Standard delivers growth in volatile marketTINTSWALO BALOYI
JOHANNESBURG, (CAJ News) – STANDARD Bank said its strategic focus on Africa is paying dividends with the company deliver sustained growth in a lacklustre global economy.
Recent results showed that Standard Bank Group continued to reap the benefits of growth in its sub-Saharan Africa businesses with the bank’s operations (ex-SA) now contributing 31 percent to the group’s total income, and 25 percent to headline earnings.
Even in South Africa, with domestic growth hovering around zero, six-year-high interest rates saw loan profits return a 14 percent increase in earnings in an economy set to return to growth.
In East Africa, for example, Standard Bank returned a 23 percent increase in headline earnings compared with the first half of 2015.
This was driven by East Africa’s more diversified economies sustaining growth rates in the region of 4 percent.
In South and Central Africa, hard hit by drought, Standard Bank nevertheless returned a 6 percent increase in headline earnings compared with the first half of last year.
While Standard Bank’s West African earnings were negatively impacted by the regions structural over-reliance on oil revenue, the bank’s 20 year presence and deep knowledge of the region has equipped it to adopt a through-the-cycle view of growth.
This is especially so for West Africa’s largest economy, Nigeria. With a large and young population, a growing middle class, rapid improvements in health, education and infrastructure, Nigeria’s demographic dividend is set to sustain growth for generations to come.
Nigeria remained an exciting lynchpin in the bank’s overall Africa strategy.
Sim Tshabalala, Standard Bank Group Chief Executive, says they will continue to monitor developments in the banking sector and financial markets to ensure that we remain appropriately equipped to deliver on their vision to be the leading financial services organisation in, for and across Africa.
“We are focused on delivering effective solutions tailored to our customers’ needs as we continue to drive Africa’s growth though investment in our franchise, products and people.”
– CAJ News
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