Africa’s biggest lender by assets, Standard Bank Group has released its financial results demonstrating a strong performance for the first half of the year. The bank posted positive results majorly driven by its extensive network and reach across 20 countries as well as its diverse operations. The bank has also been keen on increasing its client base.
The bank recorded a 4% increase in headline earnings, clocking R22 billion ($1.21 billion), up from R21.23 billion ( $1.17 billion) last year. Earnings per share also rose to 1,328.7 cents ($0.73) from 1,280.6 cents ( $0.71).
The financial results were supported by strong organic growth across the bank’s core operations and its insurance and asset management units.
The group has declared an interim dividend of 744 cents per share ($0.41), marking an 8% increase from the previous year.
CEO Sim Tshabalala said the results were driven by substantial growth in client franchises, enhanced digital services, and diligent capital allocation.
“This result is underpinned by strong organic growth driven by our growing client franchises, our increasingly digital clients, and our continued diligent allocation of capital,” Tshabalala said.
Standard Bank’s performance highlights
The banking unit saw headline earnings grow by 6% in rand terms and a robust 19% in constant currency. Gross loans and advances increased by 3% to R1.7 trillion ($93.5 billion), while deposits grew by 2% to R2 trillion ($110 billion).
In constant currency, deposits were up 6%, with significant growth in Africa’s regions. In South Africa, deposits rose by 4%, driven by term deposit growth. Meanwhile, in East and West Africa, deposits surged by more than 20% in constant currency.
Net interest income climbed by 7%, fueled by average balance sheet growth, higher margins, and the inclusion of income from liquid assets recorded at amortised cost. Net fee and commission revenue rose by 4% to R15.1 billion ($830 million), reflecting growth in the active client base and increased fees across various banking services.
Insurance and asset management
The Insurance & Asset Management franchise reported a 19% increase in headline earnings to R1.6 billion ($88 million), with a return on equity (ROE) improving to 15.5%.
Insurance operations saw a 15% rise in earnings to R2.1 billion ($115 million), enhanced by improved retail persistency, lower new business strain, and risk claims in line with expectations. The new business value for insurance operations increased by 13% to R1.6 billion ($88 million). This was driven by higher sales and better margins.
However, asset management operating earnings fell by 19% to R472 million ($26 million), primarily due to the devaluation of the Nigerian naira, which negatively impacted translated first-half earnings.
Standard Bank’s outlook
Standard Bank expects interest rates to be cut by 25 basis points in September and November, with an additional 50 basis points in the first half of 2025. The bank anticipates inflation will ease, allowing for further rate cuts. Additionally, the bank is hopeful that ongoing reforms and improved consumer confidence will boost economic growth.
Despite the overall positive results, challenges remain due to currency devaluations across Africa, which impact 41% of the lender’s earnings. Increased competition and high interest rates have also affected demand and affordability in retail portfolios. That said, corporate and sovereign lending, especially in energy and infrastructure, remains strong.
