Standard Bank and Absa reported stronger first-half earnings despite narrower margins. Standard Bank’s headline earnings rose 10%, while Absa’s increased 8%. Both improved return on equity and expanded lending. Elsewhere, AFC led a $2.5 billion equity placement for the Dangote refinery and raised CHF 350 million ($431 million) through a digital bond, while Nigeria opened a regulatory sandbox cohort covering virtual assets and data-enabled financial services. Read more on the week’s key developments: 1. Standard Bank earnings rise 10% as it expects margins to improve Standard Bank reported on 13 August that first-half headline earnings increased 10% to ZAR 26.1 billion ($1.62 billion), while return on equity rose to 19.8% from 19.1%. Net interest income increased 4% to ZAR 53.2 billion ($3.29 billion), although net interest margin narrowed by 17 basis points to 472 basis points amid lower interest rates and competitive pricing. The group maintained its forecast for mid-to-high single-digit banking revenue growth in 2026. It also invested $80 million in its Tanzanian subsidiary and remained on track to increase its ownership of Standard Bank Angola from 51% to 75% in the second half. Chief Financial Officer Arno Daehnke expects loan growth and margins to improve in the second half as earlier rate reductions move into the comparative base. The group expects full-year return on equity to exceed the 2025 level, although rand appreciation is forecast to reduce reported earnings growth by about two percentage points. Daehnke said the Tanzania and Angola investments are not material to the group overall but should support returns over the short to medium term. 2. Absa increases first-half earnings 8% as credit costs ease Absa Group reported on 18 August that first-half headline earnings increased 8% to ZAR 12.8 billion ($788 million), supported by 4% revenue growth to ZAR 58.8 billion ($3.62 billion) and a 1% decline in credit impairment charges. Net customer loans increased 6%, while the credit-loss ratio improved to 94 basis points from 100. Return on equity rose to 15% from 14.8%. South African headline earnings increased 17%, offsetting a 10% decline across Africa Regions. Revenue and loan growth indicate that the earnings increase was not driven mainly by lower impairments, although net interest margin narrowed by 12 basis points to 446 basis points. In Africa Regions, 14% constant-currency customer-loan growth did not offset pressure on deposit margins from lower rates. Group Financial Director Deon Raju expects the full-year credit-loss ratio to remain around the middle of Absa’s 75–100 basis-point range and return on equity to remain around 15%. 3. Uganda holds policy rate as oil-price pressures remain contained The Bank of Uganda maintained its Central Bank Rate at 9.75% on 13 August as underlying inflation remained contained despite higher energy costs. Headline inflation rose to 4% in July from 3.7% in June, driven mainly by energy, fuel, utilities and food prices, while core inflation remained at 3.4%. The central bank said higher global oil prices had not yet produced broader domestic price pressures. Further pass-through into transport, food and other consumer prices, or pressure on the shilling, could delay monetary easing. If core inflation remains stable, the Bank of Uganda would retain scope to reduce rates later. 4. Morocco bank lending reaches MAD 1.3 trillion as business credit accelerates Bank Al-Maghrib data published on 12 August showed that outstanding bank credit reached MAD 1.302 trillion (about $142 billion) at the end of June 2026, up 10.9% from a year earlier. Lending to non-financial agents rose 9.9%, while credit to financial institutions increased 15.2%. Credit to private non-financial companies grew 8.2%, including a 15.8% increase in equipment loans, 9.4% growth in property-development lending and 6.7% growth in cash facilities. Household lending increased 3.4%. Credit to the non-financial sector is growing faster than Bank Al-Maghrib’s 6.8% forecast for 2026, alongside firmer economic activity and domestic demand. The acceleration in equipment and property-development loans points to stronger business financing, although asset quality will be important as lending expands. 5. AFC raises CHF 350 million through digital bond Africa Finance Corporation (AFC) announced on 12 August that it raised CHF 350 million ($431 million) through a five-year digital bond carrying a 1.4925% coupon. AFC said it was the first African institution to issue a digital bond through regulated exchange infrastructure and the largest international issuer of a Swiss-franc digital bond. About 90% of demand came from Swiss investors, with banks and financial institutions accounting for 57% of the order book. The issuance followed AFC’s $500 million conventional benchmark transaction in June. The transaction applies digital issuance and settlement infrastructure to a sizeable institutional funding exercise rather than a small pilot. However, digitising the bond’s infrastructure is distinct from demonstrating cheaper funding. Pricing relative to comparable conventional AFC debt and subsequent digital issuance will provide better evidence of whether the format broadens AFC’s investor base or delivers a financing advantage. 