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South African (JSE) Banks Industry Analysis

UpdatedSep 26, 2023
DataAggregated Company Financials
Companies5
  • 7D3.1%
  • 3M6.2%
  • 1Y11.3%
  • YTD-1.8%

In the last week, the Banks industry is up 3.1%, with Standard Bank Group up 5.2%. This means that the industry has gained 11% over the past year. Looking forward, earnings are forecast to grow by 10.0% annually.

Industry Valuation and Performance

Has the South African Banks Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 26 Sep 2023R755.0bR334.6bR86.0b7.4x8.8x2.3x
Thu, 24 Aug 2023R772.1bR334.6bR86.0b7.2x9x2.3x
Sat, 22 Jul 2023R748.5bR312.7bR79.3b7.4x9.4x2.4x
Mon, 19 Jun 2023R710.5bR312.7bR79.3b7.5x9x2.3x
Wed, 17 May 2023R662.1bR312.7bR79.3b7x8.3x2.1x
Fri, 14 Apr 2023R748.7bR313.0bR78.9b7.4x9.5x2.4x
Sun, 12 Mar 2023R752.2bR310.6bR78.4b7.8x9.6x2.4x
Tue, 07 Feb 2023R788.5bR293.3bR71.5b8.8x11x2.7x
Thu, 05 Jan 2023R766.5bR293.3bR71.5b8.1x10.7x2.6x
Sat, 03 Dec 2022R758.3bR293.3bR71.5b8x10.6x2.6x
Mon, 31 Oct 2022R783.1bR293.3bR71.5b8.4x10.9x2.7x
Wed, 28 Sep 2022R689.6bR292.4bR70.8b7.7x9.7x2.4x
Fri, 26 Aug 2022R768.7bR289.1bR69.1b9.4x11.1x2.7x
Sun, 24 Jul 2022R738.9bR276.9bR62.5b9.2x11.8x2.7x
Tue, 21 Jun 2022R760.9bR276.9bR62.5b10x12.2x2.7x
Thu, 19 May 2022R772.5bR276.9bR62.5b9.5x12.4x2.8x
Sat, 16 Apr 2022R780.2bR276.9bR62.5b10x12.5x2.8x
Mon, 14 Mar 2022R761.2bR301.5bR60.4b10.6x12.6x2.5x
Wed, 09 Feb 2022R736.1bR296.1bR55.5b12.1x13.3x2.5x
Fri, 07 Jan 2022R700.9bR296.1bR55.5b0.6x12.6x2.4x
Sun, 05 Dec 2021R631.7bR296.1bR55.5b10.7x11.4x2.1x
Tue, 02 Nov 2021R617.6bR296.1bR55.5b10.8x11.1x2.1x
Thu, 30 Sep 2021R659.9bR290.2bR52.2b11.1x12.6x2.3x
Sat, 28 Aug 2021R672.8bR289.9bR52.0b11.6x12.9x2.3x
Sun, 04 Jul 2021R598.3bR289.9bR52.0b10.2x11.5x2.1x
Wed, 07 Apr 2021R539.7bR275.9bR41.0b12.3x13.2x2x
Sat, 09 Jan 2021R533.7bR261.3bR29.7b16.9x18x2x
Fri, 02 Oct 2020R417.8bR265.8bR34.5b11.4x12.1x1.6x
Price to Earnings Ratio

12.1x


Total Market Cap: R417.8bTotal Earnings: R34.5bTotal Revenue: R265.8bTotal Market Cap vs Earnings and Revenue0%0%0%
South African Banks Industry Price to Earnings3Y Average 12x202120222023
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 12.0x.
  • The industry is trading close to its 3-year average PS ratio of 2.3x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 36% per year over the last three years.
  • Revenues for these companies have grown 8.0% 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 Market0.19%
Financials1.59%
Banks3.10%
Diversified Banks3.10%
Regional Banks0%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry even though it's trading below its 3-year average PE ratio of 12.0x.
    • Analysts are expecting annual earnings growth of 10.0%, which is lower than the prior year's growth of 14.4% per year.
  • Investors are most pessimistic about the Diversified Banks industry, which is trading below its 3-year average of 12.0x.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Banks industry, expecting annual earnings growth of 10.0% over the next 5 years.
  • However this is lower than its past earnings growth rate of 14% per year.
  • In contrast, the Diversified Banks industry is expected to see its earnings grow by 10.0% 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 GroupR185.602.7%
+R8.1b		27.1%PB1.2x
ABG Absa GroupR178.044.6%
+R6.9b		-1.6%PB1.1x
NED Nedbank GroupR205.811.8%
+R1.7b		1.1%PB0.9x
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Latest News

NED

R205.81

Nedbank Group

7D

1.8%

1Y

1.1%

ABG

R178.04

Absa Group

7D

4.6%

1Y

-1.6%

CPI

R1,683.61

Capitec Bank Holdings

7D

-0.7%

1Y

-1.5%

SBK

R185.60

Standard Bank Group

7D

2.7%

1Y

27.1%