Standard Bank, a financial services giant led by South African banker Sim Tshabalala, reported a resilient financial performance in the first half of 2024 , despite challenging macroeconomic conditions and geopolitical tensions.
The group's headline earnings, the primary measure of profitability for South African companies, rose 4 percent to R22 billion ($1.22 billion) from R21.1 billion ($1.17 billion) in the same period last year. This increase was driven by continued franchise growth in banking and robust insurance and asset management expansion.
Lender's loan book expands as costs remain under controlThe 7 percent rise in interest income to R50.65 billion ($2.81 billion) from R47.25 billion ($2.62 billion) supported the growth in headline earnings. Average balance sheet growth, higher margins, and income on liquid assets recorded at amortized cost contributed to this increase.
Improved credit charges and a 3 percent rise in gross loans and advances to R1.7 trillion ($94.44 billion) also supported the group's financial performance. Disciplined cost management led to a 1 percent increase in operating expenses to R38.4 billion ($2.13 billion), while total other operating expenses decreased by 1 percent.
