Standard Bank Profit at Record as Fees Beat Soft Loan Growth
Headline earnings grew 8% to 23.8 billion rand ($1.35 billion), the Johannesburg-based lender said in a statement on Thursday. Net income available to shareholders increased 11% to 23.8 billion rand, while the lender's return on equity climbed to 19.1%
Standard Bank's shares surged as much as 6% by 10 a.m. in Johannesburg to an intraday record. The stock is now up 15% since the start of the year.
The lender, backed by Industrial & Commercial Bank of China Ltd., has seen its business in Africa grow as it increased deposits and added customers. Angola, Ghana, Kenya, Mauritius, Mozambique and Nigeria are among Standard Bank's top contributors.
Net fee and commission revenue at the bank jumped 12%, while net interest income rose 2% as lower average interest rates compressed loan margins.
Headline earnings at the bank's South African operations climbed 14%, amid growth in active business clients that was underpinned by an expanding transactional and merchant account base.
Headline earnings at the bank's rest-of-Africa operations climbed 8%. The unit now makes up 41% of the bank's total earnings, while it's South Africa operations account for 49%.
Credit impairment climbed 2% to 8.14 billion rand in the period, amid sovereign credit risk deterioration at some of the bank's African operations, particularly Mozambique.
'Subject to developments, this may give rise to additional impairment charges in the second half of the year,' the lender said in a statement.
The rise in bad debts resulted in the lender's credit loss ratio widening marginally to 0.93%, within the board approved target of 70 basis points to 100 basis points. The bank reported a so-called common-equity tier 1 ratio of 13.2%, surpassing the 12.5% board approved target. It's exceeded this range since 2021.
Since 2022, the group has cumulatively mobilized more than 230 billion rand in sustainable finance since 2022, with 53 billion rand mobilized in the first half of 2025. The lender plans 450 billion rand in green loans by 2028.
Standard Bank declared an interim dividend of 8.17 rand per share, surpassing median analyst estimates of 7.72 rand.
(Updates with South Africa performance in fourth paragraph, credit impairments in fifth paragraph.)
More stories like this are available on bloomberg.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
3 minutes ago
- India.com
10 Worlds Poorest Countries: Bangladesh, Pakistan Absent From The List; India's Ally Ranks... Among The Poorest Nations
photoDetails english 2945991 Updated:Aug 14, 2025, 05:21 PM IST 10 Poorest Countries In The World 1 / 11 A report in Forbes India published a list of the world's ten poorest countries, with eight of them located in Africa. The report in Forbes India mentions that the list includes poorest countries in the world in 2025 by GDP per capita PPP as estimated by International Monetary Fund (IMF) as of January 16, 2025. The ranking highlights nations struggling with severe poverty, placing Madagascar, an island nation with strong ties to India, in the 10th position. Notably, despite their economic struggles, Pakistan and Bangladesh do not appear on the list. South Sudan 2 / 11 As per Forbes, the world's youngest country also bears the unfortunate title of having the lowest GDP per capita. This small East African nation, which gained independence in 2011, has a total GDP of $29.99 billion, supporting a population of 11.1 million (1.1 crore) people. Burundi 3 / 11 Burundi, a small landlocked country in East Africa, is ranked as the world's second poorest nation, with a total GDP of $2.15 billion and a population of 13,459,236. Experts cite the country's fast-growing population and reliance on agriculture as major contributors to its economic struggles. Central African Republic (CAR) 4 / 11 The Central African Republic, with a total GDP of $3.03 billion and a population of 5,849,358, ranks as the third poorest country in the world. Despite its abundant reserves of gold, oil, uranium, and diamonds, ongoing political instability and armed conflict have left it in a state of crisis, with 80 percent of its population living below the poverty line. Malawi 5 / 11 Malawi, a southeastern African nation renowned for its stunning landscapes, ranks as the world's fourth poorest country. With a GDP of $10.78 billion and a population of 21,390,465, its heavy dependence on rain-fed agriculture makes it highly susceptible to climate change and market fluctuations, contributing significantly to its poverty. Mozambique 6 / 11 Mozambique, a sparsely populated nation in East Africa, ranks as the world's fifth poorest country. Despite its wealth of natural resources, the country has been severely impacted by terrorism, gang violence, natural disasters, disease, rapid population growth, low agricultural productivity, and economic inequality. A former Portuguese colony, Mozambique has a GDP of $24.55 billion and a population of 34,497,736. Somalia 7 / 11 Somalia, one of Africa's most violence-stricken nations and infamous for piracy, ranks as the world's sixth poorest country. With a GDP of $13.89 billion and a population of 19,009,151, Somalia has been severely affected by a prolonged civil war, resulting in state collapse, economic downfall, and immense human suffering. Democratic Republic of the Congo (DRC) 8 / 11 The Democratic Republic