Standard Bank Group (SBK), Africa’s largest lender by assets, has announced a target for annual headline earnings per share (HEPS) growth of between 8% and 12% for the 2026–2028 period.
The South African-based financial giant unveiled the new medium-term targets on Thursday, signaling a shift toward sustained capital efficiency following the conclusion of its previous five-year strategic cycle. The bank also raised its Return on Equity (ROE) target range to 18%–22%, up from the previous 17%–20% guidance.
The group’s 2026–2028 roadmap projects annual revenue growth of 7% to 10%. To maintain profitability, management committed to keeping the bank’s cost-to-income ratio sustainably below 50%.
Standard Bank confirmed it will maintain a dividend payout ratio of 45% to 60% of headline earnings. The bank also indicated it would utilize share buybacks as a tool for capital management when appropriate, reflecting a robust capital position entering the new cycle.
The new targets follow a record-breaking 2025 financial year, where the group reported 11% year-on-year increase in its headline earning.
Group CEO Sim Tshabalala attributed the optimistic forecast to structural growth opportunities across the African continent, specifically in infrastructure financing, energy transition, and digital banking services. The bank has nearly doubled its sustainable finance mobilization target to R450 billion by 2028.
This strategic update arrives as the lender prepares for a leadership transition, with both Tshabalala and CFO Arno Daehnke slated to retire by the end of 2027.
