Standard Bank Group (SBK) H1 2025 earnings summary

Executive summary

• Headline earnings rose 8% year-over-year to R23.8bn, with ROE at 19.1% and strong capital ratios maintained.

• Achieved robust performance across all business units and regions, with diversified earnings and continued leadership in Africa's financial sector.

• Maintained resilience and operational efficiency despite global volatility and challenging macroeconomic conditions.

• Digital client engagement and revenue increased, with digital retail clients up 7% and digital sales up 33% in South Africa.

• On track to meet 2025 targets and well positioned for medium-term growth.

Financial highlights

• Headline earnings per share grew 10% to 1,458c; dividend per share up 10% to 817c (56% payout ratio).

• Net interest income up 2% to R51.7bn; non-interest revenue up 15%; trading revenue up 22%.

• Cost-to-income ratio improved to 49.4%, with positive jaws of 0.6%.

• Credit loss ratio stable at 93bps; total assets grew 11% to R3.41tn; CET1 ratio at 13.2%.

• Dividend payout ratio at 56%; 69% of earnings returned to shareholders via dividends and buybacks.

Outlook and guidance

• Banking revenue expected to grow mid- to high single digits in ZAR for FY25; NII growth to be lower but offset by higher NIR.

• Cost-to-income ratio expected flat to marginally down; ROE to remain in 17–20% range for 2025.

• Medium-term targets: headline EPS CAGR of 8–12% (2026–2028), ROE target range of 18–22% by 2028.

• Credit impairment charges expected to be higher than 2024 as prior period releases do not repeat.

• CET1 ratio expected to remain above 12.5%; dividend payout at top end of 45%-60% range.