Tadiran Group Ltd.

Investor Presentation • Mar 9, 2023

Standard Bank Group

2022 annual results presentation

for the year ended 31 December 2022

9 March 2023

AFRICA IS OUR HOME WE DRIVE HER GROWTH

Lake Kayumbu – Uganda

Agenda

FY22 highlights

FY22 financial performance and 2023 outlook

Progress towards 2025 targets

01 FY22 highlights

AFRICA IS OUR HOME WE DRIVE HER GROWTH

Lake Empakaai – Tanzania

We delivered record earnings, higher returns, and increased dividends

Record headline earnings, R34.2bn, +37% 01 • Underpinned by robust revenue growth, prudent risk appetite, sound cost management

Strategic progress – delivering in line with our plan

• Delivered a broader range of attractive value propositions to our clients
• Well managed risk and improved operational metrics
• Progress on Liberty integration and re-allocation of capital to drive returns

02

Returns improved to 16.4%, well above COE 03 • Driven by strong performances across our businesses and geographies

4

Final dividend of 691 cents per share, +35%

• A 60% final dividend payout ratio underpinned by strong capital generation and a robust CET1 ratio¹ 04 of 13.5%

¹ Common equity tier 1 ratio

We successfully navigated a complex operating environment

Globally

• Geopolitical tensions increased
• Elevated market volatility and large declines in global equity markets, particularly technology stocks
• Inflation concerns drove further interest rate increases
• Global growth slowdown real GDP growth of 3.4% in 2022¹

Sub-Saharan Africa

• Inflation was at elevated levels
• Interest rates increased in almost all markets of operation
• Currencies under pressure, especially relative to the strong USD
• Ghana sovereign debt challenges emerged
• Sub-Saharan Africa's real GDP is expected to have grown at around 3.8%¹

South Africa (SA)

• Inflation peaked in July 2022; levels more subdued relative to advanced economies
• The aftermath of the KwaZulu-Natal floods, increased electricity disruptions, and stalled structural reforms weighed on sentiment and demand
• Repo rate increased by 3.25% to 7.0%
• Consumer balance sheets remained relatively robust, however by year end signs of stress had started to emerge.
• Real GDP growth for 2022 was 2.0%
• In February 2023, South Africa was grey listed by FATF

¹ Based on International Monetary Fund, January 2023

We remain committed to delivering the strategy and targets outlined in August 2021

Our purpose: Why we exist Africa is our home, we drive her growth Our financial targets: What we have committed to deliver Drive sustainable growth and value 17% - 20% Return on equity Execute with excellence ~50%¹ Cost-to-income ratio Transform client experience % - 9% Revenue growth CAGR

¹Approaching 50%

Transform client experience

7

We have a growing client franchise, and our clients are doing more with us

CHNW	BCC	CIB	Liberty
16.9m	791k	R49bn	3.9m
active clients	active clients	revenue	policyholders
Disbursed to	Disbursed to	Sustainable	Long-term
>R100bn	>R44bn	R55bn	>R9.8bn
clients in	clients in the	finance	indexed new
South Africa1	year3	mobilised	business
>550m Digital transaction volumes	>144m Digital banking volumes	>R19bn TPS revenue >R17bn	>R390m New business value4
>R32bn	>R300bn	GM revenue	>R1.5bn
Instant Money	Card acquiring	>R11bn	Normalised
turnover2	turnover	IB revenue	operating earnings

1 Includes home services, VAF, and personal lending in South Africa, ²Instant Money is our digital wallet solution in South Africa, ³Includes VAF and business lending, ⁴ As disclosed on page 114 of the financial analysis booklet

client

Higher interest rates and increased client activity drove robust operating leverage Transform experience

• Strong average balance sheet growth
• Higher average interest rates
• Margin expansion

• Endowment impact R6.1bn

• Larger client base

• Post-pandemic recovery in transactional, trade and foreign exchange activity
• Increased digital volumes

• Strong client trades related revenue

• Double-digit revenue growth

• Cost growth below inflation
• Positive jaws of 579 bps

9

We are delivering on our cost management commitments…

¹ Licenses, maintenance and related costs, ² Peer data based on individual banks annual financial statements.

