Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

South Africa's Standard Bank warns of up to 50% profit slump

share with twitter share with LinkedIn share with facebook
07/29/2020 | 01:27am EDT
The logo of South Africa's Standard Bank is seen above the company's headquarters in Cape Town

South Africa's Standard Bank said on Wednesday that its half-year profit could drop by as much as 50% as the coronavirus crisis hits its business.

Africa's biggest bank by assets, along with all of South Africa's major lenders, had already warned that profits would likely be at least 20% lower, with the pandemic prompting a spike in bad loans and also hitting new business and fee income from transactions.

Its headline earnings per share - the main profit measure in South Africa - for the six months to June 30 would likely fall by between 30% and 50%, compared to the 837.4 cents it reported in the same period last year, it said in a trading update.

"The group remained well capitalised and liquid," it continued.

South African lenders, which managed to shield themselves from the more devastating impact of the 2008-2009 financial crisis, are now facing one of their biggest ever hits to profits as a result of the pandemic.

South Africa's economy, already in recession, is forecast to decline by over 7% this year, according to the central bank, and the Banking Association of South Africa has warned problem loans could rise to their highest ever level of 10%.

Standard Bank did however say it is set to benefit from a bigger than expected gain on the sale of its 20% stake in ICBC Argentina to the Industrial and Commercial Bank of China, thanks to the slump in South Africa's rand.

The group will now get 1.4 billion rand ($85.06 million) as a result, rather than 600 million rand.

($1 = 16.4591 rand)

(Reporting by Emma Rumney; Editing by Olivia Kumwenda-Mtambo, Kenneth Maxwell and Louise Heavens)


Stocks mentioned in the article
ChangeLast1st jan.
BANK OF CHINA LIMITED -1.55% 2.54 End-of-day quote.-23.72%
DOW JONES AFRICA TITANS 50 INDEX 0.59% 488.15 Delayed Quote.-9.31%
EURO / ARGENTINE PESO (EUR/ARS) 0.28% 91.9185 Delayed Quote.35.98%
US DOLLAR / ARGENTINE PESO (USD/ARS) 0.15% 77.62 Delayed Quote.29.59%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
01:26aAsian stocks gain, yuan soars as traders bet on U.S. stimulus, again
RE
01:25aAustralia orders regulatory review of payments network
RE
01:22aWorld trade rebounding slowly, outlook uncertain - U.N. report
RE
01:20aThailand welcomes tourists back as Bangkok protests heat up
RE
01:20aAUSTRALIAN COMPETITION AND CONSUMER COMMISSION : Report on modelling of the Regional Broadband Scheme Levy initial base component
PU
01:19aCathay pacific chairman says cathay dragon fleet including a321neos on order will be incorporated into cathay pacific fleet
RE
01:18aCathay pacific chairman says will be 'substantial savings' from combining cathay dragon fleet, marketing with cathay pacific
RE
01:16aNEWS HIGHLIGHTS : Top Company News of the Day
DJ
01:16aNEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
01:14aCathay pacific chairman says delivery of boeing 777-9 fleet postponed beyond 2025
RE
Latest news "Economy & Forex"