Latest news with #CIB
Yahoo
8 hours ago
- Business
- Yahoo
Absa Group Ltd (AGRPY) (H1 2025) Earnings Call Highlights: Strong Earnings Growth Amidst ...
Diluted HEPS Growth: 16% increase. Dividends Per Share Growth: 15% increase with a 55% payout ratio. Return on Equity (ROE): Improved to 14.8%. Net Interest Margin: Narrowed by 11 basis points year-on-year. Credit Loss Ratio: Improved to the top end of the target range. Net Asset Value (NAV): Grew 11% to ZAR200 per share. CET1 Capital Ratio: Declined slightly to 12.5%. Headline Earnings Growth: 17% increase to almost ZAR12 billion. Net Interest Income Growth: 3% increase. Noninterest Income Growth: 10% increase. Total Revenue Growth: 5% increase to ZAR56 billion. Operating Expenses Growth: 6% increase. Cost-to-Income Ratio: Slightly higher at 53.2%. Loan Growth: 7% increase. Deposit Growth: Broad-based with strong growth in CIB and ARO RBB. Stage Three Loans (NPLs): Grew 4% to ZAR86 billion. Return on Regulatory Capital: 14.3% in South Africa, 16.9% in Africa regions. Warning! GuruFocus has detected 3 Warning Sign with AGRPY. Release Date: August 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Absa Group Ltd (AGRPY) reported a 16% growth in diluted HEPS and a 15% increase in dividends per share, indicating strong financial performance. The company's ROE improved to 14.8%, showing progress towards their financial targets. Credit loss ratio improved materially, reaching the top end of their target range, which suggests better credit management. Growth in digitally active customers was significant, with a 32% increase across the region, enhancing customer engagement. The company successfully concluded a buyback of preference shares, which is expected to reduce future funding costs. Negative Points The operating environment remains volatile and uncertain, with geopolitical tensions and economic challenges in key markets like South Africa. Net interest margin narrowed by 11 basis points year-on-year, primarily due to compression in deposit margins. Business Banking earnings declined due to higher credit impairments and flat revenue growth, indicating challenges in this segment. The company's ROE, although improved, remains below the cost of equity, highlighting the need for further financial recovery. South Africa's economic growth remains muted, with only 0.1% GDP growth in the first quarter, impacting overall performance. Q & A Highlights Q: Please comment on the material increase in credit impairments in the rest of Africa and the strategies in place to improve this going forward. Also, why did CSM decrease in Life Insurance despite strong new business growth? A: In terms of ARO RBB, the increase in impairments is due to retail charges growing, particularly in challenging environments like Botswana. We have built forward-looking coverage against these items, and the credit loss ratio remains below its cycle range. For Life Insurance, the decrease is linked to personal loans and the type of growth experienced there, despite overall insurance income growth. Q: For Business Banking, how do you see credit losses turning out in the second half of 2025? Can you sustain the impressive momentum in trading income into the second half? How will you lift ROE towards the 16% target for 2026? A: Business Banking credit losses were due to a few single names in delinquency, and we don't foresee a spike in the second half. Trading income has been strong, and we expect to sustain this momentum. To lift ROE, we focus on improving top-line growth, driving efficiency, and optimizing capital deployment. Q: How should we think about CIB lending growth potential, and does lower SA growth impact your progress towards a 16% ROE in 2026? What are your plans to improve Business Banking revenue growth? A: CIB lending growth has been strong and is expected to continue. While low SA growth is challenging, we have flexibility in cost management and credit impairments to achieve our ROE targets. For Business Banking, we aim to improve revenue through strategic focus and client engagement. Q: Can you reconcile the lower NIMs on deposit pricing with the growth in corporate deposits? How do you plan to progress ROE beyond 16% in 2026, and when will you appoint permanent heads in PPB and CIB? A: Lower NIMs are due to corporates placing deposits at low margins, which we accept as part of our client franchise. We aim to exceed 16% ROE by rebuilding confidence and aligning strategy. Permanent appointments for PPB and CIB are expected within two months. Q: What is the pathway to the 16% ROE target for 2026, and should we expect an acceleration in PPB loan growth? What impact could US tariffs have on credit risk, particularly for agri-books? A: We are not providing specific guidance for 2026 yet, but we are focused on improving ROE through strategic initiatives. PPB loan growth is expected to improve with better market conditions. US tariffs may impact agri-books, but we are working with clients to mitigate risks and explore new markets. Q: Is the structural hedge program delivering expected outcomes given NIM contraction? What makes the management confident in achieving the 16% ROE target? A: The structural hedge program has offset some negative impacts on deposit and equity endowment. We are confident in achieving the 16% ROE target through strategic focus, cost management, and leveraging our operating platform. Q: How will management target higher noninterest revenue (NIR) contribution, and what is Absa's strategy in the payments space given increased competition? A: We aim to increase NIR by focusing on client value and strategic sectors. In the payments space, we support competition and focus on efficiency to serve clients effectively. Q: Are share buybacks under consideration given the strong capital position? A: Share buybacks remain a tactical tool, and we consider them alongside other strategic options for value creation. Our capital allocation is aligned with regulatory requirements and stress buffers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
Absa Group Ltd (AGRPY) (H1 2025) Earnings Call Highlights: Strong Earnings Growth Amidst ...
