South African banking executive Sim Tshabalala, the CEO of Standard Bank, Africa’s largest lender by assets, reaffirmed the institution’s dedication to its climate policy and sustainable finance objectives. This comes hot on the heels of the bank’s impressive 2023 financial performance, with its headline earnings rising above $2.3 billion.
The banking behemoth’s impressive financial performance has been shadowed by criticism from climate change activist groups concerning its financing of fossil fuels. Despite this scrutiny, Tshabalala has remained resolute in Standard Bank’s approach, advocating for what he terms a “Just Transition” for African nations.
“We support a Just Transition that aims to achieve environmental sustainability while creating decent work opportunities and promoting social inclusion,” Tshabalala affirmed during the conference. “By 2030, Standard Bank aims for net-zero carbon emissions from its newly built facilities, and by 2040, we plan to achieve net-zero carbon emissions from existing operations.”
Standard Bank’s sustainable finance: Driving growth with $2.66 billion mobilized in 2023
Standard Bank’s sustainable finance portfolio has emerged as one of its fastest-growing sectors. The institution disclosed that in 2023 alone, it mobilized over R50 billion ($2.66 billion) for corporate clients committed to sustainable initiatives.
Additionally, it provided substantial financial support to small and medium-sized enterprises (SMEs) to facilitate their transition to affordable and reliable alternative energy solutions.
Furthermore, Standard Bank has actively participated in the government’s Energy Bounce-Back Loan Scheme, with its solar lending initiative LookSee experiencing a notable 26-percent growth in 2023, reaching almost R3 billion ($160 million).
Tshabalala expressed his satisfaction with the bank’s overall performance, attributing its success to a “differentiated franchise” and the momentum across its various business segments. He particularly highlighted the significant contributions from the African regions and offshore franchises.
Standard Bank Group thrives: 27-percent surge in earnings under CEO Sim Tshabalala’s leadership
Standard Bank Group, under the leadership of Tshabalala, operates in 20 countries across Sub-Saharan Africa. As per the recently published annual report, the institution reported a 27-percent surge in headline earnings and a 20-percent increase in total net income, driven by robust growth in net interest income and non-interest revenue.
Despite facing criticism, Standard Bank remains steadfast in its commitment to balancing financial success with environmental responsibility, charting a course toward a sustainable future while navigating the complexities of modern finance.