…as reflected in our strong operational leverage and declining cost-to-income ratio

¹Jaws calculated as revenue growth less cost growth

11

We have a diversified, growing franchise that has proven resilient during difficult times

¹Headline earnings by legal entity, ² Other includes other group entities, ³ Standard Bank International includes Isle of Man and Jersey, ⁴ South Africa is Standard Bank of South Africa (SBSA)

12

Higher profits and capital optimisation supported ROE

Dividend per share

We are committed to generating positive impact…

Our approach is shaped by our context

• We are purpose-led Africa is our home, we drive her growth
• We commit to driving investment to support sustainable and inclusive growth in Africa, to create positive impact
• One of the greatest impediments to growth in Africa is the energy shortage – 600 million people do not have access to reliable electricity
• We support the principle of a Just Energy Transition for Africa

Capital investment required by 2030 to support Africa's energy transition goals

We will drive Africa's just energy transition

… and Sustainable Finance is a key component

Policy and commitments

Climate policy¹

Sets out our path to a net zero portfolio by 2050

Adopted a phased approach to sector-based targets to reduce financing of carbon-intensive assets and activities

Our commitments²

sustainable finance solutions mobilised by 2026

renewable energy power plant financing by 2024

renewable energy

underwrite commitment by 2024

Well positioned and determined to win

• Largest balance sheet in Africa, and large client base with a need
• On-the-ground presence in 20 African countries, who are the providers of commodities and have enormous need for power and infrastructure
• Coverage in key sectors industry specialists and thought leadership
• Expanding set of sustainable and transition finance solutions
• Embedded client/ sector specific approach, business-owned and delivered in collaboration with risk

Sustainable finance deals in 2022

¹ Our climate policy is aligned with the Paris Agreement and the principle of common, UN sustainable development goals, national and regional frameworks including the African Union's agenda 2063, UNEP FI Principles for Responsible Banking, Network for Greening the Financial System Net Zero 2050, ²Targets as per Standard Bank Group Climate policy, March 2022

⁰² FY22 financial performance

AFRICA IS OUR HOME WE DRIVE HER GROWTH

Lalibela – Ethiopia

Strong performance across all key metrics

bps

%

%

The group's strong banking performance was boosted by Liberty's recovery and ICBCS' contribution

	FY22 Rbn	FY21 Rbn	Change %	Change CCY %
Net interest income	77.1	62.4	24	22
Non-interest revenue	56.2	50.9	11	10
Total income	133.3	113.3	18	17
Operating expenses	(73.3)	(65.5)	12	12
Pre-provision profit	60.0	47.8	26	24
Credit impairment charges	(12.1)	(9.9)	22	22
Standard Bank Activities headline earnings	30.5	24.9	22	21
SBG share of Liberty earnings1	2.0	(0.1)	>100	>100
Treasury shares (Liberty adjustment)	(0.2)	(0.4)	32	32
ICBCS (40% stake)	1.9	0.5	>100	>100
SBG headline earnings	34.2	25.0	37	35
Net interest margin, bps	427	382
Credit loss ratio, bps	75	73
Jaws, bps	579	71
ROE, %	16.4	13.5

¹ SBG share of Liberty earnings was ~57% until 31 January 2022, and 100% thereafter

Robust revenue growth more than absorbed higher costs and normalised credit charges

Headline earnings

¹Relative to net interest income in FY21

Continued focused growth in secured and corporate lending

Gross loans & advances to customers¹ , +9%

19

¹As per loans and advances on page 72 of the financial analysis booklet, ² As per geographic segmental analysis on page 151 of financial analysis booklet

Total Gross loans & advances, by region²

Continued focus on client acquisition and retention strategies

Deposits¹ , +6%

Dec-20 Dec-21 Dec-22

Deposits by region²

¹As per deposits on page 61 of the financial analysis booklet, ² Excludes eliminations, ³ South Africa is SBSA

Strong balance sheet momentum continued

Average interest-earning assets Average interest-bearing liabilities

Bigger balances and margin expansion drove a 24% increase in net interest income

NII and NIM trend Net interest margin

¹ Average interest earning assets

Strong fee growth driven by client franchise momentum across all categories

Net fee and commission revenue Fee and commission revenue, by category

Diversified and growing client-driven trading revenue

¹Trading revenue includes R141m of fair value adjustments on Ghanaian impacted local currency and onshore USD bonds, ² Trading revenue by client is pre the Centre and other adjustment of –R0.8bn

