Credit Limit increase reveiw

Just got off the line with an agent for a credit card limit increase. The agent was very helpful in sending my application for a review as it got declined based on the fact that I have reached my limit. I find this very disappointing as my finances are adequate and I make my payments on time every month and do not have any negative information on my credit profile. I spoke to Jim from the card retention team who was exceptional. He sent it on for review. I need this sorted out and my limit increased to the amount requested as I've been a loyal client with standard bank and fail to understand why it cant be increased.