During late December, the share printed multi-month lows.
Previous Post: STANDARD BANK 10-Month Trading Update Underwhelms / Unum Clients Cautioned Re: Reward-To-Risk
Wednesday 04 December 2024 (Time: Pre-Market)
On Monday, the group released it's trading update for the 10 months ended 21 October 2024.
While earnings were higher, it may have missed market consensus expectations, with the share being sold off in early trade on Monday before recovering some of the early session losses.
On 15 August, Unum Capital clients were cautioned against aggressive buy/long positions at or around the level at the time. The share trade only slightly higher and for the 3 1/2 months, has traded in a sideways range before reaching a multi-month low on Monday morning. The original note, cautioning new buys/longs, can be viewed here: https://www.unum.capital/post/standard-bank-trading-at-multi-month-highs-here-s-what-the-data-says-thursday-15-august-2024
Standard Bank was previously a buy/long idea on 18 April which saw a significant rally.
The original buy idea (18 April) and caution (15 August) is time stamped on the updated chart below.
SENS
Voluntary trading update for the ten months to 31 October 2024
10M24 performance
For the ten months to 31 October 2024 (10M24), Standard Bank Group's underlying
operational and financial trends were robust and reflective of the continued momentum in the
underlying franchise.
Group headline earnings grew by low-to-mid single digits in South African Rand (ZAR) and
by mid-teens on a constant currency basis in the 10M24 relative to the ten months to 31
October 2023 (10M23 or period on period).
Currency devaluations in various countries in which the group operates on the African
continent, together with, more recently, the stronger ZAR, continued to dilute the group's
performance in ZAR. Previously, this impact was expected to moderate in the second half of
the year, however this was not the case in the four months to 31 October 2024. Importantly,
while the impact thereof is a headwind to reported revenue growth trends, it also favourably
impacts reported operating expenses and credit impairment charges.
Banking headline earnings also grew by low-to-mid single digits in ZAR and by mid-teens on
a constant currency basis period on period. Balance sheet growth has been slower than
expected due to larger-than-expected currency movements in Africa Regions, and net
interest income growth slowed to low-to-mid single digits period on period. Non-interest
revenue declined by low-to-mid single digits period on period as continued growth in fees
and commissions was more than offset by a decline in trading revenue off a high base in
10M23.
Cost growth was well contained, reflecting continued cost management discipline, and
dampened by currency translation impacts. Revenue growth remained slightly ahead of cost
growth.
Credit impairments were lower period on period due to a slowdown in early arrears and
lower inflows into non-performing loans in Personal and Private Banking as reported
previously. The group's credit loss ratio for 10M24 remained in the top half of the group's
through-the-cycle range of 70 to 100 basis points.
Previous Post: STANDARD BANK: Caution To New Longs - Thursday, 15 August 2024
Ticker: SBK
Real-Time: 15h50
Lester Davids
Analyst: Unum Capital
Comentarios