Avior Financials | SA Banks' BA 900 data | LBH trading statement | CML flow estimates | PGR cautionary | JSE trading stats

In this week's Avior Financials note we analyse:
• The SA Banks' balance sheet data (BA 900) up to May '19.
• Capitec is leading the market YTD on retail advances growth (+3.5%) while ABSA leads on corporate advances (8.9% YTD growth).
• With high frequency macroeconomic data indicating pressure on both corporates and consumers, provisions to advances for all SA banks except Capitec have risen since Dec '18.
• Liberty's H1'19 trading statement implies a weak recovery in operating profits however we maintain that self-help initiatives implemented by David Munro have stabilised the business and improved the likelihood of future growth in partnership with Standard Bank.
• Coronation Fund Manager's fund factsheets for Jun'19 reflect quarterly institutional net outflows of R15.1bn. Aggregate institutional returns were +0.4%. The local funds returned +0.7% with estimated net outflows of R5.3bn. The global funds had disappointing net flows of R9.8bn with the GEMS fund experiencing USD0.4bn in net outflows despite impressive quarterly returns of +5.2%.
• Peregrine Holdings released a cautionary advising that it has entered discussions that may have a material effect on the share price. We believe the Group is either rationalising the portfolio or in talks with a prospective buyer as the Group offers value in our view at a c.10.3x forward PE and an 8.7% forward dividend yield.
• The JSE Ltd's trading statistics (to 12 Jul ‘19) show a -16.5% y/y decline in cash equity value traded YTD.
• Value traded has slowed in Jun and Jul '19 for A2X.
• Discovery remains our top pick in the financial sector.