Sim Tshabalala, Standard Bank Group CEO.
Standard Bank, Africa’s biggest bank by assets, ramped up its technology spend in the six months to 30 June 2025 (H125), investing a total of R3.7 billion across its divisions.
The JSE-listed financial services group revealed the figures in its interim results for 2025, noting that software, cloud and other technology-related costs rose by 7%.
The increase reflects the bank’s continued push to strengthen its digital capabilities, improve client experience, enhance system stability and boost security.
Alongside infrastructure optimisation, the bank is also directing funds towards front office sales and service tools.
In H125, Standard Bank invested R3.2 billion in technology within its personal and private banking segment, up from R2.9 billion a year earlier. Its business and commercial banking segment saw tech spend climb to R501 million, from R486 million in the first half of 2024.
See also
This, as South African banks are increasing technology investments to stay competitive in a rapidly digitising financial services landscape.
Growing cyber security threats are also pushing institutions to strengthen system resilience and safeguard client data. Regulatory pressures and the emergence of fintech challengers are compelling traditional banks to innovate, automate and modernise their operations to retain market share and unlock new revenue streams.
Standard Bank’s growth in software, cloud and technology-related spend in H125 was driven by ongoing investments in software services and strategic initiatives to expand solution offerings.
The bank increased spending on system security, stability and infrastructure resilience to safeguard operations and customer data.
In addition, higher cloud subscription costs, stemming from greater adoption of cloud applications and increased processing volumes, contributed to the overall rise in technology expenditure.
According to the big-four bank, in 1H25, active clients grew by 2%, driven by growth in both South Africa and Africa regions.
It notes that the deployment of personalised, data-driven offers to clients drove client retention and entrenchment, and increased revenue.
In South Africa, digital retail clients increased by 7%, successful digital transactions increased by 12% and digital sales volumes increased by 33%, says the bank, resulting in a 21% increase in digital revenue period-on-period.
Growth in active business clients was underpinned by an increase in the transactional and merchant account base in South Africa and targeted client acquisition strategies in Africa regions.
During the period, Standard Bank recorded headline earnings of R24 billion and delivered a return on equity of 19.1%.
It explains that this strong performance was underpinned by “continued balance sheet growth, robust fee and trading revenue growth, and diligently controlled costs”.
Growth in credit charges was muted as expected, it says, noting that insurance and asset management recorded a continued upward trajectory in earnings and returns.
The group ended the current period with a “strong common equity tier one ratio of 13.2%”. The group’s board approved an interim dividend of 817c per share, up 10% period-on-period, which equates to an interim dividend payout ratio of 56%.
“In 1H25, Standard Bank Group’s headline earnings per share grew by 10% and return on equity improved to 19.1%. This strong performance was driven by continued robust franchise momentum and active capital management,” says Sim Tshabalala, Standard Bank Group CEO.
