Standard Bank Group (SBK) H2 2025 earnings summary

Executive summary

• Achieved or exceeded all 2020–2025 financial targets, with headline earnings of ZAR 49.2 billion in 2025, up 11% year-over-year, and ROE rising to 19.3%.

• Strategic focus on transforming client experience, operational excellence, and sustainable growth drove performance.

• Diversified business model by unit and geography provided resilience against local and global shocks.

• Maintained robust capital and liquidity positions, with CET1 ratio at 13.8%.

• Strong performance across business units, led by Corporate & Investment Banking (CIB) and Insurance & Asset Management (IAM).

Financial highlights

• Headline earnings grew 11% year-over-year to ZAR 49.2 billion in 2025, with ROE at 19.3% and dividend per share up 12%.

• Net interest income grew 4% to ZAR 105.1 billion; non-interest revenue up 10% to ZAR 63.7 billion.

• Cost-to-income ratio improved by nearly 900 bps since 2020, now at 50.2%.

• Dividend payout ratio at 56%, with total distributions of ZAR 31.3 billion, rising to 64% including share buybacks.

• Common Equity Tier 1 ratio at 13.8%, well above regulatory and internal targets.

Outlook and guidance

• Expect continued macro support in 2026: accelerating growth, declining inflation and interest rates.

• Banking revenue projected to grow mid- to high-single digits; group ROE to rise further.

• Cost-to-income ratio to decline slightly or remain at/below 50%; credit loss ratio to remain at the lower end of the 70–100 bps range.

• On track to deliver 2028 targets: 8–12% EPS growth and 18–22% ROE.

• Dividend payout ratio to remain at the top end of the 45%–60% range.