Lower impairments, trading boost lift Africa’s largest bank earnings to $2.97bn

Standard Bank, Africa’s largest lender by assets, posted an 11 percent rise in annual headline earnings as strong growth in trading and fee income combined with lower credit impairment charges across its core banking businesses.

The Johannesburg-based lender announced on Thursday that headline earnings increased to R49.2 billion ($2.97 billion) for the year ended December 31, 2025, up from R44.5 billion ($2.69 billion) a year earlier. Note $1 = R16.59.

The bank has a 162-year history in South Africa and is listed on the Johannesburg Stock Exchange, making it one of the continent’s most established financial institutions.

The results highlight the resilience of Africa’s biggest banking group at a time when several international lenders, including some United Kingdom-based banks, have been retreating from smaller and less profitable African markets to focus on larger economies and higher-growth corridors.

Standard Bank, which operates in 20 African countries, has increasingly positioned itself as a key financial intermediary across the continent as global banks scale back their presence.

Net interest income from its banking operations rose four percent, supported by growth in the group’s average balance sheet, while net fee and commission income increased 11 percent.

Trading revenue climbed 10 percent, driven by heightened market volatility that boosted client activity and market-making opportunities across currencies, commodities and fixed-income markets.

Credit impairment charges declined five percent, reflecting improved asset quality in the retail and business banking portfolios.

The bank noted that stronger macroeconomic conditions in several markets, improved collection strategies and earlier intervention with distressed borrowers helped limit loan losses.

However, impairments rose in the corporate lending portfolio and financial investments, largely due to deteriorating sovereign credit risk in parts of southern and central Africa, particularly Mozambique.

Despite the pressures, the group’s credit loss ratio—a measure of bad loans relative to total lending—improved to 73 basis points, down from 83 basis points in 2024.

Standard Bank’s insurance and asset management division also delivered strong performance, with headline earnings rising 26 percent to R4.1 billion.

The bank declared a final dividend of 878 cents per share, reflecting confidence in its capital position and continued earnings growth as it expands its continental footprint.