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Johannesburg - Standard Bank Group [JSE:SBK], Africa's largest lender, reported an 11% rise in first-half earnings on Thursday as strong loan growth helped offset a spike in bad debt charges.
Johannesburg-based Standard Bank said diluted headline earnings per share rose to 504.5 cents in the six months to end-June, from 453.6 cents a year earlier. Headline EPS, which excludes certain one-time items, is the main gauge of profit in South Africa.
South African banks are battling sustained low interest rates, anaemic economic growth and a competitive lending market, and have been posting higher credit impairment for the first half as borrowers in South Africa struggle under enormous debt.
Standard Bank, which is about 20% owned by the Industrial and Commercial Bank of China, said it would pay an interim dividend of 233 cents per share, up from 212 cents in the previous year.
Loan income jumped 20% to R18.8bn, while non-interest revenue, or earnings from fees and commissions, increased by 7% to R17.73bn.
But bad debt costs grew 28% to R5bn.
The bank is in advanced talks to sell its London-based commodity and forex trading business for over $500m, sources told Reuters last month.
Standard Bank has sold off businesses in Argentina, Russia and Turkey and is turning its attention to the rapidly growing economies north of its borders.
The bank's shares are down 2.5% so far this year, largely in line with Johannesburg's banking index.
Johannesburg-based Standard Bank said diluted headline earnings per share rose to 504.5 cents in the six months to end-June, from 453.6 cents a year earlier. Headline EPS, which excludes certain one-time items, is the main gauge of profit in South Africa.
South African banks are battling sustained low interest rates, anaemic economic growth and a competitive lending market, and have been posting higher credit impairment for the first half as borrowers in South Africa struggle under enormous debt.
Standard Bank, which is about 20% owned by the Industrial and Commercial Bank of China, said it would pay an interim dividend of 233 cents per share, up from 212 cents in the previous year.
Loan income jumped 20% to R18.8bn, while non-interest revenue, or earnings from fees and commissions, increased by 7% to R17.73bn.
But bad debt costs grew 28% to R5bn.
The bank is in advanced talks to sell its London-based commodity and forex trading business for over $500m, sources told Reuters last month.
Standard Bank has sold off businesses in Argentina, Russia and Turkey and is turning its attention to the rapidly growing economies north of its borders.
The bank's shares are down 2.5% so far this year, largely in line with Johannesburg's banking index.
