Standard Bank share price breaks out following interim results

Key Takeaways

1. Stable financial performance

Standard Bank Group reported an increase in headline earnings of 4% to R22.0 billion for the first half of 2024 (1H24), with a return on equity (ROE) of 18.5%. Total net income remained stable at R88.373 billion.

2. Dividend growth

The interim dividend per ordinary share increased by 8% to 744 cents, reflecting the group's strong financial position and commitment to returning value to shareholders.

3. Operational efficiency

The group maintained a cost-to-income ratio of 49.7%, showing slight improvement from the prior period, and demonstrated effective capital allocation with a common equity tier 1 ratio of 13.5%.

4. Client franchise and digital growth

Active clients grew by 5% to 19.5 million, with digitally active retail clients in South Africa increasing by 7%. The group continued to benefit from strong organic growth and robust earnings in both its banking and insurance businesses.

5. Positive outlook and sustainable finance initiatives

Despite global macroeconomic uncertainties, Standard Bank remains optimistic about economic growth prospects and policy reforms in South Africa. The group mobilised over R21 billion of sustainable finance in 1H24, contributing to a cumulative total of R127 billion since 2022, aiming for more than R250 billion by 2026. This positions the group well for future growth and resilience.

Results in brief

For the first half of 2024, Standard Bank Group reported a solid financial performance despite challenging global economic conditions. The group achieved headline earnings of R22.0 billion, a 4% increase, and maintained a return on equity (ROE) of 18.5%. Key metrics included a 12% rise in diluted headline earnings per share to 1,650 cents and an 8% increase in the interim dividend to 744 cents per share. The group's South African and Africa Regions franchises showed robust growth, contributing to a stronger operational performance. Standard Bank's strategic investments and sustainable finance initiatives are on track, bolstering its resilience and positioning it for continued growth amidst ongoing economic uncertainty.

Standard Bank – technical analysis

The Standard Bank share price has broken the short term high at 22350 and is now testing the all-time high at 23765. The push higher sees the short term trend aligning with the longer term uptrend. As such trend followers might prefer to keep a long bias to trades on the share and look for entry into short term pullbacks.

A break above 23090 would suggest 23765 (76.4% Fibonacci extension) as a further target.