Standard Bank profit rises as African expansion gathers pace

Standard Bank, Africa’s largest lender by assets, reported a 10 per cent increase in first-half profit and forecast stronger banking revenue during the remainder of 2026. The South African group is also directing additional capital towards Tanzania and Angola as it deepens its position in two of the continent’s expanding financial markets.

Earnings reach 26.1 billion rand
Headline earnings increased to 26.1 billion rand, approximately $1.62 billion, during the six months ending 30 June. The improvement was supported by higher fee and trading revenue, resilient lending income and lower impairment charges.

Net interest income, representing the difference between interest earned from loans and interest paid to depositors, rose by 4 per cent to 53.2 billion rand. Growth was particularly strong within the group’s Corporate and Investment Banking division.

However, Standard Bank’s net interest margin narrowed from 489 basis points to 472 basis points. Lower interest rates reduced income from certain lending activities, while competition placed additional pressure on pricing in personal and commercial banking.

African banking operations expected to strengthen
Chief Financial Officer Arno Daehnke said the bank expects a stronger contribution from its Business and Commercial Banking and Personal and Private Banking divisions during the second half. The improvement is expected to be particularly visible in markets outside South Africa.

Standard Bank anticipates slightly faster growth in loans and advances, which should expand its overall lending portfolio. The effect of earlier interest-rate reductions is also beginning to move through the bank’s comparative figures, potentially allowing margins and net interest income to improve.

Lower rates had weighed heavily on retail and business banking earnings across the group’s African operations during the first half. Management expects this pressure to continue easing throughout 2026, although the effect may not disappear completely until 2027.

Tanzania receives new capital
Standard Bank injected an additional $80 million into its Tanzanian business in July. Tanzania remains one of East Africa’s more attractive banking markets, supported by economic reforms, infrastructure development and increasing regional trade integration.

The additional capital could strengthen the bank’s ability to finance companies, infrastructure projects and expanding consumer activity. It also demonstrates confidence in Tanzania at a time when several African lenders are competing for profitable positions in East Africa.

Angola stake set to increase
The group remains on course to raise its ownership of Standard Bank Angola from 51 per cent to 75 per cent during the second half of 2026.

Chief Executive Sim Tshabalala described both Angola and Tanzania as attractive growth markets. Angola continues to benefit from oil income, but the expansion of non-oil industries is becoming increasingly important for its longer-term banking potential.

Greater control of the Angolan operation should allow Standard Bank to integrate services more closely and deploy capital according to its broader African strategy. It may also create additional opportunities in corporate lending, trade finance and infrastructure investment.

The results show how geographic diversification continues to support Africa’s largest banking groups. Standard Bank must still manage currency volatility, regulatory differences and credit risk across multiple jurisdictions, but its latest earnings and capital commitments indicate continued confidence in the continent’s banking growth.

Newshub Editorial in Africa – 14 August 2026