Standard Bank targets $15.4bn expansion in Nigeria, African SME markets

Standard Bank Group Limited is set to significantly boost its investments across Africa, targeting $15.4 billion for expansion in Nigeria and other crucial markets. The continent's largest lender by assets aims to foster the growth of businesses operating within Africa, leveraging its extensive regional network to enhance earnings through 2028.

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From 2020 to 2025, we have doubled headline earnings, and doubled the return on capital in the business from 19 per cent to 38 per cent.

The bank will concentrate on reinforcing its operations within South Africa while simultaneously broadening its reach into Nigeria, Ghana, Kenya, Uganda, and Tanzania. These five markets are projected to contribute approximately 85 percent of the bank's anticipated $15.4 billion revenue.

This strategic push follows a period of robust performance in Standard Bank's business and commercial banking sectors. The unit has reportedly doubled its earnings and return on capital since 2020, achieving a return on capital of 38 percent from a previous 19 percent. Earnings across the continent have averaged 30 percent annually during this timeframe.

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We think that it is very important to be strong in South Africa and long term, we will be wanting to challenge for that No. 1 position.

Despite facing increasing competition, Standard Bank remains committed to maintaining its leading position in South Africa's banking landscape. The bank views a strong domestic presence as vital for its long-term ambitions. It anticipates that opportunities arising from business expansion and regional trade will enable its business and commercial banking unit to surpass current growth targets, with growth expected to enter double digits as 2028 approaches. The bank has set a target of 8% to 9% compounded annual growth rate for this division until 2028.

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We target 8 per cent to 9 per cent compounded annual growth rate for BCB until 2028, but actually we see it growing into the double digits as you get close to 2028.