Standard Bank Group reports $2 billion earnings up 27% from 2022

March 15, 2024 in Business, Companies, Financial Services by Editor

Tshabalala said, “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.

Standard Bank Group recorded headline earnings of R42.9 billion (about $2.3 billion) for the 12 months to 31 December 2023 (FY23), of which nearly half were generated by its subsidiaries across Africa, including Stanbic Bank Uganda (SBU).

SBU is one of the five subsidiaries of Stanbic Uganda Holdings Limited (SUHL) Standard Bank Group through Stanbic Africa Holdings Limited, owns SUHL.

Announcing the latest financials on Thursday in Johannesburg, Sim Tshabalala, Standard Bank Group CEO said, “This strong performance is underpinned by our differentiated franchise and reflective of the good momentum in our business. Our Africa Regions’ and Offshore franchises remain key differentiators. Both recorded pleasing performances.”

Standard Bank’s Africa Regions contributed 42% to group headline earnings. The top eight contributors to Africa Regions’ headline earnings were Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda, Zambia and Zimbabwe.

The figure for earnings is up 27% on the previous year (FY22), delivering a return on equity of 18.8%. Officials said this strong performance is underpinned by the bank’s robust and growing franchise and is reflective of the positive momentum in its businesses.

In 2023, the group effectively defended and grew its banking franchise and improved banking earnings and returns. Active customers grew by 6% to 18.8 million. In addition, digital retail clients in South Africa increased by 8% as more clients transitioned to our convenient digital channels. The group processed over 2.8 billion digital transactions for retail clients and distributed over R41 billion on behalf of South African clients via our digital wallet platform. Client satisfaction scores improved across various channels, particularly digital in South Africa.

Standard Bank’s Insurance and Asset Management franchise recorded an improved insurance performance and growth in its assets under management year on year. Since the announcement of the Liberty minority buyout, the group has received over R5.7 billion in distributions. The group successfully bought out the minorities of Liberty2Degrees (L2D) in the financial year. L2D holds an attractive portfolio of commercial properties including Sandton City, Nelson Mandela Square, Melrose Arch and Midlands Mall amongst others.

In 2023, uncertainty remained elevated globally. In the first six months inflation remained elevated and interest rates continued to rise. However, in the second half of 2023, central banks paused whilst monitoring inflation trends and developing geopolitical risks. The International Monetary Fund (IMF) forecast global growth of 3.1% in 2023.

Tshabalala said, “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 2023, Sub-Saharan Africa experienced inflationary pressures and monetary policy tightening. However, there was progress on Ghana’s debt restructure, Kenya’s funding outlook improved, and Nigeria took steps to liberalise the Naira. While currency movements were mixed across the group’s portfolio of countries, they were weaker on average by the end of the year.