Standard Bank Group on Thursday reported a 2% increase in total technology spending to R22.4-billion.
Standard Bank Group on Thursday reported spending this figure on its technology function for the year ended 31 December 2024. This represents a year-on-year increase of 2% from the R21.9-billion it spent in 2023, according to the banking giant’s results, published on Thursday.
South Africa’s largest banking group by total assets attributed the rise in costs mainly to increases in its cloud computing requirements as well as staff costs.
“Software-, cloud- and technology-related costs increased linked to higher cloud usage required for new features on client platforms, increased processing volumes, increased spend on system stability, infrastructure resilience and security, and contractual increases in dollar-denominated software costs,” Standard Bank said in commentary alongside the results.
R12.7-billion of Standard Bank’s technology spend went to software, cloud and general technology-related costs. This represents a 3% increase from R12.4-billion the previous year. IT staff costs came to R6.3-billion, up 4% from R6.1-billion in the 2023 financial year.
Other IT related costs included R2.5-billion related to the amortisation of intangible assets and another R917-million due to depreciation.
Climbing steadily
Standard Bank said compute in the public cloud has “enhanced agility, bolstered system resilience and improved our technology carbon emissions footprint”. The transition to cloud services has also decreased the bank’s intangible net book value “significantly” from 2017, which it said was the result of “prudent cost management” and “lower capitalised expenditure”. Standard Bank’s physical server footprint has declined by 49% in South Africa since 2021, it said.
Like most other banks, Standard Bank’s technology spend has been climbing steadily in recent years. The group spent R15.8-billion on technology in 2019, so the increase to R22.4-billion in 2024 represents a compound annual growth rate of 7%.
According to the bank, technology continues to play a key role in the execution of its strategy both in South Africa and elsewhere in Africa.
Read: Digital bank Revolut is eyeing a South African launch
“Standard Bank South Africa’s strategic initiatives, supported by a strong balance sheet and effective resource allocation, empower the franchise to navigate the competitive landscape. By leveraging technology and innovation, through a dedicated workforce, it is on track to deliver against the group’s committed 2025 targets and to support sustainable growth in South Africa,” the group said. – © 2025 NewsCentral Media
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