Commodities �.� �.� 2.0 �.�

Foreignexchangeandinterestratetrading �.� �.� 2.� �.2

Equities �.� 0.� �.� 0.�

Credittrading �.� �.8 �.� �.2

Diversificationbenefit4 (�.0)

Stress VaR� 2008

Commodities �8.� �.8 �0.8 �.2

Foreignexchangeandinterestratetrading ��.8 �.0 ��.� ��.0

Equities ��.2 �.� �.� �.�

Credittrading ��.8 ��.2 2�.� ��.�

Diversificationbenefit4 (22.�)

NormalVaR2 2007

Commodities 4.4 1.4 2.6 1.8

Foreignexchangeandinterestratetrading 4.3 1.2 2.1 1.6

Equities 2.6 0.4 0.9 2.6

Credittrading 6.3 3.0 4.7 3.2

Diversificationbenefit4 (4.4)

StressVaR3 2007

Commodities 21.5 6.8 12.4 8.9

Foreignexchangeandinterestratetrading 20.6 5.6 10.3 7.6

Equities 12.8 2.1 4.4 12.4

Credittrading 30.7 14.5 22.8 15.4

Diversificationbenefit4 (21.3)

1Themaximum(andminimum)VaRfiguresreportedforeachmarketvariabledidnotnecessarilyoccuronthesamedays.Asaresult,theaggregateVaRwillnotequalthesumoftheindividualmarketVaRvalues,anditisinappropriatetoascribeadiversificationeffecttoVaRwhenthesevaluesmayhaveoccurredondifferentdates.

2NormalVaRisbasedonaholdingperiodofonedayandaconfidenceintervalof95.0%.3StressVaRisbasedonaholdingperiodofbetween10and20daysandaconfidenceintervalof99.7%.4DiversificationbenefitisthebenefitofmeasuringtheVaRofthetradingportfolioasawhole,i.e.thedifferencebetweenthesumoftheindividual

VaRsandmeasuringtheVaRofthewholetradingportfolio.



Analysis of banking book interest rate risk exposureBanking-related market risk exposure principally involves the management of the potential adverse effect of interest ratemovementsonnetinterestincomeandequity.Thisriskistransferredto,andmanagedwithin,thegroup’streasuryoperationsundersupervisionoftheCapitalManagementCommittee.

Themainanalyticaltechniquesusedtoquantifybankingbookinterestrateriskareearningsandvaluation-basedmeasures.Theresultsobtainedfromsimulationsassistinevaluatingtheoptimalhedgingstrategiesonarisk-returnbasis.Desiredchangestoaparticularinterestrateriskprofileareachievedthroughtherestructuringofthebalancesheetand,wherepossible,theuseofderivativeinstruments,suchasinterestrateswaps.Theshapeoftheyieldcurveandthegroup’sownviewoffutureinterestratesareusedasinputsindevelopinghedgingstrategies.Interestraterisklimitsaresetintermsofbothchangesinforecastnetinterestincomeandeconomicvalueofequity.

Therepricinggapsforthegroup’snon-tradingportfoliosareshownbelow.Thisviewisforthepurposeofillustrationonly,aspositionsaremanagedbycurrencytotakeaccountofthefactthatinterestratechangesareunlikelytobeperfectlycorrelated.Allassets,liabilitiesandderivativeinstrumentsaresitedingapintervalsbasedontheirrepricingcharacteristics.Assetsandliabilitiesforwhichnospecificcontractualrepricingormaturitydatesexistareplacedingapintervalsbasedonmanagement’sjudgementandstatisticalanalysis,asdeterminedbythemostlikelyrepricingbehaviour.

Repricing gap for non-trading portfolios 0-� months �-� months �-�2 months >�2 months

$m $m $m $m

2008

Interestratesensitivitygap ��.� 82�.� 2��.� 2��.�

Cumulativeinterestratesensitivitygap ��.� 8��.� � 0��.� � ��.2

Cumulativeinterestratesensitivitygapasapercentageoftotalbankingassets 0.2% �.�% �2.�% ��.�%

2007

Interestratesensitivitygap (385.7) 812.9 101.8 955.2

Cumulativeinterestratesensitivitygap (385.7) 427.2 529.0 1484.2

Cumulativeinterestratesensitivitygapasapercentageoftotalbankingassets (2.4%) 2.6% 3.2% 9.1%

Sensitivity of net interest incomeThetablebelowindicatesthesensitivityinUSDollarequivalentsofthegroup’snetinterestincomeinresponsetoachangeininterestrates,aftertakingintoaccountallriskmitigatinginstruments,withallothervariablesheldconstant.

Increase in � month 2 months � months �-� months

basis points $m $m $m $m

2008

1%up(interestrateincrease) �00 (0.�) (0.�) (0.�) (2.�)

1%down(interestratedecrease) �00 0.� 0.� 0.� �.0

2007

1%up(interestrateincrease) 100 0.3 7.3 9.4 9.4

1%down(interestratedecrease) 100 (0.3) (7.3) (9.4) (9.4)

Itisthegroup’spolicythatbankingbookassetsandliabilitieswithdurationgreaterthanoneweekbematchfundedwiththemoneymarketsdesk, thus removing interest rate risk.However, a fewbusinessareasareexemptwhere theirbankingbookinterestraterisk ismonitoredinthesamewayas if itwereatradingbook, i.e.PV01sensitivitiesarecalculated.This isthenaggregatedinasimilarmannertotheothertradedrisksasdetailedearlier.



