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Sandile Mchunu sandile.mchunu@inl.co.za THE COVID-19 knock on African banks was less severe than anticipated last year and the banking sector was expected to rebound to pre-pandemic levels by next year, despite a resurgence of the virus, according to the latest report by McKinsey Africa. The report showed that the return on equity (RoE) for African banks fell 50 percent to 7 percent last year, down from 14 percent in 2019, and was expected to rebound quicker than banks in developed markets. “We expect this to rebound to near pre-crisis levels within the next three years, if economic recovery on the continent follows the scenario that a majority of global executives believe will most likely unfold,” McKinsey Africa said. Nedbank recently revised its medium-term targets in its result…
Siphelele Dludla siphelele.dludla@inl.co.za THE NATIONAL Coronavirus Command Council is set to meet today to decide on whether to impose further lockdown restrictions to curb the spread of Covid-19 from the Easter weekend travel. Speculation has increased that the government could add further restrictions that could include the ban or limit alcohol sales during the period as well as a review of the number of people attending gatherings, particularly religious ones. The reports come as business continue to express growing concerns on what the stricter regulations would mean for their operations and the economy. Yesterday, President Cyril Ramaphosa said in his newsletter that a number of religious organisations had asked for the easing of existing restrictions on the size of congregations. Ramaphosa said the government has had constructive engagements with the…
Dineo Faku dineo.faku@inl.co.za MASSMART has suffered yet another blow after the Supreme Court of Appeal ruled that the retailer could not claim nearly R1 billion worth of losses from the taxman for a share incentive scheme implemented 20 years ago for senior managers. The Supreme Court of Appeal dismissed Massmart’s appeal of a court decision that gave the SA Revenue Service (Sars) a right to disallow R945 million in capital losses claimed by the group. In his judgment, the appeal Judge Visvanathan Ponnan, said that the unpaid loans plainly constituted an asset in the hands of Massmart. “There could thus be no loss to speak of. Instead, what Massmart purported to do was to account for the trust’s losses in its books,” Judge Ponnan said. “This despite the…
Siphelele Dludla siphelele.dludla@inl.co.za THE RAND began the week on the back foot as the dollar strengthened in anticipation of US President Joe Biden’s proposal for federal investments in infrastructure and healthcare. The rand traded to an almost two-week low of R15.06 to the greenback before ending the day 0.09 percent stronger to R14.97 by 5pm as investors turned to the US dollar due to an improving American economic outlook. The demand for riskier currencies was under pressure amid worries about rising Covid-19 cases, and new variants across the globe. FXTM’s Lukman Otunuga said the dollar had entered the week on a firm note, appreciating against every single G10 currency excluding the Japanese yen. “Enthusiasm over the US economic recovery and rising Treasury yields have pushed investors towards the dollar’s…
SA Corporate Real Estate renews its focus in a changing market EDWARD WEST edward.west@inl.co.za SA CORPORATE Real Estate (SA Corp) distributed 17.93 cents per share for the year to December 31, 2020, less than half the 38.04c of the previous year after property valuations and net property income fell through the Covid-19 pandemic. Property valuations fell by -60.33c or 8 percent. Chief executive Rory Mackey said in a presentation yesterday that the property sector was in a period of “immense change” and it would be naive to expect it to revert to what it was prior to the pandemic. SA Corp’s portfolio of industrial, retail, commercial and residential buildings consists of 188 properties valued at R16 billion, a 50 percent joint venture in three Zambian properties…
INSURER Momentum has paid out about R750 million in Covid-related death claims. It said yesterday that this did not, however, reflect the overall value of paid-out Covid-related claims since the onset of the pandemic, as it refers only to one life insurance product range. “Therefore, the total value of Covid death claim payouts by Momentum is expected to be even more significant,” it said. George Kolbe, the head of retail life insurance marketing at Momentum, said the numbers relating to both the number of claims and the rand value of the payouts were dramatically higher during the second wave of infections, with the financial services group recording a 205 percent increase in the rand value of payouts and an increase of more than 140 percent in the number of…
