Standard Bank Group Limited · JSE:SBK
Standard Bank — FY2024 Earnings Presentation
67 slides from Standard Bank's earnings presentation, Mar 13, 2025
Slide 1: 2024 Annual Results
2024 ANNUAL RESULTS STANDARD BANK GROUP 13 MARCH 2025
Slide 2: Contents
CONTENTS 1.0 2.0 3.0 FY24 franchise performance FY24 financial performance Beyond 2025 and FY25 outlook STANDARD BANK GROUP FY24 FINANCIAL RESULTS PRESENTATION | 13 MARCH 2025 2
Slide 3: SBG overview – FY24, FY25 and beyond
SBG overview – FY24, FY25 and beyond FY24 franchise performance – continued strong franchise momentum 1.0 • Our purpose, strategy and targets are unchanged • The global macroeconomic backdrop was challenging, but Africa’s fundamentals were favourable • We have a large and growing client base that is
Slide 4: FY24 franchise performance
FY24 franchise 1.0 performance
Slide 5: Our purpose, strategy and targets are unchanged
Our purpose, strategy and targets are unchanged Our purpose: Why we exist Africa is our home, we drive her growth Transform client experience Execute with excellence Drive sustainable growth and value Our 2025 financial targets: What we have committed to 7% - 9% ~50% 17% - 20% Revenue growth CAGR1 C
Slide 6: Global macroeconomic backdrop challenging, Africa's fundamentals favourable
In 2024, the global macroeconomic backdrop was challenging, but Africa’s fundamentals were favourable Global Africa Regions • Uncertain geopolitics and West Region conflicts East Region South & Central Region West Region3 • Elections brought about change • Inflation and interest rates high • Inflati
Slide 7: We have a large and growing client base that is doing more with us
We have a large and growing client base that is doing more with us Transform client experience CIB BCB PPB IAM R65bn 816k 16.1m >3m Revenue Active clients in 16 countries Active clients in 15 countries Embedded policies Sustainable Disbursed to Disbursed to finance R74bn mobilised >R52bn clients in
Slide 8: We managed costs and risk effectively
We managed costs and risk effectively Executing with excellence Improved efficiency – “save to invest” Strong risk management Effective execution Strong focus on costs, but continued to invest in technology to enhance efficiencies, ensure Effective risk, capital and liquidity Liberty integration com
Slide 9: Strong headline earnings growth and ROE has improved
We have delivered strong headline earnings growth and ROE has improved Drive sustainable growth and value Headline earnings ROE 10-year CAGR, 10% Now sustainably higher than 10-year average of 15.9% 50 000 Target ROE, 45 000 17% - 20% Target ROE, 18.0% 18.8% 18.5% 40 000 15% - 18% 17.1% 16.8% 35 000
Slide 10: Continued good progress towards our 2025 targets
We made continued good progress towards our 2025 targets1 Drive sustainable growth and value Revenue, Rbn Cost-to-income ratio, % Target: 59.1% Target: 170.0 4 year CAGR, 12% 158.7 60.0% Approaching 160.0 7%- 50%2 58.0% 9% 150.0 56.0% 140.0 130.0 CAGR 54.0% 120.0 52.0% 110.0 101.4 50.0% 100.0 50.5%
Slide 11: FY24 financial performance and FY25 outlook
FY24 financial 2.0 performance and FY25 outlook
Slide 12: Performance highlights
Performance highlights – continued good operational performance with progress across key metrics Group headline earnings Dividend per share Tangible NAV per share Group return on equity FY24: R44.5bn FY24: 1 507c FY24: 14 593c FY24: 18.5% FY23: R42.9bn FY23: 1 423c FY23: 13 501c FY23: 18.8% 4% ZAR 6
Slide 13: SBG income statement – robust performance amid currency challenges
SBG income statement – robust performance amid currency challenges • Net interest income increased due to balance FY24 FY23 Change Change Rm Rm % CCY % sheet growth and higher average interest rates • Non-interest revenue largely flat as growth in Net interest income 100 811 97 491 3 14 fees, tradin
Slide 14: Banking
Banking 2.1
Slide 15: Gross loans and advances to customers – modest growth
Gross loans and advances to customers – modest growth supported by corporate lending Gross loans and advances to customers by product, R1.5trn South Africa YoY % change (Dec-24/Dec-23) YoY % change (Dec-24/Dec-23) 3% ZAR 1 400.0 1 200.0 4% Dec-19 1 000.0 700 Dec-20 +5% 4% CCY 800.0 600.0 Dec-21 1 25
Slide 16: South Africa disbursements – improved momentum in 2H24
South Africa disbursements – improved momentum in 2H24 in investment banking, business lending, home services, and BCB VAF Investment banking origination Business lending Home services HoH % change (Dec-24/Jun-24) 180.0 +53% 20 +19% 18 +25% 160.0 25.0 16 140.0 14 20.0 120.0 12 100.0 15.0 10 80.0 8 1
Slide 17: Deposits – strong growth impacted by currency
Deposits – strong growth impacted by currency Deposits and debt funding by product, R2.2trn South Africa YoY % change (Dec-24/Dec-23) YoY % change (Dec-24/Dec-23) 6% ZAR 2 000.0 8% 1 800.0 Dec-19 1 600.0 Dec-20 8% CCY 1 400.0 1 200.0 1 000.0 1 720 Dec-21 800.0 +10% 600.0 Dec-22 400.0 200.0 Dec-23 0.
