Headline earnings are a way of measuring a company’s core profit.
The first half of 2025 seems to be a great time for banks as they are pocketing billions in headline earnings. Standard Bank Group reported R24 billion in headline earnings, while Capitec said it expects its earnings to increase between 22% and 27%.
Headline earnings are a way of measuring a company’s core profit. Basically, how much money it makes from its main business activities, without the noise of unusual or one-off events.
Sim Tshabalala, CEO of Standard Bank Group, attributed this success to continued balance sheet growth, robust fee and trading revenue growth, and diligently controlled costs.
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The bank eating everyone’s lunch
Standard Bank Group is Africa’s biggest lender by assets. Tshabalala was reporting on the bank’s performance for the six months ended 30 June 2025.
The bank’s headline earnings grew by 8% to R23.8 billion, while its return on equity (ROE) increased to 19.1%
“Our performance in the first six months of 2025 reflects the robust franchise momentum in our businesses and active capital management despite the volatility linked to global developments. We remain confident and firmly on track to deliver on the 2025 targets outlined to the market in August 2021,” said Tshabalala.
The bank’s outlook
Standard Bank Group expects its headline earnings per share to grow from 8% to 12% and ROE within the 18% to 22% range, for 2026 to 2028.
From information gathered by The Citizen, Standard Bank’s lowest paid employee gets R258 390 per annum, making this the highest average salary in banking.
Tshabalala walked away with more than R89 million in remuneration. Out of the R89 million, his annual salary cost the bank more than R10 million.
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Capitec expects an increase
Capitec on Wednesday said it expects its headline earnings to grow by 22% and 27% for the six months to end in August 2025. In the same period in 2024, the bank made R6.4 billion in headline earnings.
It is attributing this expected growth to increased loan disbursements and annualised credit loss ratio remaining stable.
“Growth in net transaction income and commission, including value-added services and income from Capitec Connect, continued as active client numbers increased and transaction volumes grew,” said the bank.
Capitec CEO tops banking pay charts
According to the Capitec’s financial results for the year ending 28 February 2025, former CEO, Gerrie Fourie’s annual salary and provident fund is over R18 million, with benefits worth R118 000.
When including short and long-term incentives, his total cost to company for the year was over R104 million.
Fourie resigned as CEO on 25 July, and handed the reigns to Graham Lee.
62% of the Capitec’s employees earn between R250 000 and R500 000 annually.
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