Standard Bank's move into Africa pays off as the group reports solid half-year results
Standard Bank FD Arno Daehnke said that Africa regions grew headline earnings by 15 percent.
Standard Bank has reported solid results for the half-year ended 30 June 2019.
The company’s banking activities grew earnings by a “pleasing” 10 percent to R12.8 billion reported Standard Bank Group FD Arno Daehnke. The broader group, which includes earnings generated from Standard Bank’s subsidiary Liberty Life and associate investment in ICBC Argentina and ICBC Standard Plc in London, delivered headline earnings of R13.4 billion, up six percent from the prior period, and ROE was 16.2 percent.
“The group’s capital position remained strong and, accordingly, an interim dividend of 454 cents per share has been declared, an increase of six percent from the prior period,” Arno said.
Analysing the results by region, Arno said that Africa regions (excluding South Africa) grew headline earnings by 15 percent and South Africa, “given the sluggish SA economy”, grew headline earnings by three percent.
“In Africa regions, the first half of 2019 was characterised by sustained balance sheet growth across the portfolio.”
On a constant currency basis, customer deposits increased 17 percent and loans to customers grew 15 percent year on year, which “is a testament to our growing client franchises in these markets”. Africa regions now comprise 34 percent of banking activities’ headline earnings.
Arno concluded that:
“These results are thanks to our 52,000 employees who, every day, help millions of people and companies to achieve their growth ambitions, using the unique power of financial services to grow the continent we call home. I’m very grateful to our people and I’m energised by the tremendous opportunities ahead.”
In May 2019 at the CFO Awards, Arno walked away with the Moving Into Africa Award. Fittingly, it was Standard Bank who sponsored the award. It is clear that the strategy that was recognised at the awards is continuing to pay off for Standard Bank.