Standard Bank Group (SBK) investor relations material

Strategic Direction and Market Positioning

• Aims to become Africa's undisputed financial leader by 2029+, leveraging rapid economic growth, favorable demographics, and digitalization, with a clear strategy to compete and win in chosen markets and segments.

• Operates four business units—CIB, BCB, PPB, and IAM—targeting distinct client segments for diversification and resilience across economic cycles.

• Strategic priorities include transaction growth, cost management, deepening client relationships, and investing in technology and AI.

• Expansion plans prioritize organic growth, selective inorganic investments, and partnerships, especially in high-growth African markets and corridors such as Egypt.

• Strong leadership continuity, talent development, and a focus on culture and values underpin execution.

Financial Targets and Performance Outlook

• Ambitious medium-term targets: 8%-12% HEPS/EPS growth and 18%-22% ROE from 2025–2028, with cost-to-income ratio targeted below 50%.

• Non-interest revenue expected to outpace net interest income, driven by payments, value-added services, and bancassurance, especially in Africa Regions.

• Africa Regions anticipated to deliver double-digit revenue growth, outpacing South Africa and contributing around 45% of group earnings by 2028.

• Capital allocation balances organic and inorganic growth, prioritizing East and West Africa, maintaining CET1 >12.5%, and dividend payout of 45–60%.

• Operating expenses to grow 4–5% CAGR, with continued investment in technology, digital channels, and efficiency.

Business Unit Strategies and Growth Drivers

• CIB targets 8%-12% annual revenue growth, ~40% cost-to-income, and 22%-24% ROE by 2028, focusing on energy, infrastructure, trade corridors, and disciplined risk management.

• BCB aims for 7%-9% revenue growth, ~55% cost-to-income, and sustainable ROE above 35%, leveraging digital transformation and disciplined lending, with expansion in East and West Africa.

• PPB targets 7%-9% revenue growth, <55% cost-to-income, and 26%-30% ROE, focusing on digital engagement, cross-sell, and value-added services.

• IAM expects >10% headline earnings growth and 24%-27% ROE, scaling insurance, asset management, and open market distribution, with bancassurance as a key lever.

• Technology, AI, and payments are central enablers, with 71% of migratable compute in the cloud, over 20,000 GenAI users, and a multi-rail payments strategy supporting growth and efficiency.