Absa and Sasfin continued on from where Nedbank left off last week by releasing some positive updates. Absa published their interim results today while Sasfin issued a trading statement declaring a change in their investor numbers.
Sasfin is expecting to realize headline earnings per share of between 420c and 451c, a more than 100% improvement from the loss per share of 151c in the corresponding period. Earning per share is expected to range between 231c and 248c, a material difference from the 186cents loss per share recorded in the same period in 2020.
Absa on the other hand would be glad to see operations stabilize after a bruising 2020 that saw no major bank spared. Headline earnings for 1H21 outperformed pre-covid levels at R8.6bn, a more than five-fold increase from 1H20. Revenue growth remained identical at 3% while the board would cherish the Return on Equity (ROE) jump from 2.6% the previous year to 15.3%, which is above the cost of equity and justifies the 310c interim dividend declared by the board. Deposits due surpassed the trillion rand mark and stood at a mammoth R1.01trln, circa R90bn more than 1H20.
It wasn’t all sweet roses for the group as their insurance division lost an aggregate of R300m this year, albeit 50% less than the R600m lost in the corresponding period. Absa also noted an uneven pandemic recovery pace and warned the government more economic interventions are needed to steer the country away from economic armageddon.