Flat earnings after $248m joint venture losses for Standard Bank

JOHANNESBURG – Standard Bank yesterday reported flat earnings for the year to end December, dragged down by losses of $248 million (R3.8 billion) at its struggling London-based joint venture with Industrial and Commercial Bank of China (ICBC) and a sluggish economy in the country.

Standard Bank said ICBC Standard (ICBCS) reported a $248m loss during the period, with a single client costing its $198m while restructuring costs rising $30m and operations $20m.

The group’s 40 percent share of the losses equated to R1.4bn. In September, Standard Bank recorded a $163m impairment of its stake in ICBCS, reducing the carrying value from $383m to $220m.

The group said this equated to a R2.4bn impairment reported outside of headline earnings.

As a result, the group reported a 1percent increase in headline earnings to R28.21bn while headline earnings per share rose 1percent to 1767cents a share.