1

Financial results

for the year ended 31 December 2007

2

Financial highlights

≤53.5

≤0.75

24.0

+16.5%

Financial objectives

20

21

21

21

Change %

52.752.0Cost-to-income ratio* (%)

0.600.78Credit loss ratio (%)

25.424.8ROE (%)

3 5484 255NAVPS (cents)

320.0386.0DPS (cents)

783.7947.5Diluted HEPS (cents)

796.4960.6Headline EPS (HEPS) (cents)

20062007

Financial results are stated on a normalised basis where applicable

* Excluding MasterCard capital profit

2

3

Operating environment in 2007

● 1H07

– Generally favourable operating conditions• despite 50bp interest rate hike in South Africa

– Headline earnings grew 27%

● 2H07

– Dislocation in global credit markets– Global tightening in liquidity– Retail slowdown towards the end of the year

• interest rates increased by a further 150bp in South Africa

– Headline earnings grew 17%

4

Group income statement highlights

19 1052924 706Operating expenses

22

15

22

68

29

35

Change %

10 81813 153Normalised headline earnings

843973Liberty contribution

9 97512 180Banking activities

2 7334 590Credit impairment charges

19 16524 747Non-interest revenue

17 00122 896Net interest income

20062007

3

5

335396

471558

666

796

961

124 151232 267

320386

102 0

200

400

600

800

1 000

1 200

2001 2002 2003 2004 2005 2006 2007

Headline EPS DPS

cents

Group headline earnings and dividends per share

CAGR 19%

CAGR 25%

6

Business unit review

27.3346 765Corporate & Investment Banking

22

15

22

18

Headline earnings

growth %

24.813 153Standard Bank Group

25.8973Liberty Life

24.712 180Banking activities

(246)Central funding and other domestic

28.15 661Personal & Business Banking

ROE %

Headline earnings

Rm 2007

4

7

Business unit review Geographic snapshot

981 229Outside Africa

581 269Rest of Africa

1510 805South Africa

22

75

15

15

Headline earnings growth %

13 153Standard Bank Group

(150)Central funding

2 498Outside South Africa

973South Africa (Liberty Life)

9 832South Africa (Banking operations)

Headline earningsRm 2007

8

Headline earnings mix by major business unit

-1%(2006: 1%)

51%(2006: 46%)

7%(2006: 8%)

43%(2006: 45%)

Personal & Business Banking Corporate & Investment BankingCentral & other Liberty Life

5

Balance sheet analysis

10

Loans and advances

3215040209Customers

10493164Instalment sales

3173122Card debtors

512

5

89

239

32

170

268

Dec 2006 Rbn

100

1

15

48

6

33

52

2007 mix %

28

11

29

24

29

29

Change%

657Gross loans and advances

4Central

99Banks

308Corporate & Investment Banking

40Other lending

219Mortgage loans

345Personal & Business Banking

Dec 2007 Rbn

6

11

Funding

2513333177Wholesale priced

3143619Securitisation

4177129Money market

545

300

102

120

253

Dec 2006 Rbn

100

54

18

21

46

2007 mix %

29

27

27

26

30

Change %

705Deposit and current accounts

380Corporate & Investment Banking

129Intragroup from CIB

152Retail priced

329Personal & Business Banking

Dec 2007 Rbn

12

Liquidity

● Continuous focus on liquidity– Group long-term funding ratio increased to 17.8% (2006: 15.5%)– Emphasis on structural liquidity mismatch, inclusive of contingent

liabilities– Surplus liquidity buffer

• R60bn in excess of prudential liquid asset requirements

● Increased reliance by local banks on domestic term funding– SA 5yr CD now pricing in excess of 200bp

● Securitisation demand weak in second half

● Concentration risks in deposit base managed closely

● Limited exposure to conduits– R13bn total exposure

7

Income statement analysis

14

Margin on interest earnings assets

4 397Volume

0.04214Other treasury and banking activities

0.04209IAS 39 discount unwind

24 0981 005

(508)

1 625(169)

(147)

17 472NII Rm

0.28Endowment effect of higher rates(0.03)Funding

(0.03)LendingRate related changes

3.63Restated margin on interest earning assets for 2006

3.94Margin on interest earning assets for 20070.02Acquisitions0.08Changes in balance sheet composition

