JOHANNESBURG - Standard Bank Group Limited has reported a consistent increase in earnings for the ten months ending October 31, 2024. Despite currency devaluations across various African nations and a stronger South African Rand (ZAR), the group's headline earnings grew by low-to-mid single digits in ZAR and by mid-teens on a constant currency basis compared to the same period in the previous year.
The bank's balance sheet expansion was slower than anticipated due to larger-than-expected currency movements in the Africa Regions. Net interest income growth decelerated to low-to-mid single digits, while non-interest revenue saw a decline due to a decrease in trading revenue, which had been significantly higher in the previous year. However, fee and commission income continued to grow.
Cost management remained a focus for the group, with well-contained growth in expenses, partly due to the favorable impact of currency translation. Revenue growth has slightly outpaced cost growth, contributing to a positive financial outlook.
Credit impairments have decreased compared to the previous period, with a slowdown in early arrears and fewer non-performing loans in Personal and Private Banking. The group's credit loss ratio for the ten-month period remained within the top half of its targeted range of 70 to 100 basis points.
Looking forward, Standard Bank aims to achieve banking revenue growth of low single digits in ZAR and low double digits in constant currency for the full year 2024. The bank also expects to maintain a cost-to-income ratio that is flat or lower year on year, with a return on equity (ROE) well anchored within the target range of 17% to 20%.
Despite the economic headwinds, Standard Bank attributes its resilience to the diversity of its franchise across different businesses and regions, as well as the strength of its client base and the dedication of its employees.
The group is set to provide further guidance for 2025 when it reports its full-year financial results in March 2025. Meanwhile, Standard Bank will host an investor call later today to discuss the trading update in more detail. This announcement is based on a press release statement and has not been reviewed by external auditors.
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