**Standard Bank Reports Record First-Half Profit Amid Diverse Revenue Growth**
Standard Bank Group Ltd., the largest lender in Africa by assets, has announced a record profit for the first half of the year, driven by growth in fees and trading revenue that compensated for a decline in interest income. The Johannesburg-based bank reported headline earnings of 23.8 billion rand ($1.35 billion), marking an 8% increase compared to the previous year. Net income available to shareholders also rose by 11% to 23.8 billion rand, with the return on equity reaching 19.1%.
Following the announcement, Standard Bank’s shares surged by as much as 6% by 10 a.m. in Johannesburg, achieving an intraday record. The stock has increased by 15% since the beginning of the year. Supported by the Industrial & Commercial Bank of China Ltd., Standard Bank has expanded its operations across Africa, increasing both deposits and customer numbers. Key contributors to this growth include Angola, Ghana, Kenya, Mauritius, Mozambique, and Nigeria.
The bank’s net fee and commission revenue saw a significant increase of 12%, while net interest income grew by 2%, despite lower average interest rates impacting loan margins. In South Africa, headline earnings rose by 14%, bolstered by a growing base of active business clients and an expanding transactional and merchant account portfolio. Meanwhile, the bank’s operations outside South Africa contributed to an 8% increase in headline earnings, now accounting for 41% of total earnings, compared to 49% from South Africa.
However, the bank reported a 2% increase in sovereign risk credit impairments, totaling 8.14 billion rand, due to deteriorating credit conditions in some African markets, particularly Mozambique. The bank indicated that further impairment charges could arise in the second half of the year. The rise in bad debts led to a slight widening of the credit loss ratio to 0.93%, remaining within the board-approved target range of 70 to 100 basis points.
Standard Bank’s common-equity tier 1 ratio stood at 13.2%, exceeding the board-approved target of 12.5%, a level it has maintained since 2021. Since 2022, the group has mobilized over 230 billion rand in sustainable finance, with 53 billion rand raised in the first half of 2025 alone. The bank aims to provide 450 billion rand in green loans by 2028. Additionally, Standard Bank declared an interim dividend of 8.17 rand per share, surpassing median analyst expectations of 7.72 rand.
**FAQ**
**What factors contributed to Standard Bank’s record profit in the first half of the year?**
Standard Bank’s record profit was primarily driven by significant growth in fee and commission revenue, alongside trading revenue, which helped offset a slowdown in interest income. The bank’s expansion in various African markets also played a crucial role in its financial performance.
