By Adelaide Changole.
Standard Bank Group’s profit grew at the slowest pace since 2020 as Africa’s biggest lender by assets felt the impact of weaker local currencies on the performance of its 20 businesses across the continent.
Headline earnings climbed 4% to R44.5 billion ($2.4 billion). That was in line with the median Bloomberg estimate of R44.8 billion. The lender declared a final dividend of R7.63 per share, bringing the total payout for the year to R15.07.
Currency devaluations in various markets, which dilute performance in rand terms, affected the profit. Earnings in local-currency terms surged 22% in the Africa Regions segment, but the depreciations saw the unit’s contribution to headline earnings drop to 41% from 42% a year earlier.
The bank’s South Africa business — its biggest — increased headline earnings by 11%. A broad economic recovery helped the unit, buoyed by more consistent power supply from state-run utility Eskom, which reduced the number of blackouts the country suffered.
Customers increased 4% to 20 million, driving deposits up 6% to R2.2 trillion. Gross loans and advances also grew 2%.
Growth in net interest income slowed to 3%, while non-interest revenue was flat for the period as gains in fees and commissions weren’t sufficient to counter losses on financial instruments.
Standard Bank has cumulatively mobilised more than R177 billion in sustainable finance since 2022, with R74 billion added in 2024 alone, putting the lender on track to meet its target of lending more than 250 billion by the end of 2026.
The company’s shares climbed for a second day, rising as much as 3.9% to touch the highest level since December 19, before paring gains to 3.4% by 9:35 a.m. In Johannesburg.