Standard Bank first-half profits jump 61%

Johannesburg - Standard Bank [JSE:SBK] said first-half profit rose 61% after Africa’s largest lender by assets sold Brazilian operations and part of its London unit.

Net income climbed to R13.2bn from R8.24bn a year earlier, the Johannesburg-based lender said in a statement on Friday. Earnings per share excluding one-time items advanced 27% to R6.51, while the bank increased its dividend 17% to R3.03 a share. Operating expenses climbed 11%.

“The underlying banking operations are solid and the big positive is the dividend up 17% and it seems the tier 1 capital situation is solid now,” said Patrice Rassou, head of equities at Sanlam's investment-management unit in Cape Town.

“Cost growth looks quite hefty” and the revenue increase seems weaker than that of peers Nedbank [JSE:NED] and Barclays Africa [JSE:BGA], he said.

Standard Bank completed the sales of its London-based global-markets business to the lender’s 20% shareholder the Industrial & Commercial Bank of China and sold its entire interest in Brazil’s Banco Standard de Investimentos SA during the six months.

The lender also benefited from an insurance claim on missing aluminum stockpiles in China.

South Africa faces “downside risks such as uncertainty in the labour market, inconsistent domestic electricity supply, prices of mining-related commodities and vulnerable global growth,” Standard Bank said in the statement. The lender will “strive for operational efficiency through increased digitisation,” it said.

Standard Bank dropped 1.75% to R152 at 12:06 in Johannesburg. The six-member FTSE/JSE Africa Banks Index fell 1.27%.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
16.87
-1.3%
Rand - Pound
20.13
-0.3%
Rand - Euro
17.02
-0.4%
Rand - Aus dollar
11.67
-1.0%
Rand - Yen
0.12
-0.6%
Gold
1,759.58
-0.1%
Silver
19.57
-1.2%
Palladium
2,160.71
+0.8%
Platinum
915.51
-1.5%
Brent Crude
93.65
+1.4%
Top 40
64,184
+0.0%
All Share
71,011
+0.1%
Resource 10
63,890
+1.0%
Industrial 25
86,864
-0.7%
Financial 15
16,201
+0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders