Standard Bank H1 Record Earnings and Strategic Deals – JSE: SBK Share Price Hits Fresh Highs
Standard Bank’s share price, long contained within a tight range for much of 2025, is now pushing higher after a powerful combination of...
Quick overview
- Standard Bank's share price has surged to a new high of R255.65 following strong H1 2025 earnings and strategic initiatives.
- The bank reported record profits driven by corporate and investment banking, with headline earnings rising 8% to R23.8 billion.
- Despite recent price corrections, Standard Bank has shown resilience, with key moving averages supporting its recovery.
- Management remains optimistic about medium-term growth, reaffirming targets for revenue and return on equity amidst global uncertainties.
Standard Bank’s share price, long contained within a tight range for much of 2025, is now pushing higher after a powerful combination of robust earnings, strategic deals, and strong capital market activity reignited investor appetite.
Earnings Fuel Breakout
This week’s H1 2025 earnings release propelled Standard Bank (JSE: SBK) to a fresh intraday high of R255.65 on Thursday, before easing slightly into the close. Africa’s largest lender by assets reported record first-half profits, with corporate and investment banking delivering a substantial boost. Gains in fee income and trading revenue offset a slowdown in interest income, reinforcing the group’s underlying strength.
Resilient Performance Across Cycles
Standard Bank has demonstrated remarkable resilience despite periods of steep price corrections in recent years. Key moving averages have consistently provided a springboard for recoveries, and the latest rally is no exception. The 50-week simple moving average (SMA) once again acted as a firm base, sparking renewed buying momentum that pushed shares above prior resistance levels.
Weekly Chart – SBKJ Share Price Is Up 300% Since the 2020 Dive
Long-Term Strength and Dividend Reliability
Over the past four years, SBKJ has steadily advanced, cementing its position as one of South Africa’s most dependable blue-chip stocks and a consistent dividend payer. In late 2024, the share price hit a then-record high of 25,270 ZAC (R252.70) before a sharp pullback. Importantly, the correction held above technical support, laying the groundwork for the current breakout past R255.65.
Standard Bank Posts Solid H1 2025 Earnings as Digital Growth Lifts Revenue
Financial Performance
- Headline earnings rose 8% to R23.8bn ($1.35bn).
- Net income to shareholders increased 11% to R23.8bn.
- Return on equity (ROE) climbed to 19.1%.
- Headline earnings per share (HEPS) up 10% to 1,458c.
- Interim dividend declared at 817c, above median analyst estimate of 772c.
- Common-equity tier 1 ratio: 13.2%, beating the 12.5% board-approved target.
Segment Performance
- South Africa franchises: Earnings of R11.6bn (49% of group earnings).
- Africa regions: Earnings of R9.7bn (41% of group earnings), up 8%, with top eight contributors: Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda, Zambia.
- Offshore businesses: Earnings of R1.6bn.
- ICBC Standard Bank stake (40%): Contributed R0.8bn.
Digital and Client Growth
- Active clients up 2%, driven by SA and Africa growth.
- South Africa digital growth:
- Digital retail clients +7%.
- Successful digital transactions +12%.
- Digital sales volumes +33%.
- Digital revenue +21% period-on-period.
- Personalised, data-driven offers boosted retention, client engagement, and revenue.
Revenue Breakdown
- Net fee and commission revenue: +12%.
- Net interest income: +2%, as lower average interest rates compressed loan margins.
Outlook
2025 targets reaffirmed:
- Mid- to high single-digit banking revenue growth.
- Cost-to-income ratio flat or slightly down YoY.
- ROE between 17%–20%.
2026–2028 guidance:
- HEPS growth 8%–12%.
- ROE between 18%–22%.
Management confident in medium-term growth despite global policy uncertainty, trade disputes, and slow SA economic recovery.
Regional Diversification and Digital Growth
While South Africa remains Standard Bank’s largest earnings driver, operations across the rest of Africa are contributing an increasing share to overall profits. Rapid adoption of digital banking solutions and continued expansion in regional markets have reinforced revenue growth, helping to diversify earnings streams and reduce reliance on domestic macro conditions.
Outlook: Room for More Gains
With technical resistance levels now breached and fundamentals pointing upward, the path appears open for further price appreciation. The reaffirmation of medium-term targets, including strong return on equity metrics, underscores management’s confidence in sustaining profitability despite global policy uncertainty and local economic headwinds.
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