South African (JSE) Banks Industry Analysis
UpdatedMay 03, 2024
DataAggregated Company Financials
Companies5
- 7D5.1%
- 3M-1.2%
- 1Y17.2%
- YTD-2.4%
The Banks industry is up 5.1% in the last week, with Standard Bank Group up 3.6%. Meanwhile, Sasfin Holdings actually underperformed within the industry, shrinking 7.2% in the last week. In the last 12 months, the industry was up 17%. Looking forward, earnings are forecast to grow by 11% annually.
Industry Valuation and Performance
Has the South African Banks Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 04 May 2024 | R787.8b | R339.9b | R90.0b | 6.9x | 8.7x | 2.3x |
| Mon, 01 Apr 2024 | R779.1b | R337.9b | R89.6b | 6.9x | 8.7x | 2.3x |
| Wed, 28 Feb 2024 | R820.2b | R335.8b | R86.3b | 6.9x | 9.5x | 2.4x |
| Fri, 26 Jan 2024 | R804.1b | R335.8b | R86.3b | 6.7x | 9.3x | 2.4x |
| Sun, 24 Dec 2023 | R801.0b | R335.8b | R86.3b | 7.1x | 9.3x | 2.4x |
| Tue, 21 Nov 2023 | R802.7b | R335.8b | R86.3b | 7.3x | 9.3x | 2.4x |
| Thu, 19 Oct 2023 | R763.6b | R335.7b | R86.4b | 7.2x | 8.8x | 2.3x |
| Sat, 16 Sep 2023 | R746.8b | R334.6b | R86.0b | 7.2x | 8.7x | 2.2x |
| Mon, 14 Aug 2023 | R789.2b | R314.8b | R79.8b | 7.4x | 9.9x | 2.5x |
| Wed, 12 Jul 2023 | R712.7b | R312.7b | R79.3b | 7.2x | 9x | 2.3x |
| Fri, 09 Jun 2023 | R677.6b | R312.7b | R79.3b | 7.3x | 8.5x | 2.2x |
| Sun, 07 May 2023 | R693.8b | R312.7b | R79.3b | 7.1x | 8.7x | 2.2x |
| Tue, 04 Apr 2023 | R749.0b | R313.0b | R78.9b | 7.5x | 9.5x | 2.4x |
| Thu, 02 Mar 2023 | R793.7b | R293.3b | R71.5b | 8.9x | 11.1x | 2.7x |
| Sat, 28 Jan 2023 | R778.1b | R293.3b | R71.5b | 8.6x | 10.9x | 2.7x |
| Mon, 26 Dec 2022 | R775.8b | R293.3b | R71.5b | 8.1x | 10.8x | 2.6x |
| Wed, 23 Nov 2022 | R817.5b | R293.3b | R71.5b | 8.6x | 11.4x | 2.8x |
| Fri, 21 Oct 2022 | R745.2b | R293.3b | R71.5b | 7.9x | 10.4x | 2.5x |
| Sun, 18 Sep 2022 | R693.3b | R292.3b | R70.7b | 8.1x | 9.8x | 2.4x |
| Tue, 16 Aug 2022 | R797.7b | R276.9b | R62.5b | 9.5x | 12.8x | 2.9x |
| Thu, 14 Jul 2022 | R704.3b | R276.9b | R62.5b | 10x | 11.3x | 2.5x |
| Sat, 11 Jun 2022 | R736.2b | R276.9b | R62.5b | 10.3x | 11.8x | 2.7x |
| Mon, 09 May 2022 | R730.3b | R276.9b | R62.5b | 9.4x | 11.7x | 2.6x |
| Wed, 06 Apr 2022 | R831.9b | R274.4b | R61.7b | 9.9x | 13.5x | 3x |
| Fri, 04 Mar 2022 | R792.2b | R296.1b | R55.5b | 13.1x | 14.3x | 2.7x |
| Sun, 30 Jan 2022 | R703.9b | R296.1b | R55.5b | 11.7x | 12.7x | 2.4x |
| Tue, 28 Dec 2021 | R659.1b | R296.1b | R55.5b | 11.1x | 11.9x | 2.2x |
| Thu, 25 Nov 2021 | R608.4b | R296.1b | R55.5b | 10.5x | 11x | 2.1x |
| Sat, 23 Oct 2021 | R619.3b | R296.1b | R55.5b | 10.9x | 11.2x | 2.1x |
| Mon, 20 Sep 2021 | R641.0b | R289.9b | R52.0b | 11x | 12.3x | 2.2x |
| Wed, 18 Aug 2021 | R653.6b | R289.9b | R52.0b | 11x | 12.6x | 2.3x |
| Wed, 02 Jun 2021 | R611.2b | R275.9b | R41.0b | 13.4x | 14.9x | 2.2x |
Price to Earnings Ratio
14.9x
Current Industry PE
- Investors are pessimistic on the South African Banks industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 8.8x which is lower than its 3-year average PE of 10.7x.
- The industry is trading close to its 3-year average PS ratio of 2.4x.
Past Earnings Growth
- The earnings for companies in the Banks industry have grown 30% per year over the last three years.
- Revenues for these companies have grown 7.2% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Financials industry?
| ZA Market | 3.08% | |
| Financials | 4.90% | |
| Banks | 5.14% | |
| Diversified Banks | 5.14% | |
| Regional Banks | 0% | |
Industry PE
- Investors are most optimistic about the Diversified Banks industry even though it's trading below its 3-year average PE ratio of 10.7x.
- Analysts are expecting annual earnings growth of 11.3%, which is higher than its past year's earnings growth of 7.1% per year.
- Investors are most pessimistic about the Diversified Banks industry, which is trading below its 3-year average of 10.7x.
Forecasted Growth
- Analysts are most optimistic on the Diversified Banks industry, expecting annual earnings growth of 11% over the next 5 years.
- This is better than its past earnings growth rate of 7.1% per year.
- In contrast, the Diversified Banks industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SBK Standard Bank Group | R178.98 | 3.6% +R10.2b | 9.1% | PB1.2x | |
| ABG Absa Group | R147.00 | 4.0% +R4.7b | -10.6% | PB0.8x | |
| CPI Capitec Bank Holdings | R2.27k | 1.4% +R3.5b | 42.3% | PB6x | |
| NED Nedbank Group | R228.06 | 2.4% +R2.5b | 9.0% | PB1x |