Standard Bank Group (SBK) Trading Update summary

Executive summary

• Group performance for the ten months to October 2025 was robust and consistent with the first half, with strong revenue and earnings growth across business units.

• Macroeconomic conditions improved, with easing inflation and interest rates in most operating countries, supporting client activity and affordability.

• South Africa saw improved consumer and financial confidence, a new lower inflation target, and S&P upgraded its local currency credit rating to BB+ with a positive outlook.

• Guidance for FY25 remains unchanged, with confidence in meeting SPG 2025 targets and new targets set for 2026–2028 to be detailed at the March 2026 Capital Markets Day.

Trading performance and revenue trends

• Banking revenue grew by mid to high single digits, driven by net interest income, robust non-interest revenue, and strong origination in investment banking, especially in energy and infrastructure.

• Deposit growth remained strong, outpacing loan growth, with South Africa deposits up 8% year-on-year in September and October 2025.

• Non-interest revenue and net fee and commission revenue saw strong growth, supported by a larger, more engaged client base and strong trading revenue momentum.

• Asset growth accelerated in the second half, particularly in CIB, with double-digit year-on-year growth.

• Global markets trading revenue growth remained strong, well ahead of last year, with momentum into Q4.

Profitability and margins

• Net interest income growth was dampened by lower average interest rates and competitive pricing pressures, especially in mortgages.

• Cost growth was well contained, with revenue growth slightly ahead of costs, resulting in flat to positive jaws and a flat to lower cost-to-income ratio.

• Group return on equity is expected to remain within the 17%-20% target range for FY25.

• Insurance and asset management earnings were higher, driven by improved claims ratios and persistency.

• ICBCS contributed positively to group earnings, with a strong performance in precious metals.