{"id":845113,"date":"2025-12-01T09:08:25","date_gmt":"2025-12-01T07:08:25","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=845113"},"modified":"2025-12-01T09:08:30","modified_gmt":"2025-12-01T07:08:30","slug":"south-africas-biggest-bank-sees-big-shift","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/845113\/south-africas-biggest-bank-sees-big-shift\/","title":{"rendered":"South Africa’s biggest bank sees big shift"},"content":{"rendered":"\n

Standard Bank has highlighted an improving economic environment, with the group set for a rise in revenue. <\/p>\n\n\n\n

Despite geopolitical and trade policy uncertainty, global economic activity has been relatively resilient in the first 10 months of the year. <\/p>\n\n\n\n

Inflation and interest rates have declined. Across the portfolio of countries it operates in, inflation has eased, and interest rates have declined. <\/p>\n\n\n\n

In South Africa, inflation and interest rates have also declined year-to-date. Real GDP growth has been subdued, but confidence is improving. <\/strong><\/p>\n\n\n\n

Finance Minister Enoch Godongwana announced a new inflation target of 3%, with the South African Reserve Bank also cutting rates by a cumulative 100 basis points this year. <\/p>\n\n\n\n

For Standard Bank, banking revenue grew by mid-to-high single digits in the first 10 months of the year. <\/p>\n\n\n\n

Net interest income growth was driven by book growth, supported by continued strong origination in Investment Banking. <\/p>\n\n\n\n

This was partly offset by the negative impact on endowments from lower average interest rates. <\/p>\n\n\n\n

Standard Bank stated that non-interest revenue growth remained robust, driven by a larger and more engaged client base. <\/p>\n\n\n\n

This was combined with increased client activity, which led to substantial net fee and commission revenue growth.\u00a0<\/p>\n\n\n\n

Continued uncertainty and market volatility supported strong trading revenue momentum, it said.<\/p>\n\n\n\n

Although the group experienced an increase in activity-related costs, cost growth remained well-contained. Banking Revenue growth was slightly ahead of cost growth. <\/p>\n\n\n\n

The group\u2019s credit loss ratio for the first 10 months of 2025 was around the middle of the group\u2019s through-the-cycle range of 70 to 100 basis points. <\/p>\n\n\n\n

Corporate & Investment Banking credit impairment charges were higher on a period-over-period basis, off a low base in the prior period. <\/p>\n\n\n\n

Personal and Private Banking credit impairment chargers were lower on a period-on-period basis due to a slowdown in early arrears formation and lower inflows from non-performing loans. <\/p>\n\n\n\n

Business & Commercial Banking credit impairment charges were also lower on a period-on-period basis, driven by improvements in impairment charges. <\/p>\n\n\n\n

The Insurance and Asset Management franchise continued to deliver a robust performance. <\/p>\n\n\n\n

An improved performance in the South African retail life insurance business drove higher earnings, primarily due to persistency and favourable risk experience.\u00a0<\/p>\n\n\n\n

There was also an improvement in the claims ratio in the South African short-term insurance business. <\/p>\n\n\n\n

The former was driven by improved persistency and risk experience,  assisted by the absence of catastrophic weather-related events. <\/p>\n\n\n\n

Outlook <\/h2>\n\n\n\n

In line with its previous guidance for the 12 months to 31 December 2025, the group remains committed to delivering the following: <\/p>\n\n\n\n