JSE:SBK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Standard Bank Group

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Standard Bank Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SBK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.3%

SBK

5.8%

ZA Banks

-0.7%

ZA Market


1 Year Return

-48.6%

SBK

-48.1%

ZA Banks

-23.8%

ZA Market

Return vs Industry: SBK matched the ZA Banks industry which returned -49.4% over the past year.

Return vs Market: SBK underperformed the ZA Market which returned -22.7% over the past year.


Shareholder returns

SBKIndustryMarket
7 Day11.3%5.8%-0.7%
30 Day1.0%-2.5%-0.6%
90 Day-31.3%-34.6%-8.1%
1 Year-44.2%-48.6%-44.3%-48.1%-13.0%-23.8%
3 Year-17.1%-31.1%-18.3%-31.3%0.3%-18.8%
5 Year-12.9%-34.7%-10.1%-32.7%9.9%-17.5%

Price Volatility Vs. Market

How volatile is Standard Bank Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

6.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SBK (ZAR102.07) is trading above our estimate of fair value (ZAR34.78)

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 (6.4x) compared to the Banks industry average (4.2x).

PE vs Market: SBK is good value based on its PE Ratio (6.4x) compared to the ZA market (8.1x).


Price to Earnings Growth Ratio

PEG Ratio: SBK is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SBK is overvalued based on its PB Ratio (0.9x) compared to the ZA Banks industry average (0.6x).


Next Steps

Future Growth

How is Standard Bank Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBK's forecast earnings growth (5.1% per year) is below the savings rate (9.5%).

Earnings vs Market: SBK's earnings (5.1% per year) are forecast to grow slower than the ZA market (19.4% per year).

High Growth Earnings: SBK's earnings are forecast to grow, but not significantly.

Revenue vs Market: SBK's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: SBK's revenue is forecast to decline over the next 3 years (-0.2% 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 (14%).


Next Steps

Past Performance

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

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBK has high quality earnings.

Growing Profit Margin: SBK's current net profit margins (20.7%) are lower than last year (22.9%).


Past Earnings Growth Analysis

Earnings Trend: SBK's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: SBK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SBK had negative earnings growth (-7.3%) over the past year, making it difficult to compare to the Banks industry average (-1.9%).


Return on Equity

High ROE: SBK's Return on Equity (14.7%) is considered low.


Next Steps

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 (10.9x) is moderate.

Allowance for Bad Loans: SBK has a low allowance for bad loans (75%).

Low Risk Liabilities: 69% 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 (83%) is appropriate.

Level of Bad Loans: SBK has a high level of bad loans (3.8%).


Next Steps

Dividend

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

6.84%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SBK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SBK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SBK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SBK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SBK is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SBK's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Sim Tshabalala (52yo)

7.17yrs

Tenure

R49,196,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Sim's total compensation ($USD2.82M) is about average for companies of similar size in the ZA market ($USD2.59M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Simpiwe Tshabalala
Group Chief Executive & Director7.17yrsR49.20m0.029% ZAR47.1m
Arno Daehnke
Group Financial Director & Executive Director4yrsR33.21m0.016% ZAR26.7m
Kenny Fihla
Chief Executive of Corporate and Investment Banking (CIB)3yrsR37.03mno data
Margaret Nienaber
Chief Executive of Wealth3.5yrsR36.50mno data
Zweli Manyathi
Chief Executive of Personal & Business Banking Group2.08yrsR37.20mno data
Alpheus Mangale
Group Chief Information Officer2.83yrsno datano data
Sarah Rivett-Carnac
Head of Investor Relationsno datano datano data
Isabel Lawrence
Group Chief Compliance & Data Officer8.33yrsno datano data
Rene Du Preez
Group General Counsel1.92yrsno datano data
Thulani Sibeko
Group Head of Marketing & Communication1.5yrsno datano data

3.0yrs

Average Tenure

51yo

Average Age

Experienced Management: SBK's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simpiwe Tshabalala
Group Chief Executive & Director7.17yrsR49.20m0.029% ZAR47.1m
Arno Daehnke
Group Financial Director & Executive Director4yrsR33.21m0.016% ZAR26.7m
John Maree
Deputy Chairman of the Board3.5yrsR4.65mno data
Peter Sullivan
Lead Independent Non-Executive Director2.5yrsR3.36mno data
Myles John Denniss Ruck
Independent Non-Executive Director18.33yrsR3.19m0.0016% ZAR2.6m
Thulani Gcabashe
Independent Chairman of the Board5yrsR7.13m0.0039% ZAR6.3m
Kgomotso Moroka
Non-Executive Director16.83yrsR1.41mno data
André Parker
Independent Non-Executive Director6.17yrsR1.25mno data
Atedo Nari Peterside
Independent Non-Executive Director5.75yrsR2.60mno data
Gesina Maria Kennealy
Independent Non-Executive Director3.5yrsR1.90mno data

5.4yrs

Average Tenure

63yo

Average Age

Experienced Board: SBK's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SBK insiders have bought more shares than they have sold 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 company bio, 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: R162.707b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBGO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SKC2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SNBNMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARJan 1992
SBKJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992
SGBL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2009

Biography

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, and foreign exchange and Shariah banking services; home loans, personal loans, vehicle financing, 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 accounts and cards, attorney accounts, and merchant and cash solutions; loans, overdrafts, revolving credit plans, vehicle and asset finance, debtor finance, and commercial property finance; savings and investment accounts, financial planning, payments, cash and fleet management, merchant, debit order, and other special services; pay and incentive cards; and business, corporate risks, agricultural, vehicles, commercial property, engineering risks, new contracts, cargo, cash, events and directors and officers liability insurance services. The company also provides trading and risk management solutions across financial markets, including foreign exchange, money markets, interest rates, equities, and credit and commodities; international trade finance, working capital, and investor service solutions; advisory and financing solutions, such as term lending, and structured and specialized products across the equity and debt capital markets for governments, parastatals, larger corporates, financial institutions, and multinational corporates. In addition, it offers wealth management products and services; and online, mobile, and telephone banking services. Standard Bank Group Limited was founded in 1862 and is headquartered in Johannesburg, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 18:32
End of Day Share Price2020/05/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.