In This Article:
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Headline Earnings: ZAR45 billion, up 4% year-on-year; 14% growth in constant currency terms.
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Dividends: ZAR15.7 per share, a 6% increase.
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Return on Equity (ROE): 18.5% for the year.
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Cost to Income Ratio: Improved to 50.5%.
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Credit Loss Ratio: 83 basis points.
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Common Equity Tier 1 Ratio: 13.5%.
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Revenue Growth: Compound annual growth rate of 12% since 2020.
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Loan Growth: 3% increase in 2024.
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Deposit Growth: 6% increase.
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Net Interest Income: Grew by 3% to ZAR201 billion.
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Non-Interest Revenue: Net fee and commission revenue increased by 4% to ZAR32 billion.
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Insurance and Asset Management Earnings: Grew by 17% to ZAR3.3 billion.
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Assets Under Management: ZAR1.5 trillion.
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Dividend Payout Ratio: 56%.
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Headline Earnings Growth Target (2026-2028): 8% to 12% CAGR.
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Return on Equity Target (2026-2028): 18% to 22%.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Standard Bank Group Ltd (SBGOF) achieved a headline earnings growth of 4% in 2024, with a 14% increase in constant currency terms.
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The company declared dividends of ZAR15.7 per share, marking a 6% increase from the previous year.
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The return on equity for the year was 18.5%, well within the target range of 17% to 20%.
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The cost to income ratio improved to 50.5%, indicating effective cost management.
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Insurance and asset management business units showed strong growth, with earnings increasing by 17% to ZAR3.3 billion.
Negative Points
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Weaker African currencies, particularly the Nigerian naira and the Angolan kwanza, reduced rand earnings by 9%.
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Headline earnings growth was moderate at 4%, compared to 35% in 2022 and 27% in 2023.
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The net interest income growth was relatively subdued at 3%, impacted by lower margins and pricing pressures.
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Credit impairments on financial investments increased due to sovereign credit risk deterioration in Malawi and Mozambique.
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The devaluation of subsidiary currencies against the rand had a meaningful impact on the income statement, particularly in West Africa.
Q & A Highlights
Q: How should we think about growth in trading income for 2025 and beyond, and what factors might affect this momentum? A: Luvuyo Masinda, CEO of Corporate and Investment Banking, explained that the trading revenue is largely driven by client activity, which gives confidence in its sustainability. The supportive macroeconomic conditions in Africa are expected to continue driving growth in trading revenues. Additionally, the development of financing businesses within global markets is anticipated to contribute to future growth.