Standard Bank Earnings Hit Record but Unable Reboot JSE: SBK Share Price Uptrend

Quick overview

Standard Bank Group, Africa’s largest lender by assets, reported record earnings for 2025, though the JSE: SBK share price showed little reaction despite the strong performance.

Record Earnings and Strong Profitability

Standard Bank delivered a record headline profit of R49.2 billion for 2025, reflecting solid growth across its operations. The bank also reported a return on equity of 19.3%, reaching the ambitious profitability targets it established four years ago.

The results highlight the strength of Standard Bank’s diversified business model, which spans multiple African markets and combines traditional lending with growing digital and investment banking services.

The bank continues to benefit from rising lending activity, growing customer deposits, and strong performance across its business units, supporting steady revenue growth.

Client Growth and Trading Revenue Support Results

The group’s expanding customer base played an important role in driving earnings higher. Standard Bank increased its client base by 3.3% during the year, bringing the total number of customers to 19.6 million.

Higher client activity helped boost fee and commission income, while volatile financial markets across Africa also supported trading revenue.

Market turbulence, particularly in currency markets, created opportunities for trading desks. The South African rand recorded a 10% one-year historical volatility, making it one of the most volatile major currencies on the continent.

Ongoing geopolitical tensions, including conflict involving Iran, may extend this period of market uncertainty and continue influencing trading activity.

Standard Bank Strength Persists, Valuation in Focus

Standard Bank’s own share price action remains constructive despite the pullback 0f the last tow months. The JSE: SBK share price topped at R328 in late February and then retreated sharply. But the 100 daily SMA (green) has been acting as support. So, at the moment, the trend remains intact, with shares holding above long-term moving averages. If the 100 SMA breaks then the next target is at the 200 SMA (purple) around R260.

SBKJ Chart Daily – The 100 MSA Is Acting As Support Here

Digital Growth and Sustainable Finance Expansion

Standard Bank’s strategy increasingly focuses on digital banking and sustainable finance initiatives. Rapid adoption of digital services is helping the bank expand its reach and improve customer engagement across the continent.

At the same time, the group continues to grow its sustainable finance portfolio, funding projects linked to renewable energy, climate transition, and infrastructure development across African markets.

The bank is partly owned by Industrial and Commercial Bank of China, which provides additional global connectivity and capital support.

Standard Bank Record Financial Performance in 2025

Standard Bank Group reported a landmark financial performance for 2025, delivering strong earnings growth and improved profitability.

• Headline earnings: $2.96 billion (R49.2 billion).
• Return on equity (ROE): 19.3%, reaching the top end of the bank’s target range.
• Total assets: Increased to $216.5 billion (R3.6 trillion) from $196.0 billion (R3.26 trillion) a year earlier.
• The growth reflects expansion across both South African and broader African operations.

Revenue Growth and Expanding Customer Base

• Net interest income: Increased 4%, supported by loan growth.
• Gross loans and advances: Rose 6% during the year.
• Non-interest revenue: Grew 10% to R63.75 billion.
• Customer deposits: Climbed 11% to R2.4 trillion.
• The bank’s total asset base now stands at R3.62 trillion, reflecting strong balance sheet expansion.

Strong Contribution from African Operations

• The rest-of-Africa business continues to play a larger role in group profitability.
• Headline earnings from African operations: Increased 9%.
• These operations now contribute 40% of total group earnings.

South Africa operations:

• Earnings surged 16%.
• Account for 51% of total headline earnings.

Regional breakdown highlights the strength of the bank’s pan-African presence:

• Africa Regions franchise: Generated $1.18 billion (R19.7 billion).
• South Africa: Delivered $1.50 billion (R24.9 billion).
• Offshore operations: Contributed $186 million (R3.1 billion).
• 40% stake in ICBC Standard Bank Plc: Added $90 million (R1.5 billion).
• Key markets include Angola, Ghana, Kenya, Mauritius, Nigeria, Tanzania, Uganda, and Zambia.

Business Unit Performance

Corporate and Investment Banking:

• Headline earnings rose 18%.
• ROE exceeded 22%.

Insurance and Asset Management:

• Fastest-growing segment.
• Earnings increased 26%, with ROE above 22%.

Personal and Private Banking:

• Earnings grew 3%.
• ROE above 23%.

Business and Commercial Banking:

• Earnings declined 4%, but profitability remained strong with ROE above 38%.

Digital Banking and Sustainable Finance Expansion

Digital adoption continues to accelerate:

• 67% of transactional clients now bank digitally.
• Digital retail clients increased 9%.
• Successful digital transactions rose 5%.

The bank is also expanding its sustainable finance initiatives:

• R100 billion mobilised in 2025 alone.
• R277 billion mobilised since 2022.
• Target increased to R450 billion by 2028.
• These funds support renewable energy, climate transition, and sustainable development projects across Africa.

Cost Discipline and Shareholder Returns

• Cost-to-income ratio: Improved to 50.2% from 50.5% in 2024.
• Credit impairment charges: Declined to $860 million (R14.3 billion) as macroeconomic conditions stabilised.
• Headline earnings per share: Increased 12% to 3,026 cents.
• Total dividend: 1,695 cents per share, also up 12% year-over-year.

Outlook

Despite the muted share price reaction, Standard Bank’s latest results reinforce its position as one of Africa’s strongest financial institutions.

With profitability already near 20% return on equity and a long-term target of 18% to 22% by 2028, the bank appears well positioned to sustain growth.

Continued expansion across African markets, rising digital adoption, and increasing investment in sustainable finance are expected to remain key drivers of Standard Bank’s long-term strategy.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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