Standard Bank sees resilient 5-month earnings, keeps 2025 guidance despite macro volatility

STANDARD Bank Group on Thursday said its earnings for the five months to May 31, 2025 rose 10% year-on-year in rand terms, supported by a resilient performance across its African operations despite a challenging global and domestic macroeconomic environment.

- PHILIPPA LARKIN

"Standard Bank group's operational and financial trends were strong, reflective of the continued momentum in the underlying transactional franchise across both South Africa and Africa Regions. Despite the considerable uncertainty and market volatility, the group's established and well diversified franchise continued to deliver a resilient performance," it said in a voluntary trading update.

Africa's largest lender by assets said group headline earnings rose at a similar pace as in the first quarter. On a constant currency basis, headline earnings increased in the mid-teens compared with the same period last year. Return on equity (ROE) remained within the group’s 2025 target range of 17% to 20%.

Macroeconomic headwinds persist

Global uncertainty, driven by geopolitical tensions and US trade policy, weighed on macroeconomic and monetary policy, the group said. Across the group's countries of operations, inflation moderated and interest rates began to ease, although more slowly than anticipated. Sub-Saharan Africa's GDP is expected to grow 3.8% in 2025, according to International Monetary Fund forecasts.