(0.09)Surplus liquidityBalance sheet related changes

Margin %

8

15

Non-interest revenue

157>100459MasterCard disposal

29

25

(21)

24

21*

49

23

Change %

19 16524 747Total non-interest revenue

769961Insurance related revenue

743584Property related revenue

8191 016Banking and other

2 4883 020Other revenue

4 8527 216Trading revenue

11 82514 511Net fee and commission revenue

20062007

* Growth excluding MasterCard 10%

16

Credit impairment charges

1.344 2405503 690Personal & Business Banking

0.784 5908263 764

68

100

250

Total charge

Rm

16

100

176

PL charge

Rm

86Change %

Central and other

0.0974Corporate & Investment Banking

Creditloss ratio

%

NPL charge

Rm2007

1.002 3334181 915Personal & Business Banking

2 733

65

335

711

65

228

0.602 022

Central and other

0.15107Corporate & Investment Banking

2006

9

17

Credit impairment trends

0.991.07

0.90

0.43 0.40

0.60

0.78

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

2001 2002 2003 2004 2005 2006 20070.0

0.5

1.0

1.5

2.0

Credit impairment charges on NPLs Credit impairment charges on PLsCredit loss ratio (%) Average prime lending rate in SA (%)

Rm

13.8

15.815.0

11.310.6

11.2

13.2

18

Operating expenses

293 755Corporate & Investment Banking

2610 218Other

21

42

29

32

Change%

6 835Personal & Business Banking

6 739Corporate & Investment Banking

7 336Personal & Business Banking

14 488Staff

2007Rm

● Total costs up 29%

– Excluding acquisitionsup 23%

● Staff costs

– Headcount up 17% of which 9% is from acquisitions

– Increased incentive pay

● Other costs

– IT costs up 24%– Higher levels of business

activity– Continued expansion

10

19

Cost-to-income ratioexcluding MasterCard capital profit

57.2 56.9 55.7 56.9 55.2 52.7 52.048

50

52

54

56

58

60

62

64

2001 2002 2003 2004 2005 2006 20070

5

10

15

20

25

30

35

Cost-to-income ratio Income growth Cost growth

% ratio % growth

Capital management

11

21

Group return on equity

1 939 1 957 2 154 2 464 2 830 3 548 4 255

20.1 20.322.6 23.7 25.2 25.4 24.8

17.8 1714.8 13.4 12 12.6 13.4

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

2001 2002 2003 2004 2005 2006 20070

10

20

30

40

NAV per share ROE Average cost of equity

cents %

CAGR 14%

22

Capital adequacyBII conversion

Risk-weighted assets4654461Credit risk177(66)243Personal & Business Banking28569216Corporate & Investment Banking

312Central & other54(9)63Trading/market risk5656-Operational risk

57551524Banking activities

762

1955

Dec 07BI

Rbn

65(11)Banking activities2-Tier 3

14(5)Tier 249(6)Tier 1

Available qualifying capital

Dec 07Pro-forma BII

RbnChange

Rbn

12

23

Capital adequacy ratios

Pro-forma

11.38.511.48.1Basel II

9.757.09.757.0Basel II regulatory minimum

14.410.412.58.6Basel I

15.0Debt capital headroom (Rbn)

Total %

GroupSBSA

11.2

Tier 1 %

14.0Including ICBC capital

Total %Tier 1 %

Peter Wharton-Hood

13

25

Overview of results

● Customer acquisition strategies over the past three years were appropriate

● Geographic diversification benefits starting to show

● Market pressures dampened retail momentum, but no surprises

● Substantial increase in credit impairments

● Interest income boosted by the endowment effect

● Significant bancassurance progress made

● Good progress made in addressing regulatory challenges

● Implementation of Basel II

26Source: South African Reserve Bank

Current market conditions

45

50

55

60

65

70

75

80

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20075

6

7

8

9

10

11

12

13

14

15

Debt to disposable income of households (LHS) Debt repayment to disposable income (RHS)

