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South African (JSE) Financials Sector Analysis

UpdatedApr 07, 2026
DataAggregated Company Financials
Companies36
  • 7D2.4%
  • 3M-0.9%
  • 1Y36.1%
  • YTD0.3%

In the last week, the Financials industry is up 2.4%, with Capitec Bank Holdings up 2.5%. This means that the industry has gained 36% over the past year. As for the next few years, earnings are expected to grow by 14% per annum.

Sector Valuation and Performance

Has the South African Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 07 Apr 2026R2.8tR1.3tR217.0b10.4x12.8x2.1x
Thu, 05 Mar 2026R2.9tR1.2tR213.0b10.9x13.6x2.3x
Sat, 31 Jan 2026R2.8tR1.2tR223.4b10.6x12.7x2.3x
Mon, 29 Dec 2025R2.8tR1.2tR223.7b10.2x12.3x2.2x
Wed, 26 Nov 2025R2.6tR1.2tR223.9b9.3x11.5x2.1x
Fri, 24 Oct 2025R2.6tR1.2tR223.9b9.2x11.4x2.1x
Sun, 21 Sep 2025R2.4tR1.2tR225.3b9.2x10.7x2x
Tue, 19 Aug 2025R2.4tR1.2tR216.8b9.1x11.1x2x
Thu, 17 Jul 2025R2.3tR1.2tR215.6b9x10.8x2x
Sat, 14 Jun 2025R2.3tR1.2tR214.1b9.1x10.8x2x
Mon, 12 May 2025R2.3tR1.2tR216.2b9.3x10.7x2x
Wed, 09 Apr 2025R2.1tR1.2tR214.7b8.4x9.9x1.8x
Fri, 07 Mar 2025R2.2tR1.1tR200.6b10.4x11.2x2x
Sun, 02 Feb 2025R2.2tR1.1tR195.7b11.3x11.4x2x
Tue, 31 Dec 2024R2.3tR1.1tR193.2b11.5x11.9x2.1x
Thu, 28 Nov 2024R2.3tR1.1tR193.0b11.9x12.1x2.1x
Sat, 26 Oct 2024R2.3tR1.1tR191.0b12x12.2x2.1x
Mon, 23 Sep 2024R2.3tR1.2tR189.4b12.2x12.2x2x
Wed, 21 Aug 2024R2.2tR1.2tR180.9b9.9x12.3x1.9x
Fri, 19 Jul 2024R2.1tR1.2tR182.8b9.8x11.3x1.7x
Sun, 16 Jun 2024R1.9tR1.2tR182.8b8.9x10.6x1.6x
Tue, 14 May 2024R1.9tR1.2tR182.3b9.4x10.2x1.5x
Thu, 11 Apr 2024R1.8tR1.2tR180.9b9.5x9.8x1.5x
Sat, 09 Mar 2024R1.9tR1.2tR180.5b9.6x10.4x1.6x
Mon, 05 Feb 2024R1.9tR1.2tR178.7b9.9x10.5x1.6x
Wed, 03 Jan 2024R1.9tR1.2tR178.5b10x10.9x1.7x
Fri, 01 Dec 2023R1.9tR1.2tR179.0b10.3x10.4x1.6x
Sun, 29 Oct 2023R1.7tR1.2tR179.6b9.9x9.5x1.5x
Tue, 26 Sep 2023R1.8tR1.1tR179.7b10x10.1x1.6x
Thu, 24 Aug 2023R1.9tR1.0tR182.8b9.9x10.1x1.8x
Sat, 22 Jul 2023R1.8tR1.0tR175.7b10.1x10.4x1.8x
Mon, 19 Jun 2023R1.7tR1.0tR177.9b10.5x9.8x1.7x
Wed, 17 May 2023R1.6tR1.0tR177.5b9.3x9x1.6x
Fri, 14 Apr 2023R1.7tR1.0tR178.0b8.7x9.7x1.7x
Price to Earnings Ratio

9.7x


Total Market Cap: R1.7tTotal Earnings: R178.0bTotal Revenue: R1.0tTotal Market Cap vs Earnings and Revenue0%0%0%
South African Financials Sector Price to Earnings3Y Average 11x202420252026
Current Industry PE
  • Investors are optimistic on the South African Financials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 12.8x which is higher than its 3-year average PE of 11.0x.
  • The 3-year average PS ratio of 1.9x is lower than the industry's current PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 6.8% per year over the last three years.
  • Revenues for these companies have grown 8.5% 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 sector?