Foreign currency riskThegroup’sforeignexchangepositionsarisemainlyfromforeignexchangetradingactivities,whicharegovernedbypositionlimitsapprovedbytheCapitalManagementCommittee(‘CAPCOM’) inaccordancewiththegroup’smarketriskpolicy.Thesepositionlimitsaresubjecttoreviewatleastannuallyandforexexposuresaremonitoreddailybythemarketriskfunctionandreviewedmonthlytoensuretheyremainwithintheapprovedriskappetite.

Thegroupdoesnotordinarilyholdopenexposuresinrespectofthebankingbookofanysignificance.Allgainsandlossesonforeignexposuresandderivativesarereported inprofitandloss.Gainsor lossesonderivativesthathavebeendesignatedintermsofeithernetinvestmentorcashflowhedgingrelationshipsarereporteddirectlyinequity,withallothergainsandlossesonderivativesbeingreportedinprofitandloss.

Foreign investment riskNet investment in foreign operations 2008 2007

$m $m

Functional currency

ChineseRenmimbi ��.8 8.1

CzechKrona - 0.7

HongKongDollar 0.� 0.3

JapaneseYen �.� 0.3

��.2 9.4

Market risk on equity investmentsTheInvestmentCommitteeapprovesinvestmentsinlistedandunlistedentities,inaccordancewithdelegatedauthoritylimits.Market risk on investments is managed in accordance with the purpose and strategic benefits of such investments, ratherthan purely on mark-to-market considerations. Periodic reviews and reassessments are undertaken on the performance oftheinvestments.

��.� Liquidity risk

Framework and governanceThenatureofbankingandtradingactivitiesresultsinacontinuousexposuretoliquidityrisk.Thegroup’sliquidityriskmanagementframework,which isconsistentwith thepreviousfinancial reportingperiod, isdesignedtomeasureandmanagethe liquiditypositionatvariouslevelsofconsolidationsuchthatpaymentobligationscanbemetatalltimes,underbothnormalandconsiderablystressedconditions.Underthedelegatedauthorityoftheboardofdirectors,theStandardBankGroupALCOsetsliquidityriskstandards inaccordancewithregulatoryrequirementsand internationalbestpractice.Thisensuresthatacomprehensiveandconsistentgovernanceframeworkforliquidityriskmanagementisfollowedacrossthegroup.Limitsandguidelinesareprudentlysetandreflectthegroup’sconservativeappetiteforliquidityrisk.ThegrouphastheCAPCOMchargedwithensuringcompliancewithliquidityriskstandardsandpolicies.

Liquidity and funding managementThegroupincorporatesthefollowingelementsaspartofacohesiveliquiditymanagementprocess:

•short-termandlong-termcashflowmanagement;

•maintainingastructurallysoundbalancesheet;

•foreigncurrencyliquiditymanagement;

•ensuringtheavailabilityofsufficientcontingencyliquidity;

•preservingadiversifiedfundingbase;

•undertakingregularliquiditystresstesting;and

•maintainingadequateliquiditycontingencyplans.

TheCAPCOMreviews thecurrentandprospective funding requirementsonanon-goingbasis through regular reviewof theliquidityratio,maturitymismatch,depositbasediversificationandstabilityaswellasliquiditystresstestingresults.Inaddition,where deemed necessary, adequate standby facilities are maintained to provide strategic liquidity to meet unexpected andmaterialcashoutflowintheordinarycourseofbusiness.



Thegroupmaintainedastrongliquidityprofilethroughouttherapidlydeterioratingmarketplacethatwasafeatureof2008,specifically takinganumberofmanagementactionsfollowingthecrisisofSeptember2008toensurethat liquiditycushionsabove the minimum requirements were maintained at a high level, on precautionary grounds. Our diversified funding base,comprisingofacombinationofcorporateandinstitutionaldeposits,interbankdepositsandlongertermfundingfromavarietyofStandardBankGroupsources,hasgrownovertheyearandhasallowedustomeetthesemarketchallenges.TheStandardBankGroupwillensurethat,exceptinthecaseofpoliticalrisk,andunlessspecificallyexcludedbylocalpublicnotice,thatthebankingentitieswithinthegroupareabletomeettheircontractualliabilities.

Structural requirementsThematurityanalysisforfinancialliabilitiesrepresentsthebasisforeffectivemanagementofexposuretostructuralliquidityrisk.Thetableshowstheundiscountedcashflowsforallfinancialliabilitiesonacontractualbasisbasedontheearliestdateonwhichthegroupcanberequiredtopay.Thisbasisofdisclosurediffersfromthebalancesheetcarryingvalueoffinancialliabilitiessincethosevaluesare typicallydisclosedonadiscountedbasis.Thetablealso includescontractualcashflowswith respect tooff-balancesheetitemswhichhavenotyetbeenrecordedonthebalancesheet.Wherecashflowsareexchangedsimultaneously,thenetamountshavebeenreflected.Thedatafor2008includedbelowisnowsourcedfromthenewlyimplementedliquiditysystemwhichhasbeendesignedandbuilttoprovidedataforreportingbothregulatoryliquidityandmanagementinformation.Itisthemostappropriatesourceforcashflowinformation.Accordinglythetableisformattedusingthecategoriesforregulatoryliquidityreporting.

