Trading Statement

Standard Bank Group Limited

01 December 2025

 

Standard Bank Group Limited

Registration number 1969/017128/06

Incorporated in the Republic of South Africa

Website: www.standardbank.com/reporting

Share codes

JSE and A2X share code: SBK

ISIN: ZAE000109815

NSX share code: SNB

SBKP ZAE000038881 (First preference shares)

SBPP ZAE000056339 (Second preference shares)

JSE bond code: SBKI

("Standard Bank Group" or "the group")

Voluntary trading update for the ten months to 31 October 2025

Standard Bank Group's performance trends in the ten months to 31 October 2025 (10M25) were broadly in line with those reported in the first half of the year (1H25). The group's guidance for the year ended 31 December 2025 (FY25), as provided in August 2025, remains unchanged.

Operating environment

Despite geopolitical and trade policy uncertainty, global economic activity has been relatively resilient year to date. Inflation and interest rates have declined.

On average, across the portfolio of countries in which the group operates in sub-Saharan Africa, inflation has eased, and interest rates have declined. While macroeconomic reforms and stabilisation efforts have brought relative stability, particularly in Nigeria, Angola and Ghana, sovereign stress has remained elevated in Malawi and increased in Mozambique.

In South Africa, inflation and interest rates have also declined year to date. Real gross domestic product (GDP) growth has been subdued, but confidence appears to be improving. In November 2025, the finance minister announced the new inflation target of 3% (previously 3 to 6 percent) and the South African Reserve Bank Monetary Policy Committee cut interest rates by 25 basis points (bps). This brings the cumulative interest rate cuts for the year to 100 bps.

10M25 performance

Banking revenue grew by mid-to-high single digits in 10M25 compared to the ten months to 31 October 2024 (period on period). Net interest income growth was driven by book growth, supported by continued strong origination in Investment Banking. This was partly offset by the negative endowment impact from lower average interest rates. Non-interest revenue growth remained robust. A larger and more engaged client base, combined with increased client activity, led to strong net fee and commission revenue growth. Continued uncertainty and market volatility supported strong trading revenue momentum.

Despite an increase in activity-related costs, cost growth remained well contained. Banking revenue growth was slightly ahead of cost growth.

The group's credit loss ratio for 10M25 was around the middle on the group's through-the-cycle range of 70 to 100 basis points. Corporate & Investment Banking credit impairment charges were higher period on period, off a low base in the prior period.  Personal and Private Banking credit impairment charges were lower period on period due to a slowdown in early arrears formation and lower inflows into non-performing loans as reported previously. Business & Commercial Banking credit impairment charges were also lower period on period, driven by improvements in both South Africa and Africa Regions.

The Insurance and Asset Management franchise continued to deliver a robust performance. Higher earnings period on period were driven by an improved performance in the South African Retail life insurance business and an improved claims ratio in the South African short-term insurance business. The former was driven by improved persistency and risk experience. The latter was assisted by the absence of catastrophic weather-related events year to date.

Outlook

In line with previous guidance for the twelve months to 31 December 2025, the group remains committed to delivering:

·    Banking revenue growth of mid-to-high single digits;

·    Banking revenue growth at or above operating expenses growth, resulting in a flat to lower cost-to-income ratio year on year; and

·    Group ROE well anchored in the group's target range of 17% to 20%.

The group will provide guidance for 2026 when it reports its financial results for FY25 on 12 March 2026.

Capital Markets Day 2026

Standard Bank Group will host a Capital Markets Day on 26 March 2026. The event will unpack the strategic and financial drivers that underpin the group's 2028 targets, more specifically:

-     Headline earnings per share growth of 8% to 12%; and

-     Return on equity of 18% to 22%.

Further details will be provided closer to the time.

Investor call

Standard Bank Group will host an investor call at 17h00 (South Africa time) on 1 December 2025. To register for the call please use the link below:

Standard Bank Group Pre-close call registration

Alternatively, the call registration details are available on the Standard Bank Group Investor Relations website. A replay will be available on the Investor Relations website shortly after the call. 

Shareholders are advised that the information contained in this announcement has not been reviewed or reported on by the group's external auditors.

Queries:

Investor Relations

Sarah Rivett-Carnac

Email: [e-mail]

Johannesburg

1 December 2025

JSE sponsor

The Standard Bank of South Africa Limited

Namibian sponsor

Simonis Storm Securities (Proprietary) Limited

 

END