Nedcor is now stable but there is still much to do to restore the South African bank’s performance, Jim Sutcliffe — CEO of Nedcor’s United Kingdom-listed parent, Old Mutual — said on Tuesday. "But we can now concentrate on the future rather than the past," he added.
While real gross domestic expenditure is expected to grow by 4,5% this year, South Africa’s overall economy might fail to grow to grow faster than 2,7% this year due to a negative contribution from net exports, the Bureau for Economic Research said on Tuesday. South Africa also runs the risk of balance of payments problems.
If the special dividends that Mutual & Federal has paid out in the past five years are anything to go by, it is not difficult — as some analysts point out — to understand why London-listed South African financial services giant Old Mutual wants all of the short-term insurer.
The change of guard at Absa won’t see any change in the South African banking group’s policy on internationalisation. Instead, it prefers to remain fundamentally a homespun operation, focusing instead on expanding its foothold in the retail banking sphere and growing returns from its African operations.
Standard Bank is looking to raise R2-billion in Tier I capital through a proposed preference share issue. "The group is looking to raise cost-effective Tier I capital as part of its capital management programme together with providing the company with funding for strategic initiatives," Standard Bank said on Monday.
A major empowerment deal announced by Absa on Tuesday means that the banking group will meet the Financial Sector Charter target of 10% direct black ownership. Chief executive Nallie Bosman also believes the transaction places Absa on a firm footing for ongoing transformation of the group.
Standard Bank — one of South Africa’s so-called "big four" banking groups — cannot be accused of not delivering on its promises. A year ago, the bank published what it referred to as its medium-term financial objectives. On Wednesday, Standard Bank CEO Jacko Maree disclosed that all of the targets had been met.
Analysts are expecting another strong performance from Standard Bank when it presents its results for the year to December on Wednesday — underpinned once again by strong advances growth. Dividend per share is expected to be up by about 21% from 124 cents to about 150 cents a share.
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/ 10 November 2003
The rand was still trading below the R7 per dollar level in late afternoon trade on Monday, capitalising on the euro’s recovery against the dollar after a six-week worst level against the United States unit on Friday. The rand frequently takes its cue from the euro, gaining or losing in tandem against the dollar.
The tussle for media group New Africa Investments Limited (Nail) has hotted up with Phaphama Holdings, Nail’s controlling shareholder, announcing that it plans to support the Tiso consortium in its bid for Nail. The Tiso consortium is one of two consortia bidding for the media group.