Standard Bank Group delivered strong earnings growth and improved returns

Group results

In 2023, the group effectively defended and grew its banking franchise and improved banking earnings and returns. Active customers grew by 6% to 18.8 million. In addition, digital retail clients in South Africa increased by 8% as more clients transitioned to our convenient digital channels.

The group processed over 2.8 billion digital transactions for retail clients and distributed over R41 billion on behalf of South African clients via our digital wallet platform. Client satisfaction scores improved across various channels, particularly digital in South Africa.  

Standard Bank’s Insurance and Asset Management franchise recorded an improved insurance performance and growth in its assets under management year on year. Since the announcement of the Liberty minority buyout, the group has received over R5.7 billion in distributions. The group successfully bought out the minorities of Liberty2Degrees (L2D) in the financial year. L2D holds an attractive portfolio of commercial properties including Sandton City, Nelson Mandela Square, Melrose Arch and Midlands Mall amongst others.

Standard Bank’s Africa Regions contributed 42% to group headline earnings. The top eight contributors to Africa Regions’ headline earnings were Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda, Zambia and Zimbabwe.

“The Standard Bank Group remains committed to our climate policy and sustainable finance targets. We support a Just Transition that aims to achieve environmental sustainability while creating decent work opportunities and promoting social inclusion. By 2030, Standard Bank aims for net-zero carbon emissions from its newly built facilities, and by 2040 Standard Bank plans to achieve net-zero carbon emissions from its existing operations. By 2050, Standard Bank aims to achieve net-zero carbon emissions from its portfolio of financed emissions.” says Tshabalala.

In 2023, the group mobilised over R50 billion of sustainable finance for corporate clients and provided over R2 billion in loans to SMEs to help business owners access affordable and reliable alternative energy products. In addition, the group disbursed over R145 million to homeowners and over R840 million to businesses for solar installations in South Africa.

Operating environment

In 2023, uncertainty remained elevated globally. In the first six months inflation remained elevated and interest rates continued to rise. In the second half, central banks paused whilst monitoring inflation trends and developing geopolitical risks. The International Monetary Fund (IMF) forecast global growth of 3.1% in 2023.

Sub-Saharan Africa also experienced inflationary pressures and monetary policy tightening. There was progress on Ghana’s debt restructure, Kenya’s funding outlook improved, and Nigeria took steps to liberalise the Naira. While currency movements were mixed across the group’s portfolio of countries, they were weaker on average by the end of the year. 

In South Africa, inflation peaked in March 2023 at 7.1%, and then declined to end the year at 5.1% in December 2023. The South African Reserve Bank increased interest rates by a cumulative 125 basis points by May 2023 and then paused. While electricity disruptions and logistics constraints placed pressure on businesses, corporates and in turn on the economy, progress was made during the year, particularly in the last quarter. South Africa’s real GDP grew at 0.6% in 2023.