Diluted HEPS Growth: 16% increase. Dividends Per Share Growth: 15% increase with a 55% payout ratio. Return on Equity (ROE): Improved to 14.8%. Net Interest Margin: Narrowed by 11 basis points year-on-year. Credit Loss Ratio: Improved to the top end of the target range. Net Asset Value (NAV): Grew 11% to ZAR200 per share. CET1 Capital Ratio: Declined slightly to 12.5%. Headline Earnings Growth: 17% increase to almost ZAR12 billion. Net Interest Income Growth: 3% increase. Noninterest Income Growth: 10% increase. Total Revenue Growth: 5% increase to ZAR56 billion. Operating Expenses Growth: 6% increase. Cost-to-Income Ratio: Slightly higher at 53.2%. Loan Growth: 7% increase. Deposit Growth: Broad-based with strong growth in CIB and ARO RBB. Stage Three Loans (NPLs): Grew 4% to ZAR86 billion. Return on Regulatory Capital: 14.3% in South Africa, 16.9% in Africa regions. Warning! GuruFocus has detected 3 Warning Sign with AGRPY. Release Date: August 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Absa Group Ltd (AGRPY) reported a 16% growth in diluted HEPS and a 15% increase in dividends per share, indicating strong financial performance. The company's ROE improved to 14.8%, showing progress towards their financial targets. Credit loss ratio improved materially, reaching the top end of their target range, which suggests better credit management. Growth in digitally active customers was significant, with a 32% increase across the region, enhancing customer engagement. The company successfully concluded a buyback of preference shares, which is expected to reduce future funding costs. Negative Points The operating environment remains volatile and uncertain, with geopolitical tensions and economic challenges in key markets like South Africa. Net interest margin narrowed by 11 basis points year-on-year, primarily due to compression in deposit margins. Business Banking earnings declined due to higher credit impairments and flat revenue growth, indicating challenges in this segment. The company's ROE, although improved, remains below the cost of equity, highlighting the need for further financial recovery. South Africa's economic growth remains muted, with only 0.1% GDP growth in the first quarter, impacting overall performance. Q & A Highlights Q: Please comment on the material increase in credit impairments in the rest of Africa and the strategies in place to improve this going forward. Also, why did CSM decrease in Life Insurance despite strong new business growth? A: In terms of ARO RBB, the increase in impairments is due to retail charges growing, particularly in challenging environments like Botswana. We have built forward-looking coverage against these items, and the credit loss ratio remains below its cycle range. For Life Insurance, the decrease is linked to personal loans and the type of growth experienced there, despite overall insurance income growth. Q: For Business Banking, how do you see credit losses turning out in the second half of 2025? Can you sustain the impressive momentum in trading income into the second half? How will you lift ROE towards the 16% target for 2026? A: Business Banking credit losses were due to a few single names in delinquency, and we don't foresee a spike in the second half. Trading income has been strong, and we expect to sustain this momentum. To lift ROE, we focus on improving top-line growth, driving efficiency, and optimizing capital deployment. Q: How should we think about CIB lending growth potential, and does lower SA growth impact your progress towards a 16% ROE in 2026? What are your plans to improve Business Banking revenue growth? A: CIB lending growth has been strong and is expected to continue. While low SA growth is challenging, we have flexibility in cost management and credit impairments to achieve our ROE targets. For Business Banking, we aim to improve revenue through strategic focus and client engagement. Q: Can you reconcile the lower NIMs on deposit pricing with the growth in corporate deposits? How do you plan to progress ROE beyond 16% in 2026, and when will you appoint permanent heads in PPB and CIB? A: Lower NIMs are due to corporates placing deposits at low margins, which we accept as part of our client franchise. We aim to exceed 16% ROE by rebuilding confidence and aligning strategy. Permanent appointments for PPB and CIB are expected within two months. Q: What is the pathway to the 16% ROE target for 2026, and should we expect an acceleration in PPB loan growth? What impact could US tariffs have on credit risk, particularly for agri-books? A: We are not providing specific guidance for 2026 yet, but we are focused on improving ROE through strategic initiatives. PPB loan growth is expected to improve with better market conditions. US tariffs may impact