Standard Bank rewards shareholders with bigger interim payout
CEO Sim Tshabalala says the bank invested in digital fraud prevention, which ‘yielded a pleasing 81% reduction in the number of digital fraud cases reported’
Standard Bank shareholders will receive a R4.30 interim dividend, an 8% increase from the R4 paid in the first half of its 2017 financial year.
The group’s overall headline earnings grew 4.6% to R12.7bn in the six months to end-June, Standard Bank reported on Thursday morning.
Its largest division, personal and business banking, grew its headline earnings contribution by 8% to R6.6bn. Its second largest division, corporate and investment banking, grew its headline earnings by 7.5% to R5.7bn.
Insurance subsidiary Liberty’s headline earnings contribution declined by 3% to R857m.
Unlike Absa and Nedbank, Standard Bank does not report what it terms "Africa regions" as a separate segment.
The results statement indicated much of the bank’s growth came from outside SA, and earnings suffered from the rand strengthening against other African currencies.
Standard Bank’s personal and business banking division in its home market grew headline earnings by 5% to R6bn, maintaining its active customer numbers at 8.1-million.
"Investments made in digital fraud prevention yielded a pleasing 81% reduction in the number of digital fraud cases reported," Standard Bank CEO Sim Tshabalala said in the results statement.
Outside SA, the personal and business banking division more than doubled its headline earnings to R201m from R91m in "constant currency".
"The total number of active customers grew 4% to 5-million customers, driven by strong growth in Kenya, Ghana, Mozambique, Nigeria, Swaziland and Zimbabwe. Mobile and internet banking are available in all 14 countries in which personal and business banking operates in Africa regions," Tshabalala said.