Standard Bank Group Limited, which is the largest bank in Africa, has dramatically increased its earnings since 2020. It is Africa’s largest lender by assets. According to Standard Bank Group's latest financial reports, the company's current earnings (TTM) are $3.04 billion. In 2022 the company made an earning of $3.04 billion an increase over its 2021 earnings which were $2.40 billion. The earnings displayed on this page are the company's pretax income.
Market Capitalization of Standard Bank
As of November 2023, Standard Bank Group has a market cap of $17.57 Billion. This makes Standard Bank Group the world's 941th most valuable company by market cap according to Companies Market Cap. The market capitalization, commonly called market cap, is the total market value of a publicly traded company's outstanding shares and is commonly used to measure how much a company is worth.
Standard Bank Group increased its earnings since 2020 through a combination of factors, including increased revenue, cost control, improved asset quality, and strong performance in Africa.
On increased revenue, the group's revenue grew by 30% in 2022, driven by a larger balance sheet, higher interest rates, higher transactional volumes, a recovery in international trade, and strong growth in trading revenue. On cost control, the group managed to keep costs under control, delivering positive jaws of 882 basis points.
The bank group’s asset quality improved, with credit impairment charges increasing by only 10% despite the difficult economic environment. Lastly, the group’s Africa Regions franchise delivered a robust performance, with deadline earnings growing by 36%.
According to Standard Bank, gross loans and advances to customers grew by 9% to R1.4 trillion as of 31 December 2022, supported by strong growth in the corporate, business lending, and vehicle and asset finance portfolios. The home services, card balances, and personal unsecured portfolio growth were more muted. Total provisions increased by 9% to R55.8 billion as of 31 December 2022.
Increases in Ghana, Kenya, Malawi, Mozambique, and South Africa were partially offset by recoveries in Uganda and the release of the group’s R500 million COVID-19-related provision raised in FY20 and previously held at the Centre. In relation to the group’s exposures to Ghanaian sovereign debt impacted by the proposed sovereign debt restructure (i.e. Ghanaian local currency and onshore USD bonds), the group’s exposure, net of settlements year to date, equates to R2.6 billion. Balance sheet provisions held at year-end equated to R1.4 billion combined with fair value adjustments taken against the impacted exposures of R0.1 billion equated to R1.5 billion, or 56% coverage.
Standard Bank Stock Price
Standard Bank Group is listed on the Johannesburg Stock Exchange (JSE) under the ticker symbol SBK. It is also listed on the London Stock Exchange (LSE) under the ticker symbol 68IG. Its stock price has been dramatically rising since 2020, from $5.6 a share in 2020 to $10.6 a share in November 2023. Standard Bank pays a dividend to shareholders. The dividend yield is currently around 5%, which is higher than the average dividend yield for companies in the South African financial sector.
Moreover, Standard Bank's shares are currently trading at a price-to-earnings ratio (P/E) of around 10. This is below the average P/E ratio for companies in the South African financial sector.
Ultimately, the decision of whether or not to invest in Standard Bank is a personal one. Investors should carefully consider their own investment goals and risk tolerance before making any investment decisions. But from what was assessed, Standard Bank is known to be among the most powerful companies to ever exist on the African continent.