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Group Results for the financial year ended 31 December 2024
Standard Bank Group Limited
Registration number: 1969/017128/06
Incorporated in the Republic of South Africa
Website: www.standardbank.com
Share codes
JSE share code: SBK ISIN: ZAE000109815
NSX share code: SNB ZAE000109815
A2X share code: SBK
SBKP ZAE000038881 (first preference shares)
SBPP ZAE000056339 (second preference shares)
Standard Bank Group results announcement
for the year ended 31 December 2024
FINANCIAL STATISTICS
Change (%) 2024 2023
Financial indicator (Rm)
Headline earnings 4 44 503 42 948
Total net income 2 181 729 177 616
Cents per ordinary share
Basic earnings per ordinary share (1) 2 644.1 2 666.6
Headline earnings per ordinary share 4 2 691.0 2 590.4
Total dividend per ordinary share 6 1 507 1 423
Net asset value per ordinary share 7 15 281 14 269
Financial performance (%)
Cost-to-income ratio (Banking) 50.5 51.4
Return on equity (ROE) 18.5 18.8
Results overview
"In 2024, Standard Bank Group delivered R45 billion of headline earnings and a return on equity of 18.5%. The franchise recorded strong underlying
organic growth across the banking, insurance and asset management businesses. The group remains on track to deliver on its 2025 strategy and
targets." - Sim Tshabalala, Group Chief Executive Officer
Group results
In the twelve months ended 31 December 2024 (FY24), Standard Bank Group (the group or Standard Bank) recorded headline earnings of R45 billion
and delivered a return on equity (ROE) of 18.5%. This performance is underpinned by continued balance sheet growth, lower credit impairment
charges, flat costs in the banking franchise and a robust performance in Insurance & Asset Management.
In 2024, the group's client franchise health showed improvements across several metrics. Active clients grew by 4% to 20 million clients, driven
largely by growth in South Africa. Digitally active retail clients in South Africa grew by 6% as more clients transitioned to our convenient digital
channels.
Our South African franchise delivered double-digit earnings growth supported by increased client activity and improving credit trends. Our Africa
Regions' franchise delivered another exceptional performance, growing earnings by 22% in local currency. After taking the currency headwinds into
account, most notably in the West Region, the Africa Regions' portfolio delivered earnings of R18.0 billion, marginally down on the prior period, and a
ROE of over 28%. In FY24, Africa Regions contributed 41% to group headline earnings. Key contributors to Africa Regions' headline earnings were
Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda and Zambia.
Active capital and liquidity management across our portfolio remains key to driving attractive ROEs and funding dividend payments to shareholders.
The group ended the year with a strong common equity tier 1 ratio of 13.5%. The group board approved a final dividend of 763 cents per share which
equates to a final dividend payout ratio of 56%. When combined with the interim dividend, the dividend declared for the year was 1 507 cents per
share, up 6% year on year.
We are pleased to report that we are well on our way to meet our target of more than R250 billion of sustainable finance mobilisation by the end of
2026. Since we began recording this data in 2022, Standard Bank has cumulatively mobilised over R177 billion in sustainable finance, R74 billion of
which was added in 2024 alone.
Operating environment
In 2024, global inflation moderated, interest rates declined, and real gross domestic product (GDP) remained relatively strong year on year (2024:
3.2%). Across the group's portfolio of countries in sub-Saharan Africa (outside of South Africa), while inflation also trended lower, it was still relatively
high at 13.5% on average (2023: 14.4%). Accordingly, interest rates were higher on a weighted average basis (2024: 14.3%). In West Africa, high
inflation, elevated interest rates, and weakening local currencies persisted, particularly in Angola and Nigeria. In East Africa, despite fiscal pressures
and local protests, macroeconomic tailwinds from lower inflation and strong foreign exchange inflows positively impacted the region. Currencies
strengthened and real GDP growth remained robust. In the South and Central region, shifts in commodity prices and climate-induced energy crises,
particularly in Malawi and Zambia, negatively impacted the region. Foreign exchange shortages and post-election protests impacted Mozambique.
Despite the headwinds, the South & Central Region performed well.
Following general elections in South Africa and the formation of the Government of National Unity, consumer and business confidence strengthened
and investor sentiment improved. Electricity supply stabilised and progress to reduce logistical constraints was viewed positively. Average consumer
inflation moderated to 4.4% (2023: 5.9%), supporting interest rate cuts of 50 basis points to 7.75% by the South African Reserve Bank in the last
quarter of 2024. Following an unexpected decline in the third quarter of the year, South Africa's real GDP growth was 0.6% for the year.
Prospects
In January 2025, the International Monetary Fund forecast global real GDP growth of 3.3% for 2025 and 2026. This was premised on a continued
decline in global inflation and a gradual normalisation of monetary policy as well as continued open trade. While recent developments, driven primarily
by US policy changes and related tariffs, could lead to trade disruptions and inflation pressures, these are expected to be temporary and are not
expected to disrupt the significant medium- and long-term opportunities we see across Africa.
