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Standard Bank expects 40% rise in first half profits

Due to report first half results on August 19.
Image: Supplied

South Africa’s Standard Bank Group said it expects to report a 40% rise in profit for the six months to June 30, boosted by signs of recovery in the local economy.

Headline earnings per share — the main gauge of corporate profit in South Africa – will be around 663 cents, up from 473.8 cents in the January to June 2020 period, the bank said on Monday.

The coronavirus crisis bruised South African banks last year as the overall economic outlook darkened, with lenders setting aside large provisions for expected impairments as companies requested moratoriums on their loans.

Although the country’s lenders are considered well-capitalised with strong balance sheets, they also paused dividend payments to conserve cash.

However, economic prospects have improved with a vaccination rollout and falling numbers of Covid-19 cases, with analysts predicting sectors that are dependent on the local economy, such as banking, retail and insurance, to deliver strong numbers in coming quarters.

In the four-month period to April 30, mortgage and vehicle and asset finance disbursements in South Africa were well above the same period last year, with business disbursements growing in double digits, Standard Bank said.

In Africa regions, personal loan volumes also rose during the period, the continent’s largest lender by assets said.

“The group expects to be in a position to declare an interim dividend in August 2021,” Standard bank said, adding the payout in the current year would be above last year’s levels but below historic levels of 45%-55%.

Standard Bank is due to report first half results on August 19.

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Standard Bank can even expect a 200% increase in profit and the share price will still drop.

Had these shares for 1.5 years and sold them.

They were very reluctant to pay dividends plus they seem to be top heavy.

Only the most brave will touch SA bank shares. Probably further upside over short term due to rand strength, but that won’t last, such is the nature of financial markets. This is the most dangerous time of an extended bull market!

That’s why you must refrain from 100 years old companies…

Equity portfolio on Capitec for example would have gave you very attractive returns

Agreed 100%. The SA Bank shares party of two days will be very short.

Now they are throwing a party because of the resources boom money coming in.

Those Billions of Rands do not belong to them, it belongs to the PGM miners and Iron ore and Copper.

They forgot about Covid-19 that is going to smack them.

End of comments.

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