Standard Bank Group has announced a record-breaking year, exceeding financial goals set four years prior and delivering substantial returns to its shareholders. Headline earnings soared to R49.2 billion, equivalent to $3 billion, a testament to the bank’s strategic execution and robust performance across its diverse operations.
This exceptional result translated into a 12 percent increase in dividends, reaching 1,695 cents per share, and propelled the return on equity (ROE) to 19.3 percent – firmly within the targeted 17 to 20 percent range. A strong capital position, evidenced by a common equity tier 1 ratio of 13.8 percent, underpinned this impressive payout.
“We keep our promises and we meet our targets,” declared CEO Sim Tshabalala, emphasizing the validation of the group’s 2021 strategy and its proven ability to deliver on commitments. The bank’s success isn’t confined to South Africa; a significant shift is underway.
Africa is now central to Standard Bank’s success, with operations outside of South Africa contributing a remarkable 40 percent to overall group earnings. Subsidiaries across the continent, from Angola to Zambia, demonstrated resilience despite varying economic conditions, showcasing the strength of a truly pan-African model.
The Corporate and Investment Banking (CIB) division led the charge, experiencing an 18 percent surge in headline earnings and an ROE exceeding 22 percent. Insurance and Asset Management (IAM) followed closely, boasting the fastest growth with a 26 percent increase in earnings and assets under management reaching R1.8 trillion.
A focused drive on efficiency has yielded tangible results, with the cost-to-income ratio improving to 50.2 percent – nearing the group’s target. This represents a significant reduction from 59.1 percent in 2020, driven by investments in automation and streamlined processes.
Beyond financial performance, Standard Bank is making substantial strides in sustainable finance, mobilizing R100 billion for clients in 2025 alone, bringing the total since 2022 to over R277 billion. Responding to this momentum, the bank has ambitiously raised its target to R450 billion by 2028.
Looking ahead, the outlook is cautiously optimistic, anticipating global GDP growth of 3.3 percent in 2026 and accelerating growth in sub-Saharan Africa. The bank forecasts declining interest rates in South Africa and anticipates continued, albeit moderate, economic expansion.
Standard Bank projects mid-to-high single-digit revenue growth for the coming year, a slight decrease in the cost-to-income ratio, and a maintained credit loss ratio within its target range. The bank aims for continued ROE growth, consistently within the 18 to 22 percent range through 2028.
Despite this positive outlook, the bank acknowledges ongoing geopolitical risks, particularly in the Middle East, which could impact trade, inflation, and growth. The group remains vigilant, incorporating these uncertainties into its planning.
Recognition of the bank’s achievements has been widespread, earning the title of Africa’s and South Africa’s Most Valuable Bank Brand for the fifth consecutive year. Further accolades include recognition as a top employer globally and among the World’s Most Trustworthy Companies.