Total coverage increased as increase in provisions outpaced balance sheet growth

25

Coverage
	Dec-20	Dec-21	Dec-22
Total coverage	3.8%	3.5%	3.6%
Stage 3 ratio	5.5%	4.7%	5.0%
Stage 3 coverage	46%	52%	50%

¹ Based on gross loans and advances and provisions per pages 68-73 of the FY22 financial analysis booklet.

We are holding a large stock of provisions and strong coverage

Balance sheet provisions

¹ Based on average of year end provisions, ²Provisions include R1 330m of provisions held on Ghanaian impacted local currency and onshore USD bonds, provisions combined with the R141m of fair value adjustments recorded in trading revenue equate to R1 471m, or 56% coverage

Credit charges driven by a deterioration in Africa Regions, particularly Ghana

¹Credit loss ratio based on credit impairment charges on loans and advances, ² South Africa reflects credit impairment charges for SBSA, ³ Africa Regions includes R856m of credit impairment charges related to unsettled Ghanaian local currency and onshore USD bonds

Credit impairment charges – South Africa²

FY21 FY22

Rm

27

Credit impairment charges

Credit charges up, driven by higher CIB charges

¹As per financial analysis booklet page 24, ² Group FY22 charges include a net provision release from centre, ³ Through-the-cycle range, ⁴ Based on corporate and investment banking on page 49 of the financial analysis booklet

Operating expenses growth aligned to recovery in activity and targeted investment

¹ Other expenses includes R233m insurance recovery in FY21 related to the Japan card fraud in 2016. Excluding the recovery operating expense growth was 10%, ² Licenses, maintenance and related costs ³ South Africa is SBSA

IT spend to support strategically important digital initiatives

Technology-related initiatives

• Reviewed IT team structure, simplified and added COO role
• Resilience and stability improved
• Continued simplification of IT landscape, including legacy systems
• Investment in targeted programmes to improve digital solutions and client experience

Information technology cost growth driven by cloud and cloud-related software investments

¹Licenses, maintenance and related costs

Robust capital and liquidity providing resilience and supporting business growth

¹Including unappropriated profits, ²Recalibrated, inclusive of Pillar 2A requirements that were reinstated by the Prudential Authority from 1 January 2022

2.1 Segmental disclosures

AFRICA IS OUR HOME WE DRIVE HER GROWTH

Pointe Des Cavernes Lighthouse – Mauritius

Continued strong earnings growth across our diversified portfolio¹

¹Standard Bank Activities excluding Liberty and ICBCS, ² Pre R1 128m Centre segment costs, ³Regional split based on legal entity, South Africa is SBSA

All businesses delivered positive contributions to headline earnings growth

¹ Based on ICBCS headline earnings and NAV on page 86 of the financial analysis booklet

Our South Africa franchise is sizable and growing

	SBSA FY22 Rbn	SBSA FY21 Rbn	Change %
Net interest income	45.6	40.8	12
Non-interest revenue	36.0	32.0	13
Total income	81.6	72.8	12
Operating expenses	(48.4)	(44.9)	8
Pre-provision profit	33.2	27.9	19
Credit impairment charges1	(8.6)	(7.8)	10
Headline earnings	16.3	12.9	26
Credit loss ratio, bps	69	68

2017 2018 2019 2020 2021 2022

Headline earnings and ROE

Net loans and advances Credit impairment charges on loans and advances

Capital adequacy

¹Credit impairment charges including financial investments and letters of credit

Cost-to-income ratio, % 59.7 62.0

Jaws, bps 427 221

ROE, % 15.2 12.5

Africa Regions portfolio delivered a robust performance

¹Kenya, South Sudan, Tanzania, Uganda, 2 Botswana, Eswatini, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Zambia, Zimbabwe, ³Angola, DRC, Ghana, Côte d'Ivoire, Nigeria

The value of our Africa Regions portfolio is in its diversity and its growth profile

