Standard Bank sees ‘strong momentum’ across all its markets
Africa’s biggest lender reports double-digit net interest income growth as rising interest rates boost its earnings
Standard Bank has reported “robust” balance sheet growth in its latest voluntary trading update thanks to rising interest rates, which have boosted the income it earns from loans, a phenomenon known in the banking sector as the endowment effect.
Africa’s biggest lender by assets said in a voluntary trading update on Monday it experienced “positive endowment tailwinds” in the 10 months to end-October as rising interest rates resulted in double-digit net interest income growth when compared with the corresponding period the prior year. The endowment effect occurs when banks automatically earn higher net interest income as rising borrowing costs force consumers to repay higher amounts on their borrowings...
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