Standard Bank Interim Results

STB_TradingActivity

Standard Bank interim results are out and in a day where the company’s major banking peers are up  1% to 2%, Standard Bank shows a relative underperformance trading flat on the day, suggestive of a marginal dissatisfaction with the earnings outcome.

Some of the salient features of the results release are as follows:

  • Revenue +4%
  • Net Interest Income (NII) 0%
  • Non Interest Revenue (NIR) +8%
  • Headline earnings per share up 5%
  • Dividend per share up 8%
  • Return on equity (ROE) up to 16.8% 1H17: 16.1%
  • Credit loss ratio down to 0.70%

While the Personal Business & Business Banking (PBB) and Corporate & Investment Banking businesses managed to achieve high single digit growth (+8%) in headline earnings, the Liberty Holdings contribution to headline earnings contracted by 3% and the ICBC London contribution contracted by 38%.

NII growth was flat negatively impacted by the endowment effect of lower margins in lieu of the Reserve Banks 0.25% rate cut earlier this year. NIR growth of 8% was supported by net fees and commission revenue increasing by 6%.

Standard Bank is the third most traded stock with IG clients on the day its results release.

Most of the trading activity (63%) from IG clients on the day (16 August 2018) has been on the buy side with selling start to emerge into the afternoon (as at 3pm).

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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