Banking

Big changes for anyone with Standard Bank contracts in South Africa

Staff Writer

 ·13 Aug 2026

Standard Bank has published its interim results for the period ending 30 June 2026, announcing significant changes for contracts referencing the outgoing JIBAR.

Effective May 2026, all new Standard Bank contracts will reference the South African Rand Overnight Index Average Rate (ZARONIA) instead of the Johannesburg Interbank Average Rate (JIBAR).

This is in line with the South African Reserve Bank’s (SARB’s) stated plans to replace JIBAR with ZARONIA by the end of 2026.

JIBAR is a forward-looking term rate on contracts with a number of periods (e.g., one month, three months, etc.), while ZARONIA is a daily, backwards-looking, overnight, and near-risk-free rate.

The shift from the former to the latter will move the market away from predictable, forward-looking term rates to retrospective calculations.

This will impact how interest is determined and introduce complexity for both lenders and borrowers.

The SARB announced the plans to dump JIBAR in 2020 following a successful five-year backtesting period. ZARONIA was published for observation in 2022 and formally endorsed in 2023.

After the formal cessation announcement in December 2025, JIBAR will be discontinued as a reference rate at the end of December 2026, in line with industry timelines.

The cessation of JIBAR marks a significant structural change in South Africa’s financial market.

According to legal experts, trillions of rands in agreements, including loans, bonds and derivatives, will need to be rewritten to reference ZARONIA, with this now taking place at Standard Bank.

“Establishing ZARONIA liquidity in the market is a prerequisite for a successful transition,” said Standard Bank.

Derivative contracts based on ZARONIA began trading in April 2025, with cash and money market products introduced in June 2025. 

As of 1 May 2026, all new financial contracts must reference ZARONIA rather than JIBAR. 

Standard Bank has developed a No New Jibar (NNJ) Policy to oversee contracts during this transition period, it said.

It must be noted that if your contracts are linked to the Prime Lending Rate (PLR), you likely won’t notice any difference. This is because most personal loans in South Africa are linked to the PLR, which is not changing.

Standard Bank financial results

For the six months ended June 2026, Standard Bank reported headline earnings of R26.1 billion, representing a 10% increase over the previous period. 

Net interest income increased by 4% to R53.25 billion over the period. Return on equity (ROE) improved to 19.8%, well within the Group’s target range of 18% to 22% set for 2028.

South Africa headline earnings grew 15% to R13.38 billion, contributing 51% to the group total.

The headline earnings per share rose by 10% to reach 1,610 cents. The company also declared a dividend per share of 902 cents, marking a 10% increase from the prior period.

The cost-to-income ratio improved to 49.3%, a slight enhancement from 49.5% in the first half of 2025. 

The credit loss ratio also improved, declining to 73 basis points from 93 basis points last year.

The Common Equity Tier 1 (CET1) ratio was 13.6%, which is an improvement from 13.2% recorded for the same time last year.

Active clients across the entire group, including restated data from West Africa and the Private Banking segment, reached 19.5 million.

South African clients in the personal and private banking segment were down marginally to 11.96 million, from 11.99 million last year.

Notably, the group reported a 9% increase in digital clients, with 69% of transactional clients now using digital banking.

In South Africa, the group recorded 4.95 million active digital clients.

The group said it remains focused on client-led growth, supported by disciplined capital allocation and effective risk management. 

Standard Bank said that continued investment in people, technology, and capabilities is central to meeting medium-term earnings growth and return targets.

The group’s banking businesses showcased solid balance sheet growth, significant increases in fees and trading income, lower credit impairment charges, and effective cost management. 

The Insurance and Asset Management sector continued to show strong earnings growth and improved returns.

Standard Bank highlighted its position as a gateway to diverse growth opportunities across Africa, supported by client franchises throughout the continent. 

The Group said it is dedicated to assisting its clients in achieving sustainable outcomes. 

Since 2022, it has mobilised over R328 billion in sustainable finance toward its goal of R450 billion by 2028, with R50.6 billion mobilised in the first half of 2026.

“Our 2028 strategy is anchored in a clear ambition: to compete and win in our chosen markets and clients segments,” said Standard Bank Group CEO Sim Tshabalala.

“We are disciplined in how we allocate capital, selective about the opportunities we pursue, and relentless in our focus on execution,” he said.

Standard Bank Group CEO Sim Tshabalala said that strong client-led growth in non-interest revenue, together with disciplined cost and credit management, supported headline earnings growth.