Standard Bank has outlined its ambitious plans for the next three years, identifying four opportunities in Africa it is targeting.
Ahead of its Capital Markets Day, the group outlined its plans to accelerate growth and unlock long-term value for shareholders.
The group said that it will leverage its “unique network and capabilities to capture the trends driving Africa’s growth.”
The group’s primary targets for the 2026 to 2028 years are:
- Headline Earnings Per Share growth of 8% to 12% per year
- RoE target range of 18% to 22%
- Revenue growth of 7% to 10% per year
- Cost to Income Ratio sustainably below 50%
- Credit Loss Ratio within a target range of 70 and 100 basis points
- CET1 Ratio above 12.5%
- Dividend Payout Ratio of between 45% and 60%
Capital strength is the anchor of its new strategy, with the group adding that share buybacks may supplement its dividend payout should valuation conditions permit.
Standard Bank said that it enters this next strategic period from a position of significant strength, with the group meeting or exceeding its core 2025 targets.
The group said it delivered 11% compound annual revenue growth over the past five years, a credit loss ratio of 73 basis points, and a return on equity of 19.3%.
“Our strategy for 2026 to 2028 is rooted in disciplined delivery and thoughtful capital allocation,” said Sim Tshabalala, Standard Bank Group CEO.
“We are investing deliberately in the capabilities that will define the future of financial services, technology, payments and AI, while ensuring that we maintain resilience, prudence and client‑centricity.”
Big Four targets
The group said that it has four key structural themes which underpin the opportunities available across the group’s network and which direct the group’s strategic focus.
The first opportunity is linked to Africa’s favourable demographics, including rapidly growing
cities, rising consumption and greater investment activity.
The Big Four bank said these shifts are deepening demand for high-quality, technology-enabled financial services across the business, corporate, and institutional segments.
The second opportunity is tied to Africa’s growing infrastructure needs, including energy systems, transport networks, and logistics infrastructure.
The third theme is the expansion of intra‑African and global trade, as trade flows are becoming more diversified, driven by regional integration efforts such as the African Continental Free Trade Area.
The bank said that these shifts are increasing demand for cross‑border payments, trade finance, risk‑management products and advisory solutions, areas in which it has deep capabilities.
The fourth opportunity is linked to the evolution of the continent’s financial services landscape, with digital adoption transforming how consumers bank.
With digital channels expanding, the bank sees a large scope to grow capital-light revenue while driving sustainable operating leverage.
The bank has faced several tech issues in recent years, including a recent data breach at its subsidiary, Liberty, earlier this week.
Business unit focus
Execution of the strategy will run through the group’s four business units: Corporate and Investment Banking (CIB), Business and Commercial Banking (BCB), Personal and Private Banking (PPB), and Insurance and Asset Management (IAM).
CIB will focus on expanding its position in corporate lending, investment banking, market activities and transactional services.
The business expects to capture large opportunities arising from infrastructure investment, diversified trade flows and capital markets activity.
BCB is looking to capture SME and mid‑corporate businesses through improved credit models, enhanced working capital solutions, and digital platforms.
PPB will also focus on modernising its digital channels, improving the client experience, and expanding its capital‑light revenue streams in payments, bancassurance, and wealth management.
IAM will aim to broaden insurance penetration, strengthen investment capabilities, and leverage the group’s distribution network.
“Technology, AI and payments will play a foundational role in enabling this growth,” added Tshabalala.
“We have made significant progress in modernising the bank’s technology stack, simplifying core systems and migrating key workloads to cloud‑based environments.”
He added that the investments have improved availability, resilience, and time‑to‑market, with technology-driven initiatives set to reduce costs to serve clients.
“Africa remains one of the most exciting and dynamic growth regions in the world, and Standard Bank is exceptionally well positioned to help shape and participate in that growth,” Tshabalala said.
“We are entering this next strategic period with strong momentum, a proven ability to execute
and a deep commitment to meeting the evolving needs of our clients.”
