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Johannesburg - Standard Bank [JSE:SBK], Africa's largest bank by assets, reported a better-than-expected 14% rise in full-year earnings on Thursday after booking strong income from lending.
Standard Bank said headline earnings per share totalled 1 064.9 cents for the period ended in December, from 935c last year.
Analysts had pencilled in a 10% increase in earnings for 2013.
Net interest income, a measure of earnings from lending, increased by 15% to R39bn. Credit impairments, or bad debt charges, rose 5% to R9.2bn.
Banks have struggled as high unemployment and household debt levels have blunted demand for loans and hurt corporate spending.
Non-interest income, which includes revenue from arranging deals and advisory services, went up 6% to R34.3bn.
Standard Bank, 20% owned by Industrial and Commercial Bank of China (ICBC), is positioning itself as a full-service gateway to Africa, where it has operations in 18 countries.
The bank has set up representative offices in Ethiopia, a huge African market with limited banking services, and in Ivory Coast to target francophone nations on the continent.
The lender is also selling a 60% stake in its London-based global markets unit to China's ICBC for $765m, the latest sale in its strategy to hive off operations outside Africa to focus on fast growing sub-Saharan economies.
The London-based investment banking, transaction products and principal investment management businesses are not included in the deal.
Standard Bank is the last of South Africa's "big four" to report. Rivals Barclays Africa and Nedbank posted increases of 14% and 15% respectively.
Standard Bank shares are down 3.7% this year, lagging Johannesburg's blue-chip index, which is up 3.5%.
Standard Bank said headline earnings per share totalled 1 064.9 cents for the period ended in December, from 935c last year.
Analysts had pencilled in a 10% increase in earnings for 2013.
Net interest income, a measure of earnings from lending, increased by 15% to R39bn. Credit impairments, or bad debt charges, rose 5% to R9.2bn.
Banks have struggled as high unemployment and household debt levels have blunted demand for loans and hurt corporate spending.
Non-interest income, which includes revenue from arranging deals and advisory services, went up 6% to R34.3bn.
Standard Bank, 20% owned by Industrial and Commercial Bank of China (ICBC), is positioning itself as a full-service gateway to Africa, where it has operations in 18 countries.
The bank has set up representative offices in Ethiopia, a huge African market with limited banking services, and in Ivory Coast to target francophone nations on the continent.
The lender is also selling a 60% stake in its London-based global markets unit to China's ICBC for $765m, the latest sale in its strategy to hive off operations outside Africa to focus on fast growing sub-Saharan economies.
The London-based investment banking, transaction products and principal investment management businesses are not included in the deal.
Standard Bank is the last of South Africa's "big four" to report. Rivals Barclays Africa and Nedbank posted increases of 14% and 15% respectively.
Standard Bank shares are down 3.7% this year, lagging Johannesburg's blue-chip index, which is up 3.5%.
