Ray Faure

South African banking group FirstRand put an end to speculation late on Friday, saying it is not in talks with United States-based Citigroup. Rumours earlier this week that FirstRand could be a possible takeover target by the US bank — the world’s largest — saw a surge in the local bank’s shares.

A probe by the Competition Commission has revealed that most South African car manufacturers and their franchised dealers have been guilty of price-fixing and anti-competitive practices.The commission also said its analysis thus far indicates that prices of new cars in South Africa are much higher than in other countries.

Rail, road and freight transport group Super Group lifted headline earnings per share by 5% from 123,8 cents to 129,5 cents for the 12 months ended March. It is the 18th consecutive year that the group has delivered solid growth from operations. Revenue increased 19% to R8,3-billion.

South African’s biggest retail bank, Absa — in which British banking group Barclays is acquiring a 60% stake — boosted headline earnings by 23,3% from R4,447-billion to R5,484-billion for the year to the end of March. This translated into headline earnings per share of 841 cents, which represents a 22,1% increase on last year’s 688,5 cents.

The South African rand weakened to its worst level since October 15 last year in afternoon trade on Friday on the back of a break in the euro below $1,26. Market analysts expected the local unit to continue to lose ground going into the new week. The rand weakened to R6,5581 as the euro came under pressure.

International specialist banking group Investec CEO Stephen Koseff believes the hard work of the past few years and the group’s focus on its core businesses has paid off. "We have achieved the majority of our stated growth and financial return objectives, and we have made significant progress towards achieving the others," he says.

Buoyed by positive economic conditions and demand for credit, the country’s biggest microlender, African Bank Investments Limited (Abil), boosted headline earnings by 30% from R327-million to R424-million for the six months ended March. This translated into headline earnings per share of 90,2 cents.

The broad-based black equity ownership programme announced by the country’s biggest microlender, African Bank Investments Limited (Abil) on Monday, could potentially reach more than 30 000 people, according to Abil. The deal is valued at about R600-million.

The expected R33-billion inflow from the Barclays/Absa deal could boost South Africa’s gross domestic product growth by as much as 0,5% for a couple of years, according to Absa’s chief economist, Christo Luus. He says Barclays’ bid for a 60% stake in local bank Absa reflects heightened foreign investor confidence in the local economy.

Further news on United Kingdom banking group Barclays’ proposed bid for a 60% stake in South Africa’s biggest retail bank, Absa, is likely to be forthcoming early next week, sources close to the deal intimated on Thursday. According to the sources, Absa’s board will hold a special meeting on Friday.

The JSE Securities Exchange (JSE) was firm across the board in noon trade on Friday — this despite a firmer rand and the fact that United States stocks ended lower on Thursday. At noon, the all-share and all-share industrial indexes were up 0,78% and 0,38% respectively.

The JSE Securities Exchange (JSE) was down by more than 1,5% in noon trade on Thursday after resources plunged by more than 3%. At noon, the all-share and all-share industrial indices were down 1,61% and 0,65% respectively. Financials dropped by 0,37% and the banks index was 0,67% lower.

Despite the reported haggling about a price, economist and analyst Dr Iraj Abedian believes there is little chance of United Kingdom banking group Barclays’ bid for a 60% stake in South Africa’s biggest retail bank, Absa, being scuppered. "It’s just too good a deal to walk away from," he told a television interviewer.

The black economic empowerment (BEE) deal announced on Tuesday by banking group Nedcor fulfils the group’s objective of exceeding the ownership targets of the Financial Sector Charter, Nedcor CEO Tom Boardman said. "This is a truly broad-based empowerment transaction," he said.

Although the year has not yet ended, specialist banker Investec has had a good second half so far and is on track to deliver a strong performance for the financial year ended March 31 2005, Investec CEO Stephen Koseff said on Monday. "We have benefited from our continued strict focus on driving profitable growth in our key business areas and geographies," he said.

FirstRand CEO Laurie Dippenaar believes the financial services group is more focused after a recent brand alignment, and that, barring any "unforeseen external shocks", it is also well positioned to achieve its stated objective of 10% real growth. FirstRand lifted attributable profits by a whopping 23% to R2,8-billion for the six months ended December.

One of the country’s most established banks, Mercantile Lisbon Bank, has undergone a complete makeover and hopes to return to profitability this year. As part of the makeover, it has changed its name to simply Mercantile Bank and exchanged its somewhat staid image for a fresh look to match the new course on which it is embarking.

The recovery programme implemented by South African banking group Nedcor in 2004 is delivering tangible benefits as is evidenced by the vastly improved results for the past financial year, which saw headline earnings grow from R55-million to R1,45-billion. CEO Tom Boardman says the group has delivered on its commitment made to shareholders.

The JSE Securities Exchange (JSE) was flat and very much a mixed bag in noon trade on Friday, with little or anything to drive the market as players took a bit of a breather after the bourse’s recent record highs. At 12.10pm, the all-share index was flat (0,02%). Industrials were 0,24% stronger.

South African financial services and insurance giant Old Mutual plc said on Wednesday it had hoped to make an announcement on a black economic empowerment (BEE) deal before the end of this year but will have to postpone this until next year. "We’ve been a bit optimistic," said the group’s financial director.

As the tit-for-tat war between South African gold-mining giants Harmony and Gold Fields raged on, Gold Fields chairperson Chris Thompson made an impassioned appeal on Tuesday to shareholders to reject Harmony’s hostile bid for Gold Fields, saying it has already destroyed R7-billion in combined potential value for shareholders.
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A softer rand saw the JSE Securities Exchange (JSE) soar to yet another fresh high on Wednesday, continuing Tuesday’s record-breaking run achieved in the wake of technical glitches that halted trading for more than two hours. On Tuesday, the all-share, industrial, banks and financial indices touched record highs.

The JSE Securities Exchange (JSE) was firmer in noon trade on Monday on the back of a weaker rand, despite the dollar remaining under pressure with ongoing concerns over the United States economy, particularly its huge deficits. At 12.15pm, the all-share index was up 0,19%, while the industrial index was down 0,29%.

South African banking group FirstRand announced on Thursday that black economic empowerment (BEE) groupings will acquire 10% of the group. A binding memorandum of understanding has been entered into with BEE partners and discussions with a number of third-party funders are at an advanced stage, it said.

First National Bank (FNB) — one of the country’s so-called "big four" banks and a wholly-owned subsidiary of FirstRand — has quietly been undergoing a makeover. The group is realigning its retail and corporate divisions in a move that newly appointed CEO Michael Jordaan says is aimed primarily at growth.

The Absa group’s separately branded specialist bank, MLS Bank, will be integrated into the Absa brand over the course of the next few months, in line with the group’s powerful single-brand strategy. The group said on Monday that the niche market of medical professionals currently serviced by MLS will continue to receive specialist attention.

Affordable banking in the form of the Mzansi national account — an initiative by the country’s major banks to reach the country’s estimated 13-million unbanked — became a reality on Monday. The account will be offered by South Africa’s so-called "big four" banks — Absa, Nedbank, First National Bank and Standard Bank.
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