Standard Bank increased its spending on technology by 2% in 2024, to reach R24.4 billion.
This emerged when the big-four bank, which is Africa’s biggest financial services provider by assets, today announced its financial results for the year ended 31 December.
In the previous year, the bank’s total spending on IT amounted to R21.9 billion.
Giving a breakdown of the current IT spending total, the firm says staff costs were R6.2 billion; software, cloud and other technology-related costs were R12.7 billion; amortisation of intangible assets (R2.4 billion); and depreciation and other costs stood at R917 million.
According to Standard Bank, software, cloud and technology-related costs increased by 3% due to increases in contractual software services; client platform and cloud subscription costs; and an increased usage of cloud applications to support the security and stability of client platforms.
During the period, Standard Bank Group reported headline earnings of R45 billion and a return on equity of 18.5%.
It notes this performance is underpinned by continued balance sheet growth, lower credit impairment charges and flat costs in the banking franchise and a robust performance in insurance and asset management.
Sim Tshabalala, Standard Bank group CEO, says: “Our performance in 2024 reflects the strength of our diversified business and our commitment to delivering value to our stakeholders.
“We have seen double-digit earnings growth in South Africa, good contributions from our insurance and asset management business, and a strong operational performance from Africa regions. The group remains on track to deliver on its 2025 strategy and targets.”
The bank points out that the customer move to digitisation has continued apace. It says investments in digital platforms, especially mobile and online banking platforms, have streamlined services and improved accessibility.
The bank adds that 64% of transactional clients in personal and private banking in South Africa are digitally active, and in the business segment in South Africa 84% of clients are digitally-enabled, while 90% of all transactions in this segment are digital.
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