Standard Bank posts record earnings

by SAVIOUS KWINIKA 
JOHANNESBURG, (CAJ News) – STANDARD Bank Group has reported record headline earnings of R26.1 billion for the six months ended 30 June 2026, representing a 10% increase, while return on equity (ROE) improved to 19.8%, comfortably within its 2028 target range of 18% to 22%.

The Johannesburg-based banking group said the performance reflected strong client-led growth, higher non-interest revenue, disciplined cost management, lower credit impairments and continued investment in technology, people and capabilities.

Headline earnings per share rose 10% to 1,610 cents, while the interim dividend increased by 10% to 902 cents per share.

The cost-to-income ratio improved to 49.3%, from 49.5% a year earlier, while the credit loss ratio fell to 73 basis points from 93 basis points.

Standard Bank Group chief executive Sim Tshabalala said the results demonstrated the strength and resilience of its diversified African franchise.

“Africa Regions contributed 40% of Group headline earnings, while our South African business delivered strong earnings growth and a substantial improvement in ROE,” Tshabalala said.

South Africa generated R13.4 billion, or 51%, of group headline earnings, while operations elsewhere in Africa contributed R10.4 billion, equivalent to 40%.

Offshore businesses added R1.3 billion, and the group’s 40% stake in ICBC Standard Bank contributed R1 billion.

Corporate & Investment Banking was the strongest-performing major business, increasing headline earnings by 15% and achieving an ROE of 24.8%.

Insurance and Asset Management also increased earnings by 15%, while Business & Commercial Banking and Personal & Private Banking recorded slight declines.

The bank said its payments franchise continued to support growth, with domestic electronic payment values rising 11% and cross-border values increasing 7%.

Standard Bank retained market shares of 30% in South Africa and 19% across its African markets for cross-border payments.

The group’s total assets under administration and management increased 14% to R1.8 trillion.

Standard Bank has also mobilised R328 billion in sustainable finance since 2022 towards its R450 billion 2028 target, including R50.6 billion during the first half of 2026.

Tshabalala said Africa’s growth prospects remained significant despite intensifying competition, regulatory changes and rapid technological advances.

For 2026, the group maintained its guidance for mid-to-high single-digit banking revenue growth, a slightly lower cost-to-income ratio, a credit loss ratio within the lower half of its 70-100 basis-point target range, and higher ROE.

– CAJ News