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Johannesburg - Standard Bank [JSE:SBK] said first-half profit dropped 18% compared with a year earlier when it sold a stake in its UK business.
Net income declined to R10.8bn from R13.2bn a year earlier, the Johannesburg-based lender said in a statement on Thursday.
Earnings per share excluding one-time items advanced 5% to R6.80, while the bank increased its dividend 12% to R3.40 a share.
In South Africa, where Standard Bank started operations more than 150 years ago, the economy is forecast not to grow at all this year even with inflation above the Reserve Bank’s target range and interest rates at their highest level in six years.
This has put pressure on consumers and is starting to impact banks’ profit growth. Outside South Africa Standard Bank has a presence in 19 countries on the continent, many of which are expanding faster than its home market.
"We are cognisant of the constraints under which our customers are currently operating," the lender said.
"Despite increasing our credit provisions to reflect this, the group remains well capitalised and in a position to continue to invest and grow.
"We are committed to delivering through-the-cycle earnings growth and return on equity within our target range of 15% to 18% over the medium term."
Standard Bank in the first half of 2015 included R2.8bn of non-recurring gains in its net income line mainly related to the sale of a stake in its UK business, which were not repeated in 2016, the company said.
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