agri-books, but we are working with clients to mitigate risks and explore new markets. Q: Is the structural hedge program delivering expected outcomes given NIM contraction? What makes the management confident in achieving the 16% ROE target? A: The structural hedge program has offset some negative impacts on deposit and equity endowment. We are confident in achieving the 16% ROE target through strategic focus, cost management, and leveraging our operating platform. Q: How will management target higher noninterest revenue (NIR) contribution, and what is Absa's strategy in the payments space given increased competition? A: We aim to increase NIR by focusing on client value and strategic sectors. In the payments space, we support competition and focus on efficiency to serve clients effectively. Q: Are share buybacks under consideration given the strong capital position? A: Share buybacks remain a tactical tool, and we consider them alongside other strategic options for value creation. Our capital allocation is aligned with regulatory requirements and stress buffers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News18
4 days ago
- Entertainment
- News18
Vaani Kapoor Reveals She Loves THIS Actress's Hair, Calls Shah Rukh Khan ‘Lovely'
Vaani Kapoor has finally made her debut in the OTT space with YRF's new crime thriller Mandala Murders, now streaming on Netflix. Vaani Kapoor finally made her OTT debut with Mandala Murders and has been getting positive reviews. Recently, she shared some fun personal favourites during a candid conversation. When asked which actress's hair she admires the most, the Mandala Murders star was quick to name veteran actress Dimple Kapadia. In a conversation with Zoom, Vaani Kapoor revealed that she is fond of Dimple Kapadia's hair and praised Shah Rukh Khan. Vaani Kapoor was quoted saying, 'Dimple Kapadia's beautiful hair. I don't know what she applies. I want to buy all the products. She has such stunning hair. She is very stunning." When asked about the male actor, the Mandala Murders actress said, 'Everything about Shah Rukh Khan is lovely." Vaani opens up doing less films: In the same interview, she said, 'I would love to do more films, but it is not easy to get the right film. In my case, it hasn't been easy. Sometimes, you have to wait for something good to come along, even for something marginally new. The intention is to hold on to self-belief and back oneself even in the times that are not the best. I never run after money and the perks of being an actor. I am craving good work, proving something and being one of the best in my line of work. That's the intention." Fawad Khan, Vaani Kapoor's Abir Gulaal Headed For World Premiere, To Skip India Release: After months of speculation, delays, and controversy, Abir Gulaal, which was speculated to be Pakistani actor Fawad Khan's much-awaited Bollywood comeback, will reportedly release outside of India. The film, now officially titled Aabir Gulaal, will have its world premiere on August 29, according to a recent report by Biz Asia. The film stars Vaani Kapoor as the leading lady. Abir Gulaal's journey to the big screen has been anything but smooth. Originally slated for a May 9 release in the country, the film faced repeated setbacks, especially after the ghastly Pahalgam terror attack on April 22. In the wake of the incident, plans for an Indian theatrical release were put on indefinite hold. Vaani Kapoor's OTT debut: Vaani Kapoor has finally made her debut in the OTT space with YRF's new crime thriller Mandala Murders, now streaming on Netflix. While fans are praising her portrayal of the gritty CIB officer Rea Thomas, the actress admits she is experiencing 'a lot of anxiety" surrounding the release. In a recent interview, Vaani spoke about her transition from films to OTT, the challenges of portraying a hardened police officer and how she copes with feedback and criticism. Mandala Murders is helmed by Gopi Puthra. It's more than just a crime thriller. The show weaves together elements of mystery, supernatural horror and psychological drama. Set in the fictional town of Charandaspur, the story follows CIB officer Rea Thomas as she investigates a case involving ritualistic killings. Alongside Vaani Kapoor, Manadala Murders also stars Vaibhav Raj Gupta and Surveen Chawla in significant roles. The series is currently streaming on Netflix. Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Globe and Mail
5 days ago
- Business
- Globe and Mail
Capital Markets Bounce Back: What This Means for JPMorgan's Prospects
