Standard Bank Lifts Targets as Sees South African Economy Improving

JOHANNESBURG (Capital Markets in Africa) – Standard Bank Group Ltd., Africa’s largest lender by assets, said it expects its return on equity to rise as South Africa’s economy improves.

“The positive steps taken already by the ruling party subsequent to its leadership conference will improve business and consumer confidence,” the Johannesburg-based bank said in a statement on Thursday. The return on equity target range has been increased to as much as 20 percent from an earlier goal of 15 percent to 18 percent, the bank said.

Last year, the lender had to contend with political turmoil and attacks on the integrity of banks in its home market, but with operations in 20 African countries Standard Bank has diverse income streams. Its domestic market is also showing something of a rebound with South Africa’s gross domestic product having expanded 1.3 percent in 2017, while inflows into the country’s stocks and bonds are more than four times higher than they were a year ago.

Standard Bank’s earnings per share excluding one-time items for the 12 months through December increased to 16.20 rand, beating the 15.60 rand average estimate of 12 analysts surveyed by Bloomberg.

Standard Bank appointed Sim Tshabalala as sole chief executive officer, ending a dual role he shared with Ben Kruger, in September. The lender went on to hire Lungisa Fuzile, the former director-general of National Treasury, as the chief executive officer of its South African operations in December.