of the Congo, the largest nation in Sub-Saharan Africa, ranks as the world's seventh poorest country. With a total GDP of $79.24 billion and a population of 104,354,615, the country, despite its abundant cobalt and copper resources, faces a severe economic crisis. Nearly 62 percent of its population survives on less than ₹180 per day, significantly below the global poverty threshold. Liberia 9 / 11 Liberia, a West African nation with a population of 5,492,486, ranks as the world's eighth poorest country, with a total GDP of just $5.05 billion. Experts attribute its persistent poverty to violent conflicts, including a brutal civil war, as well as outbreaks like Ebola. Yemen 10 / 11 Yemen, a close ally of Iran, ranks as the world's ninth poorest country, with a GDP of $16.22 billion and a population of approximately 34.4 million. Years of civil war and political instability have crippled its economy, causing widespread devastation. The conflict has displaced millions internally, destroyed infrastructure, and severely disrupted agriculture, leading to shortages of essential resources like food, water, and medicine. As a result, millions depend on humanitarian aid from organizations such as the United Nations for survival. Madagascar 11 / 11 According to TOI, Madagascar, an island nation and a key ally of India in the strategic Indian Ocean region, ranks as the world's 10th poorest country. With a GDP of $18.1 billion and a population of 30.3 million, its economy, largely reliant on tourism and mining, struggles despite its rich natural resources. A former French colony, Madagascar gained independence in 1960.
India.com
3 minutes ago
- India.com
Bad news for Amazon, this state authorities issue notice over fake…, ask company to apologize and remove…
Authorities on Wednesday served notices to a West Bengal-based private firm and e-commerce major Amazon over allegations of misbranding fake carpets as 'authentic Kashmiri handmade silk carpets.' 'NOTICES issued 2 @jewelcarpet & @amazonIN for misbranding #KashmirCrafts,' Director, Department handicraft and handloom Mussarat Zia said in a post on X. What Are Allegations Against Amazon? Attaching a screenshot of the misbranded carpet to his post, Zia said, 'They must b crazy offering 50% rebates on cheap FAKES in name of Authentic Kashmiri Handmade Silk Carpet for '‚¹2,160 & '‚¹2,630. UNACCEPTABLE. Brings disrepute 2 artisans & high value items.' NOTICES issued 2 @jewelcarpet & @amazonIN for misbranding #KashmirCrafts They must b crazy offering 50% rebates on cheap FAKES in name of Authentic Kashmiri Handmade Silk Carpet for ₹2,160 & ₹2,630. UNACCEPTABLE. Brings disrepute 2 artisans & high value items@diprjk @dohhkmr — Mussarat Zia (@mussarat_zia) August 13, 2025 The size of silk carpet mentioned in the Amazon listing would cost upwards of Rs 25,000. The company has been also directed to provide details of all sales of the misbranded products and submit a compliance report within three days. Amazon India Quick-Commerce Plans Amazon India head Samir Kumar on Wednesday said the e-commerce company has seen an overwhelming response from customers in Bengaluru and Delhi, where it recently launched quick-commerce offering, and hinted at 'big plan to grow beyond', urging people to 'stay tuned'. Online commerce space has ample room for multiple players and it is still early days, Kumar – Country Manager at Amazon India told PTI in an interview. 'We at Amazon, believe that competition is always good for us. We welcome that. But at the same time, this whole space, e-commerce and online commerce, is such a big space,' he said. There's room for multiple players, Kumar said adding 'we believe it's very early on.' 'We are still scratching the surface,' he pointed out. On the Amazon Now, the company's quick commerce play in Bengaluru and New Delhi, Kumar said the response has been overwhelming. '…On beyond Bengaluru and Delhi, stay tuned for that. We have a very big plan to grow beyond…,' he said about the ultra fast delivery service. (With Inputs From PTI)
Indian Express
3 minutes ago
- Indian Express
Perplexity's $34.5B Chrome bid: How AI is fueling the next browser wars
AI search startup Perplexity has made an unsolicited offer to purchase Google Chrome for $34.5 billion, a move that comes as a US court considers forcing the tech giant to sell its popular web browser as part of the remedies in an antitrust case that Google lost last year. Google parent Alphabet's share price held steady on Tuesday, indicating that investors do not appear to be taking Perplexity's offer to buy Chrome seriously. However, Perplexity's move is still significant as it is targeted at one of Google's prized assets even as the US government pushes to break up the big tech company. The $34.5 billion potential price tag also highlights the growing strategic importance of web browsers in the age of AI. Perplexity has positioned itself as a challenger to Google with its generative AI-powered search products. The San Francisco-based startup closed a $100 million funding round in July this year at a valuation of $18 billion, as per reports. Its offer to buy Chrome at nearly twice its own value has drawn skepticism from analysts, tech columnists, and others. To be sure, Perplexity has said it will seek the help of outside investors to fund the $34.5 billion bid for Chrome. The company added that it would not