JPMorgan 's JPM capital markets operations, housed in its Commercial & Investment Bank (CIB) segment, are a core earnings driver, contributing roughly 40% of total net revenues. The segment's performance is highly correlated with deal-making momentum, trading activity and overall market conditions, making it a key beneficiary of a sustained capital markets revival. After a slowdown in 2022 and 2023 due to geopolitical tensions, recession fears and inflationary pressures, the capital markets staged a notable rebound last year. JPMorgan's investment banking (IB) fees within the CIB surged 36% year over year, reflecting improved underwriting volumes and advisory mandates, while markets revenues rose 7% on elevated volatility and trading demand. Importantly, the bank retained its #1 position in global IB fees, underscoring its competitive strength and client franchise depth even in challenging conditions. While early 2025 saw mixed sentiment, with optimism tempered by tariff-driven policy shocks, deal-making has regained momentum. JPMorgan captured an 8.9% IB wallet share in the first half of 2025, with IB fee growth expected to continue at a steady pace. This sustained uptrend in IB fees should provide a stable growth anchor for the CIB segment, as corporates re-enter equity and debt markets for capital raising and strategic transactions. On the trading side, markets revenues have historically been more volatile, swinging with macro uncertainty and client risk appetite. Hence, heightened geopolitical tensions, tariff-related uncertainty and episodic volatility in 2025 have spurred client hedging and trading needs, supporting revenue growth in the first half of the year. While structural normalization in trading activity is inevitable over time, JPMorgan's broad product coverage across fixed income, currencies, commodities and equities positions it to capture upside during volatility spikes. The revival of capital markets provides JPMorgan with a dual tailwind: a steady lift from the recovery in deal-making and opportunistic boosts from trading in periods of market dislocation. Given its leading market share, diversified capabilities and global reach, the bank is well-positioned to translate this cyclical upswing into sustained earnings momentum over time. How JPMorgan Stacks Up Against Peers in Capital Markets Similar to JPM, Bank of America BAC witnessed subdued IB performance in 2022 and 2023, with revival happening last year. In 2024, the company's IB fees soared 31% year over year. Then, in the first six months of 2025, Bank of America's IB fees declined on a year-over-year basis on muted industry-wide trends. Coming to the trading business, Bank of America's sales and trading revenues have been increasing since 2022 (the metric increased 13% year over year in the first half of 2025). Yet, the volatile nature of the business and expectations that it will gradually normalize toward the pre-pandemic level are likely to make growth in the same challenging. Another key peer, Morgan Stanley MS, leans heavily on the IB business to sustain profitability, with IB revenues jumping 36% last year after plunging in 2023 and 2022. But performance of the company's IB business has been subdued this year, with the metric rising just 1% from the prior-year quarter. Nonetheless, Morgan Stanley remains cautiously optimistic about the performance of the IB business, supported by a stable and diversified M&A pipeline. Also, Morgan Stanley's trading business performance has been stellar over the past several quarters, attributable to uncertainty surrounding the tariff plans and macroeconomic headwinds. As market volatility and client activity are expected to remain decent, the company's trading business will likely continue to grow. JPMorgan's Price Performance, Valuation and Estimates JPMorgan's shares have soared 21.2% this year, outperforming the S&P 500 Index's gain of 9.5%. From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 2.98X, above the industry average. P/TB Ratio Image Source: Zacks Investment Research The Zacks Consensus Estimate for JPMorgan's 2025 earnings implies a decline of 1.3% on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 4.5%. In the past week, earnings estimates for 2025 and 2026 have moved marginally upward. Earnings Estimates Image Source: Zacks Investment Research JPM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report
Zawya
5 days ago
- Business
- Zawya
Egypt: EGP hits highest against USD in year
Arab Finance: The Egyptian pound (EGP) witnessed the strongest rise against the dollar in a year, with the USD hitting EGP 48.28 for buying and EGP 48.38 for selling at the Commercial International Bank Egypt (CIB). The USD registered EGP 48.3 for purchasing and EGP 48.4 for selling at the National Bank of Egypt (NBE) and Banque Misr. Meanwhile, the US dollar traded at EGP 48.27 for buying and EGP 48.37 for selling at the United Bank. © 2025 All Rights Reserved Arab Finance For Information Technology Provided by SyndiGate Media Inc. (
