Standard Bank reports growth in earnings
According to the South African-headquartered institution, reported group headline earnings increased by 27 percent to R10 529 million while headline earnings per share (HEPS) increased by 27 percent to 651 cents.
Headline earnings to 30 June 2015 reported within the group’s discontinued operation include the effects of a partial recovery in respect of insurance claims relating to the external fraud in the Qingdao port in China, a write-down of the residual aluminium exposure in China and cash flow hedge releases relating to the disposal.
The net contribution to headline earnings from the discontinued operation amounts to R171 million.
Global growth of 2,2 percent in the first quarter of 2015 underperformed the International Monetary Fund expectations set at the beginning of the year.
The economic recovery in the Eurozone seems broadly on track, while in South Africa, the lower oil price has temporarily lowered inflation but electricity shortages, accompanied by subdued consumer and business confidence, restricted economic growth to 2,1 percent in the first quarter of 2015.
The decline in commodity prices has impacted sub-Saharan Africa in a highly differentiated manner.
Oil exporters have been most affected, while for much of the rest of the region, the impact has been reasonably favourable, with many countries benefiting from lower oil prices although, for a number of them, this positive effect is partly offset by the decline in the prices of other exported commodities.
“Overall, although economic growth has subsided slightly from the 5 percent achieved in 2014, sub-Saharan Africa remains one of the world’s fastest growing regions,” said Ben Kruger, Standard Bank Group Chief Executive, at the results presentation in Johannesburg.
– CAJ News
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