How Standard Bank achieved record earnings

Standard Bank, the largest lender in Africa by assets, recently announced a record-breaking 33% increase in full-year profits, thanks to higher interest rates and increased transactions in credit cards, payments, and insurance. Sim Tshabalala, the Group CEO of Standard Bank, joined CNBC Africa to discuss the bank's remarkable performance. Tshabalala highlighted that the record earnings achieved were the highest and most robust results under his leadership, covering all divisions and regions. He pointed out that while South Africa saw a 26% growth, other regions in Africa, like East Africa, South Central, and West Africa, also posted significant increases. The bank's operations outside South Africa now contribute 36% to group headline earnings, with a strong focus on the African business landscape. Consumer, high net-worth, commercial, and corporate banking segments all experienced growth in customer base and revenue. Tshabalala emphasized Standard Bank's commitment to supporting clients during the challenging times of the COVID-19 pandemic, resulting in a higher asset base and increased interest income. When discussing the bank's geographical spread and strategies for the future, Tshabalala mentioned the bank's focus on faster-growing markets like East Africa, Angola, and Mozambique. He highlighted the importance of aligning business activities with economic trends and financial deepening across the continent. Despite the potential of the African Continental Free Trade Area to boost transactions and drive economic growth, Tshabalala noted that barriers in movement of goods, people, capital, and data are persistent challenges that need to be addressed to fully realize the benefits of the trade agreement. In terms of the South African business environment, Tshabalala acknowledged the country's economic challenges, including electricity shortages and infrastructure deficiencies. However, he expressed optimism about the structural reforms underway in sectors like ESCOM and the progress in addressing issues related to crime and corruption. Tshabalala commended the government's efforts to promote sustainable finance, with Standard Bank committing significant funds to support sustainable initiatives. He also highlighted the potential impact of regulatory changes and tax incentives on businesses and individuals, particularly in the renewable energy sector. Regarding Standard Bank's position in the trading market, Tshabalala credited the bank's success to its long-standing expertise, diverse product offerings, and talented workforce. He emphasized Standard Bank's leading role in debt and equity capital markets in South Africa, attributing it to the excellence of the bank's staff and their ability to navigate complex transactions successfully. Tshabalala concluded by reaffirming Standard Bank's commitment to maintaining its top position in the market and continuing to deliver exceptional services to clients.