Standard Bank delivered record headline earnings in the first half and has upped its dividend by 10% as all business units reported a strong performance.The group, Africa’s largest by assets, on Thursday reported a 10% rise in headline earnings to a record R26.1bn for the six months to end-June, or 1,610c per share.The group’s return on equity (ROE), at 19.8%, was comfortably within the group’s 2028 ROE target range of 18%-22%.An interim dividend of 902c per share was declared, up 10% from a year ago.The group’s banking businesses reported solid balance sheet growth, robust increases in fees and trading income, lower credit impairment charges and well-managed costs, it said.In addition, the Insurance and Asset Management business delivered continued strong earnings growth and improved returns.The group’s cost-to-income ratio improved to 49.3% from 49.5% before, while the credit loss ratio improved to 73 basis points (bps) from 93bps, reflecting an improving macroeconomic environment and sound risk management.“Strong client-led growth in non-interest revenue, together with disciplined cost and credit management, supported growth in headline earnings and our highest return on equity under the Basel III capital framework,” said CEO Sim Tshabalala.“Africa Regions contributed 40% of group headline earnings, while the South African business delivered strong earnings growth and a substantial improvement in ROE,“ he added.“We are particularly encouraged by the resilient outlook for South Africa. Sustaining that momentum will require the country to deepen its economic integration with the rest of the continent and fully participate in Africa’s growth opportunity,” he said.“These results demonstrate the strength and resilience of our diversified franchise. Our balance sheet remains strong, and we are well positioned to continue supporting our clients and capturing the opportunities emerging across Africa.”The bank’s payments franchise continued to deliver growth. Domestic and cross-border electronic payment values increased by 11% and 7%, respectively, with the group maintaining leading market shares in cross-border payments of 30% in South Africa and 19% across Africa Regions, he said.South Africa contributed to R13.4bn, or 51% of group headline earnings and Africa regions contributed 40%, or R10.4bn, supported by good contributions from Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda and Zambia. The group operates in 21 African countries, four global financial centres and two offshore hubs.Offshore businesses contributed R1.3bn, while the group’s 40% stake in ICBC Standard Bank (ICBCS) added R1bn, representing 5% and 4% of Group headline earnings respectively.Looking ahead, Standard Bank expects Africa to grow ahead of most regions and the opportunities across the continent remain significant. “At the same time, competition is intensifying, regulations are evolving and technology is advancing rapidly. We are confident that our diversified franchise provides resilience and our clear strategy positions us to deliver sustainable growth over the short, medium and long term. Recent global volatility has reinforced the value of this diversified franchise,” said Tshabalala.The group has maintained its full-year guidance of banking revenue growth of mid-to-high single digits and ROE to be higher than in the prior year.Business Day