Headline earnings by region

¹Angola CAGR based on 2014 to 2021, ² 2022 not split as Africa Regions subsidiaries have not yet reported

2.2 FY23 outlook

AFRICA IS OUR HOME WE DRIVE HER GROWTH

Idanre Hills – Nigeria

FY23 outlook – remains uncertain

Global

• Geopolitical tension and a global economic slowdown are a concern
• IMF growth forecast 2.9% in 2023 and 3.1% in 2024¹

Sub-Saharan Africa

• 3.8% GDP growth in 2023, accelerating to over 4% over the medium term¹
• Sovereign credit deterioration is a risk other African countries could also experience fiscal constraints during 2023, however overall region growth expected to remain robust

South Africa²

• We expect GDP growth of 1.2% in 2023, improving to 1.7% in 2024
• There is downside risk if the electricity crisis cannot be brought under control
• But upside if structural reform and infrastructure investment accelerate

Continued ROE progress into the target range

¹Approaching 50%

FY23 guidance – upward trajectory on returns and dividends

Key drivers	FY23 guidance	Key drivers
Net interest income	Low-teen growth	Supported by balance sheet growth and continued endowment tailwinds1 •
Non-interest revenue	Mid-single digit growth	• Continued growth in active clients and transactional activity will support fees • Focus on sustaining trading revenues
Efficiency	Positive jaws	• Focused on delivering below-inflation cost growth
Credit loss ratio	Above the mid-point of our TTC2 range of 70 bps – 100 bps	• Difficult macroeconomic conditions will put pressure on clients
ROE	Continued progress into the 2025 target range of 17% – 20%	• Focus on optimisation of capital deployed
Dividend payout ratio	45% – 60%	• Supported by strong capital generation

¹SBSA, 100 bps increase equates to approximately R1.4 bn net interest income annualised, ²Through-the-cycle

⁰³ Progress towards 2025 targets

Chimanimani – Zimbabwe

Well-positioned and diversified franchise, focused on continued delivery

1

• Strong strategic and financial progress excellent performance across all our businesses and geographies
• Took steps to optimise our capital but maintaining sufficient financial resources to support our clients and grow the franchise 2
• Well on our way to achieving our 2025 targets 3

FY22 – we delivered FY23 – our focus areas

• Capture the sustainable finance opportunity, particularly in renewables in South Africa 2
• 3
• Progress on our path to deliver our 2025 commitments
• Optimise our capital structure and rebalance our portfolio to achieve a higher ROE within our target range 4

¹2025 targets are as laid out in our Strategy Day in August 2021, ²Approaching 50%

… which we are on track to deliver¹

Additional segmental disclosure

Blantyre – Malawi

CHNW¹ performance reflective of underlying franchise momentum

	CHNW FY22 Rbn	CHNW FY21 Rbn	Change %
Net interest income	32.6	28.5	15
Non-interest revenue	21.3	19.8	8
Total income	53.9	48.3	12
Operating expenses	(32.8)	(29.6)	11
Pre-provision profit	21.1	18.7	13
Credit impairment charges	(7.7)	(7.9)	(3)

Headline earnings	8.9	7.0	27
Credit loss ratio, bps	122	134
Cost-to-income ratio, %	60.8	61.4
Jaws, bps	104	91
ROE, %	17.3	14.0

¹Consumer and High Net Worth

Highlights

• Total income increased due to loan growth, higher average interest rates, increase in the active client base, higher transactional activity, and annual price increases
• Operating expenses driven by higher inflation and increased investment in digital capabilities
• Credit impairment charges decrease driven by intensified focus on collection strategies and normalisation of payment holiday portfolio
• Headline earnings driven by the post-Covid economic recovery across all markets and an associated improvement in client activity

Total income by geography, Rbn

CHNW client franchise and activity growth drove NIR

Strong BCC¹ recovery as business activity improved and interest rates normalised

	BCC FY22 Rbn	BCC FY21 Rbn	Change %
Net interest income	20.4	15.8	29
Non-interest revenue	12.2	10.9	12
Total income	32.6	26.7	22
Operating expenses	(18.7)	(16.6)	13
Pre-provision profit	13.9	10.1	38
Credit impairment charges	(2.3)	(2.3)	(1)

