Star 2023-11-22

The FLEDGLING African Bank Group massively grew the numbers of its retail and business banking clients in the year to September 30, and remained in robust shape despite taxed profit falling to R505 million from R736m due to higher credit risk impairments. The Business Banking division contributed R682m in revenue in just 11 months. Group net revenue before impairments grew by 39% to R8 billion. The results were negatively impacted by the Consumer Banking division customers who came under severe economic pressure due to rising food prices, transport inflation, and the load shedding crisis The division’s credit loss ratio increased to 8%, from 4.9% in 2022. However, the full-year ratio was well down from 11.1% in the first half to March 2023, after more select credit policy and…

SENTIMENT in the business sector re- mained firmly in the contractionary terri- tory in the third quarter, as the majority of senior executives were dissatisfied with prevailing business conditions, especially the logistical nightmare caused by the congestion at the Port of Durban. The RMB/BER business confidence index, released yesterday eased to 31 points in the fourth quarter, down from 33 points in the previous three-month period, moving further into pessimistic territory below 50 points which separates expansion from contraction. The survey, which was conducted by the Bureau for Economic Research (BER) on behalf of Rand Merchant Bank (RMB), covered 1 050 senior executives in the building, manufacturing, retail, wholesale, and motor trade sectors between October 25 and November 13. The main drag on the…

TELKOM SA announced yesterday it was close to selling its towers subsidiary Swiftnet and the sale of about R500 million of non-core properties could be next as the group leans into a revised strategy to sell non-core assets, CEO Serame Taukobong said yesterday. Aside from the disposal, Telkom also reported strong interim results that saw headline earnings a share up by 46.7% to 195 cents, after revenue increased 2.5% to R21.8 billion and earnings before interest, tax, depreciation and amortisation (Ebitda) was up 1.7% to R5.03bn. The share price shot up to close 7.73% higher at R26.76 on the JSE yesterday. Commenting on X, @Daily InvestorSA said: “… Telkom profits soar with 50% boost Telkom reported improved results for the six months through September 2023”, while @JustinBrownSA…

CEO wants to see an aggressive drive towards the implementation of energy efficiency THE SOUTH African National Energy Development Institute (Sanedi) has called for the government to exploit all baseload energy sources, including “cleaner” fossil fuels, and extend the life of coal-fired power stations in a bid to deal with the ongoing electricity crisis. Sanedi CEO Dr Titus Mathe said yesterday that all stakeholders must do everything in their power to support the Eskom technical recovery and introduction of new electricity capa- city. Mathe said they must also drive very aggressively the implementation of energy efficiency, demand-side management interventions, and a few behavioural changes to conserve electricity. Mathe said these were merely short-term measures to mitigate the energy crisis. “However, in the medium term we must fast-track the introduction of…

CORONATION Fund Managers’ fund management earnings fell sharply by 57% to 165.2 cents per share in its 2023 year, mainly due to the impact of a write-down relating to a tax dispute with the SA Revenue Service (Sars). When adjusted for the tax matter, fund management earnings per share were down 4%. Fund management earnings are used by Coronation’s management to measure operating financial performance. The group’s directors said yesterday that the Constitutional Court had agreed to hear its case and an outcome might be only expected in the second half of the 2024 calendar year. “This dispute has no material impact on our long-term sustainability, and we remain a well-capitalised and successful business,” they said. The R716 million tax matter related to a dispute with Sars in…

FINANCIAL services group Momentum Metropolitan says slow-paced economic recovery in South Africa will likely impact on growth in new business volumes after recurring premiums for the quarter to the end of September fell 25% to R995 million. Shares in the company shed as much as 2.27% to close at R21.55 on the JSE yesterday, although it is 7.88% up in the past seven days. The company said it was concerned about economic conditions in South Africa that could impact on business volumes. “We remain concerned about the impact of the slow pace of economic recovery and higher interest rates on disposable income. “This is likely to put pressure on new business volumes and persistency, particularly in Metropolitan Life,” the company said in its update for the quarter period to…