Standard Bank paints gloomy picture for H12020

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A logo of Standard Chartered is displayed at its main branch in Hong Kong, China August 1, 2017. REUTERS/Bobby Yip
  • Headlines earnings per share to dip by between 30% and 50%
  • Earnings per share to be between 60% and 80%

Harare – Stanbic parent Standard Bank Group is expecting a drop in profit for the half year period ended 30 June 2020 compared to the same period last year.

The group said headline earnings per share (HEPS) is expected to be between 30% and 50% lower than prior comparable period in 2019, translating into a decrease from the comparative period’s HEPS of 837.4 cents per share to a range of between 586.2 and 418.7 cents per share.

The bank added that, “The group’s earnings per share (EPS) for 1H20, is expected to be between 60% and 80% lower than the comparative period, translating into a decrease from the comparative period’s EPS of 827.0 cents per share to a range of between 330.8 and 165.4 cents per share.”

Standard Bank will release its interim results for the six months period on 20 August 2020.

The group posted reduced volumes in the four months period to 30 April 2020 due to lockdowns which negatively impacted sales, disbursements and transaction activity levels.

The group said the imposed lockdowns have negatively impacted sales, disbursements and transaction activity levels.

According to a trading update, the bank registered a 38% and 61% drop in ATM and branch volumes respectively.

Standard Bank added that while there has been an improvement in activity levels during the course of May, they remain below those seen prior to the lockdown.

In South Africa, the bank said deeds offices and dealerships were closed in April which halted mortgage disbursements and resulted in a more than 70% decline in VAF disbursements compared to March.

However, the bank said loan growth in the first four months of 2020 was robust although it is expected to slow from current levels.

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