Standard Bank Group’s share price shot up 6.8% yesterday morning after an operational update said attributable earnings leapt 42% in the nine months to September 3O compared with the same period a year before.
The biggest financial services group in Africa released the figures as part of its quarterly reporting to the Industrial and Commercial Bank of China (ICBC), which has a 20% stake in Standard Bank, to enable ICBC to equity account the local bank's results.
In the nine-month period Standard Bank’s headline earnings adjustable items were not material. In the six months to June 30 the group reported its second consecutive record performance, with headline earnings up 33% to R15.3 billion.
At that time management said they were facing an uncertain environment and increased competition, but the bank had a strong capital position and record balance sheet provisions and was well positioned to compete.
The share traded at R162.33 early yesterday afternoon, 16.6% higher than the R139.17 it traded at a year before on the same date.
The bank said higher average loan and advance balances and higher average interest rates supported strong double-digit net interest income growth for the nine-month period, compared with the same time a year before.
Strong non-interest revenue growth seen in the first six months of the year continued, supported by client transactional and trade activity.
Ongoing market volatility was driving client trading activity, which supported continued strong trading revenue growth.
Cost growth had remained below the group’s weighted average inflation, in spite of pressure on operating costs caused by higher activity-linked costs and inflation.
Credit impairment charges increased as Corporate and Investment Banking charges continued to normalise. In line with expectations, the credit loss ratio for the nine months remained in the lower half of the group’s through-the-cycle credit loss ratio range of 70 to 100 basis points.
Liberty’s performance improved – in the prior period, the insurer’s performance was negatively impacted by the pandemic provision raised.
ICBC Standard Bank plc continued to report an operational profit, excluding a net insurance settlement received in January 2022.
Standard Bank Group directors said in the operational update that the bank remained well capitalised and liquid. Group return on equity (ROE) remained above cost of equity and had improved relative to the first half cost of equity of 15.3%.
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