Latest news with #rest-of-Africa
Mint
5 days ago
- Business
- Mint
Standard Bank Profit at Record as Fees Beat Soft Loan Growth
(Bloomberg) -- Standard Bank Group Ltd., Africa's biggest lender by assets, reported first-half profit climbed to a record as fee growth and trading revenue helped offset a slowdown in interest income. 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
20-03-2025
- Business
- Bloomberg
Momentum Africa Business Revamp to Boost Unit's Profit Up to 60%
Momentum Group Ltd. is working on a plan to grow full-year profit from its rest-of-Africa business as much 60% by mid-2027 through the insurer's review and revamp of the unit. 'If Africa can do 500 million rand ($27 million) to 600 million rand of earnings a year steadily and predictably, we'd be very happy,' Chief Executive Officer Jeanette Marais said in an interview Thursday.
