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Standard Bank Group Limited
Registration number 1969/017128/06
Incorporated in the Republic of South Africa
Website: www.standardbank.com/reporting
Share codes
JSE and A2X share code: SBK
ISIN: ZAE000109815
NSX share code: SNB
SBKP ZAE000038881 (First preference shares)
SBPP ZAE000056339 (Second preference shares)
JSE bond code: SBKI
("Standard Bank Group" or "the group")
Voluntary trading update for the five months to 31 May 2025
For the five months to 31 May 2025 (5M25) relative to the five month period ended 31 May
2024 (5M24 or period on period), Standard Bank Group's operational and financial trends
were strong, reflective of the continued momentum in the underlying transactional franchise
across both South Africa and Africa Regions. Despite the considerable uncertainty and
market volatility, the group's established and well diversified franchise continued to deliver a
resilient performance.
As noted in a stock exchange announcement on 22 April 2025, group headline earnings
grew by 10% in South African Rand (ZAR) in 1Q25 relative to 1Q24. In 5M25 relative to
5M24, group headline earnings grew at a similar rate. On a constant currency basis,
headline earnings grew by mid-teens period on period. Subject to market developments, the
currency impact is still expected to moderate in the second half of the year as the
devaluations experienced in 2024 feed into the base. The group's ROE for 5M25 remained
well anchored within the group's 2025 target range of 17% to 20%.
Operating environment
In 5M25, uncertainty related to US trade policies and geopolitics impacted macroeconomic
dynamics and monetary policy. Globally, this has manifested in weaker demand, a slowdown
or pause in monetary policy easing and weaker growth. Across the group's countries of
operations, on a blended basis, inflation has continued to moderate from elevated levels and
interest rates have declined, albeit more slowly than expected. While uncertainty has
weighed on confidence and GDP growth outlooks have been moderated down, sub-Saharan
Africa is still expected to grow at 3.8% in 2025 (International Monetary Fund, April 2025). In
South Africa, while the global uncertainty and the local budget-related wrangles weighed on
confidence and demand, higher commodity prices and market volatility have presented
opportunities.
5M25 performance
Balance sheet growth has been slower than expected as elevated uncertainty and a delay in
interest rate cuts negatively impacted demand for credit, particularly in South Africa. As
expected, the group's net interest margin declined period on period as the impact of lower
average interest rates and competitive pricing, particularly in the mortgage market in South
Africa, was partially offset by the positive mix impact as the Africa Regions portfolio grew
faster than the South African portfolio. Net interest income was flat period on period.
The group's growing and increasingly entrenched client base drove continued strong growth
in net fee and commission revenue. This is testament to the group's strategy of providing a
full suite of relevant and appropriately priced solutions to our clients when and where they
want them. Market volatility drove client activity which supported robust trading revenue
growth period on period. Non-interest revenue grew by mid-teens period on period.
Disciplined cost management remains a priority. Staff cost growth was driven by annual
increases, higher incentives linked to performance and a change in headcount composition
to include more specialist skills. Other operating expenses growth was well contained as
higher growth in activity-related costs were moderated by slower growth in other areas, e.g.
amortisation and premises-related costs. Cost growth was slightly ahead of revenue growth
period on period. This is in line with expectations at this point in the year.
Credit impairment charges were lower period on period due to the slower book growth as
well as a continued slowdown in early arrears and lower inflows into non-performing loans in
Personal and Private Banking. As expected, the group's credit loss ratio for 5M25 was just
outside the top end of the group's through-the-cycle range of 70 to 100 basis points, but
lower than 5M24.
Growth in Insurance and Asset Management operating earnings period on period was
supported by improved risk experience and lower short term claims.
The group remains well capitalised and liquid.
2025 outlook
In line with previous guidance for the twelve months to 31 December 2025 (FY25), the group
remains committed to delivering:
' Banking revenue growth of mid-to-high single digits in ZAR;
' Banking cost-to-income ratio being flat to down year on year; and
' Group ROE well anchored in the 2025 SBG target range of 17% to 20%.
For the six months to 30 June 2025, headline earnings growth is expected to be slower than
the growth recorded for 5M25 due to the particularly strong performance in the month of
June 2024.
Uncertainty around the macroeconomic dynamics, monetary policy, trade policies and
geopolitical developments remains elevated. The group continues to model and plan for a
variety of scenarios and outcomes. The group's large and diversified set of clients,
businesses and regions underpins its resilience. Against the modelled scenarios, the group
remains appropriately liquid and adequately capitalised.
The group will report its financial results for the six months to 30 June 2025 on 14 August
2025.
Investor call
Standard Bank Group will host an investor call at 17h00 (South Africa time) on 19 June 2025.
To register for the call please use the link below:
Standard Bank Group Pre-Close Call - June 2025
Alternatively, the call registration details are available on the Standard Bank Group Investor
Relations website - Standard Bank Group Investor Relations | Standard Bank
A replay will be available on the Investor Relations website.
Shareholders are advised that the information contained in this announcement has not been
reviewed or reported on by the group's external auditors.
Queries:
Investor Relations
Sarah Rivett-Carnac
Email: sarah.rivett-carnac@standardbank.co.za
Johannesburg
19 June 2025
JSE sponsor
The Standard Bank of South Africa Limited
Namibian sponsor
Simonis Storm Securities (Proprietary) Limited
Date: 19-06-2025 08:00:00
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