Standard Bank sticks to timetable for Sim Tshabalala’s successor

The search is on for the next CEO of Standard Bank Group after the Johannesburg-based bank announced that Sim Tshabalala will retire from the position at the end of 2027. Tshabalala, who has led Africa’s largest lender by assets since 2013, will retire alongside chief financial officer (CFO) Arno Daehnke, whose tenure commenced in 2016, the bank said.

Although Standard Bank recently raised the retirement age for its executives to 63 years from 60, the duo are not subject to this new policy.

“While we have extended the retirement age for future executives aligned to local and international trends that reflect longer and more productive working lives, it is important to maintain clarity and certainty in our current leadership transition plans,” the bank said in a statement. 

Commenting on the decision, Tshabalala, 57, told South Africa’s Business Report that “it was always the plan to retire at 60. We are both energetic… I am sure we will be making further contributions to add value post-retirement,” he said.

Period of growth

Tshabalala has steered one of Africa’s most prominent financial institutions through a period of growth and transformation. Between 2013 and 2017 he served as co-CEO alongside Ben Kruger, and from 2017 onwards as sole CEO. The bank’s total assets grew from R1.95tn ($110bn) in 2017 to R3.27tn ($190bn) in 2024, while headline earnings grew from R23bn ($1.31bn) to R44.5bn ($2.54bn) over the same period.

The growth in Standard Bank’s profitability has enabled it to consistently grow its dividends, boosting its share price on the Johannesburg Stock Exchange (JSE). Its stock has appreciated by 133% over the past five years and its market capitalisation has increased to R420.8bn ($23.98bn)

Much of Standard Bank’s growth in recent years has been driven by its subsidiaries across the continent. The bank operates in 20 African countries outside South Africa, with a presence in all major regional blocs. These markets currently account for 41% of Standard Bank’s headline earnings, compared with South Africa’s 49% share.

Boosting profitability

In recent years, Tshabalala has sharpened Standard Bank’s strategic focus on improving operational efficiencies and boosting profitability.

“Looking at the return metrics, we are particularly pleased to be able to report our best-ever Group cost-to-income ratio of 49.4%. Our return on equity was an equally pleasing 19.1% – the best this has ever been under current regulatory capital requirements,” Tshabalala said during the bank’s 2025 first half earnings report presentation in August.

For the six months to June 30, the bank reported an 8% rise in headline earnings to R23.78bn  ($1.36bn) from R22bn ($1.25bn) in the first half of 2024. Total net income climbed to R94.79bn  ($5.4bn) from R88.37bn ($5.04bn) a year earlier.

Succession plan

Tshabalala joined Standard Bank in 2000 and went on to hold senior posts including managing director of Stanbic Africa and CEO of personal and business banking. With the search for his successor underway, the focus has understandably shifted to internal candidates.

This is because, in the history of the bank, there has only ever been one CEO, Robert Stewart, who was recruited from outside. That was more than a century and half ago, and all other CEOs since have been selected internally.

It remains unclear whether or not the bank will consider external candidates.