Standard Bank Group Limited has announced plans to increase investments in mid-sized companies across Africa as it seeks to tap into opportunities in Nigeria and other key markets on the continent with $15.4 billion.
The bank aims to support the growth of intra-continental African businesses, leveraging its strong presence across the region and accelerating its earnings through 2028, according to Bloomberg.
|
|
The African biggest lender said it will focus on strengthening its operations in South Africa, and expand its operations across Nigeria, Ghana, Kenya, Uganda and Tanzania markets who collectively account for about 85 per cent of its estimated $15.4 billion revenue.
Standard Bank said the strong performance by its business and commercial banking operations over the last five years, was driven by growing demand for banking services among businesses across Africa.
|
|
|
|---|
The bank said the unit doubled its earnings and return on capital since 2020 and sustained growth of its markets in the continent at the same time.
“From 2020 to 2025, we have doubled headline earnings, and doubled the return on capital in the business from 19 per cent to 38 per cent,” Standard Bank said.
The lender added that its earnings across the continent averaged 30 per cent annually over the period.
The bank also disclosed its plans to maintain leading roles in South Africa’s banking markets for a long term, despite the increasing competition it faces in the country.
“We think that it is very important to be strong in South Africa and long term, we will be wanting to challenge for that No. 1 position,” the lender said.
Relying on opportunities from business expansion and regional trade, the bank expressed confidence that its business and commercial banking unit could exceed its current growth targets, as it expects its growth to accelerate into double-digit territory in future.
The bank targets annual compounded growth between 8 per cent and 9 per cent through 2028.
“We target 8 per cent to 9 per cent compounded annual growth rate for BCB until 2028, but actually we see it growing into the double digits as you get close to 2028,” the stated.
Standard Bank Group Limited is Africa’s largest bank by assets, headquartered in Johannesburg.
READ ALSO: Banking the economy that actually exists
The Group provides retail, business, commercial, corporate and investment banking services, as well as insurance and wealth management solutions.
It is listed on the Johannesburg Stock Exchange and serves millions of customers across the continent.
The bank operates in about 20 African countries, and through its corporate and investment banking arm and business banking network, Standard Bank finances trade, infrastructure, energy, mining, agriculture and other sectors.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