make stealth modifications to the web browser, and has further offered to invest $3 billion in Chrome and its underlying web infrastructure over the next two years if the deal goes through. But that is still a very big if. The deal would realistically be possible only if the US district court rules in favour of the Department of Justice (DOJ) and forces Google to spin out its market-leading web browser, among other proposed remedies. In a landmark antitrust ruling last year, Judge Amit Mehta of the US District Court for the District of Columbia held that Google had an illegal monopoly of the online search market. The case then entered the remedies phase, where Judge Mehta heard arguments from both Google and the DOJ on the most appropriate ways to address the tech giant's anti-competitive behaviour and create a more equal playing field for other search competitors. The DOJ, which filed the landmark case against Google in 2020, called for the company's divestiture of Chrome. It also proposed to prohibit Google from making exclusive search deals with smartphone makers and browser developers to set its search engine as the default. For instance, the company reportedly pays Apple over $20 billion every year to make Google Search the default search engine on iPhones. Another proposed remedy by the DOJ is to make Google Search more interoperable. This would involve the company providing access to valuable search data such as ranking signals, US-originated query data, and its search index at a 'marginal cost, and on an ongoing basis.' In its defence, Google has argued that 'the DOJ's proposal to break off Chrome — which billions of people use for free — would break it and result in a shadow of the current Chrome.' The browser would likely become 'insecure and obsolete', Parisa Tabriz, vice president and general manager, Google Chrome, said. Google's counter-proposal is to let smartphone makers and browser developers have multiple default search agreements. With Judge Mehta set to rule on the proposed remedies this month, there is blood in the water as AI companies like Perplexity move to challenge Google's search dominance by trying to take Chrome off its hands. How does this tie into the browser wars? The second, and more strategic reason AI companies are eyeing web browsers is the shift in user behaviour. People are increasingly turning to AI chatbots like ChatGPT instead of traditional search engines to look up information online. Eddy Cue, a senior Apple executive, testified in the Google antitrust remedies case that search volume to its Safari browser had declined for the first time in 22 years. Cue linked the drop in search volume to the rise of AI chatbots. However, AI chatbots lack user context. Unlike traditional web browsers, chatbots do not offer insights into a user's online activity such as reading articles, writing emails, online shopping, etc. Tech startups like Perplexity, The Browser Company, and even OpenAI are looking to fill this gap by developing AI native web browsers, where the traditional search bar is replaced by an AI chatbot or agent. To be sure, Google is also testing a Gemini integration in Chrome. Perplexity on Wednesday announced that its agentic AI browser Comet is available to all Pro subscribers in the US. 'We'll start expanding access every week going forward to make Comet generally available to all Perplexity Pro users,' CEO Aravind Srinivas said in a post on X. Comet is a desktop browser that primarily relies on an AI agent to respond to user queries with links to relevant websites. It comes with several advanced features such as the ability to describe an image on a user's screen or perform deeper research about a particular topic. Users can also prompt the AI agent within Comet to take control of the browser and autonomously perform tasks such as sending an email or posting on a social media platform. For Perplexity, the appeal of Google Chrome is most likely its distribution. Google Chrome has a market share of 70 per cent in the global desktop browser market and a 67 per cent share in the mobile browser market. It has around 3.5 to 4 billion users globally, as per the DOJ. While Chrome's business model is not highly lucrative on its own, it plays a pivotal role in Google's search flywheel. The browser gathers data that feeds into its search engine, which uses the data to show more relevant search results as well as targeted ads. Note, search-related advertising makes up a bulk of Google's revenue. Chrome could also serve as a direct channel for Perplexity to showcase its latest and most advanced AI products, where users can experience their capabilities without actively seeking it out. It is likely that other AI companies will also throw their names into the running. Nick Turley, ChatGPT's head of product, testified during Google's antitrust remedies trial that OpenAI would be interested in buying Chrome. While ChatGPT already has web search features baked into it, the company would be able to potentially bring its AI chatbot to even more users with Chrome. Brian Provost, Yahoo's Search General Manager, also testified that the company would be open to buying Chrome with the help of its parent firm Apollo Global Management. However, big tech companies such as Apple, Microsoft, Meta, and Amazon are unlikely to pursue Chrome as it would be difficult to pass antitrust scrutiny.
