Standard Bank

  • Standard  Bank reported a robust set of results for the year ended 31 December 2021, with growth in headline   earnings of 57% to R25 bn. This was on the back of a 9% increase in its   customer base.

  • These   results follow a prolonged lockdown period as a result of Covid-19, which was   characterized by severely constrained business activity. However, the recent   turnaround was driven by strong growth in home loans, vehicle and asset   finance, as well as business loans.

  • A substantial decline in credit charges also gave a boost to the banking   division’s earnings, which grew by 62% to R22.9 bn. This enabled the group to   more than double the final dividend payout to 511c, with management confident   that the economy will grow by 2% in 2022 underpinned by strong gains across   commodities.

  • The  move to purchase the Liberty Insurance group for around R11 bn is part of its   vision to create a fully-fledged Pan-African financial services business.   This will entail a comprehensive offering of banking, asset management,   insurance and wealth management.

  • Standard   Bank believes that its extensive footprint across Africa has the potential to   ultimately serve up to 700 million clients based on the markets where it has   an operational presence.

  • Group CEO, Sim Tshabalala, stated that this business model will bring about additional capital-light revenues, away from the more traditional capital-heavy banking business. This should free up resources in due course once the Liberty acquisitions become fully integrated into the group, which will take time to bed down. Once complete, the integrated sales force should result in the cross-selling of an extensive range of products and services.

Standard Bank