Standard Bank Group Ltd: Trading update: Q2 earnings slowdown is priced in; unchanged FY26 guidance is a positive

Research evidence excerpt

Standard Bank Group Ltd: Trading update: Q2 earnings slowdown is priced in; unchanged FY26 guidance is a positive

J P M O R G A N CEEMEA Equity Research

22 June 2026

Standard Bank Group Ltd Neutral

SBKJ.J, SBK SJ

Trading update: Q2 earnings slowdown is priced in; Price (19 Jun 26):33,527c

unchanged FY26 guidance is a positive Price Target (Dec-27):38,833c

Our Take: Standard Bank has released a 5-month operating update, citing a CEEMEA Financials

ACresilient performance supported by franchise momentum, balance sheet and Baron Nkomo

revenue growth, and disciplined cost and credit risk management. Overall earnings (27-11) 507-0385

growth in 5M26 moderated relative to the 12% recorded in Q1, which we believe baron.nkomo@jpmorgan.com

is priced in (Bloomberg consensus looking for +9% in FY26, JPMe +10%). J.P. Morgan Equities South Africa (Pty) Ltd.

Balance sheet growth was driven by strong Investment Banking origination and Pooja Ruia

higher Business & Commercial Banking disbursements, while Personal and (91-22) 6157-3688

pooja.ruia@jpmchase.com

Private Banking grew moderately (home loans low single digits). Income rose on J.P. Morgan India Private Limited

higher client activity and transaction volumes, partly offset by lower endowment/

average rates and competitive SA home-loan pricing. Costs grew broadly in line

with revenue and credit impairment charges declined, reducing the credit loss ratio. Style Exposure

FY2026 guidance is unchanged at this point (8–12% earnings growth and 18–22%

ROE) and management says the Middle East conflict–related uncertainty and

inflation/monetary policy have temporarily weighed on client confidence to

transact, invest and borrow, but they expect momentum to improve in 2H26 if

recent positive developments hold.