% %

14

27

Financial highlights

● Headline earnings up 18% to R5 661m

● Credit loss ratio 1.34% (2006: 1.00%)

● ROE 28.1% (2006: 31.6%)

● Cost-to-income ratio 52.1% (2006: 53.8%)

● External net advances up 28% to R340bn

28

Abridged income statement

11 3342514 171Operating expenses

811421 150Other revenue

8 9481710 468Net fee and commission revenue

7 244208 664Net income

18

82

29

19

39

Change%

4 8165 661Normalised headline earnings

2 3334 240Credit impairment charges

20 91127 075Total income

9 759 11 618Non-interest revenue

11 15215 457Net interest income

Dec 2006Rm

Dec 2007Rm

15

29

Product reporting

2 913243 61412 0613015 731Transactional and lending products

300233703 025303 937Card

520437421 467271 860Bancassurance

Headline earnings Total income

20 911

1 561

2 797

Dec 2006

Rm

5 661

110

825

Dec 2007

Rm

18

(4)

(15)

Change %

29

40

20

Change %

4 81627 075Personal & Business Banking

1142 191Vehicle and asset finance

9693 356Home loans

Dec 2006

Rm

Dec 2007

Rm

30

Credit impairments

1.32

1.83

6.55

1.51

0.61

Jun 2007%

1.001.34Personal & Business Banking

1.572.01Other

7.037.20Card

1.091.49Vehicle and asset finance

0.270.54Home loans

Dec 2006%

Dec 2007%

16

31

Home loans NPLs - credit impairments

80.4(1 906)82.7(3 612)79.8(4 325)Net security

3864461 054I/S charge for NPLs

253353596Time value discount

4657561 098Net exposure

4657561 098NPL provision

170 112193 914219 177Book size

2 3714 3685 423NPLs

(2 159)(3 965)(4 921)Security

0.27

Dec 2006 Rm

% of NPLs

% of NPLs

0.61

Jun 2007 Rm

0.54Credit loss ratio

% of NPLs

Dec 2007 Rm

32

Early arrears in SBSA (special mention category)

Source: DI500

1.8

1.11.0

2.1

2.82.1

3.43.1

1.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Jun04

Sep04

Dec04

Mar05

Jun05

Sep05

Dec05

Mar06

Jun06

Sep06

Dec06

Mar07

Jun07

Sep07

Dec07

Home loans VAF Card

%

17

33

Non Performing Loans in SBSA

1.6

1.9

2.62.4

1.4

1.1

2.6

2.3

2.3

0.5

1.0

1.5

2.0

2.5

3.0

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sep-07

Dec-07

Home loans VAF Card%

Source: DI500

34

Retail market share in South Africa

Source: DI900

36.036.0

30.329.327.726.8

22.321.5

13

17

21

25

29

33

37

2000 2001 2002 2003 2004 2005 2006 2007

Card Home loans adjusted for securitisation Deposits Vehicle and asset finance adjusted for securitisation

%

18

35

Secured lending - Home loans

● Globally the book increased 29%

● Value of new registrations in South Africa starting to slow, up 9%(2006: up 43%)

● Margin compression continues

– Continued dependence on more expensive wholesale priced funding

● Contribution from Rest of Africa still small

– introduction of product into Botswana, Lesotho, Mozambique, Kenya, Swaziland and Uganda completed in 2007

36

Secured lending - Home loans

● Credit– Average loan to value and instalment to income ratios of new

business in South Africa remain stable • 81% and 25% respectively

– 67% balance to original value on portfolio in South Africa is well within expectations

– Portfolio well provided

19

37

Secured lending - Vehicle and asset finance

● Globally the book increased 31%● Re-entry into dealership origination channel in South Africa● Strong volume growth boosted by corporate and commercial market

despite year-on-year decline of 5% in vehicle sales in South Africa● Argentina performed well ● Expansion of product offering into all African countries boosted

contribution from Rest of Africa● Credit

– Larger proportion of non-Standard Bank customers acquired through dealership origination channel

– Declining recovery values in used car market have triggered increased impairments

– Improved asset disposal procedures have mitigated losses

38

Unsecured lending - Card

● Consolidation after 3 years of strong growth

– Number of credit card accounts up 2% to 2.3 million with increase in revolving customers