Contractual maturities of the financial liabilities based on undiscounted cash flowsExpectedcashflowsvarysignificantlyfromtheanalysisbelow.Forthisreason,behaviouralprofilingisappliedtoassets,liabilitiesandoff-balancesheetcommitmentswithanindeterminablematurityordraw-downperiod,aswellastocertainliquidassets.Thisprocessisusedtoidentifysignificantadditionalsourcesofstructuralliquidityintheformofliquidassetsandcoredeposits,suchascurrentandsavingsaccountsthatalthoughrepayableondemandoratshortnotice,exhibitstablebehaviour.

Redeemable Maturing Maturing Maturing Maturing on within �-� �-�2 after �2 demand � month months months months Undated Total

$m $m $m $m $m $m $m

2008Financial liabilities

Derivativeliabilities ��.� (�8�.�) ��.8 (�.�) � ��.� - 2 02�.8

Tradingliabilities � 28�.8 � �0�.2 � ��8.� �08.2 � 2��.� ��.8 � ��.�

Depositsfrombanks � ��0.� 2 28�.� � ��0.� 2 ��.� � �8�.� - �� 2�.2

Depositsfromcustomers � ��.2 �0�.� �8.� ��.� 2�.� - 2 22�.�

Subordinateddebt - - - 8�.0 ��8.� ��.� �2�.�

Total recognised financial liabilities � 8��.� � ��0.� � ��.� 2 �0�.� � ��0.� ��.� 2� ��.�

Lettersofcredit - 0.� 2.0 �.� ��2.� - ��.�

Financialguarantees - - - - - - -

Irrevocableunutilisedfacilities - - �.0 ��.� ��.� - 2��.8

Total unrecognised financial liabilities - 0.� �.0 ��.0 ��2.2 - ��.�

Total � 8��.� � ��0.� � ��.� � 00�.� � �02.� ��.� 2� ��.�



Redeemable Maturing Maturing Maturing Maturing on within 1-6 6-12 after12 demand 1month months months months Undated Total

$m $m $m $m $m $m $m

2007Financialliabilities

Derivativeliabilities 3238.4 1261.5 775.9 427.2 2694.8 - 8397.8

Tradingliabilities 11.7 97.8 541.8 429.8 2109.5 440.3 3630.9

Depositsfrombanks 5251.0 6086.7 2411.9 1250.1 1560.3 - 16560.0

Depositsfromcustomers 781.9 906.3 359.1 186.1 232.3 - 2465.7

Subordinateddebt - - - - 699.2 208.3 907.5

Totalrecognisedfinancialliabilities 9283.0 8352.3 4088.7 2293.2 7296.1 648.6 31961.9

Lettersofcredit - 30.0 59.5 16.9 332.2 - 438.6

Financialguarantees 7.3 21.5 37.9 7.9 209.9 - 284.5

Irrevocableunutilisedfacilities - - 11.9 26.7 623.2 - 661.8

Totalunrecognisedfinancialliabilities 7.3 51.5 109.3 51.5 1165.3 - 1384.9

Total 9290.3 8403.8 4198.0 2344.7 8461.4 648.6 33346.8

Contractual liquidity mismatch Sight to 8 days to � to � � to � � to �2

� days � month months months months

$m $m $m $m $m

2008

Netliquiditymismatch ��8.� (��.�) (� �0�.�) (��.�) � 0�8.�

Cumulativemismatch ��8.� (��.�) (2 �0�.�) (2 ��8.�) (� ��.�)

2007

Netliquiditymismatch 630.7 (2060.5) (1242.8) 1125.7 (145.4)

Cumulativemismatch 630.7 (1429.8) (2672.6) (1546.9) (1692.3)

By way of illustration, the table below shows the group’s cumulative maturity mismatch between assets and liabilities afterapplyingbehaviouralprofiling.

Cumulative maturity mismatch - behavioural Sight to 8 days to � to � � to � � to �2

� days � month months months months

$m $m $m $m $m

2008

Netliquiditymismatch 2 ��0.� (��.�) (� �0�.�) (��.�) (��.�)

Cumulativemismatch 2 ��0.� � ��.0 (��.�) (�0�.�) (� ��.�)

2007

Netliquiditymismatch 3012.8 (2060.5) (1242.8) 1125.7 (2527.5)

Cumulativemismatch 3012.8 952.3 (290.5) 835.2 (1692.3)

Limitsandguidelinesare set to restrict themismatchbetween theexpected inflowsandoutflowsof funds indifferent timebuckets.Asat theendof2008, thegroupwaswithinall regulatoryand internalmismatch limits, andmetallother internalrequirements.Anadditionaltooltomaintainarobustliquiditypositionistheactivemanagementofthelong-termfundingratio.Thisratioisdefinedasthosefunding-relatedliabilitieswitharemainingmaturityofgreaterthansixmonths,asapercentageoftotalfunding-relatedliabilities.