Across Standard Bank's portfolio of sub-Saharan African countries outside of South Africa, economic headwinds are expected to moderate and
currencies to be more stable in 2025. In the West Region, inflation is expected to moderate, interest rates to remain high, and real GDP to improve. In
the East Region, inflation is expected to remain low, interest rates to decline, and growth to remain robust. In the South & Central Region, inflation,
interest rates and growth are expected to be mixed, with improvements in Botswana, Malawi and Zambia and a deterioration expected in
Mozambique.
In South Africa, inflation is expected to remain well anchored in the target band of 3% to 6% and interest rates are expected to decline to 7.25% (one
more 25 basis point interest rate cut in March 2025) and then remain flat for the rest of the year. This, together with ongoing policy reform and
improved business and consumer confidence, will support economic growth. South African real GDP growth is expected to improve to 1.7% in 2025
and above 2.0% in 2026.
We are focused on delivering against our strategic priorities and remain on track to deliver on the 2025 targets we committed to in August 2021. For
the twelve months to 31 December 2025 (FY25), the group's three core metrics are as follows:
- Banking revenue growth of mid-to-high single digits in ZAR;
- Banking revenue growth slightly higher than operating expenses growth, resulting in a marginally declining cost-to-income ratio year on year; and
- Group ROE will remain well anchored in the group's 2025 target range of 17% to 20%.
As we look beyond 2025, our footprint, people and capabilities provide us with access to many exciting opportunities linked to Africa's development.
We will both defend and grow our core businesses and pursue growth opportunities. We will focus on opportunities where we have a clear competitive
advantage and that provide accretive risk-adjusted returns. More specifically, we want to lead Africa's energy and infrastructure development, build
Africa's best private bank and maximise the value of our diversified portfolio by diligently re-allocating capital and resources to support our strategic
growth ambitions. Accordingly, we commit to the following new medium-term targets (2026 – 2028):
- Headline earnings per share growth of 8% – 12%
- ROE target range of 18% – 22%
We remain excited about the prospects of driving Africa's growth, and we are confident in our ability to continue to proactively manage risk whilst
balancing growth and returns.
The forecast financial information above is the sole responsibility of the board and has not been reviewed and reported on by the group's auditors.
Declaration of final dividends
Shareholders of Standard Bank Group Limited (the company) are advised of the following dividend declarations out of income reserves in respect of
ordinary shares and preference shares.
Ordinary shares
Ordinary shareholders are advised that the board has resolved to declare a final gross cash dividend No. 110 of 763.00 cents per ordinary share (the
cash dividend) to ordinary shareholders recorded in the register of the company at the close of business on Friday, 11 April 2025. The last day to trade
to participate in the dividend is Tuesday, 8 April 2025. Ordinary shares will commence trading ex dividend from Wednesday, 9 April 2025.
The salient dates and times for the cash dividend are set out in the table that follows.
Ordinary share certificates may not be dematerialised or rematerialised between Wednesday, 9 April 2025, and Friday, 11 April 2025, both days
inclusive. Ordinary shareholders who hold dematerialised shares will have their accounts at their Central Securities Depository Participant (CSDP) or
broker credited on Monday, 14 April 2025.
Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders' bank accounts on the payment date.
Preference shares
Preference shareholders are advised that the board has resolved to declare the following final dividends:
- 6.5% first cumulative preference shares (first preference shares) dividend No. 111 of 3.25 cents (gross) per first preference share, payable
on Monday, 7 April 2025, to holders of first preference shares recorded in the books of the company at the close of business on the record date,
Friday, 4 April 2025. The last day to trade to participate in the dividend is Tuesday, 1 April 2025. First preference shares will commence trading
ex dividend from Wednesday, 2 April 2025.
- Non-redeemable, non-cumulative, non-participating preference shares (second preference shares) dividend No. 41 of 448.55112 cents (gross)
per second preference share, payable on Monday, 7 April 2025, to holders of second preference shares recorded in the books of the company
at the close of business on the record date, Friday, 4 April 2025. The last day to trade to participate in the dividend is Tuesday, 1 April 2025. Second
preference shares will commence trading ex dividend from Wednesday, 2 April 2025.
The salient dates and times for the preference share dividends are set out in the table that follows.
Preference share certificates (first and second) may not be dematerialised or rematerialised between Wednesday, 2 April 2025, and Friday, 4 April
2025, both days inclusive. Preference shareholders (first and second) who hold dematerialised shares will have their accounts at their CSDP or broker
credited on Monday, 7 April 2025.
Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders' bank accounts on the payment date.
