Standard Bank posts strong half-year results, confirms CEO Tshabalala's retirement date
The Group reported a boost particularly from corporate and investment banking, and resulting fees.
Standard Bank Group CEO Sim Tshabalala. Picture: Sim Tshabalala/Facebook
The Money Show's Stephen Grootes is joined by Sim Tshabalala, CEO of the Standard Bank Group.
The Standard Bank Group has announced strong returns and increased dividends for the half year to end-June 2025.
The Group also confirmed that Group CEO Sim Tshabalala and Group Chief Finance and Value Management Officer Arno Daehnke will retire by the end of 2027.
It earlier announced that it was raising the retirement age for executives to 63 from 60, which does not apply to Tshabalala and Daehnke.
Standard Bank reported headline earnings of close to R24 billion, an 8% increase on the previous period.
Headline earnings per share (HEPS) were up 10% from the first half of 2024 to 1,458 cents.
Standard Bank delivered return on equity (ROE) of 19.1%.
An interim dividend of 817 cents was declared per share, up 10% year on year.
Stephen Grootes asks Tshabalala about the fact that business and commercial banking division earnings were down, while earnings for Standard's corporate and investment banking divisions spiked.
Tshabalala cited a number of contributing factors.
"Firstly, loan growth is up 12% in that business - in SA its up by 5% whereas in the rest of Africa its up by 13%... but in our corporate business it's up 12%. In the lending business it's had a lot to do with projects being implemented locally like the retooling of factories, and in the rest of Africa it's very much the infrastructure story."
Sim Tshabalala, CEO - Standard Bank Group
He highlighted the turbulence the world is experiencing at the moment, resulting in people wanting to protect themselves against the risks.
"They take out hedges or derivatives, and interest rate swaps, foreign exchange contracts... and that results in great trading income."
Sim Tshabalala, CEO - Standard Bank Group
"We also did a number of good deals in investment banking, resulting in good fees."
Sim Tshabalala, CEO - Standard Bank Group
Commenting on his retirement, now in 2027, Tshabalala expressed pride in his partnership with Daehnke and with their executive committee, as well as in all employees of the Bank.
"We are absolutely determined to deliver against the targets that we set for 2025. We're also very proud of the targets we've set for the period 2026-2028... that is energising."
Sim Tshabalala, CEO - Standard Bank Group
Tshabalala notes that all the Standard Bank CEOs after the founding CEO, have been home-grown.
"We're delighted and honoured to be part of that ancient and great tradition as we prepare the organisation for the next 20 years."
Sim Tshabalala, CEO - Standard Bank Group
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