Contingency liquidityPortfoliosofhighlymarketableassetsoverandaboveprudentialrequirementsaremaintainedasprotectionagainstunexpecteddisruptionsincashflows.Theseportfoliosaremanagedwithinlimitsand,apartfromactingasabufferundergoingconcernconditions,also forman integralpartof thebroader liquiditygeneration strategy in the event of a liquidity crisis. Theseassets include stocks of precious and base metals as well assecurities. Additional to the possibility of liquidating assetpositions, there are a range of other management actionsavailabletomanageliquidityunderstressedconditions.Theseincludereductionsintherateoforiginationofassets,transfersofassetstoothergroupcompaniestooptimize liquidity,andadditionallydecliningtoroll-overloansorreversereposastheyfallduefromclients.

It should be noted that Standard Bank Group publishes inits annual accounts a statement of support for its bankingsubsidiariestotheeffectthat‘TheStandardBankGroupwillensure that, except in the case of political risk, and unlessspecificallyexcludedbylocalpublicnotice,thebankingentitiesareabletomeettheircontractualliabilities’.

Liquidity contingency plansLiquiditycontingencyplansaredesignedto,asfaraspossible,protectstakeholderinterestsandmaintainmarketconfidenceinordertoensureapositiveoutcomeintheeventofaliquiditycrisis. The crisis response strategy is formulated around therelevant crisismanagement structuresandaddresses internalandexternalcommunications,liquiditygeneration,operations,as well as heightened and supplementary informationrequirements. Standard Bank Plc liquidity contingency planhasbeenupdated to reflect theexperienceof2008,and inparticularthemarketstresssubsequenttothefailureofLehmanBrothersinSeptember,andtherangeofmanagementactionsadoptedtoprotectthebank’spositionatthattime.

Diversified funding baseConcentration risk limits are used to ensure that fundingdiversification is maintained across products, sectors,geographic regions and counterparties. Primary sourcesof funding are in the form of deposits across a spectrum ofclients,aswellaslong-termloanandcapitalmarketfunding.AsignificantproportionoffundingisreceivedfromtheStandardBankGroup’saffiliatebanks in Jerseyand IsleofManwhichhandlewealthbusinesses,andaccordinglyprovideanelementof retail funding to the Standard Bank Plc group. FurtherfundingisreceivedfromStandardBankofSouthAfrica’ssurplusforeign currency liquidity position. The group sets limits onthis funding source to avoid undue dependence onSouthAfricansourcedfunding.

Liquidity stress testingAnticipatedon-andoff-balancesheetcashflowsaresubjectedto a varietyof bank specific and systemic stress scenarios inorder toevaluate the impactofunlikelybutplausibleeventson liquidity positions. Scenarios are based on both historicalevents,suchaspastemergingmarketscrises,andhypotheticalevents,suchasabankspecificcrisistogetherwithcombinationsofgeneralmarketandfirmspecificstressevents.Theresultsobtained from stress testing provide meaningful input whendefining target liquidity risk positions. At the current timeliquiditystresstestsarerunonamonthlybasisandcontrolledtoensurethattheresultsdonotbreachtheparameterssetbytheCapitalManagementCommittee.Asatendof2008thegroupwascompliantwithallstresstestinglimits.

The FSA consultation paper on liquidity indicates a range ofprescriptiverequirementsonthemanagementandcontrol,ofliquiditybybanks,withanespecialfocusontheuseofstresstests. Standard Bank Plc has designed and implemented aliquiditydatabaseandstresstestingsystemwhichwillprovideconsiderablyenhancedmanagementinformationandflexibilityin planning its liquidity scenarios and stress tests, whichwill enable it to be compliant with the FSA requirements atanearlystage.

��.8 Operational risk

Approach to operational risk managementThegroup’sapproachtomanagingoperationalriskistoadoptpractices that are fit for purpose to suit the organisationalmaturity and particular environments in which our businessoperates.Thecurrentframeworkfollowsaprimarilyqualitativeapproach being focused on ensuring underlying risks areidentifiedandownedandthat the residual risk ismaintainedwithin an acceptable level in the opinion of the relevantmanagement, overseen by an independent Operational RiskFunctionwithinRiskManagement.IndependentassuranceonthesatisfactorymanagementofoperationalriskisprovidedbyInternalAudit.Theday-to-daymanagementofoperationalriskis embedded within the business areas in order for the riskstobemanagedwheretheyarise.Thisisintendedtoincreasethe efficiency and effectiveness of the group’s resourcesandminimiselosses.


Framework and governanceThe Board Risk Management Committee (‘BRMC’), as theappropriately delegated risk oversight bodyonbehalf of theBoard, has ultimate responsibility for operational risk. BRMCensures that the ORM framework for the management andreportingofoperationalriskis implementedacrossthegroupwhilstensuringregulatorycompliancewhereapplicable.

The International Business Infrastructure Committee (‘BIC’)servesastheoversightbodyintheapplicationofthegroup’soperational risk management framework, including businesscontinuitymanagementandinformationrisk.This isachievedthrough enforcing standards for identification, assessing,controlling, monitoring and reporting. The international BICapproves the group’s level ORM policies and methodologiesandoverseesriskappetiteandtolerance.

The roles and responsibilities for managing operational risksarestipulatedintheOperationalRiskGovernanceStandardandvariousORMpolicies.Thesepoliciesindicatetheresponsibilitiesofoperationalriskspecialists,atalllevels,andoftheriskowners.ThepoliciesandproceduresarealignedtotheSIHpoliciesandprocedures,andareapprovedbytheExecutiveCommittee.

