Standard Bank has posted a 4% increase in headline earnings for the 2024 financial year, largely driven by continued growth in its balance sheet and improved performance across its key divisions. The group recorded R44.5 billion in headline earnings, with earnings per share rising to R26.91. Although net operating profit dipped slightly to R43.73 billion, the group declared a total dividend of R15.07 per share — a 6% increase from the previous year. The bank’s net interest income climbed to R101.25 billion, reflecting growth in corporate lending, particularly in the energy and infrastructure sectors.
While credit demand among South African consumers remained subdued due to high interest rates, corporate lending rose by 5%. In addition, customer loans and advances in South Africa increased by 4%, while the Africa Regions segment grew by 9% in constant currency terms. However, the stronger rand dampened the performance of some key regions like Angola and Nigeria, ultimately keeping overall Africa Regions’ earnings flat in rand terms.
Standard Bank’s digital strategy showed promising results, with digitally active clients in South Africa rising by 6%. The bank now has 20 million active clients, largely driven by increased activity in its South African franchise. The insurance and asset management divisions also contributed positively to the group’s growth. The Africa Regions segment contributed 41% to overall headline earnings, with countries like Ghana, Kenya, and Zambia being key growth drivers.
Looking ahead, Standard Bank expects inflation in South Africa to remain within the 3%-6% target range, with interest rates projected to fall to 7.25%. The bank remains optimistic about Africa’s economic prospects despite global uncertainty driven by US policy shifts. Standard Bank has set ambitious growth targets for the next three years, aiming for headline earnings growth of 8%-12% and maintaining its return on equity within the 18%-22% range. With a strong financial position and clear strategic focus, Standard Bank believes it is well-positioned to capitalise on emerging opportunities across Africa.