Summary Sanlam Ltd - Company Profile and SWOT Analysis, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Sanlam Ltd (Sanlam) is a diversified financial services company. The company's primary activities include life insurance, general insurance, investment management, and wealth management. Sanlam offers a wide...
A director at Standard Bank Limited bought 300,000 shares at 0.000BDT and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years...
An African giant in the Banking space We initiate coverage of Standard Bank Group (SBK) with a BUY recommendation and a target price of R217.00. SBK is currently trading at a 19% discount relative to our target price, which is a combination of three valuation methods. Our Discounted Dividend valuation yielded a target price of R189.14, while our Gordon’s Growth valuation and Residual Income valuation for the bank came in at R224.12 and R19...
The general evaluation of STANDARD BANK GROUP (ZA), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 4, 2022, the closing pr...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Standard Bank's (SBK) Q3 '19 trading update reflected a disappointing trend, as headline earnings declined 1% y/y in Q3 '19 (+2% y/y for the first nine months of 2019). While most of the decline in earnings was probably due to continued losses in ICBCS Plc, we believe the result implies a weaker quarter for SBK's Banking activities (or SA / African banking operations). Despite the Q3 result, we believe the bank's earnings growth prospects remain strong. SA retail credit growth, advances and c...
A director at Standard Bank Group Limited sold 100,587 shares at 185.055ZAR and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last tw...
Standard Bank's (SBK) H1 '19 results showed impressive operational trends, as headline earnings from Banking activities increased 10% y/y (+13% y/y excluding branch restructuring costs in SA). In our view, cost containment and selective credit growth will continue to support earnings growth in SBK's SA operations. Profitable growth prospects in the Rest of Africa also continues to differentiate SBK compared to its SA peers. Please find our analysis and updated forecasts in this note.
Standard Bank reported a positive set of H1 ‘19 results as diluted HEPS increased 5.7% y/y. Despite the pressures on SBK's SA operations, we believe SBK's operations outside SA will continue to support upper single digit to low teens Group earnings growth over the next three years. We met with Nedbank management (RBB, CIB, Wealth and Rest of Africa teams, and Group management) yesterday and provide our meeting notes. Investec announced yesterday that the Group has received all necessary reg...
We expect the big five SA banks (ABG, CPI, FSR, NED and SBK) to continue reporting earnings growth ahead of SA nominal GDP (forecast 6%) over the next three years. We expect cost containment, retail lending growth, the banks' operations outside SA and SA interest rate cuts (keeping credit impairment charges low) to support earnings growth. We also believe that the diversification of SA banks' corporate lending should result in benign credit write-offs compared to previous cycles. In our view,...
The big five SA banks (ABG, CPI, FSR, NED and SBK) can each earn returns in excess of the cost of capital through-the-cycle given their scale and profitability, in our view, despite numerous new fintech players. In our analysis, Capitec and FirstRand (FSR) achieved the highest franchise scores while ABSA (ABG) received the lowest score. However, we believe ABG is penalised for historic underperformance. Over the last 18 months, ABG has restructured its segments and the management structures, ...
Standard Bank's (SBK) FY ‘18 results showed 19% YoY growth (26% in constant currency) in the Group's Africa Regions operations (Africa excluding SA). In our view, SBK's Corporate and Investment Banking (CIB), and Personal and Business Banking (PBB) operations in Africa Regions will continue to deliver strong revenue and earnings growth in FY ‘19f. We expect each major CIB client category (Multinational, Chinese and local corporates) to support the growth. Therefore, SBK stands out compared t...
We believe SBK's FY '18 pre-close guidance was encouraging as the underlying trends continue to support an acceleration in earnings growth in FY ‘19f and ‘20f. SBK's banking operations are less dependent on a SA economic recovery than other SA banks. Please find our analysis and updated forecasts in this report.
Opportunity in EM countries Our cautious outlook and expectation for continued downward pressure on global equities remains intact. Broad global indexes (MSCI ACWI, ACWI ex-U.S., EAFE, and EM) are all trading within patterns of lower highs and lower lows, leading us to believe the most likely scenario is that this near-term bounce is likely nothing more than a countertrend rally before longer-term downtrends reassert themselves. • Opportunity in EM. Both a top-down and bottoms-up analysis po...
We have used aggregated credit bureau data to analyse important trends in consumer credit in SA. The data shows that SA banks' arrears to advances remain low. However, the operating environment does not support meaningful leading growth. Therefore, we expect SA banks to report flat retail credit impairment charges in H2 ‘18, supporting earnings growth. Please find our analysis and updated forecasts in this report.
Standard Bank's (SBK) H1 '18 results showed a strong performance from Corporate and Investment Banking (CIB) outside SA with double digit constant currency client revenue growth in each key region. Please find our analysis of the results and our updated forecasts in this report.
•SLM's FY'17 results based on an analysis of the change in the director's valuation (GEV). The return on GEV for the period was 14.8%, ahead of management's SA risk free rate plus 4% target. The GEV increased 10% YoY while the SLM share price increased 36% in CY'17. SLM currently trades at a 58% premium to the director's valuation. •SLM and SNT's purchase of the remaining 53.37% of SAHAM Finances through SEM. SAHAM Finances appears sub-scale with an underwriting margin of -0.7% in FY'17...
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