The management and measurement of operational riskThe ORM framework serves to ensure that risk owners areclearly accountable for the risk inherent within the businessactivitiesofthegroup.ThekeyelementsintheORMframeworkinclude methodologies and tools to identify, assess, monitorandmanageoperationalrisks.

Riskandcontrolself-assessmentsaredesignedtobeforward-looking. Management is required to identify risks that couldthreatentheachievementofbusinessobjectivesandtogetherwiththerequiredsetofcontrolsandactions,tomitigatetherisks as appropriate. Risk assessment incorporates a regularreviewofidentifiedriskstomonitorsignificantchanges.

The incidentdatacollectionprocessensures thatall relevantoperational risk incidents (including loss events, near missesand non financial impacts) are captured into a centraliseddatabase.Theflowof information into the incidentdatabaseis a bottom-upapproach.The captureprocess identifies andclassifiesallincidentsintermsofanincidentclassificationlist.This information is used to monitor the state of operationalrisk,addresstrends,implementcorrectiveactionandmanagerecovery,wherepossible.

Thegroupuseskeyriskindicatorstomonitortherelevantrisksandcontrolshighlightedintheriskandcontrolself-assessmentprocess.TheimplementationofthekeyriskindicatorsprocessisanintegralelementofORM.

Operational risk reports are produced on both a regular andan event-driven basis. The reports include a profile of thekey risks to theachievementofbusinessobjectives, relevantcontrol issues,andoperational risk incidents.Specific reportsarepreparedonaregularbasisfortheBIC,BRMCandrelevantStandardBankGroupCommittees.

Thegroupmaintainsadequateinsurancetocoverkeyoperationaland other risks. Our insurance process and requirements aretheresponsibilityoftheORMfunction.

Business continuity managementBusiness continuity management is an holistic managementprocess that identifies potential impacts that threaten anorganisationandprovidesa framework forbuilding resilienceandthecapabilityforaneffectiveresponsethatsafeguardstheinterestsof itskeystakeholders, reputation,brandandvaluecreating activities. Business continuity policy and objectivesare documented and include a considered strategy and acoordinated framework of actions that, if followed properly,will support the group through a crisis and help to restoreoperationstonormalassoonaspossible.

Information risk managementInformationriskisdefinedastheriskofaccidentalorintentionalunauthorised use, modification, disclosure or destruction ofthe group’s information resources, which compromises theirconfidentiality,integrityoravailability.

From a strategic perspective, information risk managementis treatedasaparticulardisciplinewithintheoperational riskframework.Essentially,informationriskmanagementnotonlyprotectsthegroup’sinformationresourcesfromawiderangeof threats, but also enhances business operations, ensuresbusiness continuity, maximises return on investments andsupportstheimplementationofvariousservices.

Fraud risk managementGroup forensic services, which is mandated by the GAC, isresponsible for fraud risk management practices throughoutthegroup.There isa ‘zero tolerance’approach to fraudandcorruption. Where necessary, disciplinary, civil and criminalaction is takenagainst staff.Staff foundguiltyofdishonestythrough the group’s disciplinary processes will be listed onappropriate industry databases of dismissed staff. Lossesincurred as a result of criminal activity from staff and thirdparties are investigated in conjunction with law enforcementagencies with the end-result being a criminal conviction andrecoveryoftheproceedsofthecrime.Therearenumerousanti-fraudmechanismsandcampaigns inplace tomitigate losses.Theseanti–fraudcampaignsandmechanismsincludeconstantreviewing and re-engineering of our internal processes, andthe engagement of law enforcement agencies and industryforumstodiscuss initiativestoadoptbestpracticetocombatfraudandtheft.



��.� Legal riskThegroup’slegalobligationsarisewherethegroupmaybefacedwithriskwherelegalproceedingsarebroughtagainstit.Legalriskariseswhere:

•incorrectapplicationofregulatoryrequirementstakesplace;

•thegroupmaybeliablefordamagestothirdparties;and

•contractual obligationsmay be enforced against the groupin an adverse way, resulting in legal proceedings beinginstitutedagainstit.

Although the group has processes and controls in place tomanageitslegalrisk,failuretomanageriskseffectivelycouldresultinlegalproceedingsimpactingthegroupadversely,bothfinanciallyandreputationally.

��.�0 Taxation risk

Framework and governanceTaxation risk is the possibility of suffering unexpected loss,financial or otherwise, as a result of the application of taxsystems, whether in legislative systems, rulings or practices,applicable to the entire spectrum of taxes and other fiscalimpoststowhichthegroupissubject.

Intermsofthetaxpolicythegroupwillfulfillitsresponsibilitiesundertaxlawineachofthejurisdictionsinwhichitoperates,whether in relation to compliance, planning or client servicematters. Tax law includes all responsibilitieswhich thegroupmayhaveinrelationtocompanytaxes,personaltaxes,capitalgainstaxes,indirecttaxesandtaxadministration.

Compliancewiththispolicyisaimedatensuringthat:

•Thegrouppaysneithermorenorlesstaxthantaxlawrequires,inthecontextofthegroup’soperations.

•The group continually reviews its existing operations andplannedoperationsinthiscontext.

•Thegroupensures that,where clientsparticipate ingroupproducts,theseclientsareeitherawareoftheprobabletaxconsequences, or are advised to consult with independentprofessionalstoassesstheseconsequences,orboth.