Slide 18: Net interest income – growth despite competitive landscape
Net interest income – growth despite competitive landscape Net interest income Net interest income driven by: • Asset growth attributed to increase in average Positive impact 3% ZAR assets, particularly corporate lending and vehicle and asset finance Negative impact • Endowment impact was positive d
Slide 19: Net fee and commission – supported by client franchise growth
Net fee and commission – supported by client franchise growth and increased activity Net fee and commission1 Net fee and commission supported by: • Account transaction fees increased due to higher 16.0 FY23 4% ZAR transactional volumes and a larger active client base, particularly in retail 14.0 FY2
Slide 20: Trading revenue – continued growth off a high base
Trading revenue – continued growth off a high base with strong momentum in 2H24 Trading revenue Trading revenue increased off a high base in FY23 5-year CAGR, 12% supported by: 3% ZAR • Fixed income and currencies growth driven by: ‒ Improved interest risk management and higher client appetite for c
Slide 21: Provisions – growth muted in line with loans
Provisions – growth muted in line with loans, and total coverage flat Gross loans and advances1 Coverage Gross loans and advances muted growth due to: 2% • Consumer affordability constraints Stage 3 Stage 2 Stage 3 coverage • Subdued demand for credit as average interest Stage 1 4% CCY Total coverag
Slide 22: PPB South Africa provisions – reduction in early delinquencies
PPB South Africa provisions – continued reduction in early delinquencies and non- performing loans from peak in June 2024 Early delinquency (1 – 89 days past due) Non-performing loans 1 - 29 days -1% 60 80 000 30 - 59 days 75 000 55 10% 60 - 89 days 70 000 50 65 000 12% 45 60 000 17% 55 000 40 50 00
Slide 23: Credit impairment charges – decline driven by enhanced collections
Credit impairment charges – decline driven by enhanced collection strategies, improved macroeconomic outlook and recoveries in CIB Credit impairment charges1 Credit loss ratio Credit impairment charges driven by: 7% • PPB & BCB charges declined as inflows into Other PPB to customers Stage 2 & 3 slow
Slide 24: Credit impairment charges – notable reductions in 2H24
Credit impairment charges – notable reductions recorded in 2H24 Credit impairment charges year on year Credit impairment charges half on half Credit impairment charges decrease driven by: -100 900 1 900 2 900 3 900 4 900 5 900 • Home services, vehicle and asset finance, card, Home 3 157 1 655 and bu
Slide 25: Operating expenses – costs well managed
Operating expenses – costs well managed FY24 FY23 Change Change Operating expenses driven by: Rm Rm % CCY % • Staff costs growth low as higher fixed Staff costs 47 146 46 090 2 8 remuneration was offset against lower performance-related incentives Other operating expenses 33 013 33 867 (3) 9 • Softw
Slide 26: IT spend – leveraging our 'save-to-invest' strategy
IT spend – leveraging our ‘save-to-invest’ strategy to extract continued benefits Total technology spend1 Compute in the public cloud • Total technology spend up 2% as investments 5-year CAGR 7% 2% to improve platform stability, cyber resilience, and 50.0 44 digital client features continue. We inve
Slide 27: Operating expenses – sustained positive jaws
Operating expenses – sustained positive jaws has driven the cost-to-income ratio down since peak in 2020 Income vs cost growth and jaws Cost-to-income ratio Jaws1 0.0 (3.0) 1.4 8.9 5.7 1.8 63 30 Revenue growth 61 59.1 25 Cost growth 59 58.6 57.3 20 57 15 55 54.0 10 53 51.4 5 51 50.5 0 49 -5 47 -10 4
Slide 28: Insurance & Asset Management
Insurance & Asset 2.2 Management
