Standard Bank South Africa is the largest operating entity of Standard Bank Group, Africa’s largest bank by assets.

Standard Bank Group recorded headline earnings of R42.9 billion for the 12 months to 31 December 2023 (FY23), up 27% on the prior year (FY22) and delivered a return on equity of 18.8%. This strong performance is underpinned by the bank’s robust and growing franchise and is reflective of the positive momentum in its businesses.

Headline earnings: R42 948 billion, up 27%
Headline earnings per share (HEPS): 2 590.4 cents, up 26%
Return on equity (ROE): 18.8% up from 16.3%
Common equity tier (CET) 1 ratio: 13.7% (FY22: 13.4%)
Net asset value (NAV) per share: 14 269 cents up 8%
Cost-to-income ratio: 51.4% down from 53.9%
Credit loss ratio: 98 bps (FY22: 83 bps)

Net asset value grew by 8% and the group ended the year with a common equity tier 1 ratio of 13.7%. The Group declared a final dividend of 733 cents per share which, when combined with the interim dividend, equates to a dividend payout ratio of 55%.

Sim Tshabalala, Standard Bank Group CEO says: “This strong performance is underpinned by our differentiated franchise and reflects the good momentum in business. Our Africa Regions’ and offshore franchises remain key differentiators. Both recorded pleasing performances.

In South Africa, inflation is expected to decline to 5.0% on average in 2024. The repo rate is expected to decline to 7.50% by year end, with 3 cuts of 25 basis points starting in July 2024. Together, this should support an improvement in growth to 1.2% in 2024.

Tshabalala says, “While uncertainty is expected to remain elevated, our business is
diversified, growing, and resilient. We are focused on delivering against our strategic priorities and remain on track to deliver on our 2025 targets. The group is also on track to deliver against its ambitious sustainable finance and renewable energy targets.”

“In 2024, we will continue to support our clients, develop our employees, and deliver
sustainable growth and value to our shareholders and other stakeholders. In addition, as a leading financial institution on the continent, we recognise our responsibility to have a positive impact in our regions of operation. We do so by delivering against our purpose of driving Africa’s growth.” Tshabalala says.