The framework to achieve compliance with the tax policycomprisesfourelements:

•Taxrisk:identificationandmanagementoftaxrisk.

•Humanresources:anoptimalmixofstaffingandoutsourcing.

•Skills development: methods to maintain and improvemanagerialandtechnicalcompetency.

•Communication:communicationofinformationaffectingtaxwithinthegroup.

Good corporate governance in the tax context requires thateachof these frameworkelementsbe inplace.Theabsenceof any one of these elements would seriously underminetheothers.

The identificationandmanagementof tax risk is theprimaryobjective of the tax function, and this objective is achievedthrough the application of a tax risk matrix approach, whichmeasures the fulfillment of tax responsibilities against thespecific requirements of each category of tax to which thegroupisexposed,inthecontextofthevarioustypesofactivitythegroupconducts.

��.�� Compliance riskCompliance risk refers to the risk of failing to comply withapplicable laws, regulations, codes of conduct and standardsof good practice, which may result in regulatory sanctions,financialorreputationalloss.

Framework and governanceThe group operates a decentralised compliance riskmanagementstructure.Eachprimarybusinessoperationsunithascentralindependentcompliancefunctions.Executiveswithresponsibility for all aspects of compliance risk managementaresubjecttotheappropriatecorporategovernancereportingstructures.

Allbusinessunitsareresponsibleforcompliancewiththerelevantlegislationandhavea reporting responsibility for compliancematterstotheChiefRiskandComplianceOfficer.Tosupportthegroup’sapproach to compliance riskmanagement,whichincludes the adherence to the implementation of the groupcompliancepolicyandstandards,acentrallybasedmonitoringdisciplineundertakesaprogrammeofreviewofbusinessareasandhighriskcomplianceexposures,usingarisk-basedapproach.Thisapproachissubstantiallyalignedtothemethodologiesusedbythegroup’sotherriskassurancefunctions.Inaddition,allthedecentralisedbusinessunitcompliancefunctionsareenhancingtheirindependentmonitoringassurancecapabilities.

Complianceprovidesleadershipthroughspecialistsupportunitson compliancewithmoney launderingand terroristfinancingcontrol,occupationalhealthandsafetyandemerginglegislativedevelopments.

Regulation and supervisionThe group operates within a highly regulated industry andacrossmultiplejurisdictions.Thegroupissupervisedbyvariousregulatory bodies with the Financial Services Authority itsprimary regulator. The group’s ultimate holding company,Standard Bank Group is incorporated in South Africa andregulated by the Bank Supervision Department of the SouthAfrican Reserve Bank, who also regulates the subsidiaries ofStandardBankGroup.



Money laundering controlLegislation pertaining to money laundering and terroristfinancing control imposes significant record keeping andcustomer identification requirementsonfinancial institutions,as well as obligations to detect, prevent and report moneylaundering and terrorist financing. The group continues tostrengthen its commitment to combat money launderingand terrorist financing by improving control measures as theregulatory environment becomes more dynamic. To thisend automated monitoring and detection systems are beingextendedtoincludecorrespondentbanking.

��.�2 Reputational riskReputational risk is the risk caused by damage to anorganisation’s reputation, name or brand. Such damage mayresult from a breakdown of trust, confidence or businessrelationships. Safeguarding the group’s reputation is ofparamount importance to its continued success and is theresponsibility of every member of staff. As a banking group,Standard Bank’s good reputation depends upon the way inwhich itconducts itsbusiness,but itcanalsobeaffectedbythewayinwhichclients,towhomitprovidesfinancialservices,conductthemselves.

��.�� Capital managementThegroupmanagesitscapitalresourceandrequirementsto:

•achieveaprudentbalancebetweenmaintainingcapitalratiosto support business growth and depositor confidence, andprovidingcompetitivereturnstoshareholders;

•ensure that each group entity maintains sufficient capitallevelsforlegalandregulatorycompliancepurposes;and

•ensurethatitsactionsdonotcompromisesoundgovernanceand appropriate business practices and it eliminates anynegativeeffectonpaymentcapacity,liquidityorprofitability.

The group is subject to regulation and supervision by theFinancial Services Authority (FSA) and forms part of theStandardBankGroupwhichissupervisedbytheSouthAfricanReserveBank(SARB).

Thegroup issubjecttotheBasel II regulatoryframeworkforcalculatingminimumcapitalrequirementspublishedbytheBaselCommitteeonBankingSupervision(‘theBaselCommittee’)asimplemented by the FSA with effect from 1 January 2008.BaselIIisstructuredaroundthree‘pillars’:

•minimumcapitalrequirements;

•supervisoryreviewprocess;and

•marketdiscipline.

The group calculates credit and counterparty risk capitalrequirementsusing theFSA standard rules aswell as on theFIRBbasisforinternaluseandforreportingtotheSARB.

Marketriskiscalculatedasacombinationofapprovedmodelsandstandardisedmethods.Operationalriskiscalculatedonthestandardisedapproach.

As part of the pillar 2 process the group has adopted theInternal Capital Adequacy Assessment Process (ICAAP)which is the group’s self assessment of capital requirementsincluding for those risks not captured by pillar 1. As part ofthe governance process, and incorporated into the ICAAP,thegrouphas implemented amacroeconomic stress testingmodel to assess the additional capital requirements andthe impact on capital resource as a result of adverseeconomicconditions.