THE RELEVANT DATES FOR THE PAYMENT OF DIVIDENDS ARE AS FOLLOWS:
Non-redeemable,
non-cumulative,
6.5% non-participating
cumulative preference shares
Ordinary preference shares (second preference
shares (first preference shares) shares)1
JSE Limited (JSE)
Share code SBK SBKP SBPP
ISIN ZAE000109815 ZAE000038881 ZAE000056339
Namibian Stock Exchange
(NSX)
Share code SNB
ISIN ZAE000109815
Dividend number 110 111 41
Gross distribution/dividend per share
(cents) 763.00 3.25 448.55112
Net dividend 610.40 2.60 358.84090
Last day to trade in order to be eligible
for the cash dividend Tuesday, 8 April 2025 Tuesday, 1 April 2025 Tuesday, 1 April 2025
Shares trade ex the cash dividend Wednesday, 9 April 2025 Wednesday, 2 April 2025 Wednesday, 2 April 2025
Record date in respect of the
cash dividend Friday, 11 April 2025 Friday, 4 April 2025 Friday, 4 April 2025
CSDP/broker account credited/
updated (payment date) Monday, 14 April 2025 Monday, 7 April 2025 Monday, 7 April 2025
1-The non-redeemable, non-cumulative, non-participating preference shares (SBPP) are entitled to a dividend of not less than 77% of the
prime interest rate during the period, multiplied by the subscription price of R100 per share.
Tax implications
The cash dividend received under the ordinary shares and the preference shares is likely to have tax implications for both resident and non-resident
ordinary and preference shareholders. Such shareholders are therefore encouraged to consult their professional tax advisers.
In terms of the South African Income Tax Act, 58 of 1962, the cash dividend will, unless exempt, be subject to dividends tax. South African resident
ordinary and preference shareholders that are not exempt from dividends tax, will be subject to dividends tax at a rate of 20% of the cash dividend,
and this amount will be withheld from the cash dividend with the result that they will receive a net amount of 610.40 cents per ordinary share, 2.60
cents per first preference share and 358.84090 cents per second preference share. Non-resident ordinary and preference shareholders may be
subject to dividends tax at a rate of less than 20% depending on their country of residence and the applicability of any Double Tax Treaty between
South Africa and their country of residence.
The company's tax reference number is 9800/211/71/7 and registration number is 1969/017128/06.
Shares in issue
The issued share capital of the company, as at the date of declaration, is as follows:
- 1 658 921 122 ordinary shares at a par value of 10 cents each
- 8 000 000 first preference shares at a par value of R1 each
- 52 982 248 second preference shares at a par value of 1 cent each and subscription price of R100.
13 March 2025, Johannesburg
Administrative information
The group's 2024 financial information, including comparatives for 2023, where applicable, has been correctly extracted from the group's underlying
audited consolidated annual financial statements (AFS), where applicable, for the year ended 31 December 2023. This announcement is a summary of
the information contained in the AFS and does not contain full or complete details. Any investment decisions by investors or shareholders should be
based considering the AFS and accompanying reports.
While this announcement, in itself, is not audited, the AFS from which the results are derived were audited by Ernst and Young Inc. and
PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon. The full audit opinion, including any key audit matters, is available at
www.standardbank.com/sbg/standard-bank-group/investor-relations/results-and-reports as part of the group's AFS, which have been
released in conjunction with the above via SENS announcement. Copies of the AFS are available for inspection at the company's registered office, and
the offices of the JSE Sponsor, on weekdays from 09:00 to 16:00 and may be requested by emailing InvestorRelations@standardbank.co.za and
also on the following JSE website:
https://senspdf.jse.co.za/documents/2025/jse/isse/SBK/SBGFY24.pdf
Forward-looking statements contained above are not statements of fact or guarantees of future performance, results, strategies and objectives, and
by their nature, involve risk and uncertainty. The group's actual future performance, results, strategies and objectives may differ materially from the
plans, goals and expectations expressed or implied in the forward-looking statements.
Registered office: 9th floor, Standard Bank Centre, 5 Simmonds Street, Johannesburg 2001, PO Box 7725, Johannesburg 2000
Namibian sponsor: Namibia: Simonis Storm Securities (Proprietary) Limited
JSE sponsor: The Standard Bank of South Africa Limited
Directors: N Nyembezi (Chairman), LL Bam, PLH Cook, A Daehnke*, OA David-Borha1, GJ Fraser-Moleketi, GMB Kennealy, BJ Kruger, Li Li2,
JH Maree (Deputy Chairman), NNA Matyumza, ML Oduor-Otieno3, RN Ogega3, Fenglin Tian2 (Deputy Chairman), SK Tshabalala* (Chief Executive
Officer).
* Executive director 1 Nigerian 2 Chinese 3 Kenyan. All nationalities are South African, unless otherwise specified.
Date: 13-03-2025 08:00:00
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