Slide 29: IAM – improved sales, margins and efficiencies drove new business value
IAM – improved overall sales, margins and efficiencies drove uplift in new business value, with positive net client cash flow and market returns increasing AUM & AUA Insurance operations New business value Short-term insurance, GWP1 Solvency capital requirement cover, LGL2 3 600.0 14% 4 500.0 5% 2.0
Slide 30: IAM performance – double-digit earnings growth
IAM performance – double-digit earnings growth and capital actions drove ROE higher FY24 FY23 Change • Insurance operations Rm Rm % ‒ South Africa earnings were flat, as risk Insurance operations 4 017 3 918 3 experience moderated, however persistency improved. Continued focus on cost South Africa 4
Slide 31: Concluding on the Liberty transaction
Concluding on the Liberty transaction – in the three years since the buyout, we have delivered ahead of expectations Simplification of the group Capital optimisation Distributions to SBG since transaction • Bought out LGL minorities and delisted • Extracted diversification benefits and • Bought out
Slide 32: Capital and returns
Capital and returns 2.3
Slide 33: Capital – robust capital and liquidity position
Capital – robust capital and liquidity position Capital1 Capital adequacy1 Capital • Capital was actively managed across portfolios CET 1 and countries to drive attractive ROEs and fund Tier 2 dividend payments to shareholders 16 Tier 1 • Risk-weighted assets increased driven by the 293 increases in
Slide 34: ROE & dividends – strong capital generation
ROE & dividends – strong capital generation supported returns and distributions Return on equity and cost of equity Shareholder value added1 Distributions 2 35 Dividend R30bn 21 30 Share buybacks Group ROE 25 4 18.8 18.5 19 Cost of equity 20 8.4 8.7 15 16.8 10 16.3 17 5 4.8 26 0 3 15 Rbn FY19 FY20 F
Slide 35: FY24 business and regional performance overview
FY24 business and 2.4 regional performance overview
Slide 36: SBG portfolio – well-diversified and resilient earnings
SBG portfolio – well-diversified and resilient earnings Business unit headline earnings1, Product headline earnings1, Legal entity headline earnings2, YoY change YoY change YoY change IAM Global Liberty4 +17% Markets +24% -14% CIB transactional +3% Offshore3 3.3 -7% 3.0 6.7 7.7 CIB 4.0 PPB +5% Inves
Slide 37: Business units – headline earnings contribution
Business units – three sizeable banking businesses and a growing insurance and asset management franchise 70 0 00 Headline earnings contribution by business unit 60 0 00 Positive SBG Franchise, +4% Negative 50 0 00 3 300 ( 963) 1 054 9 304 40 0 00 11 301 30 0 00 20 507 20 0 00 10 0 00 44 503 0 Rm CI
Slide 38: SBSA – double-digit earnings growth
SBSA – double-digit earnings growth supported by a growing client franchise, increased activity, and improved credit performance SBSA SBSA Change Net fee and commission Trading revenue FY24 FY23 % Rbn Rbn 7% 2% Net interest income 57.6 54.6 6 23.2 25.00 21.6 25.0 Non-interest revenue 39.5 39.5 (0) 2
Slide 39: Africa Regions – ROE improved, currency headwinds in West Africa
Africa Regions – ROE improved, and underlying franchise growth was strong, but earnings was diluted by currency translation headwinds in the West Africa Region FY24 FY23 Change CCY Headline earnings 1% Rbn Rbn % % Africa Regions 18.0 18.2 (1) 22 22% CCY East Africa1 4.2 3.5 19 16 South & Central 8.7
Slide 40: Africa Regions – diversified portfolio delivered double-digit growth
Africa Regions – the diversified portfolio has delivered double-digit growth in aggregate and across all three sub-regions in ZAR Headline earnings by sub-region Headline earnings by country South & Central Other countries1 CAGR YOY% East Africa CAGR Namibia (2014-2023) change 20 000 20 000 West Afr
