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Standard Bank is adding 100,000 retail clients every month in SA

Johannesburg | Every month, Standard Bank in South Africa adds 100,000 new retail clients. Growth in the bank’s retail deposits is surpassing the bank’s growth in corporate deposits in the rest of Africa, which is helping to increase profit margins.

  • Every month, Standard Bank in South Africa adds 100,000 new retail clients.
  • Growth in the bank’s retail deposits is surpassing the bank’s growth in corporate deposits in the rest of Africa, which is helping to increase profit margins.
  • In addition to being one of South Africa’s top five banks, Standard Bank is the continent’s largest lender.
  • The increase in new retail clients has resulted in “high single digit growth” in the lender’s more than 9 million active clients in South Africa thus far this year.
  • This comes after a trading update earlier on Monday that showed Standard Bank improved loan growth across various segments in the first 10 months of 2021.

In addition to being one of South Africa’s top five banks, Standard Bank is the continent’s largest lender. The bank is a major financial services group with operations spanning Africa, Europe, America, and Asia.

The increase in new retail clients has resulted in “high single digit growth” in the lender’s more than 9 million active clients in South Africa thus far this year. Arno Daehnk, financial director of Standard Bank Group, says that while this increases the bank’s client base, it will take time to convert this hype into profitability.

“It’s a generally improving trend on the back of more client activity and more clients on our books. “

But it takes time once you get clients on the book to fully entrench them, in other words to cross-sell them. That uplift is still going to be materialising in 2022 and beyond.” said Daehnke.

This comes after a trading update earlier on Monday that showed Standard Bank improved loan growth across various segments in the first 10 months of 2021 Standard Bank’s August profit guidance, which stated that it expects headline earnings per share to increase by at least 20% year on year, was restated in the trading update. The market clearly liked it, as the bank’s share price rose 4.9 percent to R128.99 at the close of trading.

Standard Bank said that in the 10 months to the end-October its loans services had improved above levels seen in the previous two years. The bank says outside South Africa, its personal loans have grown expediently.

“All three of our client segments are showing good underlying momentum, which bodes well for 2022,” said Daehnke.

“Our diversified client base, broad portfolio of solutions, and geographic footprint position us well to continue to manage risk.” he added.

With all the mishaps stirred by the pandemic in today’s markets the bank however, shows confidence and has positive prospects for its future performance. Daennke says the bank does expect some mishaps but is confident with the bank’s performance this year.

“While we still expect negative jaws for 2021 we expect the jaws to narrow relative to the first half of 2021,” said Daehnke.

Standard Bank is adding 100,000 retail clients every month in SA

Staff Writer

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