Standard Bank has reported higher full-year earnings as the banking businesses delivered a strong performance on the back of solid balance sheet growth and increased fees and trading revenues.
The group, South Africa’s biggest bank by assets, reported an 11% increase in headline earnings to R49.2bn for the year ended December, while headline earnings per shares were up 12% at 3,025.7c.
Attributable profit was 12% higher at R49.1bn.
The group delivered a return on equity (ROE) of 19.3% — at the top end of its 2025 ROE target range of 17%-20%.
A final dividend of 878c per share was declared, taking the total dividend for the year to 1,695c, up 12%.
CEO Sim Tshabalala said the performance was underpinned by the group’s diversified and growing franchise.
Credit impairment charges were lower year on year, supported by an improving macroeconomic environment, and costs were well managed, the group said.
Insurance & Asset Management continued to deliver strong earnings growth and improved returns.
The group boosted the active client base to 19.6-million, driven by growth not only in South Africa but throughout the rest of the African continent. In South Africa, targeted initiatives to grow digital retail transactional clients resulted in a 9% increase in digital clients, a 5% increase in digital transactional volumes, and an increase in the proportion of clients who transact digitally to 67%, it said.
The group’s South African franchises delivered earnings of R24.9bn, the Africa Regions R19.7bn, the offshore businesses R3.1bn and the contribution from the group’s 40% stake in ICBC Standard Bank was R1.5bn, contributing 51%, 40%, 6%, and 3% respectively to group headline earnings.
The key contributors to Africa regions’ headline earnings were Angola, Ghana, Kenya, Mauritius, Nigeria, Tanzania, Uganda and Zambia, it added.
Looking ahead, the group said its diversified franchise is well placed to benefit from the improving macroeconomic environment and the associated increase in economic activity. The improvements should support group balance sheet growth and reinforce existing strong earnings momentum.
However, geopolitical developments in the Middle East introduce uncertainty.
It said the opportunities across Africa remain significant, but it recognises the challenges posed by intensifying competition, including from fintechs, evolving regulatory dynamics, and the accelerating role of artificial intelligence and other advanced technologies.
For the year ending December 2026, it expects banking revenue growth to be mid-to-high single digits supported by ongoing business momentum.
The cost-to-income ratio is expected to decline slightly, driven by continued disciplined cost management and ongoing franchise investment.
The credit loss ratio is expected to increase but remain in the bottom half of the through-the-cycle target range of 70–100 basis points and ROE is seen increasing from 2025’s 19.3%.
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