Standard Bank Group (SBK) investor relations material

Strategic Direction and Market Positioning

• Aims to become Africa's undisputed financial leader by 2029+, leveraging demographic trends, infrastructure needs, and digital transformation across 21 countries.

• Four business units (CIB, BCB, PPB, IAM) target distinct client segments, driving diversification and resilience.

• Strategic priorities include collaboration, partnerships, organic and inorganic expansion, and deepening client relationships in high-growth African markets.

• Technology, AI, and payments modernization are central enablers for future competitiveness and efficiency.

• Strong brand, local expertise, and robust leadership underpin execution and delivery of strategic objectives.

Financial Targets and Performance Outlook

• Ambitious 2028 targets: 8–12% HEPS growth, 18–22% ROE, and cost-to-income ratio below 50%.

• Non-interest revenue expected to outpace net interest income, driven by fees, trading, and bancassurance, especially in Africa Regions.

• Africa Regions anticipated to deliver double-digit revenue growth, outpacing South Africa.

• Capital allocation prioritizes organic growth, selective M&A, and shareholder returns via dividends and buybacks, maintaining CET1 >12.5%.

• Operating expenses to grow 4–5% CAGR, with disciplined cost management and continued investment in technology.

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 risk management.

• BCB aims for 7–9% revenue CAGR, strong deposit growth, digital transformation, and sustainable ROE of 35–40%, with expansion in East and West Africa.

• PPB targets 7–9% revenue CAGR, <55% cost-to-income, and 26–30% ROE, leveraging AI-driven personalization, digital channels, and cross-sell.

• IAM expects >10% annual earnings growth and 24–27% ROE, focusing on bancassurance, open market distribution, and scaling asset management.