Standard Bank Group (SBK) H2 2024 earnings summary

Executive summary

• Achieved headline earnings of ZAR 45 billion for 2024, up 4% year-over-year, with 14% growth in constant currency terms.

• Return on equity reached 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 delivered robust growth, with South Africa showing double-digit earnings growth despite currency headwinds.

• Strategic priorities remain: transform client experience, execute with excellence, and drive sustainable growth and value.

Financial highlights

• Net interest income grew 3% to ZAR 101 billion, with net interest margin at 490 basis points.

• Non-interest revenue increased by 4% to ZAR 32 billion, supported by higher transactional volumes and digital adoption.

• Dividend declared at ZAR 15.07 per share, up 6%, with a payout ratio of 56%.

• Tangible net asset value per share rose 8% year-over-year.

• Credit loss ratio declined to 83 basis points, with credit impairment charges down 13%.

Outlook and guidance

• 2025 guidance expects net interest income and non-interest revenue to grow by mid to high single digits.

• Credit loss ratio anticipated to remain within 70-100 basis points.

• Return on equity projected to stay within the 17%-20% range for 2025.

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

• Currency impact expected to be minimal in FY25; real GDP growth to accelerate across regions.