Standard Bank is confident it will meet its targets and continue to create long-term value for stakeholders, it said on Thursday.
The group’s targets for 2026 to 2028 are HEPS growth of 8%-12% per year and a return on equity target range of 18%-22%.
It is targeting revenue growth of 7%-10% per annum, with a cost-to-income ratio sustainably below 50%. It expects the credit loss ratio to be within a target range of 70 to 100 basis points. The dividend payout ratio target is 45% to 60%.
Releasing a voluntary update ahead of its capital markets day, the group said it is entering its next strategic period from a position of significant strength.
“The group’s strategy for 2026 to 2028 is rooted in continued disciplined execution and diligent capital allocation to maximise the value of the group’s diversified portfolio.
The group plans to invest in capabilities that will define the future of financial services, including technology, payments and AI, “while ensuring that it maintains the resilience, prudence and client-centricity that have defined the group for more than 160 years,” it said.
The group has successfully delivered on its strategic commitments and core targets laid out in August 2021, demonstrating its ability to execute effectively, even in periods of economic volatility, it added.
At the group’s capital markets day on Thursday, executives will outline how the company will leverage its network and capabilities to capture the trends driving Africa’s growth.
“In doing so, Standard Bank will accelerate growth, strengthen its competitiveness and unlock long-term value,” it said.
Earlier this month Standard Bank reported it had outperformed the targets set out in 2021, nearly doubling its profit in the period to a record R49.2bn in the year to end-December with about 40% of this coming from its rest of Africa franchise.
The R4.7bn increase in group earnings in the year was largely due to a surge in earnings in the corporate and investment banking franchise, which reported a R3.6bn increase in profit in the period under review.
With Kabelo Khumalo
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