In addition to managing against the regulatory capitalrequirements,managementalso increasinglyutilizemore risksensitive internal economic capital models to monitor andcontroltheriskprofileoftheorganization.

Regulatory capitalDuring the period under review the group complied with allexternally imposed capital requirements towhich its bankingactivitiesaresubject,mainly,butnot limited to, the relevantrequirementsoftheFSAandtheSARB.

Thecapitaladequacyratio,whichreflectsthecapitalstrengthofanentitycomparedtotheminimumregulatoryrequirement,iscalculatedbydividingthecapitalheldby thatentityby itsrisk-weightedassets.

Capitalissplitintothreetiers:

•CoreTierI(primarycapital)representspermanentformsofcapital such as share capital, share premium and retainedearnings.

•Tier II (secondary capital) includes medium to long-termsubordinated debt, revaluation reserves and general debtprovisions.

•TierIII(tertiarycapital)representsshort-datedsubordinateddebtinstrumentstosupportagroup’stradingactivities.

Risk-weightedassetsaredeterminedbyapplyingprescribedriskweightingstoon-andoff-balancesheetexposuresaccordingtotherelativecreditriskofthecounterparty.Includedinoverallrisk-weighted assets is a notional risk weighting for marketrisks, counterparty risks and large exposure risks relating totradingactivities.



Thegrouphasincreaseditsregulatorycapitalbaseduringtheyearinresponsetotheextrememarketconditionsandpotentialimpactonthegroup’scapitalposition.CoreTierIcapitalofUS$571.0millionwascontributedbytheStandardBankGroupandsubordinateddebtredemptionsweremadeofUS$100.0millionand€43.0millionheldbyStandardBankGroupentitiesandUS$68.7millionheldbypartiesexternaltoStandardBankGroup.

Capital resources 2008 2007

$m $m

Regulatory capital

Core Tier I

Sharecapital � 0�8.� 645.5

Sharepremium 2��.� 78.8

Reserves ��8.8 176.2

Lessintangibleassets (��.0) (49.1)

Total Core Tier I � �0�.� 851.4

Tier II

Subordinateddebtinstruments �00.� 569.2

Generalallowances ��.8 14.8

Total Tier II ��.� 584.0

LessdeductionsfromTierIandTierII (0.�) -

Total qualifying Tier I and Tier II capital � 8��.� 1435.4

Tier III

Short-termsubordinateddebtinstruments 22�.� 293.7

Less:TierIIIexcess - (26.3)

Total Tier III 22�.� 267.4

Total eligible capital 2 0�0.� 1702.8

�2 Ultimate holding company

ThelargestgroupinwhichtheresultsofthecompanyareconsolidatedisthatheadedbyStandardBankGroupLimited,acompanyincorporatedintheRepublicofSouthAfrica.ThesmallestgroupinwhichtheyareconsolidatedisthatheadedbyStandardBankLondonHoldingsPlc,acompanyincorporatedintheUnitedKingdom.Theconsolidatedfinancialstatementsofthesegroupsareavailabletothepublicforinspectionat:

Standard Bank Group Limited Standard Bank London Holdings Plc 9thFloor CannonBridgeHouse StandardBankCentre 25DowgateHill 5SimmondsStreet London Johannesburg2001 EC4R2SB RepublicofSouthAfrica



Acronyms and abbreviations

ALCO AssetandLiabilityCommittee

ALM AssetandLiabilityManagement

BCM BusinessContinuityManagement

BIC BusinessInfrastructureCommittee

BRMC BoardRiskManagementCommittee

CAPCOM CapitalManagementCommittee

CIB CorporateandInvestmentBankingdivision

Company StandardBankPlc

FSA FinancialServicesAuthority

GORC GroupOperationalRiskCommittee

GRCMC GroupRiskandCapitalManagementCommittee

GROC GroupRiskOversightCommittee

Group StandardBankPlcgroup

IAS InternationalAccountingStandards

ICAAP InternalCapitalAdequacyAssessmentProcess

IFRIC InternationalFinancialReportingInterpretationsCommittee

IFRS InternationalFinancialReportingStandards

ISDA InternationalSwapDealersAssociation

ORM OperationalRiskManagement

OTC Over-the-counter

RWA RiskWeightedAssets

SARB SouthAfricanReserveBank

SBG StandardBankGroup

SIH StandardInternationalHoldingsS.A.

SPE Specialpurposeentity

TierI Primarycapital

TierII Secondarycapital

TierIII Tertiarycapital

VaR Value-at-Risk

VAT Valueaddedtax

$m MillionsofUSdollar


ARGENTINA

StandardBankArgentinaS.A.

DellaPaolera26515thFloor

BuenosAires(C1001ABA)

Argentina

ChiefExecutive:EduardoSpangenberg

Tel:+541150315500

BRAZIL

StandardBankPlc-representativeoffice

EdificioPlazaIguatemi

Av.Brig.FariaLima,2277,12andar

01452-000SaoPaulo-SP

Brasil

Representative:FabioSolferini

Tel:+551130304300

BancoStandarddeInvestimentosS.A.