6. Nigeria opens second regulatory sandbox cohort to fintech and virtual-asset firms The Central Bank of Nigeria opened applications on 12 August for the second cohort of its Regulatory Sandbox Programme, with applications running until 31 August. The programme includes separate tracks for virtual asset service providers and data-enabled financial services, covering areas including stablecoins, payments, settlement, custody, wallets, credit and permission-based data sharing. Successful applicants will conduct controlled live testing under safeguards covering consumer protection, cybersecurity, operational resilience and regulatory reporting. The dedicated virtual-asset track brings stablecoins and other payment-related digital assets into a controlled testing framework alongside the SEC’s separate incubation regime. It allows the central bank to assess reserve, redemption, custody and payment risks, but participation does not confer a licence or replace approval from another regulator. Its significance will depend on whether testing clarifies the regulatory requirements and route to commercial operation after the sandbox. 7. Somalia bank financing rises 20% but credit remains 5% of GDP The Central Bank of Somalia reported on 13 August that commercial bank assets increased 16% year-on-year to $2.35 billion in the first quarter of 2026. Financing assets grew faster, rising 20% to $591 million, although private-sector credit remained equivalent to only 5% of GDP. Customer deposits were broadly unchanged at $1.65 billion, while the non-performing loan ratio remained at 2.8%. The capital adequacy ratio stood at 15.1%, above the 12% regulatory minimum. Cash accounted for 35% of banking assets and the liquid-assets ratio stood at 51%, indicating that a substantial share of banks’ resources remains liquid. Trade, real estate and construction accounted for 74% of financing, leaving credit concentrated in a narrow group of activities. Broader sectoral lending alongside stable asset quality would support deeper financial intermediation. 8. AFC leads $2.5 billion equity placement for Dangote refinery Africa Finance Corporation announced on 13 August that it led a group of investors in a $2.5 billion private placement for Dangote Petroleum Refinery and Petrochemicals, its first equity raise involving investors beyond its existing shareholder base. The transaction was 3.7 times subscribed, with participation from African and international institutional investors, sovereign-linked vehicles, development finance institutions and strategic partners. Dangote said the capital would complement internal cash flow and debt as it plans to increase the refinery’s capacity from 650,000 barrels per day to 1.4 million by 2028. The placement adds external equity to the refinery’s funding mix and broadens its institutional ownership. It also expands AFC’s role from earlier syndicated and senior lending into equity investment after the full repayment of its $300 million loan. AFC did not disclose its investment amount or resulting stake, making it difficult to assess the scale and prospective return of its continuing exposure. 9. Mauritius-based Weaver Fintech grows revenue as payments business scales Mauritius-based Weaver Fintech, which operates primarily in South Africa, reported on 12 August that first-half revenue increased 10% to ZAR 2.8 billion ($169 million), supported by expansion of its payments-led fintech business. Fintech revenue rose 30%, fee income increased 43%, and the customer base grew 17% to 5.1 million. Fintech accounted for 94% of trading profit, while earnings per share declined to 256.5 cents from 285.5 cents. Payments and fee-based activities are becoming a larger contributor to Weaver’s business, but faster revenue growth has not translated into stronger earnings as credit performance and higher provisions weighed on profitability. Continued fee-income expansion alongside improved credit performance would provide a stronger basis for earnings growth. 10. Kenya’s bank NPL ratio falls to 14.6% as capital buffers remain strong Central Bank of Kenya Governor Kamau Thugge said on 12 August that the banking sector’s gross non-performing loan ratio declined to 14.6% in July from 17.6% in August 2025. The total capital adequacy ratio stood at 20%, above the 14.5% statutory minimum, while the average liquidity ratio was 61.2%, compared with the 20% minimum. Thugge said banks remained profitable and continued to maintain adequate provisions against non-performing loans. Although the non-performing loan ratio declined, it remains high. Capital and liquidity provide substantial buffers against remaining credit risk. Thugge said average lending rates had declined slightly while deposit rates increased, narrowing the spread between them, although it remained above seven percentage points. Further reductions in problem loans and borrowing costs would support stronger credit growth and monetary-policy transmission. What to watch CIBN Annual Banking and Finance Conference in Abuja (8–9 September), Association of African Central Banks Annual Meetings, hosted by the Central Bank of Kenya in Nairobi (13–18 September) Weekly briefing on developments driving transformation in Africa's banking sector and what to watch. Subscribe via LinkedIn.
