STANDARD BANK DELIVERED RECORD HALF-YEAR HEADLINE EARNINGS AND HIGHER RETURNS

The Standard Bank Group delivered a solid performance for the six months ended 30 June 2026, reporting record headline earnings of R26.1 billion, up 10% period-on-period, and a higher return on equity (ROE) of 19.8%. This is comfortably within the Group’s 2028 ROE target range of 18% to 22%.

The Group remains focused on delivering client-led growth supported by disciplined capital allocation and robust risk management. This, together with continued investment in people, technology and capabilities, provides the framework for achieving the medium-term earnings growth and return targets.

The Group’s banking businesses reported solid balance sheet growth, robust increases in fees and trading income, lower credit impairment charges and well-managed costs. The Insurance & Asset Management business delivered continued strong earnings growth and improved returns

Key financial highlights (1H26)

• Headline earnings: R26.1 billion, a 10% increase
• Headline earnings per share: 1 610 cents, up 10%
• Dividend per share: 902 cents, up 10%
• Cost-to-income ratio: improved to 49.3% (1H25: 49.5%)
• Credit loss ratio: improved to 73 bps (1H25:93bps)
• Return on equity (ROE): 19.8% (1H25: 19.1%)
• Common Equity Tier 1 (CET1) ratio: 13.6%, up from 13.2% at 30 June 2025

Standard Bank continues to offer an access gateway to diversified African growth, supported by leading client franchises across the continent. Standard Bank remains committed to supporting its clients in achieving sustainable outcomes. Since 2022, the group has cumulatively mobilised over R328 billion in sustainable finance for clients against its target of R450 billion by 2028. In 1H26, the group mobilised R50.6 billion.

Sim Tshabalala, Standard Bank Group CEO, says: “Standard Bank delivered a strong performance in the first half of 2026. Strong client-led growth in non-interest revenue, together with disciplined cost and credit management, supported growth in headline earnings and our highest return on equity under the Basel III capital framework. Africa Regions contributed 40% of Group headline earnings, while our South African business delivered strong earnings growth and a substantial improvement in ROE. We are particularly encouraged by the resilient outlook for South Africa. Sustaining that momentum will require the country to deepen its economic integration with the rest of the continent and fully participate in Africa’s growth opportunity. These results demonstrate the strength and resilience of our diversified franchise. Our balance sheet remains strong, and we are well positioned to continue supporting our clients and capturing the opportunities emerging across Africa.”

The bank’s payments franchise continued to deliver capital-light growth while supporting deposit mobilisation and transaction-led revenue growth. Domestic and cross-border electronic payment values increased by 11% and 7% respectively, with the Group maintaining leading market shares in cross-border payments of 30% in South Africa and 19% across Africa Regions. These capabilities reinforce Standard Bank’s position as the continent’s largest transactional franchise by payment value.

Overview of financial results

Total income growth exceeded cost growth, resulting in positive jaws of 44 basis points and an improvement in the cost-to-income ratio to 49.3%. The credit loss ratio declined to 73 basis points, reflecting an improving macroeconomic environment and sound risk management. Total assets under administration and management increased by 14% to R1.8 trillion.

All business units delivered healthy returns. Corporate & Investment Banking increased headline earnings by 15% and delivered an ROE of 24.8%. Business & Commercial Banking reported an ROE of 36.3%, Personal & Private Banking delivered an ROE of 18.6%, and Insurance & Asset Management achieved an ROE of 21.1%.

Geographic performance

South Africa contributed to R13.4 billion, or 51% of Group headline earnings. Focused actions to grow digital retail transactional clients drove a 9% increase in digital clients. As a result, 69% of transactional clients now use digital channels, and digital transactional volumes grew by 17%.

Africa Regions contributed 40% of Group headline earnings, or R10.4 billion, supported by good contributions from Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda and Zambia. Offshore businesses contributed R1.3 billion, while the Group’s 40% stake in ICBC Standard Bank Plc (ICBCS) added R1.0 billion, representing 5% and 4% of Group headline earnings respectively.

Outlook and guidance

“In the first six months of 2026, the Group delivered another record performance, growing earnings and increasing returns. Looking ahead, Africa is expected to grow faster than most regions, and opportunities across the continent remain significant. At the same time, 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,” says Tshabalala.

Against a backdrop of resilient macroeconomic conditions in South Africa and sub-Saharan Africa, the Group’s diversified and well-positioned franchise is expected to benefit from rising levels of economic activity across its markets. For the 12 months to 31 December 2026, Standard Bank’s guidance remains unchanged:

• Banking revenue growth of mid-to-high single digits, supported by continued business momentum across our franchise;
• Cost-to-income ratio to decline slightly as we apply our ‘save to invest’ approach to fund targeted strategic investments;
• Credit loss ratio slightly higher than 2025 but remain within the lower half of the through-the-cycle target range of 70 to 100 basis points; and
• ROE to be higher than in the prior year.

“Our 2028 strategy is anchored in a clear ambition: to compete and win in our chosen markets and client segments. We are disciplined in how we allocate capital, selective about the opportunities we pursue, and relentless in our focus on execution. With our scale and reach, diversified and resilient client base and businesses, and a purpose-driven, high-performance culture, we are well positioned to unlock Africa’s growth and deliver sustainable long-term value for our clients, communities, employees and shareholders,” concludes Tshabalala.