Standard Bank Group has once again demonstrated its financial strength and commitment to growth, reporting headline earnings of R22.0 billion and a return on equity of 18.5% for the first half of 2024. This performance is driven by the bank’s expanding client base, increased digital adoption, and strategic capital allocation.
Financial Highlights:
Headline earnings: R22.0 billion, a 4% increase
Headline earnings per share: 1,329 cents, up 4%
Net asset value per share: 14,564 cents, up 5%
Interim dividend per share: 744 cents, up 8%
Return on equity (ROE): 18.5%
Common equity tier 1 ratio: 13.5%
Cost-to-income ratio: Improved to 49.7%
Credit loss ratio: Reduced to 92 bps
Sim Tshabalala, Standard Bank Group CEO says: “Our performance is underpinned by continued franchise growth in our banking businesses and robust earnings growth in our insurance and asset management business. The South African franchise delivered double-digit earnings growth supported by improving credit trends. The Africa Regions’ franchise delivered another exceptional performance in local currency. We remain committed to leveraging opportunities across the continent to drive sustainable growth and deliver value to our stakeholders.”
Operational Achievements:
- Active clients increased by 5% to 19.5 million.
- Digitally active retail clients in South Africa grew by 7%.
- Africa Regions contributed 41% to group headline earnings, with top contributors including Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda, and Zambia.
Capital and Dividends:
- Maintained a strong common equity tier 1 ratio of 13.5%.
- Declared an interim dividend of 744 cents per share, an 8% increase.
Sustainable Finance Initiatives:
- Mobilised over R21 billion in sustainable finance in the first half of 2024.
- Aims to mobilise over R250 billion for sustainable finance solutions by 2026.
Economic Environment: Global uncertainty and geopolitical tensions shaped macroeconomic trends in the first half of 2024. South Africa saw improvements in energy and logistics, supported by private sector initiatives. The May 2024 election, deemed free and fair, boosted market confidence and is expected to accelerate policy reforms.
Future Outlook: The IMF forecasts global GDP growth of 3.2% for 2024 and 3.3% for 2025. Standard Bank expects South African GDP growth of 1.1% in 2024, improving to 1.8% in 2025. Across the group’s portfolio of sub-Saharan African countries, outside of South Africa, GDP growth is anticipated to be above 4% in the short term and closer to 5% in the medium term.
Tshabalala says, “The group’s strong capital position, together with our well-diversified and resilient earnings streams, provide us with both the scope and flexibility to pay dividends and to fund the growth opportunities our portfolio of businesses present. These include, most notably, increased investments in our subsidiaries in Angola and Nigeria, funding to support growth opportunities in South Africa and the East Africa Region, and more broadly, to capture a leading share of the client opportunities surrounding Africa’s just energy transition.
Tshabalala says, “In 2H24, we will continue to support our clients, develop our employees, and deliver sustainable growth and increased value to our shareholders and other stakeholders. We are focused on delivering against our strategic priorities and remain on track to deliver on our 2025 targets, as well as our ambitious sustainable finance targets. And finally, anchored by our purpose, we will grow Africa, her businesses and her people.”
Standard Bank is well-positioned to navigate uncertainty, mitigate risks, and continue delivering strong earnings and attractive returns.
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