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South African partner cuts value of stake in UK venture with China's ICBC

South Africa-based Standard Bank Group Ltd. cut the value of its stake in ICBC Standard Bank PLC to $220 million from $383 million at the end of September, citing deteriorating market conditions and lower client flows at the U.K. bank.

The group said ICBC Standard Bank was failing to deliver appropriate returns on a stand-alone basis. It recognized the $163 million decrease in value in the group earnings attributable to shareholders as of Sept. 30, 2019. Adjusted for this impairment, earnings attributable to ordinary shareholders were 2% higher year-on-year in the nine months to Sept. 30.

The group also said it held sufficient capital to meet the regulatory requirements at the end of September.

Standard Bank Group will release its Basel III disclosure as of Sept. 30 in November. In August, the group reported first-half unaudited profit attributable to ordinary shareholders of 13.20 billion South African rand.

Industrial & Commercial Bank of China Ltd. owns the remaining 60% stake in ICBC Standard Bank.

As of Oct. 22, US$1 was equivalent to 14.61 South African rand.