Sim Tshabalala, Standard Bank Group CEO

The Group has met or exceeded its core financial targets since 2021

Standard Bank Group (the Group) reported headline earnings of R49.2 billion and delivered a return on equity (ROE) of 19.3%, at the top end of the Group’s 2025 ROE target range of 17% to 20%. The banking businesses delivered a strong performance driven by solid balance sheet growth and robust growth in fees and trading revenues. Credit impairment charges were lower year on year, supported by an improving macroeconomic environment, and costs were well managed. Insurance & Asset Management continued to deliver strong earnings growth and improved returns.

Financial Highlights

•        Headline earnings: R49.2 billion

•        Headline earnings per share: 3,026 cents, up 12%

•        Final dividend per share: 878 cents, bringing the total dividend for the year to 1,695 cents, up 12%

•        Tangible net asset value per share: 15,687 cents, up 7%

•        Return on equity (ROE): Improved to 19.3%

•        Common equity tier 1 ratio: 13.8%

•        Cost-to-income ratio: Improved to 50.2%

•        Credit loss ratio: Improved to 73 bps

Sim Tshabalala, Standard Bank Group CEO says: “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. Put simply, we keep our promises and we meet our targets. Looking ahead, we continue to be guided by our purpose: Africa is our home, we drive her growth. Indeed, Africa continues to grow fast and steadily, and the opportunities across the continent remain significant. We recognise the challenges posed by intensifying competition (including from fintechs), evolving regulatory dynamics, and the accelerating role of artificial intelligence and other advanced technologies. We are confident in our ability to drive sustainable growth in the short, medium and long term.”

Standard Bank remains committed to helping its clients achieve sustainable outcomes. In 2025, the bank increased its sustainable finance mobilisation target from R250 billion by 2026 to R450 billion by 2028. Since 2022, the Group has cumulatively mobilised over R277 billion in sustainable finance for our clients, of which R100 billion was mobilised in 2025 alone.

Operational Achievements

•        Africa Regions: Contributed 40% to group headline earnings

•        Sustainable finance mobilised: R100bn in 2025 alone and over R277bn cumulatively since 2022

Customer migration and engagement on retail digital platforms in South Africa

•        Digital retail clients: Grew by 9%

•        Successful digital transactions: Increased by 5%

•        Proportion of transactional clients who transact digitally: 67%

In South Africa, deliberate actions to drive growth in digital retail transactional clients resulted in a 9% increase in digital clients, a 5% increase in digital transactional volumes, and an increase in the proportion of transactional clients who transact digitally to 67%

In South Africa the bank delivered earnings of R24.9 billion, the Africa Regions’ franchise delivered R19.7 billion in earnings, the Offshore businesses R3.1 billion and the contribution from Standard Bank’s 40% stake in ICBC Standard Bank Plc (ICBCS) was R1.5 billion. Cumulatively, these businesses contributed 51%, 40%, 6%, and 3% respectively to Group headline earnings. The key contributors to Africa Regions’ headline earnings were Angola, Ghana, Kenya, Mauritius, Nigeria, Tanzania, Uganda and Zambia.

On a business unit level for the year under review:

• CIB saw headline earnings increase by 18% and an ROE of over 22%
• BCB saw headline earnings 4% lower and an ROE of over 38%
• PPB grew headline earning by 3% and saw ROE improvement of over 23%; and
• IAM saw headline earnings increase by 26% and an ROE of over 22%.

Total income growth exceeded cost growth, resulting in positive jaws of 64 basis points and an improvement in the cost-to-income ratio to 50.2% compared to 50.5% the previous year. The cost-to-income ratio of 50.2% is in line with the Group’s 2025 target ratio approaching 50%. The cost-to-income ratio has declined dramatically from 59.1% recorded in 2020.

Total assets under administration and management increased by 15% to R1.8 trillion. This growth was supported by positive investment market movements, both locally and offshore, together with continued market expansion in the Africa Regions businesses

Outlook

“The IMF expects global real GDP growth of 3.3% and 3.2% for 2026 and 2027 respectively. Tailwinds from technology investment, policy support and accommodative financial conditions are expected to offset changing trade tariffs and other geopolitical shifts. Global inflation is expected to decline from an estimated 4.1% in 2025 to 3.8% in 2026 and further to 3.4% in 2027. In sub-Saharan Africa, the IMF expects inflation to decline and growth to accelerate from 4.4% in 2025 to 4.6% in 2026 and 2027, supported by macroeconomic stabilisation and reform efforts in key economies,” says Tshabalala

In South Africa, inflation is expected to average 3.6% for 2026 and 3.3% for 2027, interest rates are expected to decrease by a cumulative 75 basis points (25 basis point cuts in May and September 2026 and one further cut in 2027) and real GDP growth is expected to be 1.5% in 2026 and to improve to 1.8% in 2027 (Standard Bank Research).

The group’s diversified franchise is well placed to benefit from the improving macroeconomic environment and the associated increase in economic activity. The improvements should support group balance sheet growth and reinforce existing strong earnings momentum.

For the 12 months to 31 December 2026, we expect:

• Banking revenue growth to be mid-to-high single digits supported by ongoing business momentum;
• Cost-to-income ratio to decline slightly on back of continued disciplined cost management alongside ongoing franchise investment;
• Credit loss ratio to increase but remain in the bottom half of the through-the-cycle target range of 70 – 100 basis points; and
• ROE to increase relative to FY25 (FY25: 19.3%).

Geopolitical developments in the Middle East, particularly the conflict involving Iran, continue to introduce uncertainty. While our guidance includes current information, an enduring or escalated conflict could affect macroeconomic assumptions, including on trade, inflation and growth.

Standard Bank is committed to delivering the group’s 2026 to 2028 targets of:

• Headline earnings per share compound annual growth of 8% – 12%; and
• ROE within the target range of 18% – 22%.

Tshabalala says: “Our 2028 strategy is anchored in our ambition to compete and win in our chosen markets and segments. Our strategy is clear and credible, built on a rigorous understanding of our markets and the opportunities ahead. The targets we have set are ambitious yet achievable, supported by disciplined execution and a strong performance culture. Most importantly, we have a deep and highly capable management team whose expertise, commitment, and track record give us full confidence in our ability to deliver sustainable value for all our stakeholders.”

Rounding off the year, Standard Bank was once again ranked as Africa’s and South Africa’s Most Valuable Bank Brand by Brand Finance for the fifth consecutive year. Forbes ranked Standard Bank among its World's Best Employers for 2025, the highest-ranked organisation from Africa, and the Group was named in TIME Magazine's World's Best Companies and Newsweek's World's Most Trustworthy Companies for 2025.

Standard Bank will be providing deeper insights into the drivers of the group’s 2028 targets during the Capital Markets Day on 26 March 2026.