– Cardholders spend up 6%, slow down evident in 4th quarter– Book increased by 31%

● Acquiring revenue up 9% with strong growth in debit card spend

– Acquiring new customers at a slower rate

● Growing card portfolios in Botswana, Namibia, Lesotho and Swaziland

● Credit

– Impairment levels reflect the tightening economic environment and portfolio maturation

– Within management target of 700 to 900 bps

20

39

Unsecured lending - Other lending

● Good growth in credit utilisation, specifically in demand portfolios

– Book increased by 24%– Number of accounts up 12%

● SMMEs starting to show signs of stress, SMEs more resilient in line with corporate sector

● Credit provisions in line with expectations

40

Transaction and investment products

● Continued focus on sales yielded further volume increases

– Number of transactional accounts up 9%– Fees and commissions up 13%

● Average business current account balances up 22%

● Average investment balances up 32%

● Widening deposit margins from positive endowment effect

● Strong product sales in lower end of market

● Mzansi account base in excess of 620 000 (2006: 439 000)

21

41

Distribution

5Growth in branch based transactions

13Growth in number of ATMs

3Growth in number of ATMs

28

2821

23

0

5

%

Growth in internet users

Growth in number of branches*

Growth in ATM transactions

South Africa

Growth in internet users

Growth in number of branchesGrowth in ATM transactions

Rest of Africa

* 21 opened, 24 closed/integrated

42

Bancassurance

● Significant progress made in aligning sales processes with Liberty Life

● Co-operation levels outside South Africa gaining traction

● Holistic wealth model in design stage with Liberty Life

● SBFC responsible for a 28% increase in risk premiums and investment capital channelled into the group

● Embedded product volumes increased by 21%

22

43

Outlook for Personal & Business Banking- South Africa

● Interest rate outlook will continue to dampen consumer and SMME credit demand

● Volume and asset growth rates likely to moderate

● Continued focus on risk management and collections

● Focus on sensible cost management without compromising business investment

● Well positioned to continue serving transactional requirements of all customers

● Focus on regulatory compliance continues

44

Outlook for Personal & Business Banking- Rest of Africa

● Stronger focus on countries with higher earning potential

● Leverage acquisition in Nigeria

● Replication of proven South African service led sales strategies

● Improve customer service and fine-tune relevant and appropriate product offerings

● Leverage newly launched products to deepen penetration into higher/mid value customer segments

● Continued expansion of channel offerings – mobile banking and business on-line

● Further investment in the physical network

23

45

Argentina

● Headline earnings attributable to the group R129m in 2007

● People, processes and systems aligned with and integrated into the group

● Significant “overnight” rebranding exercise completed

– Achieved substantial awareness

● Service led sales strategies implemented in Personal & Business Banking with broader segment focus

● Successful client retention strategies in Corporate Banking resulted in limited deposit run-off

● Newly established Investment Banking team gaining momentum

● Headline earnings of US$40m expected in 2008– Of which 77% will accrue to Standard Bank

Ben Kruger

24

47

Overview of results

● Execution of our strategy starting to pay dividends

● Good diversification of earnings across all geographies and products

● Cross sell and leveraging of activities globally

● Integration of Nigeria and Turkey well under way

● No direct exposure to subprime, but some adverse effects from a secondary perspective

● Intensified focus on risk and capital management

● Implementation of Basel II

48

Financial highlights

● Headline earnings up 34% to R6 765m

● Credit loss ratio 0.09% (2006: 0.15%)

● ROE 27.3% (2006: 27.7%)

● Cost-to-income ratio 52.6% (2006: 52.6%)

25

49

Abridged income statement

7 6423710 494Operating expenses

4 945507 423Trading revenue

1 461(2)1 435Other revenue

2 929404 094Net fee and commission revenue

6 475399 012Net income

34

(25)

37

39

33

Change%

5 0336 765Normalised headline earnings

335250Credit impairment charges

14 45219 756Total income

9 33512 952Non-interest revenue

5 1176 804Net interest income

Dec 2006Rm

Dec 2007Rm

50

Operating expenses

● Staff cost increase due to higher incentive based remuneration, hiring of high calibre key staff and acquisitions

