Standard Bank Group (SBK), Africa’s largest lender by assets, reported on Thursday a robust 11% increase in headline earnings for the 2025 financial year, driven by a combination of resilient fee income, strong trading growth, and a significant improvement in credit impairments.
The group’s headline earnings reached R49.2 billion (approximately $2.65 billion), up from R44.5 billion in the previous year. This performance pushed the bank’s Return on Equity (ROE) to 19.3%, its highest level since the 2008 global financial crisis and well within its targeted 17% to 20% range.
The bank’s “diversified franchise” was credited with navigating a complex global macroeconomic environment. Key contributors to the double-digit growth included:
Net fee and commission revenue grew by 12%, reflecting increased digital engagement and higher transaction volumes across both South Africa and the Africa Regions. Trading revenue also saw strong momentum due to market volatility.
The bank reported a reduction in credit impairment charges. The credit loss ratio fell to 83 basis points, down from 98 basis points in 2024, as the macroeconomic environment began to stabilize and interest rate pressures eased.
The Africa Regions continue to be a powerhouse for the group, contributing 41% to total headline earnings.
On the back of these results, the board declared a final dividend of 1,695 cents per share, a 12% increase year-on-year. This brings the total payout to the upper end of the group’s target range of 45% to 60% of earnings.
“In 2025, Standard Bank Group delivered another strong performance and successfully achieved the financial targets set out in 2021,” said Sim Tshabalala, Group Chief Executive Officer. “Our diversified and growing franchise remains well-placed to benefit from an improving environment.”
The bank remains optimistic about the South African economy, forecasting a cumulative 75 basis point interest rate cut through 2026 and 2027. Management noted that while geopolitical tensions in the Middle East introduce some uncertainty regarding oil prices and inflation, the bank’s “fortress balance sheet” provides a solid cushion.
Looking ahead, Standard Bank has set ambitious targets for the 2026–2028 period:
- HEPS Growth: 8% to 12% compound annual growth.
- ROE: A higher target range of 18% to 22%.
- Efficiency: A cost-to-income ratio below 50%.
