Standard Bank Group - Strategic Update

In doing so Standard Bank will accelerate growth, strengthen its competitiveness and unlock long‑term value. The group’s targets for 2026 to 2028 are summarised as follows:

• Headline Earnings Per Share growth of 8% to 12% per year
• RoE target range of 18% to 22%
• Revenue growth of 7% to 10% per year
• Cost to Income Ratio sustainably below 50%
• Credit Loss Ratio within a target range of 70 and 100 basis points
• CET1 Ratio above 12.5%
• Dividend Payout Ratio of between 45% and 60%

There are four key structural themes which underpin the opportunities available across the group’s network, and which direct the group’s strategic focus:

• The first opportunity is tied to Africa’s favourable demographics, rapidly growing cities, rising consumption and greater investment activity. These shifts are deepening demand for high‑quality, technology‑enabled financial services across retail, business, corporate and institutional segments.
• The second opportunity arises from Africa’s considerable and ongoing infrastructure requirements. Energy systems, transport networks, digital connectivity and logistics infrastructure require sustained investment, and Standard Bank expects to play an increasingly central role in financing, structuring and advising on major projects across these sectors.
• A third structural theme is the expansion of intra‑African and global trade. Trade flows are becoming more diversified, driven by regional integration efforts such as the African Continental Free Trade Area (AfCFTA) and by strengthening commercial ties between Africa and global growth regions. These shifts are increasing demand for cross‑border payments, trade finance, risk‑management products and advisory solutions, areas in which Standard Bank has deep capabilities.
• The fourth theme is the rapid evolution of Africa’s financial services landscape. Digital adoption is transforming how consumers bank, how enterprises transact, and how financial ecosystems emerge and scale. As digital channels expand, payments modernise and artificial intelligence becomes integral to client experience, Standard Bank sees substantial scope to grow capital‑light revenue while driving sustainable operating leverage.

Against this backdrop, the Group outlined its financial targets for the 2026–2028 period. Standard Bank aims to deliver headline earnings per share growth of between 8% and 12%, supported by revenue growth of 7% to 10%, a cost‑to‑income ratio sustainably below 50%, and a through‑the‑cycle credit loss ratio between 70 and 100 basis points. The Group’s return‑on‑equity target range for the period is set at 18% and 22%. Capital strength will remain an anchor of the strategy, with the Group expecting to maintain a CET1 ratio above 12.5% and a dividend payout ratio of 45% to 60%, supplemented by the flexibility to conduct share buybacks should valuation conditions permit. These targets reflect the Group’s confidence in strong execution, disciplined risk management and the attractiveness of the markets in which it operates.

Tshabalala says: “Technology, AI and payments will play a foundational role in enabling this growth. We have made significant progress in modernising the bank’s technology stack, simplifying core systems and migrating key workloads to cloud‑based environments. These investments have improved availability, resilience and time‑to‑market, and they have laid the groundwork for richer digital experiences and greater personalisation.  Responsible use of AI will increasingly underpin risk decisioning, operational efficiency, fraud detection and customer engagement. Payment's modernisation remains a central driver of economic activity across Africa, and Standard Bank plans to broaden its presence across the full range payments systems, merchant ecosystems and digital commerce platforms. These technology‑driven initiatives are expected to reduce cost‑to‑serve, unlock new client propositions and strengthen structural operating leverage.”

Alongside technology investment, disciplined capital allocation remains central to Standard Bank’s strategy. The Group will continue prioritising markets and businesses with the greatest long‑term strategic relevance and the strongest potential for returns. Investments will focus on areas where Standard Bank has competitive advantages, namely scale, local knowledge, relationships, distribution and technology. Capital allocation decisions will remain guided by prudence, client needs and long-term value creation. Maintaining a resilient capital base across the Group’s African operations, particularly in South Africa, will remain non‑negotiable.

“Africa remains one of the most exciting and dynamic growth regions in the world, and Standard Bank is exceptionally well positioned to help shape and participate in that growth. We are entering this next strategic period with strong momentum, a proven ability to execute and a deep commitment to meeting the evolving needs of our clients. The opportunity ahead of us is significant, and we intend to continue competing vigorously in every one of our chosen markets.” Says Tshabalala