Star 2024-09-16

Nethengwe chosen to spearhead the bank’s entry into South Africa’s competitive market OLD MUTUAL Group’s announcement of the proposed appointment of Clarence Nethengwe as CEO-designate of Old Mutual Bank or “OM Bank”, effective November 1, is an indication the group is on schedule to launch the latest bank in SA before the end of the year, Nethengwe, a long-standing executive of Old Mutual, was suitably quali- fied to lead the bank as it prepares to go live, Old Mutual said in a statement on Friday. As its next growth phase took off, the bank would ramp up more hires, Old Mutual Group CEO Iain Williamson said in a statement. By March the group had spent R1.79 billion on building its bank – the infrastructure and digital platforms were finished…

SOUTH Africa’s major banks reported a durable financial performance in the first half of 2024 against complex operating conditions and elevated levels of uncertainty and combined headline earnings growth was only 2.5% at R56.8 billion, when compared with the previous year. Headline earnings growth in previous years has been stronger, with for instance, the figure rising 13.8% to R113.2bn for the full 2023 financial year. And in the 2023 half year period combined headline earnings grew by 16.8% to R55.8bn compared with the first half of 2022. “The start of 2024 was characterised by acute levels of uncertainty as nearly half the global population entered an election year. “Globally, inflation remained sticky and slowed the anticipated pace of interest rate cuts. Regionally, several sub-Saharan African countries felt the combined…

THE AUTOMOTIVE Business Council’s BRICS+ Research Report 2024 has found that South Africa has not substantially be- nefited from its membership of the bloc, but this could change should membership be expanded. A statement released late last week by the council – Naamsa – noted that China and Russia want further BRICS expansion this year to “make the group financially stronger and take on the US and other Western allies”. An additional 30 new countries have asked to join the bloc soon, including Thailand, Malaysia, Indonesia, Algeria and Nigeria. Consulting firm BCG states on its website that the BRICS+ nations account for one-quarter of global GDP, 40% of global trade in goods and nearly half of the world’s population. “Adding another dozen nations that have applied for membership, including dynamic…

FORMER Cabinet Minister Pravin Gordhan has been described as a government leader with “deep integrity” who spearheaded legislative reforms of democratic South Africa’s financial and fiscal architecture. Condolences continued to pour in from the government, business sector and civil society over the weekend, following Gordhan’s death on Friday morning after a short battle with cancer. Gordhan leaves behind his widow Vanitha and daughters Anisha and Priyesha. He was 75. However, not all political parties were singing Gordhan’s praises, with the Economic Freedom Fighters (EFF), the country’s fourth-largest party, said he had left behind a trail of destruction at State institutions. To his detractors, Gordhan was a nemesis who continued to fight against State capture, and they accused him of being responsible for attempting to sell off South African Airways to…

THE WORLD Health Organization (WHO) said on Friday that it had for the first time prequalified an mpox vaccine – a move expected to speed up access to the jabs to fight an epidemic raging in Africa. The an- nouncement came on the heels of the arrival of the first MVA-BN vaccines in the Democratic Republic of Congo, the epicentre of the epidemic. “This first prequalification of a vaccine against mpox is an important step in our fight against the disease, both in the context of the current outbreaks in Africa, and in future,” WHO chief Tedros Adhanom Ghebreyesus said in a statement. “We now need urgent scale-up in procurement, donations and roll-out to ensure equitable access to vaccines where they are needed most … to prevent infections, stop transmission…

DESPITE the re-rating in apparel retail shares following the formation of the Government of National Unity (GNU), valuations remain undemanding, with most apparel retailers trading below their historical average price-to-earnings multiples. Continued outperformance will likely require earnings upgrades, which have proven fairly elusive in the sector to date. Prospects for faster gross domestic product growth, lower inflation, interest rate cuts and the potential benefits to consumption from the two-pot pension system should, however, support retail sales and earnings growth over coming quarters. Truworths’ latest trading statement highlights the challenging trading environment in the near term. Weak South African operating performance is expected for financial year 2024, but likely marks a cyclical turning point. Management is encouraged by early indicators, and they see the macro environment easing most significantly for…