Earnings call transcript: Standard Bank posts record H1 2026 earnings as ROE rises

Standard Bank reported record first-half earnings for H1 2026, with headline earnings rising 10% to ZAR 26.1 billion. Return on equity improved to 19.8%, the highest level since the post-Basel III era. The company's interim dividend increased 10% to ZAR 9.02 per share. Standard Bank delivered a record half, driven by growth across South Africa, Africa outside South Africa, and offshore businesses.

South Africa accounted for 51% of the headline earnings, while Africa outside South Africa contributed 40%. Corporate and Investment Banking led the group with headline earnings of ZAR 13.8 billion, which grew by 15%. Insurance and Asset Management also saw strong growth. However, Business and Commercial Banking and Personal and Business Banking experienced slight declines.

The bank's performance was supported by a diversified portfolio and benefited from scale, technology investments, and a strong payments franchise. Credit losses decreased, which helped improve earnings quality. Standard Bank's performance suggests a longer trend of steady execution, with 10 consecutive reporting periods of positive earnings growth outpacing cost growth. The stock remained unchanged at $9,600, with no immediate move following the results.