Africa-Press – South-Africa. Standard Bank said its banking revenue continues to grow by mid-to-high single digits despite the negative impact of lower interest rates across its operations.
Africa’s biggest bank by assets revealed this in a voluntary trading update for the ten months to 31 October 2025, released on 1 December.
The bank said its performance trends in the ten months are broadly in line with those reported in the first half of its financial year.
In the first half of its financial year, Standard Bank reported headline earnings growth of 8% to R24 billion, driven by a strong performance from its Corporate and Investment Banking (CIB) division.
This division, the bank’s crown jewel responsible for half its headline earnings, appears to be continuing its strong performance in the second half of the financial year.
Standard Bank said its banking revenue grew by mid-to-high single digits in the ten months compared to the same period last year.
Net interest income was driven by strong book growth, supported by continued strong origination in investment banking. This growth was somewhat limited by the negative endowment impact from lower average interest rates.
Non-interest revenue growth remained robust, the bank said. This is being driven by a larger and more active client base, translating into strong net fee and commission revenue growth.
As with the first half of the year, Standard Bank’s CIB division is benefitting from continued uncertainty and market volatility, which supported its trading revenue.
Despite an increase in activity-related costs, cost growth remained well contained, the bank said. Banking revenue growth was slightly ahead of cost growth.
The group’s credit loss ratio for the ten months was around the middle of the group’s through-the-cycle range of 70 to 100 basis points. CIB credit impairment charges were higher period on period, off a low base in the prior period.
Personal and Private Banking credit impairment charges were lower on a period-on-period basis due to a slowdown in early arrears formation and lower inflows into non-performing loans.
Business & Commercial Banking credit impairment charges were also lower period-on-period, driven by improvements in both South Africa and Africa Regions.
The Insurance and Asset Management franchise continued to deliver a robust performance. Higher earnings period on period were driven by an improved performance in the South African Retail life insurance business and an enhanced claims ratio in the South African short-term insurance business.
The former was driven by improved persistency and risk experience. The latter was assisted by the absence of catastrophic weather-related events year to date.
Standard Bank said it remains committed to delivering on its growth targets for the financial year –
Banking revenue growth of mid-to-high single digits;
Banking revenue growth at or above operating expenses growth, resulting in a flat to lower cost-to-income ratio year on year; and
Group return on equity well anchored in the group’s target range of 17% to 20%.
Standard Bank said it will provide guidance for 2026 when it reports its financial results for the 2025 financial year on 12 March 2026.
It noted that there has been an improvement in confidence in South Africa on the back of lower inflation and interest rates, as well as improving government finances.
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