NEDBANK GROUP (ZA), a company active in the Money Center Banks industry, now shows a lower overall rating. The independent financial analyst theScreener just confirmed the fundamental rating of 4 stars out of 4, as well as the stock market behaviour of the title as moderately risky. However, environmental deterioration penalises the general evaluation, which is downgraded to Neutral. As of the analysis date March 1, 2022, the closing price was ZAR 221.85 and its expected value was estimated at Z...
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....
Nedbank's (NED) FY '19 pre-close guidance reflected the impact of challenging operating conditions in SA, as management's guidance for revenue growth and credit impairment charges was disappointing. In our view, NED continues to gain market/revenue share in the SA market. Therefore, we believe NED's performance reflects weak earnings growth opportunities for banks in the SA market in H2 '19. While many of the key trends were similar to management's commentary after the H1 '19 results, the outc...
• We met with the Guaranty Trust Bank (GTB) CFO last week. Management noted that the bank's operations trends in Q3 ‘19 had been in line with management's guidance after the interim results. In our view, GTB's performance has been positive YTD given the challenging operating environment in Nigeria. However, due to regulatory risks (CBN increasing minimum LDR) and the impending entry of major telcos (e.g. MTN) into the mobile money banking space, we caution that asset quality and the Bank'...
In this week's Avior Financials note: Nedbank's Commercial Property Finance presentation showed that Nedbank's book is suitably diversified to withstand challenging economic conditions. Management expects credit impairment charges to increase to within the CIB target range (15bps to 45bps) while aggregate Stage 3 (default) exposure increases. The trends are in line with our expectations (credit loss ratio H2 '19f: 15bps, H1 '20f: 20bps). Capitec recently conducted a survey and found that 86%...
A director at Nedbank Group Limited sold 9,200 shares at 217.378ZAR and the significance rating of the trade was 60/100. 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 c...
Nedbank's H1 '19 results showed a reasonable operational performance considering the challenging operating environment in SA in H1 '19. A low base for credit impairment charges in H1 '18 reduced NED's y/y earnings growth. In our view, NED's focus on credit growth, improved cross-sell and cost containment will support mid-to-upper single digit earnings growth over the next three years. We have not factored in meaningful support from the SA economy (FY ‘20f: 0.8% GDP) in our forecast for c.10...
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, ...
Nedbank Group's (NED) FY '18 results showed 4.8% YoY growth in headline earnings excluding Ecobank (adjusted for IFRS changes). Despite challenging operating conditions in SA, the Group's franchises are attracting credit and transactional customers. Improved cross-sell is also increasing NED's RBB growth. Lending growth (particularly secured lending) is an area where the new entrants cannot currently compete with incumbent banks. Please find our analysis and updated forecasts in this note
Nedbank Group Ltd (NED SJ) will have a 30% increase to its free float resulting from Old Mutual Ltd's (OMU SJ, formerly Old Mutual Plc, OML LN) distribution of its 32% stake on October 15, 2018. NED is expected to have some index selling pressure by UK funds with mandates to avoid South African bank stocks, while OMU will benefit from the return of a former executive with an excellent track record after 12 years leading other companies. OMU recently completed the distribution of its UK wealth ma...
While Nedbank's (NED) H1 '18 results showed 2% YoY growth in headline earnings for the Group's Managed Operations (i.e. excluding Ecobank), the bank can improve earnings growth over the next two years due to cost cutting initiatives. H1 '18 also reflected c.R28bn early loan repayments in CIB which reduced revenue growth despite elevated activity levels. We expect NED's advances growth to improve in H2 ‘18f, supported by CIB and RBB. Please find our analysis and updated forecasts in this not...
The Edge believes that it makes sense for big conglomerates to separate distinct businesses into focused strategic units, which then provides flexibility to pursue respective growth paths, multiple expansion opportunities and more effective management control. Completing the action initially announced on March 11, 2016, Old Mutual Ltd (OML, previously Old Mutual Plc) Spun off its UK wealth management business into the newly listed Quilter Plc (QLT LN, previously Old Mutual Wealth) today (June 25...
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