By Adelaide Changole.
Standard Bank Group, Africa’s biggest lender by assets, reported first-half profit climbed to a record as fee growth and trading revenue helped offset a slowdown in interest income.
Headline earnings at the Johannesburg-based lender grew 8% to R23.8 billion ($1.35 billion), the Johannesburg-based lender said in a statement on Thursday. Net income available to shareholders increased 11% to R23.8 billion, while the lender’s return on equity (ROE) climbed to 19.1%
Net fee and commission revenue jumped 12%, while net interest income rose 2% as lower average interest rates compressed loan margins. Headline earnings at the bank’s rest-of-Africa operations climbed 8%, with Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda and Zambia ranking as its top eight contributors. The unit now makes up 41% of the bank’s total earnings, while its South Africa operations account for 49%.
The bank reported a so-called common-equity tier 1 ratio of 13.2%, surpassing the 12.5% board approved target.It’s exceeded this range since 2021.
Standard Bank declared an interim dividend of R8.17 per share, surpassing median analyst estimates of R7.72.
Outlook and operating environment
The group says it remains confident in its medium-term growth targets despite trade disputes, global policy uncertainty, and a slower-than-expected economic recovery in South Africa.
It reaffirmed its 2025 targets, including mid- to high single-digit banking revenue growth, a cost-to-income ratio flat to marginally down year-on-year, and a return on equity between 17% and 20%.
For 2026 to 2028, it expects headline earnings per share growth of 8% to 12% and ROE within the 18% to 22% range.
Standard Bank notes that global inflation and interest rates trended lower in the first half of the year, albeit more slowly than initially expected.
Inflation eased in most sub-Saharan African markets outside South Africa, allowing several central banks to hold or reduce interest rates.
However, Ghana, Mauritius, and Zambia raised rates during the period.
In South Africa, a combination of global uncertainty and domestic political developments weakened confidence and dampened growth expectations.
Inflation dipped below the lower end of the South African Reserve Bank’s (Sarb) target range for three consecutive months before ticking up to 3% in June. The Sarb responded with a 50-basis-point interest rate cut to 7.25% in the first half of the year, followed by a further 25-basis-point cut in July.
Standard Bank forecasts South African inflation to remain in the lower half of the 3% to 6% target range for the rest of 2025 and into 2026. Interest rates are expected to hold steady for the remainder of the year, with a possible 25 basis point cut early next year.
GDP growth is projected at 0.9% in 2025 and 1.3% in 2026 — lower than earlier estimates due to tariff uncertainty.
African growth prospects intact
While trade disputes and policy risks are expected to weigh on global growth, Standard Bank maintains a positive view on Africa’s medium- to long-term prospects.
According to the International Monetary Fund’s July 2025 forecasts, sub-Saharan Africa is set to grow 4.0% in 2025 and 4.3% in 2026, with inflation continuing to ease.
Sim Tshabalala, CFO Daehnke to retire
Standard Bank Group chief executive officer Sim Tshabalala and Group chief finance and value management officer Arno Daehnke will retire by the end of 2027, even as the lender increased the retirement age for its executives.