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JOHANNESBURG - Standard Bank Group reported a 10% increase in headline earnings in South African Rand for the five months ending May 31, 2025, compared to the same period last year, maintaining similar growth rates seen in the first quarter.
On a constant currency basis, headline earnings grew by mid-teens during this period. The bank’s return on equity remained within its 2025 target range of 17% to 20%, according to a trading update issued Thursday.
The bank’s performance came despite global economic uncertainty related to U.S. trade policies and geopolitical tensions, which have slowed monetary policy easing and weakened growth prospects globally.
Net interest income remained flat year-on-year as lower average interest rates and competitive pricing in South Africa’s mortgage market offset positive effects from faster growth in Africa Regions. Meanwhile, net fee and commission revenue showed strong growth, driven by the bank’s expanding client base.
Trading revenue grew robustly amid market volatility, contributing to mid-teens growth in non-interest revenue. Credit impairment charges decreased due to slower book growth and reduced early arrears in Personal and Private Banking.
Cost growth slightly exceeded revenue growth, with higher staff costs reflecting annual increases, performance-linked incentives, and changes in headcount composition to include more specialist skills.
For the full year 2025, Standard Bank maintains its guidance of mid-to-high single-digit banking revenue growth in South African Rand, with a flat to declining banking cost-to-income ratio compared to 2024.
The bank expects headline earnings growth for the first half of 2025 to be slower than the five-month period due to particularly strong performance in June 2024.
Standard Bank remains "well capitalised and liquid" according to the trading update statement, and will report its half-year financial results on August 14.
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