Standard Bank Group on Thursday reported a 14% jump in annual software, cloud and technology-related costs.
on Thursday reported a 14% jump in software, cloud and technology-related costs, blaming the higher spending on cloud migration and software licences.
Software, cloud and technology-related costs – previously referred to as IT costs – jumped to R12.4-billion, from R10.8-billion in the same period in 2023, Standard Bank said.Including staff costs of R5.9-billion – which also rose by 14% year on year, from R5.2-billion previously – the 2023 full-year operating costs related to IT, excluding amortisation, depreciation and other expenses, climbed to R18.3-billion .
A shift to demand-based system utilisation by migrating to the cloud and software services, which improved operational efficiency and the group’s ability to scale; and“System stability and availability was excellent throughout the year,” Standard Bank said.Overall, the banking group said annual profit jumped by 27% as high interest rates helped offset rising bad loans.
Standard Bank said credit impairment charges increased by 22% to R16.3-billion, which pushed its credit loss ratio – a measure of bad loans as a percentage of total loans – up to 98 basis points from 83bps and close to the upper range of its target of 100bps. As a result, total provisions increased by 15% to R64-billion.
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