By: Lonwabo Mtyeku | Pictures: Supplied
Seen Here: Sim Tshabalala_CEO of Standard Bank Group. Photo Credit: Supplied.
Standard Bank Group has delivered a strong financial performance for the year ended December 2025, reporting headline earnings of R49.2 billion and achieving a return on equity (ROE) of 19.3%, placing the bank at the top end of its 2025 target range of 17% to 20%.
The results underscore the group’s strong operational momentum, supported by solid balance sheet growth, increased digital adoption and improved macroeconomic conditions across several African markets.
Strong Financial Performance
The banking giant also reported headline earnings per share of 3,026 cents, reflecting a 12% increase year-on-year. Shareholders benefited from a total dividend of 1,695 cents per share, including a final dividend of 878 cents, representing a 12% rise compared with the previous year.
Additional key financial indicators highlight the group’s strengthened position:
- Return on equity (ROE): 19.3%
- Cost-to-income ratio: Improved to 50.2%
- Common equity tier 1 ratio: 13.8%
- Credit loss ratio: Improved to 73 basis points
- Tangible net asset value per share: 15,687 cents, up 7%
The bank attributed its performance to robust growth in fees and trading revenues, improved cost management and lower credit impairment charges as economic conditions gradually improved.
Strategy Delivers Results
Group CEO Sim Tshabalala described the year as a milestone moment for the bank, noting that the group had achieved or exceeded the ambitious targets set in 2021.
“2025 marked a significant milestone as we achieved or surpassed the ambitious financial targets we set in 2021, validating our strategy and confirming our capacity for disciplined execution,” Tshabalala said.
He added that the bank remains firmly guided by its purpose: “Africa is our home, we drive her growth.”
According to Tshabalala, the continent continues to present significant opportunities despite growing competition from fintech companies, evolving regulatory frameworks and the increasing role of advanced technologies such as artificial intelligence.
Africa Regions Driving Growth
Operations across the African continent remain a major contributor to the bank’s success. The Africa Regions division accounted for 40% of the group’s headline earnings, demonstrating the strength of the bank’s pan-African strategy.
In South Africa, the bank generated R24.9 billion in earnings, while the Africa Regions franchise contributed R19.7 billion. Offshore businesses delivered R3.1 billion, and the group’s 40% stake in ICBC Standard Bank Plc contributed R1.5 billion.
Key markets driving growth across the continent include Angola, Ghana, Kenya, Mauritius, Nigeria, Tanzania, Uganda and Zambia.
Business Unit Performance
Several divisions recorded strong results during the financial year:
- Corporate and Investment Banking (CIB) reported an 18% increase in headline earnings with ROE exceeding 22%
- Business and Commercial Banking (BCB) saw headline earnings decline by 4%, but maintained a strong ROE above 38%
- Personal and Private Banking (PPB) achieved 3% earnings growth with ROE above 23%
- Insurance and Asset Management (IAM) delivered standout performance with 26% growth in headline earnings and ROE above 22%
Meanwhile, total income growth exceeded cost growth, resulting in positive operating leverage and helping reduce the cost-to-income ratio from 59.1% in 2020 to 50.2% in 2025.
Digital Banking Momentum
Digital transformation continues to play a central role in the bank’s strategy, particularly in South Africa.
The number of digital retail clients grew by 9%, while successful digital transactions increased by 5%. The proportion of transactional clients who now use digital channels rose to 67%, highlighting a significant shift toward online banking services.
Sustainable Finance Gains Momentum
Sustainability remains a core pillar of Standard Bank’s long-term strategy. The group increased its sustainable finance mobilisation target from R250 billion by 2026 to R450 billion by 2028.
Since 2022, the bank has mobilised more than R277 billion in sustainable finance, including R100 billion in 2025 alone, helping businesses transition toward more sustainable and environmentally responsible operations.
Asset Growth
Assets under administration and management grew 15% to R1.8 trillion, supported by strong investment market performance and expanding business activity across the African regions.
Economic Outlook
Looking ahead, the global economic outlook remains cautiously optimistic. According to forecasts referenced by the bank, the International Monetary Fund expects global GDP growth of 3.3% in 2026 and 3.2% in 2027, while inflation is projected to decline steadily.
In sub-Saharan Africa, economic growth is expected to accelerate from 4.4% in 2025 to 4.6% in 2026 and 2027, supported by macroeconomic reforms and stabilisation efforts.
For South Africa, Standard Bank Research projects GDP growth of 1.5% in 2026, improving to 1.8% in 2027, while inflation is expected to average 3.6% in 2026 and 3.3% in 2027.
Interest rates are also anticipated to decline gradually, with potential 75 basis points of cumulative cuts between 2026 and 2027.
Growth Targets for 2026–2028
The group expects continued momentum over the next financial year, forecasting:
- Mid-to-high single-digit revenue growth
- A slight decline in the cost-to-income ratio
- Credit loss ratios remaining within the lower half of the 70–100 basis point target range
- Improved ROE beyond the 2025 level of 19.3%
Standard Bank has also reaffirmed its medium-term targets of 8% to 12% compound annual growth in headline earnings per share and maintaining ROE between 18% and 22% through to 2028.
Global Recognition
The bank’s performance has also been recognised internationally. Standard Bank was ranked Africa’s and South Africa’s Most Valuable Bank Brand by Brand Finance for the fifth consecutive year.
Additionally, Forbes named the bank among the World’s Best Employers for 2025, the highest-ranked organisation from Africa. The group was also recognised by TIME Magazine and Newsweek among the world’s best companies and most trustworthy organisations.
Looking Ahead
Standard Bank will provide further details on its long-term growth strategy during its Capital Markets Day scheduled for 26 March 2026.
For Tshabalala, the bank’s strategy remains firmly anchored in expanding across Africa’s most promising markets.
“Our strategy is clear and credible, built on a rigorous understanding of our markets and the opportunities ahead,” he said. “Most importantly, we have a deep and highly capable management team whose expertise and track record give us full confidence in our ability to deliver sustainable value for all stakeholders.”
