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SBK

Standard Bank GroupJSE:SBK Stock Report

Market Cap

R216.9b

7D

-0.6%

1Y

30.3%

Updated

17 Oct, 2021

Data

Company Financials +
SBK fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance3/6
Financial Health4/6
Dividends4/6

SBK Overview

Standard Bank Group Limited, together with its subsidiaries, offers banking and financial products and services.

Standard Bank Group Competitors

Capitec Bank Holdings

JSE:CPI

R194.3b

Absa Group

JSE:ABG

R118.4b

Nedbank Group

JSE:NED

R84.9b

Bank of America

NYSE:BAC

US$382.1b

Price History & Performance

Summary of all time highs, changes and price drops for Standard Bank Group
Historical stock prices
Current Share PriceR136.50
52 Week HighR104.23
52 Week LowR149.78
Beta0.88
1 Month Change-1.42%
3 Month Change15.79%
1 Year Change30.27%
3 Year Change-15.47%
5 Year Change-1.80%
Change since IPO26,710.86%

Recent News & Updates

Shareholder Returns

SBKZA BanksZA Market
7D-0.6%0.3%1.6%
1Y30.3%49.6%21.3%

Return vs Industry: SBK underperformed the ZA Banks industry which returned 49.6% over the past year.

Return vs Market: SBK exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is SBK's price volatile compared to industry and market?
SBK volatility
SBK Beta0.88
Industry Beta0.91
Market Beta1

Stable Share Price: SBK is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SBK's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186250,115Sim Tshabalalahttps://www.standardbank.co.za

Standard Bank Group Limited, together with its subsidiaries, offers banking and financial products and services. The company’s personal banking products include bank accounts, digital wallets, credit and prepaid cards, saving and investment products, foreign exchange, and Shariah banking products and services; home, personal, vehicle, and student loans; financial planning and trading services; and wills, estate, and trust services, as well as car, home, income, debt, funeral, travel, legal assist, life, and personal accident insurance. Its business banking products comprise business, current, and attorney trust accounts; merchant and cash solutions; cards; revolving, term, repayment, and agricultural loans; overdrafts; vehicle and asset, debtor, and commercial property finance services; savings and investment accounts; pay and incentive cards, employer value banking, instant money bulk and salary payments, incentive cards, and financial planning services; fleet management, merchant, debit order, cash, franchising, and ecommerce solutions; and business, corporate risks, agricultural, vehicle and asset, commercial property, engineering risks, new contracts, cargo, cash, events, and directors and officers liability insurance services.

Standard Bank Group Fundamentals Summary

How do Standard Bank Group's earnings and revenue compare to its market cap?
SBK fundamental statistics
Market CapR216.86b
Earnings (TTM)R20.01b
Revenue (TTM)R117.80b

10.8x

P/E Ratio

1.1x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SBK income statement (TTM)
RevenueR117.80b
Cost of RevenueR0
Gross ProfitR117.80b
ExpensesR97.80b
EarningsR20.01b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 11, 2022

Earnings per share (EPS)12.59
Gross Margin100.00%
Net Profit Margin16.98%
Debt/Equity Ratio44.9%

How did SBK perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

48%

Payout Ratio

Valuation

Is Standard Bank Group undervalued compared to its fair value and its price relative to the market?

10.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SBK (ZAR136.5) is trading above our estimate of fair value (ZAR76.28)

Significantly Below Fair Value: SBK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SBK is poor value based on its PE Ratio (10.8x) compared to the ZA Banks industry average (10.6x).

PE vs Market: SBK is good value based on its PE Ratio (10.8x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: SBK is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SBK is overvalued based on its PB Ratio (1.1x) compared to the ZA Banks industry average (0.9x).


Future Growth

How is Standard Bank Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBK's forecast earnings growth (21.9% per year) is above the savings rate (8.8%).

Earnings vs Market: SBK's earnings (21.9% per year) are forecast to grow faster than the ZA market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SBK's revenue (6.7% per year) is forecast to grow faster than the ZA market (6.1% per year).

High Growth Revenue: SBK's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SBK's Return on Equity is forecast to be low in 3 years time (15%).


Past Performance

How has Standard Bank Group performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBK has high quality earnings.

Growing Profit Margin: SBK's current net profit margins (17%) are higher than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: SBK's earnings have declined by 7.2% per year over the past 5 years.

Accelerating Growth: SBK's earnings growth over the past year (24.9%) exceeds its 5-year average (-7.2% per year).

Earnings vs Industry: SBK earnings growth over the past year (24.9%) underperformed the Banks industry 24.9%.


Return on Equity

High ROE: SBK's Return on Equity (10.6%) is considered low.


Financial Health

How is Standard Bank Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: SBK's Assets to Equity ratio (11.4x) is moderate.

Allowance for Bad Loans: SBK has a low allowance for bad loans (69%).

Low Risk Liabilities: 71% of SBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: SBK has an appropriate level of Loans to Assets ratio (52%).

Low Risk Deposits: SBK's Loans to Deposits ratio (81%) is appropriate.

Level of Bad Loans: SBK has a high level of bad loans (5.5%).


Dividend

What is Standard Bank Group current dividend yield, its reliability and sustainability?

5.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SBK's dividend (5.27%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: SBK's dividend (5.27%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

Stable Dividend: SBK's dividend payments have been volatile in the past 10 years.

Growing Dividend: SBK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.7%), SBK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBK's dividends in 3 years are forecast to be covered by earnings (58.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Sim Tshabalala (54 yo)

8.58yrs

Tenure

R24,049,000

Compensation

Mr. Simpiwe Kenneth Tshabalala, also known as Sim, BA, LLB, LLM, HDip Tax, AMP, serves as Group Chief Executive Officer and Executive Director of Standard Bank Group Limited since March 7, 2013. He serves...


CEO Compensation Analysis

Compensation vs Market: Sim's total compensation ($USD1.64M) is below average for companies of similar size in the ZA market ($USD2.58M).

Compensation vs Earnings: Sim's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SBK's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: SBK's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SBK insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Standard Bank Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Standard Bank Group Limited
  • Ticker: SBK
  • Exchange: JSE
  • Founded: 1862
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R216.860b
  • Shares outstanding: 1.59b
  • Website: https://www.standardbank.co.za

Number of Employees


Location

  • Standard Bank Group Limited
  • Standard Bank Centre
  • 9th Floor
  • Johannesburg
  • Gauteng
  • 2001
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:05
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.