Standard Bank reports record earnings

Africa’s largest bank by assets Standard Bank Group (SBG), on Friday reported record headline earnings of R15,3 billion for the six months to 30 June 2022 – a surge of 33 percent on the comparative 2021 half-year.

Headline earnings per ordinary share were up 30 percent, to 936.2 cents, compared with 721.4c for the prior period.

SBG’s board approved an interim dividend of 515c per share, at a pay-out ratio of 55 percent.

Nevertheless, the group’s interim dividend per ordinary share was up sharply by 43 percent, compared with 360c per share in 2021.

“The group’s performance was underpinned by continued balance sheet and franchise growth,” said SBG CEO Sim Tshabalala.

“Return on equity (ROE) improved to 15.3 percent (1H21: 12.9 percent). Net asset value grew by 15 percent and the group ended the period with a common equity tier one ratio of 13,7 percent (31 December 2021: 13,8 percent),” the group further noted in its results Sens on Friday morning.

“The group made good progress on its 2025 commitments, both strategic and financial.
“The group exceeded internal expectations in terms of revenue growth, delivered strong positive jaws, retained the credit loss ratio within the group’s through-the-cycle range, and ROE moved closer to the 2025 target range of 17 percent to 20 percent.”

“Pre-provision operating profit grew by 20 percent driven by strong revenue growth. Net interest income growth was driven by strong average balance sheet growth and margin expansion.

Net fees grew by 10 percent supported by a larger client base and increased activity. Trading revenue growth was robust, driven by client trades on the back of market volatility,” added SBG.

SBG’s biggest unit – it’s South African banking business (Standard Bank of South Africa Limited) recorded a strong rebound. – Moneyweb/The Herald