Standard Bank Group announces higher earnings and increased dividends

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This performance is driven by the bank’s expanding client base, increased digital adoption, and strategic capital allocation.

The financial highlights indicate a 4% increase in headline earnings per share, reaching 1,329 cents, while the net asset value per share grew by 5% to 14,564 cents. The interim dividend per share rose by 8% to 744 cents. Additionally, the common equity tier 1 ratio is 13.5%, with an improved cost-to-income ratio of 49.7% and a reduced credit loss ratio of 92 basis points.

Sim Tshabalala, Standard Bank Group chief executive officer 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.”

The operational achievements include a 5% increase in active clients, bringing the total to 19.5m. In South Africa, digitally active retail clients grew by 7%. The Africa Regions contributed 41% to the group's headline earnings, with significant contributions from Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda, and Zambia.

In terms of capital and dividends, the company maintained a robust common equity tier 1 ratio of 13.5% and declared an interim dividend of 744 cents per share, reflecting an 8% increase.

In its sustainable finance initiatives, the company mobilised over R21bn in the first half of 2024 and aims to mobilise more than R250bn for sustainable finance solutions by 2026.

Economic growth outlook

In the first half of 2024, global uncertainty and geopolitical tensions influenced macroeconomic trends. In South Africa, there were improvements in energy and logistics, bolstered by private sector initiatives. The May 2024 election, which was regarded as free and fair, enhanced market confidence and is anticipated to accelerate policy reforms.

The future outlook includes the IMF's forecast of global GDP growth at 3.2% for 2024 and 3.3% for 2025. Standard Bank projects South African GDP growth of 1.1% in 2024, with an improvement to 1.8% in 2025. For the group’s portfolio of sub-Saharan African countries, excluding South Africa, GDP growth is expected to exceed 4% in the short term and approach 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 notes, “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.