EdificioPlazaIguatemi

Av.Brig.FariaLima,2277,12andar

01452-000SaoPaulo-SP

Brasil

ManagingDirector:FabioSolferini

HeadofAmericas:EduardoCentola

Tel:+551130304300

CHINA

StandardAdvisory(China)Limited

C507-508,S/F,

ChemsunnyWorldTradeCenter,

28FuXingMenNeiAvenue,

XichensDistrict,Beijing,

China

ChiefExecutive:CraigBond

Tel:+8610664996800

StandardResources(China)Limited

Suite022,28thfloor,HSBCTower

1000LuJiaZuiRingRd

PudongNewArea

Shanghai200120

ThePeople’sRepublicofChina

Director:VictorYu

Tel:+862168411688

StandardBankPlc-Shanghai

representativeoffice

Suite121,15thfloor,HSBCTower

1000LuJiaZuiRingRd

PudongNewArea

Shanghai200120

ThePeople’sRepublicofChina

Representative:FanBing

Tel:+862168412666

HONG KONG

StandardBankAsiaLimited

36thFloor

TwoPacificPlace

88Queensway

HongKong

ChiefExecutive:TomChenoweth

Tel:+85228227888

StandardSecuritiesAsiaLimited

36thFloor

TwoPacificPlace

88Queensway

HongKong

Director:SimonClairet

Tel:+85228227888

IRAN

StandardBankPlc

Tehranrepresentativeoffice

4thFloor,No.33,SepidBuilding,

16thStreet,AhmadGhasirAve.

Tehran15148

Iran

Representative:HamidAnoushahpour

Tel:+982188501489

ISLE OF MAN

StandardBankIsleofManLimited

StandardBankHouse

OneCircularRoad

Douglas

IsleofMan

IM11SB

ManagingDirector:JohnCoyle

Tel:+441624643643

JAPAN

StandardBankPlcTokyoBranch

11/F,ArkMoriBuilding,Akasaka1-12-32,

Minato-ku,Tokyo107-6011

Japan

BranchManager:SugimotoKazunari

Tel:+81345206000

JERSEY

StandardBankJerseyLimited

StandardBankHouse

47-49LaMotteStreet

StHelier,JE48XR

Jersey

ChannelIslands

ChiefExecutive:IanGibson

Tel:+441534881188

LONDON

StandardBankPlc

CannonBridgeHouse

25DowgateHill

London

EC4R2SB

ChiefExecutive-GlobalCorporateand

InvestmentBanking:RobLeith

ChiefExecutive-CorporateandInvestment

BankingInternational:DavidDuffy

Tel:+442078153000

MALAYSIA

StandardLondon(Asia)SendirianBerhad

Level32,SuiteB,MenaraMaxis

KualaLumpurCityCentre

50088KualaLumpur

Malaysia

CountryHead:AngieAng

Tel:+60323808080

Contact information


MAURITIUS

StandardBankTrustCompany(Mauritius)

Limited

6thfloor,MedineMews

LeChausseeSt

PortLouis

Mauritius

ManagingDirector:KarlFoden

Tel:+2302024200

RUSSIAN FEDERATION

ZAOStandardBank

30thFloor,BlockC,

NaberezhnayaTower,Moscow-City,

18Krasnopresnenskayanab.

Moscow,123317,

RussianFederation

ChiefExecutive:PeterGhavami

Tel:+74957833800

SINGAPORE

StandardMerchantBank(Asia)Limited

80RafflesPlace

No41-01UOBPlaza1

Singapore048624

ChiefExecutive:NickHamilton

Tel:+6565334111

TAIWAN

TheStandardBankofSouthAfricaLimited

-TaipeiBranch

13thfloor,218DunHuaSouthRoad,

Section2

Taipei10669,

Taiwan

GeneralManager:JackHsu

Tel:+886221924488

TURKEY

StandardÜnlüMenkulDegerlerA.S�.

AhiEvrenCad.PolarisPlaza

No:1Kat:1

34398,Maslak-Istanbul

Turkey

ChiefExecutive:MahmutÜnlü

Tel:+902123673636


AhiEvranCad.PolarisPlaza

BBlkNo:1Kat1

34398,Maslak

Istanbul/Turkey

Contact:MahmutÜnlü

Tel:+902123673636

UNITED ARAB EMIRATES

StandardBankPlc-DubaiBranch

EmiratesTowers

16thFloor

Dubai

UnitedArabEmirates

HeadofBranch:StuartHenrickson

Tel:+97143300011


979AlWasiBad,

UmmSuqueim2

P.O.Box53675

Dubai

UnitedArabEmirates

Contact:LyndaO’Mahoney

Tel:+97143489989

UKRAINE

StandardUkraineLLC

9/2VelykaVasylkivskaStr33

Kyiv01004

Ukraine

GeneralDirector:PavelMosna

Tel:+380444995708/9

UNITED STATES OF AMERICA

StandardNewYork,Inc.

StandardAmericas,Inc.

StandardNewYorkSecurities,Inc.

19thfloor

320ParkAve

NewYork,

NY10022

USA

ManagingDirector:WilliamDorson

Tel:+12124075000

StandardBankofSouthAfricaLimited-

representativeoffice

19thfloor

320ParkAve

NewYork,

NY10022

USA

Representative:MarkChiaviello

Tel:+12124075000

Contact information continued


Notes

www.standardbank.com

Date post:	16-Oct-2021
Category:	Documents
Upload:	others
View:	9 times
Download:	0 times

Standard Bank Plc

Documents