South Africa-based Standard Bank has
reported a first half net profit of ZAR6.56bn ($907.5m), an 11.8%
increase from the corresponding period last year.
Net profit at Standard’s retail-focused
Personal and Business banking unit soared by almost one-third to
ZAR2.49bn.
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Standard’s first half retail banking
highlights included current account customer numbers in South
Africa increasing by 14%; deposits grew by 5% across the network,
which helped grow fee income. Non-performing loans, while remaining
high, fell by 180 basis points to 8.6% (H110: 10.4%).
Loans and advances increased by 7%
year-on-year to ZAR637.3bn; total assets increased by 5% to
ZAR1.37trn.
Less positive metrics included a 40 basis
points increase in Standard’s cost-income ratio to 58.6%;
Standard’s net interest margin declined by 13 basis points in the
first half to 2.89%.
Jacko Maree, Standard Bank CEO, said that
consumers remain vulnerable and, despite the expectation that
interest rates will remain on hold for the remainder of the year,
the bank expects only moderate credit growth for the second
half.
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By GlobalDataIn the first half,
Standard agreed to sell most of its stake in its Argentina-based
subsidiary to China-based ICBC for $380m and sold its 36 percent
stake in Russia’s Troika Dialog to Sberbank for $372m.
Maree said the proceeds
of the two sales would help to fund Standard’s acquisition
ambitions in Africa.