Slide 41: FY25 outlook
FY25 outlook 2.5
Slide 42: FY25 macroeconomic outlook
FY25 macroeconomic outlook – easing inflation, lower interest rates and GDP acceleration Inflation Interest rates Real GDP growth Currency impact 16.0 5.0 16.0 2024 2024 2024 -11% 4.5 14.0 14.0 4.5 14.3 2025 2025 2025 13.5 4.0 13.1 12.0 12.0 FY24 estimate1 11.8 3.5 3.7 11.7 11.4 10.9 10.8 10.0 10.0
Slide 43: SBG FY25 guidance
SBG FY25 guidance – expect continued growth and currency impact to be minimal Core metrics FY25 guidance Key drivers in FY25 • NII – up mid-to-high single digits, subject to loan growth and margin pressure Banking total income Mid-to-high single digits • NIR – up mid-to-high single digits, subject t
Slide 44: SBG 2025 targets – tracking ahead of plan
SBG 2025 targets – tracking ahead of plan1 Revenue, Rbn Cost-to-income ratio, % Target: 59.1% Target: 170.0 4 year CAGR, 12% 158.7 60.0% Approaching 160.0 7%- 50%2 58.0% 9% 150.0 56.0% 140.0 130.0 CAGR 54.0% 120.0 52.0% 110.0 101.4 50.0% 100.0 50.5% 90.0 48.0% Confident we can 2020 2021 2022 2023 20
Slide 45: Beyond 2025
Beyond 2025 3.0
Slide 46: SBG 2028 – well diversified business with scale
SBG 2028 – we have a well diversified business with scale and are positioned to win #1 on the 4 businesses 26 countries continent¹ Attractive investment proposition #1 Bank Brand in Growing PERSONAL & Africa2 Recognised and engaged PRIVATE BANKING and trusted brand client franchise 20m BUSINESS & Cu
Slide 47: SBG 2028 – strategic priorities remain unchanged
SBG 2028 – our strategic priorities remain unchanged, and we are focused on execution Our purpose Why we exist Africa is our home, we drive her growth Our strategic priorities Our resolute focus on strategy execution is driven through two pillars What we need to do to deliver our purpose 1.0 Defend
Slide 48: SBG 2028 – well positioned to capture Africa's growth
SBG 2028 – we are well positioned to capture Africa’s Our growth ambitions: Where we want to lead Lead Africa’s energy Maximise the value Build Africa’s best & infrastructure of our diversified private bank development portfolio Our capabilities: • Unrivalled presence across • Market leading proposi
Slide 49: SBG 2028 – confident we can deliver attractive growth
SBG 2028 – we are confident we can deliver continued attractive growth and better returns Core metrics 10 years to 20241 2026 – 2028 targets HEPS CAGR 10% 8% - 12% ROE 16% 18% - 22% Supplementary metrics Cost-to-income ratio 55.6% <50% Credit loss ratio 89 bps 70 bps – 100 bps CET1 ratio 13.4% >12.5
Slide 50: STANDARD BANK GROUP FY24 FINANCIAL RESULTS PRESENTATION | 13 MARCH 2025
STANDARD BANK GROUP FY24 FINANCIAL RESULTS PRESENTATION | 13 MARCH 2025 50
Slide 51: Thank you
THANK YOU
Slide 52: Appendix
APPENDIX STANDARD BANK GROUP FY24 FINANCIAL RESULTS PRESENTATION | 13 MARCH 2025 52
Slide 53: Appendix – i: Additional macro
Appendix – i Additional macro
Slide 54: Interest rates – started to gradually decline
Interest rates – started to gradually decline, other than in Nigeria and Angola South Africa, UK & USA Africa Regions 10 32 Change since Jan-23 Change since Jan-24 2024: -50 bps 28 27.50 8 27.00 24 2023: +125 bps 6 2024: -100 bps 20 19.50 2023: +100 bps 16 12.75 4 12 11.25 2023: +175 bps 2024: -50 b
Slide 55: Macroeconomic estimates – 2024 and 2025
Macroeconomic estimates – 2024 and 2025 Inflation1, % Interest rates2, avg% Real GDP growth3, % Currency4, % change 0 10 20 30 40 0 10 20 30 -3 -1 2 4 6 -75% -150% -25% 25% South Africa South Africa South Africa US UK UK UK UK Angola Angola Angola Angola Ghana Ghana Ghana Ghana Nigeria Nigeria Niger
Slide 56: Appendix – ii: Additional business disclosures
Appendix – ii Additional business disclosures
Slide 57: Personal & Private Banking – key highlights
