Standard Bank, the largest African bank by assets, has posted a year-on-year 14% increase in underlying profits to ZAR26.3bn ($2.22bn) for fiscal 2017.
Headline earnings at Standard Bank’s retail-focused Personal and Business banking unit rose by 10% y-o-y to ZAR14bn, boosted by lower credit impairments.
Standard Bank fiscal 2017 highlights included:
- net interest income increased by 6%, assisted by margin expansion of 26 bps to 474 bps;
- net fee and commission revenue grew by 7%, the result of healthy volume-based increases in both card-based commissions and electronic banking fees as well as higher documentation and administration fees;
- Standard Bank’s retail unit in South Africa now has almost 2.2 million active digital customers with more of these choosing to use its mobile banking offering than internet banking. Mobile banking transactions processed were 32% higher than in 2016;
Standard is now in the final stages of its core banking transformation programme and estimates that by the end of the first quarter of 2018, 93% of its transactional accounts in South Africa will have been migrated onto its new core banking platform.