Standard Bank Group, Africa’s largest bank by assets, has reported stronger half year earnings as rising fee and trading income, lower credit losses and steady banking activity helped offset pressure on interest income.
The South African lender said headline earnings increased 10 percent to R26.1 billion ($1.62 billion) for the six months ended June 30, up from the same period a year earlier.
The performance came as the bank benefited from stronger activity across its corporate, investment, business and personal banking operations, while lower credit impairment charges provided further support to the bottom line.
Standard Bank declared an interim dividend of 902 cents per share, an increase of 10 percent and its highest on record.
Net interest income from the group’s banking operations rose 4 percent to R53.6 billion. The increase was supported by healthy deal activity in its Corporate and Investment Banking division and modest loan growth across its business and personal banking operations.
However, the bank’s net interest margin narrowed to 472 basis points from 489 basis points previously, reflecting lower interest rates and continued pricing pressure in some retail and business banking portfolios.
‘Competitive pricing pressures’ in parts of the bank’s retail and business portfolios contributed to the decline in the margin, Standard Bank said.
The impact was partly offset by stronger income from services and financial market activities.
Net fee and commission revenue increased 7 percent to R18.4 billion, supported by stronger corporate debt financing activity, higher transaction volumes among business and personal banking customers and increased client activity.
Trading revenue also rose 8 percent during the period, adding to the bank’s non interest income and helping to cushion the effect of weaker margins.
Credit performance also improved significantly. Credit impairment charges fell 12 percent to R7.1 billion, reflecting an improvement across the bank’s loan portfolio.
As a result, Standard Bank’s credit loss ratio, which measures credit losses against its total lending, improved to 73 basis points from 93 basis points in 2025.
The decline in credit losses points to a more favourable lending environment for the bank, even as consumers and businesses continue to operate under varying economic pressures across its markets.
The results show that Standard Bank’s earnings are becoming increasingly supported by a broader mix of banking activities, rather than relying solely on interest income.
For the lender, stronger fees, trading income and improved credit performance have helped sustain profitability at a time when lower interest rates are putting pressure on lending margins.
The bank’s latest results therefore underline the importance of diversified revenue streams as African banks navigate changing interest rates, competitive lending markets and uneven economic conditions.