The South Africa-based bank's return on equity improved to 19.8%, comfortably within its 2028 target range of 18% to 22%. The group declared an interim dividend of 902 cents per share, up 10% year-on-year and its highest on record.
Strong Performance Across Business Units
All business units delivered healthy returns. Corporate & Investment Banking increased headline earnings by 15% with a ROE of 24.8%, while Business & Commercial Banking reported a ROE of 36.3%. Personal & Private Banking delivered a ROE of 18.6%, and Insurance & Asset Management achieved 21.1%.
In its banking operations, net interest income grew by 4% to R53.6 billion, helped by healthy deal flow in Corporate and Investment Banking and modest loan growth in business and personal banking units. Net fee and commission revenue rose 7% to R18.4 billion, driven by strong debt financing activity, higher transaction volumes and increased client activity, while trading revenue climbed 8%.
Improved Credit Performance
Credit impairment charges fell 12% to R7.1 billion, reflecting an improved credit performance across the portfolio. Accordingly, the group's credit loss ratio improved to 73 basis points from 93 basis points in the first half of 2025. The cost-to-income ratio improved to 49.3% from 49.5%, reflecting disciplined cost management.
Geographic Contributions
South Africa contributed R13.4 billion, or 51% of group headline earnings, with the unit's earnings surging 15%. Africa Regions contributed 40% of group headline earnings at R10.4 billion, with Angola, Ghana and Kenya among the top contributors.
The group's active client base grew to 19.5 million across 21 African countries. In South Africa, targeted initiatives to grow digital retail transactional clients resulted in a 9% increase in digital clients and a 17% increase in digital transactional volumes.
Technology and AI Deployment
During the first half of 2026, the group continued to scale the deployment of technology and artificial intelligence across both client-facing and employee workflows. As at 30 June 2026, 72% of employees were active users of generative AI tools, with 87 use cases approved. The group's AI-enabled recommendation capabilities have supported more than 10 million personalised client interactions in the current period.
Standard Bank was ranked as the leading bank in Africa and second overall across the Middle East and Africa region in the inaugural Evident AI Index for Banks.
Resilience Amid Geopolitical Tensions
Standard Bank navigated the inflationary and monetary-policy effects of the US-Iran conflict, which disrupted seaborne traffic through the Strait of Hormuz and lifted the costs of energy and fertilizers. Inflation in South Africa accelerated to 5% in June, its fastest pace in two years.
"We are particularly encouraged by the resilient outlook for South Africa. Sustaining that momentum will require the country to deepen its economic integration with the rest of the continent and fully participate in Africa's growth opportunity," said Group CEO Sim Tshabalala.
Growth and Expansion Plans
To further tap opportunities across Africa, Standard Bank invested $80 million of additional capital in its Tanzanian operations in July and plans to increase its shareholding in its Angolan business during the second half of 2026.
The group has cumulatively mobilised over R328 billion in sustainable finance for clients since 2022 against its target of R450 billion by 2028, with R50.6 billion mobilised in the first half of 2026 alone.
Outlook
Standard Bank expects banking revenue growth of mid-to-high single digits for the full year, supported by continued business momentum, with the cost-to-income ratio expected to decline slightly. ROE is expected to be higher than the prior year, while the credit loss ratio is projected to be slightly higher but remain within the lower half of the through-the-cycle target range.
With reporting from Reuters, Bloomberg, FAnews, EWN and BusinessDay.
