Standard Bank delivers record earnings as Africa strategy pays off

Standard Bank Group reported headline earnings of R49.2bn for 2025, delivering a return on equity (ROE) of 19.3%, at the top end of the group's target range of 17% to 20%. The result reflects strong performance across the banking businesses, supported by solid balance sheet growth and robust expansion in fees and trading revenues.

Credit impairment charges declined year on year as the macroeconomic environment improved, while cost management remained disciplined. Insurance and Asset Management also continued to deliver strong earnings growth and improved returns.

Headline earnings per share rose 12% to 3,026 cents. The group declared a final dividend of 878 cents per share, bringing the total dividend for the year to 1,695 cents, also up 12%. Tangible net asset value per share increased 7% to 15,687 cents.

Sim Tshabalala, Standard Bank Group chief executive, said the results marked the culmination of a strategy launched in 2021.

"2025 marked a significant milestone as we achieved or surpassed the ambitious financial targets we set in 2021, validating our strategy and confirming our capacity for disciplined execution," he said. "Put simply, we keep our promises and we meet our targets."

Looking ahead, Tshabalala said the group remained guided by its long-standing purpose: "Africa is our home, we drive her growth."

He noted that while opportunities across the continent remain significant, the bank must also navigate intensifying competition, including from fintechs, evolving regulatory frameworks and the rapid advance of artificial intelligence and other digital technologies. Despite these shifts, he expressed confidence in the group's ability to sustain growth over the short, medium and long term.

Expanding sustainable finance

Standard Bank also strengthened its commitment to sustainable finance. During the year the bank increased its mobilisation target from R250bn by 2026 to R450bn by 2028.

Since 2022 the group has mobilised more than R277bn in sustainable finance for its clients, including R100bn in 2025 alone. The financing supports projects ranging from renewable energy and climate transition initiatives to broader sustainable development investments across Africa.

Strong contribution from Africa Regions

The group's Africa Regions franchise continued to play a significant role in earnings growth, contributing 40% of total headline earnings.

Across the group, the South African business generated earnings of R24.9bn, while the Africa Regions franchise delivered R19.7bn. Offshore businesses contributed R3.1bn and the group's 40% stake in ICBC Standard Bank Plc added R1.5bn.

Together these businesses accounted for 51%, 40%, 6% and 3% of group headline earnings respectively. Key contributors to the Africa Regions' performance included Angola, Ghana, Kenya, Mauritius, Nigeria, Tanzania, Uganda and Zambia.

At the business unit level, Corporate and Investment Banking delivered particularly strong results, with headline earnings rising 18% and return on equity exceeding 22%. Insurance and Asset Management achieved the fastest growth, with headline earnings increasing 26% and ROE also surpassing 22%.

Personal and Private Banking grew headline earnings by 3% and recorded ROE above 23%, while Business and Commercial Banking reported headline earnings 4% lower but maintained a strong ROE of more than 38%.

Digital engagement rising

Digital engagement continued to expand in the group's South African retail business. Targeted initiatives to increase digital adoption resulted in a 9% rise in digital retail clients and a 5% increase in successful digital transactions.

As a result, 67% of transactional clients now conduct their banking digitally.

Improving efficiency

Total income growth exceeded cost growth during the year, resulting in positive jaws of 64 basis points and an improvement in the cost-to-income ratio to 50.2%, compared with 50.5% in the previous year.

The ratio is broadly in line with the group's 2025 target of approaching 50% and represents a significant improvement from the 59.1% recorded in 2020.

Assets under administration and management increased 15% to R1.8trn. The expansion was supported by favourable investment market movements both locally and internationally, as well as continued market growth in the Africa Regions businesses.

Outlook

According to the International Monetary Fund, global real GDP growth is expected to reach 3.3% in 2026 and 3.2% in 2027. Investment in technology, supportive policy frameworks and accommodative financial conditions are expected to offset the effects of shifting trade tariffs and geopolitical tensions.

Global inflation is forecast to fall from an estimated 4.1% in 2025 to 3.8% in 2026 and 3.4% in 2027.

In sub-Saharan Africa, the IMF expects inflation to decline and economic growth to accelerate from 4.4% in 2025 to 4.6% in both 2026 and 2027, supported by macroeconomic stabilisation and reform in several key economies.

Standard Bank's own research suggests South Africa's inflation will average 3.6% in 2026 and 3.3% in 2027. Interest rates are expected to decline by a cumulative 75 basis points, with cuts anticipated in May and September 2026 and a further reduction in 2027.

Real GDP growth in South Africa is forecast to reach 1.5% in 2026 and rise to 1.8% in 2027.

Against this backdrop, the group expects its diversified franchise to benefit from improved economic conditions and increased business activity, supporting balance sheet expansion and continued earnings momentum.

For the 12 months to December 2026, Standard Bank expects banking revenue growth in the mid to high single digits. The cost-to-income ratio is forecast to decline slightly as disciplined cost management continues alongside investment in the franchise.

The credit loss ratio is expected to increase modestly but remain within the lower half of the through-the-cycle target range of 70 to 100 basis points. Return on equity is projected to increase relative to the 19.3% achieved in 2025.

However, the group cautioned that geopolitical developments, particularly tensions in the Middle East involving Iran, could introduce uncertainty. Any prolonged or escalated conflict could affect macroeconomic assumptions related to trade, inflation and growth.

Looking to 2028

Standard Bank remains committed to delivering on its medium-term targets for 2026 to 2028. These include headline earnings per share compound annual growth of between 8% and 12%, and maintaining ROE within a range of 18% to 22%.

"Our 2028 strategy is anchored in our ambition to compete and win in our chosen markets and segments," Tshabalala said. "Our strategy is clear and credible, built on a rigorous understanding of our markets and the opportunities ahead."

He added that the targets were ambitious but achievable, supported by disciplined execution and a strong performance culture.

"Most importantly, we have a deep and highly capable management team whose expertise, commitment and track record give us full confidence in our ability to deliver sustainable value for all our stakeholders."

The group's performance was also recognised externally. Brand Finance once again ranked Standard Bank as Africa's and South Africa's most valuable banking brand for the fifth consecutive year.

The bank was also listed among Forbes' World's Best Employers for 2025, the highest-ranked organisation from Africa, and featured in TIME magazine's World's Best Companies and Newsweek's World's Most Trustworthy Companies rankings.

Standard Bank plans to provide further details on the drivers of its 2028 strategy at a Capital Markets Day scheduled for 26 March 2026.