JSE: SBK Share Price Steady but Aims Higher After Upbeat Standard Bank FY25, China Payments Move
Standard Bank’s share price remains range-bound, but strong fundamentals and major strategic deals suggest buyers may soon push to new highs
Quick overview
- Standard Bank's share price has remained range-bound between 22,300 and 24,000 ZAC, indicating a period of consolidation.
- Despite recent volatility, the bank's strong fundamentals and strategic moves, including access to China's CIPS, enhance its long-term growth potential.
- The stock has shown resilience with consistent support at key moving averages, suggesting a bullish outlook for future price increases.
- Robust financial performance, including double-digit headline earnings growth, reinforces Standard Bank's position as a leading blue-chip company in South Africa.
Standard Bank’s share price remains range-bound, but strong fundamentals and major strategic deals suggest buyers may soon push to new highs.
Standard Bank Shares in Holding Pattern After Strong Recovery
Standard Bank (JSE: SBK), the largest banking group in South Africa by assets, has seen its share price remain relatively stagnant over the past two months. Trading between 22,300 and 24,000 ZAC, the stock has struggled to break out decisively in either direction, suggesting a period of consolidation.
Yet when viewed over longer timeframes such as the weekly chart, Standard Bank’s bullish bias is unmistakable. Despite facing sharp declines over recent years, the stock has consistently found support at key moving averages. These levels have acted as springboards for renewed buying interest, steadily pushing SBKJ to fresh highs over time.
Resilient Performance Despite Past Volatility
Standard Bank has maintained its reputation as one of South Africa’s premier blue-chip companies and a consistent dividend payer. Over the past two years, its share price has climbed in a steady uptrend. In late 2024, SBKJ shares hit a new record high of 25,270 ZAC (R252.70), before pulling back sharply.
Weekly Chart – SBKJ Share Price Is Up 290% Since the 2020 Dive
Importantly, the correction found support at the 50-week SMA (yellow line), which held firm and sparked another rally toward the R240 level. The trade tariffs dispute in Q1 2025 triggered a heavy selloff, driving the stock 20% lower to around 20,000 ZAC. However, here too, technical buyers stepped in at the 100 SMA (green), which again provided solid support. A bullish doji candlestick above this level in April signaled a reversal, leading to a swift recovery.
Since then, the buying momentum has stalled somewhat, with the price locked in a sideways trading range. But history suggests buyers are likely to regain control eventually, paving the way for a move to new record highs above R250.
Major Strategic Breakthrough: China Payment System Access
Adding to its long-term appeal, Standard Bank just announced a landmark development. It will become the first African bank to offer China’s Cross-Border Interbank Payment System (CIPS), giving African businesses and governments direct access to China’s alternative to the SWIFT network.
This move represents a key milestone in China’s broader push to create a global payments system insulated from US and EU legal frameworks. For Standard Bank, it signals a commitment to staying at the forefront of Africa’s evolving financial landscape, boosting its strategic importance in cross-border trade and finance.
Robust Financial Performance Supports Outlook
Operationally, Standard Bank has also delivered solid results this year. Despite pressures on its net interest margin due to declining rates, the bank reported double-digit headline earnings growth in its latest trading update. For the first five months of 2025, group headline earnings expanded at a comparable rate, with a 10% increase in rand terms in Q1 2025 over the same period in 2024.
Even after accounting for currency volatility from last year’s devaluations, headline earnings grew in the mid-teens on a constant currency basis. Management expects the currency impact to ease in the second half of 2025. The bank’s return on equity (ROE) has remained strong, staying within its 17% to 20% target range for the year so far, underlining its resilience in a challenging macro environment.
Conclusion: While short-term traders might see Standard Bank’s recent price action as uninspiring, the bigger picture tells a different story. Consistent technical support, robust financial performance, and bold strategic moves such as the adoption of China’s CIPS position SBKJ for continued growth. Investors may see the current range as a period of consolidation before the next push to new highs.
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