Fitch Ratings has affirmed Standard Bank Group Limited (SBG) and its key subsidiary, The Standard Bank of South Africa Limited (SBSA), with a ‘BB-‘ Long-Term Issuer Default Rating (IDR).

The UK-based firm assigned a Stable outlook, emphasising SBG and SBSA’s standalone creditworthiness.

Fitch cited SBG’s leading domestic and regional position, robust profitability, and ample capital and liquidity buffers.

The Viability Ratings (VRs) stand at ‘bb-‘, reflecting the concentration of activities in South Africa, with a Stable Outlook mirroring the country’s status.

SBG’s leading position in the South African banking system, substantial sub-Saharan Africa presence, and revenue diversification were highlighted.

The report acknowledged challenges, including significant household lending and an increase in impaired loans, projecting stabilisation by end-2023.

SBG’s strong profitability, driven by wide net interest margins and a solid funding franchise, were also noted.

Fitch flagged the high concentration of deposits but highlighted behavioral stability and considered liquidity coverage as healthy.

Source: Classfmonline

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