Latest news with #LuvuyoMasinda
Zawya
25-03-2025
- Business
- Zawya
South Afruca: First African Markets Conference eyes $450bln intra-continental trade boost
Standard Bank is gearing up to host its first African Markets Conference (AMC). The Conference, which will be held in Cape Town this week, is a key element of Standard Bank's drive to improve integration and ease of doing business across the continent. This conference aims to provide a platform for attracting new capital flows and uniting global and African sources of capital and risk appetite, explains Luvuyo Masinda, chief executive of Corporate and Investment Banking at Standard Bank Group. The conference is being hosted at a time when the African Continental Free Trade Area established in 2018 has seen broad ratification across 48 countries on the continent. The World Bank estimates that the agreement can potentially increase the continent's income by $450bn in just over a decade and increase intra-African exports by more than 81%. The conference will feature the Right Honourable Tony Blair, prime minister of the United Kingdom (1997 - 2007) and executive chairman of the Tony Blair Institute for Global Change. It will also include panel discussions with speakers spanning regulators, government representatives and business leaders drawn from across the continent. 'As a bank that is focused on driving Africa's growth, with a unique international reach, this conference is an important outlet to co-create economic growth solutions that we believe can lead to broader development outcomes,' concludes Masinda.
Zawya
19-03-2025
- Business
- Zawya
South Africa: Strong investor demand fuels Zeda's $46mln bond raise led by Standard Bank
Standard Bank has teamed up with Zeda Limited for its inaugural bond issuance since listing on the Johannesburg Stock Exchange (JSE). Zeda, Southern Africa's top integrated mobility solutions provider, was spun off from Barloworld Group in 2022 before its JSE listing. Among some of its notable assets, the company boasts the short-term rental, long-term leasing and car sales businesses in its stable and operates the global Avis and Budget brands. Last year, Zeda reported impressive results and declared its first dividend since listing. 'We are proud to have partnered with Zeda Limited from its inception and during the unbundling. We have seen the fruits of this partnership on a first-hand basis as the company has gone from strength to strength,' says Luvuyo Masinda, chief executive officer of Corporate & Investment Banking at Standard Bank. 'Standard Bank has been instrumental in the refinancing of Zeda's existing funding and was appointed to establish a JSE-Registered Bond Programme. This partnership culminated in the successful inaugural bond auction to access the debt capital market to diversify its funding base,' says Kaone Lekalake, executive vice president: Client Coverage at Standard Bank CIB. The inaugural bond auction was exceptionally well subscribed for, with R2,36bn of bids received across the notes on offer from a wide range of institutional investors. This strong demand allowed Zeda to upsize the issuance to raise a total of R850m at very favourable pricing, which cleared 5 basis points through the price guidance provided in both notes on offer. The overwhelming investor demand underscores Zeda's robust performance and highlights the positive sentiment toward the company. 'Standard Bank is proud to have walked this journey and partnered with Zeda in accessing the Debt Capital Market. We are also pleased to have played a role in developing the market by bringing a new issuer such as Zeda to market.' say Allister Lamont-Smith, Debt Capital Market Transactor at Standard Bank, CIB. 'We are extremely proud to partner with a bank that supports our integrated mobility strategy in Southern Africa. Funding is one of our strategic objectives, which seeks to lower cost of funding as we invest in growth pillars of the business. Zeda is confident that the first bond auction will be a key enabler to achieving this objective and will unlock value for our shareholders. We believe this is the first of many more successful collaborations,' says Ramasela Ganda, Zeda Limited Group chief executive officer. 'Companies like Zeda delivering mobility solutions across Southern Africa, illustrate what we mean when we say Africa is our home; we drive her growth,' concludes Masinda from Standard Bank. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Yahoo
18-03-2025
- Business
- Yahoo
Standard Bank Group Ltd (SBGOF) (Q4 2024) Earnings Call Highlights: Navigating Growth Amid ...
Headline Earnings: ZAR45 billion, up 4% year-on-year; 14% growth in constant currency terms. Dividends: ZAR15.7 per share, a 6% increase. Return on Equity (ROE): 18.5% for the year. Cost to Income Ratio: Improved to 50.5%. Credit Loss Ratio: 83 basis points. Common Equity Tier 1 Ratio: 13.5%. Revenue Growth: Compound annual growth rate of 12% since 2020. Loan Growth: 3% increase in 2024. Deposit Growth: 6% increase. Net Interest Income: Grew by 3% to ZAR201 billion. Non-Interest Revenue: Net fee and commission revenue increased by 4% to ZAR32 billion. Insurance and Asset Management Earnings: Grew by 17% to ZAR3.3 billion. Assets Under Management: ZAR1.5 trillion. Dividend Payout Ratio: 56%. Headline Earnings Growth Target (2026-2028): 8% to 12% CAGR. Return on Equity Target (2026-2028): 18% to 22%. Warning! GuruFocus has detected 6 Warning Sign with SBGOF. Release Date: March 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Standard Bank Group Ltd (SBGOF) achieved a headline earnings growth of 4% in 2024, with a 14% increase in constant currency terms. The company declared dividends of ZAR15.7 per share, marking a 6% increase from the previous year. The return on equity for the year was 18.5%, well within the target range of 17% to 20%. The cost to income ratio improved to 50.5%, indicating effective cost management. Insurance and asset management business units showed strong growth, with earnings increasing by 17% to ZAR3.3 billion. Weaker African currencies, particularly the Nigerian naira and the Angolan kwanza, reduced rand earnings by 9%. Headline earnings growth was moderate at 4%, compared to 35% in 2022 and 27% in 2023. The net interest income growth was relatively subdued at 3%, impacted by lower margins and pricing pressures. Credit impairments on financial investments increased due to sovereign credit risk deterioration in Malawi and Mozambique. The devaluation of subsidiary currencies against the rand had a meaningful impact on the income statement, particularly in West Africa. Q: How should we think about growth in trading income for 2025 and beyond, and what factors might affect this momentum? A: Luvuyo Masinda, CEO of Corporate and Investment Banking, explained that the trading revenue is largely driven by client activity, which gives confidence in its sustainability. The supportive macroeconomic conditions in Africa are expected to continue driving growth in trading revenues. Additionally, the development of financing businesses within global markets is anticipated to contribute to future growth. Q: Can you expand on the scope for further cost containment in the medium term? A: Arno Daehnke, Chief Finance and Value Management Officer, noted that cost efficiency is an ongoing focus. The reduction of physical distribution costs through digital solutions and the decrease in amortization costs as more technology is processed in the cloud are expected to provide natural tailwinds for cost containment. Q: What are your expectations for advances growth in BCB and PPB segments in 2025? A: Bill Blackie, CEO of Business and Commercial Clients, indicated that asset demand in South Africa is expected to continue growing, with strong asset growth in Africa regions. Funeka Montjane, CEO of Consumer & High Net Worth Clients, added that there are early signs of double-digit increases in disbursements, particularly in personal loans and mortgages. Q: What gives you confidence that currency devaluations in Africa will not repeat in 2025? A: Arno Daehnke highlighted that improved macroeconomic outlooks in countries like Nigeria, Ghana, Malawi, and Angola, with expected reductions in inflation, should stabilize currencies. This improved outlook is expected to prevent a repeat of the significant currency devaluations seen in 2024. Q: What elements of the income statement or balance sheet need to change to achieve the 18% to 22% ROE target? A: Arno Daehnke emphasized the need for revenue growth, cost discipline, and capital efficiency. The focus will be on driving top-line growth, maintaining positive operating leverage, managing credit portfolios carefully, and optimizing capital deployment to meet hurdle rates. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
