Standard Bank H1 HEPS jump by a third

Africa's largest lender by assets, Standard Bank Group, has recently reported a substantial increase in interim headline earnings per share, showcasing the positive impact of high interest rates in offsetting the rise in bad loans. Group CEO, Sim Tshabalala, joined CNBC Africa to delve into the key factors driving the bank's impressive performance. The Standard Bank Group, with a rich history spanning 161 years, has established a strong presence across the African continent, employing 50,000 individuals in 20 countries. The bank's strategic focus on serving the African market has yielded remarkable results, with a 35% surge in earnings amounting to 21.2 billion rand. Notably, the bank's operations outside of South Africa experienced a remarkable 46% growth, underscoring the significant contribution from the broader African region. The African operations outside South Africa exhibited an exceptional 65% uptick, reflecting the robust growth potential in these markets. Furthermore, the bank's operations in international markets, particularly in the Channel Islands, witnessed a remarkable growth rate exceeding 100%, highlighting the bank's diversified revenue streams and global presence. This stellar performance across retail banking, personal and private banking, commercial and investment banking, and insurance and asset management segments underscored the bank's success in leveraging its expansive footprint and client-centric approach to drive growth. Moving forward, Tshabalala emphasized the bank's commitment to aligning its growth strategy with the organic economic demand of its clients, rather than setting rigid targets. He emphasized the bank's focus on harnessing opportunities driven by GDP growth and client needs throughout the continent. With a robust performance in the African markets, Standard Bank remains poised for further expansion while prioritizing prudent acquisitions and risk management strategies. The bank's record earnings from operations outside South Africa underscore the vast potential in untapped markets across the continent, with specific focus on regions showing promising growth trajectories. Tshabalala highlighted the bank's strategic outlook, emphasizing a client-centric approach to drive organic growth and expand its market presence strategically. Reflecting on the Nigerian market, Tshabalala expressed optimism for the country's economic prospects following structural reforms aimed at enhancing the business environment and attracting investment. Standard Bank's resilience and long-standing presence in Nigeria position it favorably to capitalize on emerging opportunities and contribute to the country's economic development. Despite macroeconomic challenges, Tshabalala remains optimistic about Nigeria's growth potential and the bank's ability to navigate evolving market dynamics. Tshabalala also addressed concerns regarding credit losses in the South African market, noting varying performance levels across different client segments. While challenges persist, Tshabalala expressed confidence in the bank's risk management framework and highlighted the resilience of a significant portion of its customer base. As interest rates are expected to decline, Tshabalala anticipates an improvement in credit quality and overall customer resilience, contributing to a more stable economic outlook. Looking ahead, Tshabalala remains cautiously optimistic about the growth outlook for South Africa, citing potential improvements in electricity supply, interest rate reductions, and enhanced business confidence as key drivers of economic recovery. The bank anticipates a gradual improvement in growth prospects, with a forecasted growth rate of 0.8% amidst ongoing macroeconomic reforms and improving market sentiment.