ZA Market2.78%
Financials2.44%
Capital Markets3.22%
Banks3.21%
Insurance1.76%
Diversified Financial1.42%
Mortgage Finance0%0
Consumer Finance-1.81%
Industry PE
  • Investors are most optimistic about the Consumer Finance industry even though it's trading below its 3-year average PE ratio of 154x.
    • It looks like they are confident that earnings will grow faster in the future than they have historically.
  • Investors are most pessimistic about the Capital Markets industry, which is trading close to its 3-year average of 9.4x.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 15% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Capital Markets industry is expected to see its earnings grow by 8.1% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
SBK Standard Bank GroupR311.902.4%
+R12.1b		38.6%PB1.8x
CPI Capitec Bank HoldingsR4.22k2.3%
+R10.8b		45.9%PB9.1x
FSR FirstRandR87.001.0%
+R4.8b		28.1%PE11x
NED Nedbank GroupR272.112.0%
+R2.4b		10.9%PB1.1x
INL Investec GroupR130.001.9%
+R2.0b		17.7%PE7.7x

Latest News

FSR
R87.00
FirstRand
7D
1.0%
1Y
28.1%
DSY
R246.28
Discovery
7D
-0.8%
1Y
32.1%
SBK
R311.90
Standard Bank Group
7D
2.4%
1Y
38.6%
CPI
R4,215.83
Capitec Bank Holdings
7D
2.3%
1Y
45.9%

CPI: 2026 Earnings Guidance Will Likely Sustain Overpriced Share Levels

Analysts have made a small downward adjustment to the Capitec Bank Holdings price target to ZAR3,416 from ZAR3,446, reflecting updated assumptions around slightly higher revenue growth, a marginally lower profit margin and a modestly lower future P/E multiple. What's in the News Capitec Bank Holdings issued group earnings guidance for the year ending 28 February 2026, giving investors an early view of expected financial outcomes.
NED
R272.11
Nedbank Group
7D
2.0%
1Y
10.9%

NED: Neutral Stance And Earnings Guidance Compression Will Shape A More Cautious Outlook

Analysts have adjusted their fair value estimate for Nedbank Group to ZAR275.00 from ZAR259.94, reflecting updated views on long term growth, profitability and a higher forward P/E. This change is framed by recently mixed research that includes a Neutral reinstatement and a downgrade.
ABG
R237.78
Absa Group
7D
-1.4%
1Y
42.7%
OUT
R70.82
OUTsurance Group
7D
1.8%
1Y
3.8%

OUT: Rising Profitability And Dividends Will Support A Higher Earnings Profile

Analysts have inched their 12 month price target for OUTsurance Group up from ZAR84.30 to ZAR85.65. They state that this reflects updated assumptions for profit margin, revenue growth and future P/E that they see as better balancing the group’s earnings potential with its risk profile.
MTM
R36.85
Momentum Group
7D
2.5%
1Y
20.4%

MTM: Index Inclusion And Higher Margins Will Support Future P E Rerating Potential

Analysts have trimmed their price target for Momentum Group to ZAR42.46 from ZAR43.44, reflecting updated assumptions that pair slightly lower revenue growth with a somewhat higher profit margin and a reduced forward P/E multiple. What's in the News Momentum Group has been added to the FTSE All-World Index (USD), which may affect how index-tracking funds and global investors view and access the share (Key Developments).
REM
R191.37
Remgro
7D
1.5%
1Y
31.2%
EPE
R6.75
EPE Capital Partners
7D
-0.9%
1Y
37.8%
INL
R130.00
Investec Group
7D
1.9%
1Y
17.7%
OPA
R18.95
Channel Vas Investments
7D
-3.4%
1Y
n/a
VUN
R2.21
Vunani
7D
-6.4%
1Y
18.8%
ACT
R0.74
AfroCentric Investment
7D
-12.9%
1Y
-55.7%
CML
R43.74
Coronation Fund Managers
7D
-0.9%
1Y
24.8%
BAT
R2.09
Brait
7D
-3.2%
1Y
10.0%