● Other operating expense growth largely attributable to higher levels of business activity and continued expansion

● Higher IT and infrastructure spend due to roll-out of key platforms in Africa and Outside Africa

● Implementation of Basel II

293 755Other operating expenses

42

37

Change%

6 739Staff costs

10 494Operating expenses

Dec 2007Rm

26

51

Income contribution

35 40 39 35 36 35 34

34 3534 33 34 38

32 26 26 31 31 31 28

33

0102030405060708090

100

2001 2002 2003 2004 2005 2006 2007

Net Interest Income Trading revenue Fee and commission income

%

52

Divisional contribution

Headline earnings Total income

14 452

5 518

2 717

6 217

Dec 2006

Rm

6 765

2 517

1 630

2 618

Dec 2007

Rm

34

68

6

31

Change %

37

54

26

27

Change %

5 03319 756Total

1 4978 473Global Markets

1 5403 413Investment Banking

1 9967 870Banking and Trade Finance

Dec 2006

Rm

Dec 2007

Rm

27

53

Banking and trade finance

● Income R7.9bn, up 27%, headline earnings R2.6bn, up 31%

● Good growth in term lending and commercial property finance

● Growth in cash management and overnight deposits

● Lower credit impairment charges

● Additional fee revenue from the first time inclusion of Argentina and Nigeria

● Contribution from volume growth in transactional banking offset by pricing pressure

54

Investment banking

● Income R3.4bn, up 26%, headline earnings R1.6bn, up 6% off a high base

● Strong performance from M&A and advisory

● Robust asset financing recorded across geographies

● Project finance franchise growing, notably in mining & resources, infrastructure and telecoms sectors

● Good contribution from private equity and unlisted investment portfolios

● Lower investment gains on the property portfolio

● Expanding the Investment Banking franchise in Africa and Internationally

28

55

Global markets

● Income R8.5bn, up 54%, headline earnings R2.5bn, up 68%

● Strong result, notwithstanding volatile market conditions

● Excellent performance from debt capital markets, resources, foreign exchange and equity derivatives

● First time inclusion of Argentina and Nigeria

● Higher level of principal account trading profits

● Improved scale and contribution in all businesses outside of South Africa

● Strong team with heightened risk management awareness

56

Current market conditions

● Global Financial Markets

– Significant subprime and secondary effects still emerging– Evaporating liquidity– Heightened risk aversion– Effective closure of Securitisation Markets– Increasing probability that the US economy is sliding into a

recession– Knock-on effects of US slowdown on Emerging Markets

● South Africa

– Credit markets weakened sharply since October 2007

29

57

10

20

30

40

50

60

70

May-07 Jul-07 Sep-07 Nov-07

ITra

xx s

prea

d (b

ps)

100

150

200

250

300

EM

BI+

spr

ead

(bps

)

ITraxx EMBI

Mar-07

Risk management Interpretation of market events

● Subprime crisis

● Liquidity crunch

● Asset repricing and de-leveraging

iTraxx Main s7 vs EMBI+

During the first bout of stress,EM reacts relatively slowly

and avoids the worst

In the second round, EM ismuch more closely correlatedwith Western Credit Markets

58

Risk management Interpretation of market events

South African Sovereign 5-yr CDS vs. iTraxx Europe Crossover Series 7 and EMBI spreadsNormalised Indices (Base Date 22 March 2007)

Pric

e

0%

100%

200%

300%

400%

500%

SOAF iTraxx Xover 7 EMBI+

22 Mar2007

25 Apr2007

31 May2007

9 Jul2007

14 Aug2007

14 Sep2007

22 Oct2007

23 Nov2007

31 Dec2007

22 Jan2008

30

59

Risk management Credit quality

● Credit quality of portfolio has improved

● Approval obtained from Regulator for AIRB approach to credit risk

● No direct exposure to sub prime

● Moving to an economic capital credit decision making model

60

Macro credit hedge

● Implemented Macro Credit Hedge during first half of 2007, targeted at protecting CIB against an anticipated downturn in credit markets

