Standard Bank Group (SBK) H2 2025 earnings summary

Executive summary

• Achieved or exceeded all 2020–2025 financial targets, with headline earnings up 11% to ZAR 49.2 billion and ROE rising to 19.3%, alongside a 12% increase in dividend per share.

• Maintained a diversified, resilient portfolio and robust capital and liquidity positions, with CET1 ratio at 13.8%.

• Significant progress in digital transformation, operational efficiency, and sustainable finance, mobilizing ZAR 277 billion and targeting ZAR 450 billion by 2028.

• Total shareholder return of 26% over five years, outperforming major competitors.

• Strong performance across business units, led by Corporate & Investment Banking (CIB) and Insurance & Asset Management (IAM).

Financial highlights

• Headline earnings grew 11% year-over-year to ZAR 49.2 billion; headline EPS and dividends per share up 12%.

• Net interest income up 4% to ZAR 105.1 billion; non-interest revenue up 10% to ZAR 63.7 billion; total income up 6%.

• Cost-to-income ratio improved by nearly 900 bps since 2020 to 50.2%.

• Credit loss ratio declined to 73 bps, trending toward the lower end of the 70–100 bps target range.

• Dividend payout ratio at 56%, with total distributions of ZAR 31.3 billion.

Outlook and guidance

• FY26 guidance: mid-to-high single digit banking revenue growth, ROE higher than 2025, and cost-to-income ratio at or below 50%.

• Credit loss ratio expected in the lower half of the 70–100 bps range; CET1 ratio to remain above 12.5%.

• Dividend payout ratio to remain at the top end of the 45%-60% range; on track for 2028 targets of 8–12% EPS growth and 18–22% ROE.

• Macroeconomic outlook anticipates improved GDP growth, moderating inflation, and accommodative monetary policy.