Personal & Private Banking – key highlights Key drivers of performance FY24 FY23 Change Change Rbn Rbn % CCY % • Total income growth supported by enhancement of digital capabilities leading to increased digital transactional volumes and Net interest income 39.4 39.1 1 5 higher net fee and commission
Slide 58: Personal & Private Banking – solid client franchise performance
Personal & Private Banking – solid client franchise performance South Africa Africa Regions NIR by geography Active clients Active clients 8% 12.0 11.0 4% 5 4 0% 21.0 19.6 12% CCY 10.0 20.0 18.1 0.6 -2% 10% 19.0 9.0 4 18.0 0.6 8.0 3 Private 17.0 7.0 11.4 11.9 4.2 4.2 Banking 16.0 +6% 15.0 6.0 3 5.5
Slide 59: Personal & Private Banking – credit charges and CLRs declined
Personal & Private Banking – credit charges and CLRs declined driven by effective pro- active client engagement and collection strategies Credit impairment charges YoY % change 12.0 11.1 10.5 FY24 FY23 FY24 FY23 0.0 0.0 Credit charges Change Change CCY CCY 1.1 10.0 8.8 0.9 % % % % 0.0 PPB group (6)
Slide 60: Business & Commercial Banking – key highlights
Business & Commercial Banking – key highlights Key drivers of performance FY24 FY23 Change Change Rbn Rbn % CCY % • Total income showed robust growth in local currency, driven by higher transactional activity across mobile and digital banking, this Net interest income 25.5 25.4 0 10 more than compen
Slide 61: Business & Commercial Banking – strong local currency growth
Business & Commercial Banking – strong local currency growth impacted by currency devaluations South Africa Africa Regions NIR by geography Active clients Active clients 0% 550 500 450 3% 340 290 4% 12.6 12.6 7% CCY 400 240 350 300 190 0.4 0.3 -6% 250 200 140 150 528 513 291 303 100 90 4.3 4.2 -2% ‘
Slide 62: Business & Commercial Banking – credit impairment charges
Business & Commercial Banking – increase in credit impairment charges in Offshore more than offset by a large decline in charges in South Africa and Africa Regions Credit impairment charges YoY% change FY24 FY23 FY24 FY23 3.5 Credit charges Change Change CCY CCY 3.5 0.2 3.1 % % % % BCB group (11) 41
Slide 63: Corporate & Investment Banking – key highlights
Corporate & Investment Banking – key highlights Key drivers of performance FY24 FY23 Change Change Rbn Rbn % CCY % • Total income increased, with the second half seeing stronger revenue 33.4 30.7 9 27 growth driven by solid asset growth in Investment Banking and Net interest income improved performa
Slide 64: Corporate & Investment Banking – strong income growth in South Africa
Corporate & Investment Banking – strong income growth in South Africa Client revenue by sector, +0% Total income by geography, +2%1 Real Estate IB Africa Regions Soverign & Public Sector 60000 GM Africa Regions Telecommunications & Media TxB Africa Regions Diversified Industries IB South Africa Mini
Slide 65: ICBC Standard Bank plc – good operating result
ICBC Standard Bank plc – good operating result, off a high base ICBCS performance SBG’s share of earnings 175 FY24 FY23 142 ICBCS earnings, USDm 142 175 @ % stake 40% 40% SBG attributable 57 70 earnings, USDm ZAR/USD1 18.5 18.4 SBG attributable 1 054 1 286 earnings, Rm USDm FY23 FY24 1 ICBCS attribu
Slide 66: Disclaimer – Forward-looking statements
Disclaimer – Forward-looking statements The Group may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate t
Slide 67: Investor Relations
Investor Relations Scan the QR code below to register for alerts Investor Relations website: Please send any queries to: Please send any meeting requests to: Standard Bank Group Investor Relations | Relations.Investors@standardbank.co.za Sine Gumede Standard Bank Sine.Gumede@standardbank.co.za