● Countries targeted were those where CIB had the largest exposureconcentrations

● Hedge positions were actively managed during 2007 to maintain similar levels of protection during market movements

● Hedge has performed well, providing cover during periods of market turbulence

● Hedge continues to be maintained

31

61

Risk management– Value at Risk / Trading Revenue

Income realised on 233 days in trading units

-150

-100

-50

0

50

100

150

200

2-Ja

n-07

12-J

an-0

724

-Jan

-07

5-Fe

b-07

15-F

eb-0

727

-Feb

-07

9-M

ar-0

7

22-M

ar-0

73-

Apr

-07

17-A

pr-0

7

30-A

pr-0

711

-May

-07

23-M

ay-0

7

4-Ju

n-07

14-J

un-0

726

-Jun

-07

6-Ju

l-07

18-J

ul-0

730

-Jul

-07

10-A

ug-0

7

22-A

ug-0

73-

Sep

-07

13-S

ep-0

7

26-S

ep-0

78-

Oct

-07

18-O

ct-0

7

30-O

ct-0

79-

Nov

-07

21-N

ov-0

73-

Dec

-07

13-D

ec-0

728

-Dec

-07

Income of trading units VaR

62

Trading Revenue– daily income distribution

01020

30405060

708090

> -40

-40 --30

-30 --20

-20 --10

-10 -0

0 -10

10 -20

20 -30

30 -40

40 -50

50 -60

60 -70

70 -80

80 -90

90 -100

<100

Frequency of trading days

32

63

Nigeria update

● Headline earnings R247m (2006: R49m)● Merger effective 24 September 2007● Group risk governance framework introduced● Operations and systems integration completed December 2007● Staff integration complete, Chris Newson appointed CEO● Market leading position in Global Markets, Investment Banking and

Asset Management● Optimistic on the potential for Personal & Business Banking● Good progress to date in very competitive markets, but significant

investment required in branch and ATM infrastructure● Improved position in key priority market● Headline earnings in excess of $100m expected in 2008

– Of which 50.1% will accrue to Standard Bank

64

Outlook

● Continue heightened awareness on risk management and pricing

● Increased focus on cost discipline in demanding revenue environment

● Ongoing development of human capital

● Optimise infrastructure roll-out

● Active capital management

● Maintain earnings momentum with balanced focus on growth opportunities

● Well positioned in terms of asset quality, business mix and dealpipeline facilitating on-going customer focus

● Cautiously optimistic re 2008 subject to market environment

33

Jacko Maree

66

Liberty Life

● Liberty Life now owns 100% of Stanlib

● Contribution to headline earnings up 15%

– 7% of group headline earnings

● Weighted average investment return 14.76% (2006: 33.00%)

● Return on embedded value 19.5% (2006: 22.4%)

● Indexed premiums up 14%

34

Jacko Maree

68

2007 – a momentous year

● Weathered global financial market stresses not seen in the last decade

● Finalised acquisitions in the important emerging markets of Nigeria, Argentina and Turkey

● Negotiated and gained necessary approvals for the historic transaction between Standard Bank and ICBC which resulted in

– valuable strategic position– significant injection of tier one capital in a cost effective manner– supportive shareholder

● Achieved financial results that exceeded published objectives for headline earnings per share growth and return on equity

35

69

Post year end

● Global economy

● South African economy and business environment

● Basel II

● ICBC

– New capital injection is dilutive in the short term but extends our growth horizon in the longer term

– Strong capital ratios a competitive advantage– Business co-operation commences in March 2008

70

Conclusion

● Geographic diversification pays off

● Growth in SA expected to moderate to more “normal” levels from exceptional growth of the past 4 years

● Growth in chosen African countries likely to significantly exceed growth rate in SA, assisted by ICBC business co-operation

● Capital injection allows us to consider further acquisitions in a more “acquisition-friendly” environment

36

71

Financial objectives

Continuous improvement

≤ 1.00%

CPIX + 10%

22.5%

Medium term

≤ 51%Cost-to-income ratio

≤ 1.00%Credit loss ratio

CPIX + 5%Normalised growth in headline earnings per share

21.0%Normalised ROE

2008

Medium term objectives remain unchanged