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South African (JSE) Financials Sector Analysis
UpdatedJan 20, 2025
DataAggregated Company Financials
Companies38
- 7D1.9%
- 3M-2.5%
- 1Y21.8%
- YTD-0.8%
Last week, the Financials industry hasn't moved much but Standard Bank Group is up 3.3% in that time. As for the the longer term, the industry is up 22% over the past 12 months. Earnings are forecast to grow by 11% annually.
Sector Valuation and Performance
Has the South African Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 20 Jan 2025 | R2.3t | R1.1t | R195.5b | 11.6x | 11.7x | 2x |
| Wed, 18 Dec 2024 | R2.3t | R1.1t | R192.9b | 11.5x | 12.2x | 2.1x |
| Fri, 15 Nov 2024 | R2.3t | R1.1t | R191.7b | 11.2x | 12.2x | 2.1x |
| Sun, 13 Oct 2024 | R2.3t | R1.1t | R191.2b | 12.1x | 12.2x | 2.1x |
| Tue, 10 Sep 2024 | R2.3t | R1.2t | R185.8b | 11.2x | 12.1x | 1.9x |
| Thu, 08 Aug 2024 | R2.1t | R1.2t | R183.2b | 9.9x | 11.5x | 1.8x |
| Sat, 06 Jul 2024 | R2.1t | R1.2t | R182.6b | 9.9x | 11.3x | 1.7x |
| Mon, 03 Jun 2024 | R1.8t | R1.2t | R182.9b | 9.3x | 9.7x | 1.5x |
| Wed, 01 May 2024 | R1.8t | R1.2t | R182.6b | 9.6x | 9.9x | 1.5x |
| Fri, 29 Mar 2024 | R1.8t | R1.2t | R181.5b | 9.1x | 9.8x | 1.5x |
| Sun, 25 Feb 2024 | R1.9t | R1.2t | R178.7b | 9.9x | 10.6x | 1.6x |
| Tue, 23 Jan 2024 | R1.9t | R1.2t | R179.1b | 10x | 10.5x | 1.6x |
| Thu, 21 Dec 2023 | R1.9t | R1.2t | R178.3b | 9.9x | 10.4x | 1.6x |
| Sat, 18 Nov 2023 | R1.9t | R1.2t | R176.6b | 10.1x | 10.5x | 1.6x |
| Mon, 16 Oct 2023 | R1.8t | R1.2t | R179.7b | 10.1x | 9.9x | 1.5x |
| Wed, 13 Sep 2023 | R1.9t | R1.1t | R183.5b | 9.9x | 10.1x | 1.7x |
| Fri, 11 Aug 2023 | R1.9t | R992.8b | R177.0b | 10x | 10.7x | 1.9x |
| Sun, 09 Jul 2023 | R1.7t | R1.0t | R176.6b | 10.1x | 9.9x | 1.7x |
| Tue, 06 Jun 2023 | R1.6t | R1.0t | R178.3b | 10x | 9x | 1.6x |
| Thu, 04 May 2023 | R1.7t | R1.0t | R178.7b | 9x | 9.4x | 1.7x |
| Sat, 01 Apr 2023 | R1.7t | R1.0t | R180.2b | 9.2x | 9.4x | 1.7x |
| Mon, 27 Feb 2023 | R1.8t | R1.1t | R173.3b | 9.3x | 10.5x | 1.7x |
| Wed, 25 Jan 2023 | R1.8t | R1.1t | R172.7b | 9.5x | 10.4x | 1.7x |
| Fri, 23 Dec 2022 | R1.7t | R1.0t | R172.3b | 8.7x | 10.1x | 1.7x |
| Sun, 20 Nov 2022 | R1.8t | R1.0t | R178.2b | 8.8x | 10.1x | 1.7x |
| Tue, 18 Oct 2022 | R1.6t | R1.0t | R175.0b | 8.5x | 9.1x | 1.6x |
| Thu, 15 Sep 2022 | R1.7t | R1.1t | R164.3b | 9.2x | 10x | 1.5x |
| Sat, 13 Aug 2022 | R1.8t | R1.3t | R151.5b | 9.4x | 12x | 1.4x |
| Mon, 11 Jul 2022 | R1.7t | R1.3t | R150.3b | 10x | 11.2x | 1.3x |
| Wed, 08 Jun 2022 | R1.8t | R1.3t | R149.9b | 10.7x | 12x | 1.4x |
| Fri, 06 May 2022 | R1.8t | R1.3t | R148.2b | 10.7x | 12.1x | 1.4x |
| Sun, 03 Apr 2022 | R2.1t | R1.3t | R149.2b | 11.5x | 14x | 1.5x |
| Tue, 01 Mar 2022 | R2.0t | R1.3t | R136.0b | 11.5x | 14.4x | 1.5x |
| Thu, 27 Jan 2022 | R1.9t | R1.3t | R134.6b | 11.4x | 13.8x | 1.5x |
Price to Earnings Ratio
13.8x
Current Industry PE
- Investors are relatively neutral on the South African Financials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 10.9x.
- The 3-year average PS ratio of 1.7x is lower than the industry's current PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 13% per year over the last three years.
- Meanwhile revenues for these companies have declined 4.4% per year.
- This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the South African Financials sector?
| ZA Market | 2.28% | |
| Financials | 1.93% | |
| Diversified Financial | 2.58% | |
| Capital Markets | 2.47% | |
| Insurance | 2.03% | |
| Banks | 1.45% | |
| Mortgage Finance | 0% | 0 |
| Mortgage REITs | 0% | 0 |
| Consumer Finance | -13.24% | |
Industry PE
- Investors are most optimistic about the Consumer Finance industry which is trading above its 3-year average PE ratio of 113x.
- 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 9.5x.
Forecasted Growth
- Analysts are most optimistic on the Banks industry, expecting annual earnings growth of 13% over the next 5 years.
- This is better than its past earnings growth rate of 8.6% per year.
- In contrast, the Insurance industry is expected to see its earnings grow by 7.8% 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 | |
|---|---|---|---|---|---|
| FSR FirstRand | R76.45 | 4.1% +R16.9b | 14.5% | PE11.2x | |
| SBK Standard Bank Group | R221.00 | 2.4% +R8.5b | 12.2% | PB1.4x | |
| NED Nedbank Group | R282.86 | 4.0% +R5.1b | 33.0% | PB1.2x | |
| OUT OUTsurance Group | R67.52 | 4.8% +R4.8b | 62.7% | PE25.8x | |
| INL Investec Group | R124.04 | 4.2% +R4.5b | -0.4% | PE7.7x |
