Analysis: Standard Bank shows lacklustre earnings growth

By Shaun Murison

The Standard Bank Group reported interim results which showed lacklustre headline earnings growth of 2%. This is largely as a result of the negative impact from discontinued operations in their Global Markets business outside of Africa (-R1.032bn) as well as slow growth of 1% from the Corporate and Investment Banking division (2nd largest contributor to headline earnings at R3.853bn).

Personal and Business Banking (the largest contributor to headline earnings at R4.193bn) grew headline earnings by 13% while the Liberty holdings contribution grew 10% to R1.021bn.

The Standard Bank Groups total income for the interim period increased 12% with Net interest income (NII) and non-interest revenue (NIR) showing encouraging growth of +14% and +10% respectively. The double digit growth in both revenue streams surpassed that of sector peers' Nedbank (+9.3% NII and -0.58%) and the Barclays Africa Group (10% NII and 5% NIR). Total impairments declined by 1% improving the credit loss ratio to 1.13% (previous 1.24%).

The Standard bank Group has increased the interim dividend offering by 11% to 259c per share.

This article was originally published on IG.com