Standard Bank top execos secures earnings despite mixed results

Standard Bank’s top executives received significant pay increases, with CEO Sim Tshabalala’s remuneration rising to R89.2 million from R83.3 million in 2023.

The bank reported a modest 4% increase in headline earnings, reaching R44.5 billion, with headline earnings per share at 2,691 cents. However, basic earnings per share declined by 1% to 2,644.1 cents, while total income saw a slight 2% increase to R181 billion.

Despite these fluctuations, the group maintained a strong return on equity at 18.5% and expanded its active client base by 4% to 20 million. The board also raised its total dividend by 6% to 1,507 cents.

Standard Bank’s South African operations posted double-digit earnings growth, driven by increased client activity and improved credit conditions.

However, earnings from its Africa Regions division, contributing 41% of total headline earnings, slightly declined in rand terms to R18 billion but grew by 22% in local currency. Markets such as Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda, and Zambia played a key role in the region’s performance.

The improved economic environment in South Africa, following stable general elections and a government of national unity, has boosted consumer and business sentiment.

Additionally, enhancements in electricity supply and logistics, including progress at Eskom and Transnet, have been positively received. The group’s credit impairments also fell from R16.2 billion to R15.1 billion, reflecting a more favorable interest rate landscape.

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Executive Compensation Highlights
Sim Tshabalala’s remuneration increase was largely driven by a R6 million rise in his vested Performance Reward Plan (PRP), which rewards executives based on company performance. His fixed salary stood at R11.9 million, with additional earnings from incentives and vested PRPs bringing his total package to R89.2 million.

Several key executives at Standard Bank also saw notable changes in their remuneration packages. Chief Financial Officer Arno Daehnke received a slight increase in earnings, rising from R68.1 million to R68.4 million.

Group Deputy CEO and Standard Bank SA CEO Kenny Fihla, however, experienced a decline in his earnings, dropping from R69.9 million to R67.3 million due to lower incentive payouts. Despite being promoted to Group Deputy CEO in September 2024, Fihla is currently serving his notice period as he prepares to transition to Absa as its new Group CEO.

Personal and Private Banking CEO Funeka Montjane saw her remuneration increase from R59.6 million to R65.5 million, while Group Chief Operating Officer Margaret Nienaber’s earnings rose from R59.8 million to R62.5 million.

Meanwhile, Business and Commercial Banking CEO Bill Blackie experienced a decrease in earnings, with his remuneration falling from R46.0 million to R43.7 million due to a lower vested Performance Reward Plan (PRP).

Insurance and Asset Management CEO Yurush Maharaj saw the most significant jump in earnings, with his remuneration increasing from R25.1 million to R41.7 million. This surge was largely attributed to his vested PRP, which rose sharply from R5 million to R20 million.

Lastly, Luvuyo Masinda, the newly appointed CEO of Corporate and Investment Banking, received a remuneration package of R12.6 million.