Headline earnings	8.0	5.3	51
Credit loss ratio, bps	96	111
Cost-to-income ratio, %	57.4	62.3
Jaws, bps	963	(27)
ROE, %	33.7	24.7		Rbn

Highlights

• Total income growth driven by higher average balances and average interest rates, recovery in client transactional volumes (as lockdowns eased), increased foreign exchange trade volumes, and updated pricing
• Operating expenses impacted by higher inflationary environment, continued investment in technology initiatives to support client journeys and capability building along with increased incentives and marketing
• Credit impairment charges largely flat
• Headline earnings influenced by positive franchise growth assisted by the post pandemic market recovery

Total income by geography, Rbn

¹Business and Commercial Clients

BCC revenues boosted by increased client activity

CIB¹ performance dampened by the normalisation of credit charges

	CIB FY22 Rbn	CIB FY21 Rbn	Change %
Net interest income	24.3	18.6	31
Non-interest revenue	24.5	21.1	16
Total income	48.8	39.7	23
Operating expenses	(23.9)	(21.3)	12
Pre-provision profit	24.9	18.4	35
Credit impairment charges	(2.5)	0.4	>100

Headline earnings	14.8	13.3	11
Credit loss ratio2 , bps	37	(5)
Cost-to-income ratio, %	49.1	53.7
Jaws, bps	1 067	212
ROE, %	19.2	19.4

Highlights

• Total income growth driven by balance sheet growth, positive endowment impact of higher interest rates and increase in trading revenues underpinned by increased client activity
• Operating expenses reflective of inflationary pressures
• Credit impairment charges driven by Ghana sovereign distress and related impact on the corporate portfolio and specific impairments raised in the consumer sector
• Headline earnings growth underpinned by our ability to capture opportunities in response to emerging client needs

¹Corporate and Investment Banking, ² CLR to customers, ³ TPS – Transactional products and services, IB – Investment Banking, GM – Global Markets, ⁴Other amounted to R0.4bn in 2020, R0.4bn in 2021 and R0.5bn in 2022

Client revenue increased across all sectors and geographies

Real Estate

Sovereign & Public Sector

Client revenue by sector, +31% Total income by geography, +23%¹

¹ TPS – Transactional Products and Services, GM – Global Markets, IB – Investment Banking

Liberty's core business continued to recover post Covid

	FY22 Rm	FY21 Rm	Change %
South African Insurance Operations	1 705	1 308	30
STANLIB South Africa	435	472	(8)
Africa Regions	(75)	(65)	(15)
Group Strategic Initiatives and Centre	(493)	(366)	(35)
Normalised operating earnings (pre Covid-19 impact)	1 572	1 349	17
Covid-19 impact	165	(2 959)	>100
Normalised operating earnings (post Covid-19 impact)	1 737	(1 610)	>100
Shareholder Investment Portfolio (SIP)	323	1 554	(79)
Normalised headline earnings/ (loss)	2 060	(56)	>100

Highlights

• South African insurance operations increase driven by higher insurance sales with increased margins. SA Retail complex risk persistency improved, and Liberty Corporate returned to profitability
• STANLIB SA decreased due to adverse investment market returns, negatively impacting AUM and fees earned
• Liberty Africa earnings impacted by the Health operations
• Covid-19 pandemic reserve released as the impact of the pandemic on Liberty's business reduced in 2022

Normalised operating earnings by business unit, Rm¹

¹Africa Regions was R41m, –R65m and –R75m in 2020, 2021 and 2022 respectively, Other was –R468m, -R366m and –R493m in 2020, 2021 and 2022 respectively,

ICBC Standard Bank plc benefitted from increased integration into ICBC

ICBCS FY22 performance

SBG's share of earnings

	FY22	FY21
ICBCS earnings, USDm	313	87
@ % stake	40%	40%
SBG attributable earnings, USDm	125	35
ZAR/USD1	15.3	14.4
SBG attributable earnings, Rm	1 917	500

1 Represents the effective exchange rate from converting monthly ICBCS results to ZAR

Disclaimer – Forward-looking statements

The Group may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, expectations, developments and business strategies and have not been reviewed or reported on by the Group's external auditors.

By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements.