By Nqobile Dludla
Standard Bank, Africa’s biggest lender, laid out an ambitious three-year growth plan on Thursday, betting on a surge in continental trade, a vast energy and infrastructure financing gap, and a rapid shift to digital banking.
Speaking at the group’s Capital Markets Day, CEO Sim Tshabalala told investors the group, present in 21 countries, was targeting an annual 8% to 12% growth in headline earnings per share and a return on equity of between 18% and 22% in 2026-2028.
Revenue is seen growing 7% to 10% per year.
Tshabalala said the group is concerned about the conflict in the Middle East and has taken the necessary measures to manage its risks, but “as things stand, we see no reason to modify our commitments and our targets”.
Standard Bank’s plan is the latest signal that South Africa’s biggest lenders are doubling down on the rest of Africa as a growth engine, racing to fill a vacuum left by retreating European banks and riding a wave of investments into the mining, oil and gas sectors.
Some African countries, particularly in East Africa, are growing at a faster rate than South Africa, presenting big opportunities to Standard Bank, Tshabalala said.
The group’s corporate and investment banking division, its biggest revenue generator, is targeting revenue of R100bn by 2028, up from R74.4bn in 2025, the unit’s chief Luvuyo Masinda said.
ENERGY AND INFRASTRUCTURE OPPORTUNITIES
Masinda sees a major opportunity in Africa’s energy and infrastructure expansion, citing annual investment needs of $130bn to $170bn in energy and about $170bn in infrastructure.
“Within critical minerals, copper and cobalt present significant financing and advisory opportunities,” he added.
The lender will direct incremental capital towards East and West Africa, “where large profit pools exist and fundamentals are improving” and where it does not yet have a top-three market position, CFO Arno Daehnke said, expecting both organic growth and acquisitions.
Egypt, where the lender opened an office in November, is another notable market where it is looking to expand, according to Masinda.
“We expect strong growth from all of our large markets, and such that Africa region is likely to be around 45% of the group’s earnings by 2028,” Daehnke said. The African portfolio excluding South Africa contributed 40% in 2025.
Reuters
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