Standard Bank has reported an increase in headline earnings for the five months ending 31 May 2024, despite elevated credit losses. The group’s headline earnings grew by mid-single digits compared to the same period last year, impacted by currency movements in Angola, Malawi, Nigeria and Zambia. Net interest income and credit impairment charges rose due to a change in methodology which now includes interest on Stage 3 loans. Higher average interest rates and increased transactional volumes supported income growth, but lower trading revenues mitigated this gain. Balance sheet growth slowed, with operating expenses being contained through cost-containment initiatives and lower performance-linked incentives. Income and operating expenses growth were reduced by currency movements, but total income growth still outpaced operating expenses leading to positive jaws. Credit impairment charges remained high, particularly in Business & Commercial Banking and Personal & Private Banking, although growth in early arrears and non-performing loans has slowed. Earnings from Insurance & Asset Management rose, driven by improved insurance results in South Africa, despite a reduction in asset management earnings in Africa due to the Nigerian Naira’s devaluation. The group remains committed to achieving a full-year return on equity within the target range of 17% to 20%, with interim results for the first half of 2024 to be released on 15 August 2024.
