Standard Bank has reported a 4% rise in full-year headline earnings, underpinned by continued balance sheet growth.
The group also benefited from lower credit impairment charges, flat costs in the banking franchise and a robust performance in Insurance & Asset Management, it said in a statement on Thursday.
The group delivered R44.5bn of headline earnings for the year ended December, or R26.91 per share, and a return on equity of 18.5% from 18.8% a year ago.
It declared a final dividend of R7.63 per share, taking the total dividend to R15.07 per share, an increase of 6% on the previous year. Attributable profit was down 1% at R43.73bn.
Net interest income rose to R101.25bn from R98.19bn before, while non-interest revenue was flat at R61.09bn from R62bn before.
Standard Bank’s growth in loans and advances was muted at 2% year on year due to lower consumer affordability levels and lower demand for credit as interest rates remained high on average in 2024.
Corporate lending grew by 5%, driven by higher investment in energy and infrastructure.
In SA, gross loans and advances to customers grew by 4% to R1.3-trillion. Africa Regions’ loans and advances to customers grew by 9% in constant currency but remained flat in rand terms.
Standard Bank’s total provisions for credit impairments increased by 2% year on year to R65bn. Total deposits increased by 6% year on year to R2.2-trillion.
Standard Bank CEO Sim Tshabalala said the franchise recorded strong underlying organic growth across the banking, insurance and asset management businesses.
In 2024, the group's client franchise health showed improvements across several metrics, the group said. Active clients grew by 4% to 20-million, driven largely by growth in SA. Digitally active retail clients in SA grew by 6% as more clients transitioned to digital channels.
“Our SA franchise delivered double-digit earnings growth supported by increased client activity and improving credit trends. Our Africa Regions' franchise delivered another exceptional performance, growing earnings by 22% in local currency,” said Tshabalala.After taking the currency headwinds into account, especially in Angola and Nigeria, Standard Bank’s Africa Regions' portfolio delivered earnings of R18bn, marginally down on the prior period, and a ROE of over 28%. In the 2024 financial year, Africa Regions contributed 41% to group headline earnings.
Key contributors to Africa Regions’ headline earnings were Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda and Zambia.
“We are pleased to report that we are well on our way to meet our target of more than R250bn of sustainable finance mobilisation by the end of 2026. Since we began recording this data in 2022, Standard Bank has cumulatively mobilised over R177bn in sustainable finance, R74bn of which was added in 2024 alone,” said Tshabalala.
Standard Bank said while recent global developments, driven primarily by US policy changes and related tariffs, could lead to trade disruptions and inflation pressures, those were expected to be temporary and were not expected to disrupt the significant medium- and long-term opportunities it saw across Africa.
“Across Standard Bank’s portfolio of sub-Saharan African countries outside of SA, economic headwinds are expected to moderate and currencies to be more stable in 2025,” said Tshabalala.
In SA, inflation is expected to remain well anchored in the target band of 3%-6% and interest rates are expected to decline to 7.25% with one more 25 basis point interest rate cut in March and then remain flat for the rest of the year.
This, together with ongoing policy reform and improved business and consumer confidence, will support economic growth.
“We are focused on delivering against our strategic priorities and remain on track to deliver on the 2025 targets we committed to in August 2021.”
For financial year 2025, Standard Bank expects banking revenue growth of mid-to-high single digits in rand terms, with banking revenue growth slightly higher than operating expenses growth, resulting in a marginally declining cost-to-income ratio year on year. It expects group ROE will remain well anchored in the group's 2025 target range of 17%-20%.
The group set new medium-term targets for 2026-2028 of headline earnings per share (HEPS) growth of 8%-12% and ROE target range of 18%-22%.
“As we look beyond 2025, our footprint, people and capabilities provide us with access to many exciting opportunities linked to Africa's development. We will both defend and grow our core businesses and pursue growth opportunities. We will focus on opportunities where we have a clear competitive advantage and that provide accretive risk-adjusted returns,” Tshabalala said.
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