Standard Bank led by Sim Tshabalala posts $1.61 billion headline earnings in H1 2026

Standard Bank Group, Africa’s biggest lender by assets led by South African banker Sim Tshabalala, has delivered a record first-half performance, with headline earnings rising above $1.61 billion in the six months ended June 2026, supported by stronger fee and trading revenues and lower credit impairment charges.

The strong first-half performance underscores Standard Bank’s position as one of Africa’s leading financial institutions, with its diversified operations, growing digital franchise and expanding presence across the continent providing a platform for further earnings growth.

Standard Bank Group’s CEO applauds stellar performance across African markets

According to the lender’s recently disclosed half-year report, headline earnings surged by 10% from the prior-year’s R23.79 billion ($1.47 billion) to R26.1 billion ($1.61 billion) in the first half of 2026. Net interest income increased 4% to R53.6 billion ($3.32 billion), while net fee and commission revenue climbed 7% to R18.4 billion ($1.14 billion). Trading revenue also increased 8% during the period.

Sim Tshabalala, CEO of Standard Bank Group since September 2017, eyeing retirement next year, 2027, expressed satisfaction with the bank’s performance, stating, “In H1 2026, we delivered another record performance, with headline earnings and dividend per share up 10% and return on equity improving to 19.8%’’.

The Johannesburg-based banking group, which operates in 20 countries across Sub-Saharan Africa, highlighted the significant contributions from its African Regions. Its diversified African franchise remained a key driver of first-half 2026 earnings, with its South African operations contributing R13.4 billion ($828.61 million), Africa Regions R10.4 billion ($643.1 million), Offshore businesses R1.3 billion ($80.39 million) and its 40% stake in ICBC Standard Bank Plc R1 billion ($61.84 million). 

The four segments accounted for 51%, 40%, 5% and 4%, respectively, of group headline earnings. Across its Africa Regions business, Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda and Zambia were the top eight contributors.

Standard Bank expands payments and sustainable finance operations

Payments remained an important source of capital-light revenue growth for Standard Bank, with domestic and cross-border electronic payment values increasing 11% and 7%, respectively, during the period.

The lender maintained leading market shares in cross-border payments, accounting for 30% in South Africa and 19% across Africa, according to SWIFT network payment-value data cited by the group. Payments supported deposit growth, merchant acquiring volumes, cross-border fee income and value-added services.

Standard Bank also continued to increase its sustainable-finance activities. Since 2022, the group has cumulatively mobilised more than R328 billion ($20.28 billion) in sustainable finance for clients against its R450 billion ($27.82 billion) target for 2028. It mobilised a further R50.6 billion ($3.13 billion) during the first half of 2026.

The group’s common equity tier 1 ratio, including unappropriated profits, stood at 13.6% at June 30, 2026, up from 13.2% a year earlier. This represented R79 billion ($4.88 billion) of capital above its regulatory minimum of 9.5%.

Standard Bank maintains 2026 guidance as Africa growth outlook remains resilient

Standard Bank maintained its financial guidance for the full 2026 financial year, expecting banking revenue growth in the mid-to-high single digits as business momentum continues across its franchise.

The group expects its cost-to-income ratio to decline slightly, supported by its “save to invest” approach. In contrast, its credit loss ratio is expected to be slightly higher than in 2025 but remain within the lower half of its through-the-cycle target range of 70 to 100 basis points. Return on equity is expected to be higher than the prior year.

Standard Bank expects economic growth across sub-Saharan Africa to remain resilient, with growth projected at approximately 4.3% in 2026 and 4.5% in 2027. Ongoing macroeconomic stabilisation and reforms in key markets including Angola, Ghana, Nigeria and Zambia support the outlook.

The bank remains committed to its 2028 targets of 8% to 12% compound annual growth in headline earnings per share and return on equity within its 18% to 22% target range.

As part of its capital deployment strategy, Standard Bank invested additional capital in Standard Bank Tanzania in July 2026 and remains on track to increase its shareholding in Standard Bank Angola during the second half of the year, strengthening its position in two of its targeted African growth markets.

Standard Bank declares $914.4 million interim dividend for shareholders

Alongside its record first-half earnings, Standard Bank declared an interim gross cash dividend of R9.02 per ordinary share, a 10% increase from the first half of 2025 and the highest interim dividend declared by the group. This amounts to approximately R14.8 billion ($914.4 million) based on the group’s 1.646 billion ordinary shares in issue. Return on equity improved to 19.8%, close to the midpoint of its 18% to 22% target range. 

Standard Bank’s banking businesses benefited from healthy balance-sheet growth, sustained client activity and momentum in fee and trading revenues.  The bank’s credit performance improved, with credit impairment charges falling 12% to R7.1 billion. Its credit loss ratio consequently improved to 73 basis points from 93 basis points in 2025, reflecting resilient credit performance across the portfolio.

The group’s active client base also expanded to 19.5 million during the first half, driven by growth in both South Africa and its African markets.

Under Tshabalala’s leadership, the group remains focused on disciplined capital allocation, technology investment and expanding its pan-African franchise as it pursues its 2028 strategy and its broader ambition of supporting Africa’s economic growth.