Intense focus on clients will ensure we compete and win – Standard Bank CEO

Standard Bank Group CEO Sim Tshabalala says it will continue to deliver growth across all its units by “focusing intensely on meeting our client’s needs, supporting our growth, and providing excellent client experience”.

He makes the point that this is not a new strategy, and the group can point to its steady track record since 2020 as evidence that its “business units are executing our strategy systematically and successfully”.

Since then, it has worked to serve its “clients as one Standard Bank group, providing a comprehensive range of financial services with minimum friction,” according to Tshabalala.

This approach spans all its business units: corporate and investment banking (CIB), business and commercial banking (BCB), personal and private banking (PPB) and insurance and asset management (IAM).

Performance

In the first half of 2026, CIB delivered a “standout performance” according to chief finance and value management officer Arno Daehnke.

CIB and the IAM business (previously Liberty and Stanlib) each grew headline earnings by 15%, which in CIB’s instance is particularly notable given that, in 2025, it already accounted for nearly half the group’s earnings.

Its South African (SBSA) unit continues to be a leading performer, with earnings up 14%, while those from its Africa Regions businesses were up 11% in constant currencies.

The former contributed R13.4 billion, or 51% of group headline earnings, where deliberate actions to grow digital retail transactional clients drove a 9% increase in digital clients.

One in seven clients now uses the bank’s digital channels. Daehnke says the South Africa business delivered an “excellent” performance in the PPB segment, with 12% growth and return on equity of 18.6%.

Africa Regions contributed 40% of earnings (R10.4 billion), with its Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda and Zambia units performing particularly strongly.

Overall, declining interest rates impacted its net interest income, with modest growth of 4% (6% in constant currencies), while non-interest revenue grew by 7% (or 10%, excluding forex impacts).

Its credit loss ratio improved to 73 basis points which saw its impairment charge decrease by 12%.

Daehnke says: “The improvement across all major loan portfolios reflects effective risk management, improved collections, and a generally supportive macroeconomic environment.”

The group reported a 10% increase in headline earnings (to R26.1 billion), with a corresponding rise in dividends per share (to 902c).

Its return on equity rose to 19.8% from 19.1% in the same period last year.

Clarity of purpose

Tshabalala is clear: “Our purpose has not changed, and our strategy remains quite simple: to compete and win in our chosen markets and segments. We are led by our four business units, enabled by our strong brand, excellent people, modern and secure technology, and wide range of partnerships, all underpinned by digital, by diligent capital allocation and effective risk management.

“We remain entirely confident that executing this strategy will maximise the value of our portfolio and deliver our growth and returns.

“I remind you that we expect Africa to continue to be the fastest growing region in the world,” he adds.

“Despite the war in the Middle East, the macroeconomic fundamentals in Africa remain highly supportive and have been only moderately and modestly impacted in the short term since the war broke out in February.”

But, at the same time, he adds, “competition is intensifying, regulations are evolving and technology is advancing rapidly”.

“We are confident that our diversified franchise provides resilience and our clear strategy positions us to deliver sustainable growth over the short, medium and long term. Recent global volatility has reinforced the value of this diversified franchise.”

On track

The group remains focused on its 2028 targets set out at its Capital Markets Day in March.

“Despite global turbulence, and as our record shows, we will navigate through volatility and uncertainty to achieve” those, says Tshabalala.

Over the next three years, on average, it aims to increase banking revenue by 7% to 10% annually, with an 8% to 12% increase in headline earnings per share each year.

This will be supported by ensuring its cost-to-income ratio trends down from 50%.

The group has now achieved 10 consecutive halves, or five years, of so-called positive jaws, where income growth outpaces expense growth.

It will also deliver a return on equity “well within our target range of 18% to 22%”.

View a pdf of the above results summary here.

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