Standard Bank has kept its guidance for the 2026 financial year unchanged despite the uncertain global and regional operating environment in which it operates.In a voluntary trading update for the five months to end-May, the group said it had recorded a resilient performance as it continued to benefit from its scale and diversification.In the period, earnings growth was underpinned by franchise momentum that drove balance sheet and revenue growth and a disciplined approach to costs and credit risk, it said on Monday. However, as expected, the group’s earnings growth in the five months moderated relative to the 12% recorded in the first quarter of the year, it said.Geopolitical tensions, higher energy prices and ongoing trade-policy uncertainty weighed on global growth and inflation expectations. “Across the group’s countries of operation, macroeconomic conditions were mixed. While inflation was relatively contained across several markets, the outlook became less benign,” it noted.In South Africa, the domestic environment was supported by ongoing structural reform momentum, an improved fiscal trajectory and resilient terms of trade. The group’s balance sheet growth was supported by strong origination in Investment Banking and increased disbursements in Business and Commercial Banking, particularly in South Africa, while the Personal and Private Banking portfolio recorded moderate growth. The group’s home loans portfolio continued to grow at low single digits. Current accounts and term deposits recorded strong growth, in line with the group’s transactional client franchise focus.Income growth was supported by balance sheet growth, increased client activity and an increased client base, which drove higher transactional activity. This was partly offset by the negative endowment impact of lower average interest rates across the portfolio and ongoing competitive pricing pressures in the home loans portfolio in South Africa, it added. Credit impairment charges were lower, despite an increase in forward-looking provisions in response to the deteriorating macroeconomic outlook. Lower credit impairment charges, combined with a growing balance sheet, resulted in a lower credit loss ratio, it said.The strong earnings growth momentum reported by the Insurance and Asset Management business in 2025 continued, supported by improved life risk experience, continued good persistency levels, and good growth in assets under management in South Africa and Nigeria.The Africa Regions portfolio continued to benefit from its diversity, while a softer performance in the South and Central Region was more than offset by growth in the West and East Africa portfolios.“The uncertainty brought about by the Middle East conflict, and the subsequent inflation and related monetary policy actions, has temporarily weighed on our clients’ confidence to transact, invest and borrow,” it said.“Should the recent positive developments hold, we would expect confidence and momentum to return in the second half of the year.”At this stage, the group’s guidance for the year to end-December 2026 remains unchanged, it said. This will be reviewed as part of the interim results process, and an update will be provided when the group reports its first-half results on August 13.In March the group said it expects 2026 financial year banking revenue growth to be mid-to-high single digits, the cost-to-income ratio to decline slightly and the credit loss ratio to increase but remain in the bottom half of the through-the-cycle target range of 70–100 basis points. Return on equity was seen increasing from 2025’s 19.3%.Business Day