Table of Contents
Key Points
- Standard Bank, led by Sim Tshabalala, reports resilient H1 earnings despite tough economic conditions.
- Headline earnings up 4%, driven by loan growth, higher interest income, and controlled costs.
- Standard Bank eyes North African market, building on strong H1 results as it seeks to grow beyond sub-Saharan Africa.
Standard Bank, a financial services giant led by South African banker Sim Tshabalala, reported a resilient financial performance in the first half of 2024, despite challenging macroeconomic conditions and geopolitical tensions.
The group’s headline earnings, the primary measure of profitability for South African companies, rose four percent to R22 billion ($1.22 billion) from R21.1 billion ($1.17 billion) in the same period last year. This increase was driven by continued franchise growth in banking and robust insurance and asset management expansion.
Lender’s loan book expands as costs remain under control
The 7 percent rise in interest income to R50.65 billion ($2.81 billion) from R47.25 billion ($2.62 billion) supported the growth in headline earnings. Average balance sheet growth, higher margins, and income on liquid assets recorded at amortized cost contributed to this increase.
Improved credit charges and a three-percent rise in gross loans and advances to R1.7 trillion ($94.44 billion) also supported the group’s financial performance. Disciplined cost management led to a one-percent increase in operating expenses to R38.4 billion ($2.13 billion), while total other operating expenses decreased by 1 percent.
Sim Tshabalala’s Standard Bank charts North African course
As Africa’s largest lender by assets, Standard Bank boasts a $22-billion market capitalization on the Johannesburg Stock Exchange (JSE), making it one of the continent’s most valuable financial services providers. The group is expanding its geographic reach beyond sub-Saharan Africa under Sim Tshabalala’s leadership.
Standard Bank applied for a banking license in Egypt earlier this year, aligning with its strategic priority to explore North African expansion opportunities. The group continues to reassess growth opportunities in North Africa, building on its resilient financial performance in the first half of 2024.
South African lender grows balance sheet, boosts dividend
Standard Bank’s total assets increased to R3.1 trillion ($172.22 billion) from R3.028 trillion ($168.2 billion), while total equity attributable to shareholders rose to R280.12 billion ($15.56 billion) from R272.15 billion ($15.12 billion).
The group’s retained earnings also improved to R220.65 billion ($12.25 billion) from R201.3 billion ($11.18 billion). The board approved an interim dividend of R7.44 ($0.413) per share, up 8 percent from the previous period, representing a payout ratio of 56 percent.
