Standard Bank Group (SBK) H2 2024 earnings summary

Executive summary

• Headline earnings grew 4% to ZAR 45 billion (R44.5bn), with 14% growth in constant currency terms and ROE at 18.5%, exceeding the 10-year average and within the 17%-20% target range.

• Cost-to-income ratio improved to 50.5%, reflecting strong cost management and operational efficiency.

• Diversified operations across 26 countries and four business lines supported resilience, with South Africa showing double-digit earnings growth.

• Maintained a large and growing client base, with increased digital engagement and successful Liberty integration.

• New medium-term targets set for 2028, aiming for 8%-12% CAGR in headline EPS and ROE of 18%-22%.

Financial highlights

• Dividends declared at ZAR 15.07 per share, up 6% year-over-year, with a payout ratio of 56%.

• Tangible net asset value per share grew by 8%.

• Net interest income rose 3% to ZAR 101 billion (R100.8bn); non-interest revenue increased 4% to ZAR 32 billion, flat at R57.8bn.

• Credit loss ratio improved to 83 basis points, with credit impairment charges down 7%.

• Common equity tier one ratio stood at 13.5%, and liquidity ratios remained well above regulatory requirements.

Outlook and guidance

• 2025 guidance expects mid to high single-digit growth in both net interest income and non-interest revenue.

• Credit loss ratio anticipated to remain within 70-100 basis points, with higher impairment charges possible.

• Dividend payout expected at the top end of the 45%-60% range.

• Currency devaluation impact expected to be much lower in 2025, aligning constant currency and rand growth.

• New 2026-2028 targets: headline EPS CAGR of 8%-12%, ROE of 18%-22%, and cost-to-income ratio below 50%.