Standard Bank Group reported headline earnings of R22.0 billion for the six months ended 30 June 2024, a 4% increase on the same period a year earlier, as Africa's largest bank by assets delivered a return on equity of 18.5% and raised its interim dividend by 8% to R7.44 per share. The results were published on 15 August 2024.
Chief executive Sim Tshabalala attributed the performance to continued franchise growth in the banking businesses and robust earnings growth in insurance and asset management, adding that the South African franchise delivered double-digit earnings growth supported by improving credit trends.
COSTS AND CREDIT QUALITY
The cost-to-income ratio improved to 49.7%. The group held operating expense growth to 1%.
Credit quality improved during the period: credit impairment charges fell 15% to R8.0 billion and the credit loss ratio improved to 92 basis points from 109 basis points.
Standard Bank operates in 20 countries on the African continent.
DIVIDEND AND RETURNS
The board raised the interim dividend by 8% to R7.44 per share. The dividend growth rate of 8% exceeds the reported headline earnings growth rate of 4% in rand terms.
The group has articulated its intention to sustain its returns over the medium term by continuing to grow fee income, non-interest revenue streams, and its insurance and asset management franchises alongside the core banking business.
Standard Bank said it would continue allocating capital to its highest-returning businesses and geographies while maintaining close oversight of credit conditions across its African markets. The group said it expected the South African Reserve Bank to cut interest rates by 25 basis points in both September and November 2024, and forecast South African real GDP growth of 1.1% in 2024 and 1.8% in 2025.