South African (JSE) Banks Industry Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies5
- 7D-1.6%
- 3M-8.9%
- 1Y-7.5%
- YTD-5.2%
Over the last 7 days, the Banks industry has dropped 1.6%, driven by Standard Bank Group declining 2.4%. Meanwhile, Sasfin Holdings actually outperformed within the industry, gaining 5.4% in the last week. Overall the industry is down 7.5% in 12 months. As for the next few years, earnings are expected to grow by 11% per annum.
Industry Valuation and Performance
Has the South African Banks Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 30 Oct 2023 | R729.2b | R335.7b | R86.4b | 6.9x | 8.4x | 2.2x |
| Wed, 27 Sep 2023 | R750.1b | R334.6b | R86.0b | 7.4x | 8.7x | 2.2x |
| Fri, 25 Aug 2023 | R776.6b | R334.6b | R86.0b | 7.3x | 9x | 2.3x |
| Sun, 23 Jul 2023 | R748.5b | R312.7b | R79.3b | 7.4x | 9.4x | 2.4x |
| Tue, 20 Jun 2023 | R711.0b | R312.7b | R79.3b | 7.6x | 9x | 2.3x |
| Thu, 18 May 2023 | R650.7b | R312.7b | R79.3b | 6.9x | 8.2x | 2.1x |
| Sat, 15 Apr 2023 | R750.4b | R313.0b | R78.9b | 7.5x | 9.5x | 2.4x |
| Mon, 13 Mar 2023 | R752.2b | R310.6b | R78.4b | 7.8x | 9.6x | 2.4x |
| Wed, 08 Feb 2023 | R789.4b | R293.3b | R71.5b | 8.8x | 11x | 2.7x |
| Fri, 06 Jan 2023 | R762.6b | R293.3b | R71.5b | 8.1x | 10.7x | 2.6x |
| Sun, 04 Dec 2022 | R758.3b | R293.3b | R71.5b | 8x | 10.6x | 2.6x |
| Tue, 01 Nov 2022 | R776.3b | R293.3b | R71.5b | 8.3x | 10.9x | 2.6x |
| Thu, 29 Sep 2022 | R696.9b | R292.4b | R70.8b | 7.7x | 9.8x | 2.4x |
| Sat, 27 Aug 2022 | R781.8b | R289.1b | R69.1b | 9.2x | 11.3x | 2.7x |
| Mon, 25 Jul 2022 | R738.9b | R276.9b | R62.5b | 9.2x | 11.8x | 2.7x |
| Wed, 22 Jun 2022 | R764.7b | R276.9b | R62.5b | 10.8x | 12.2x | 2.8x |
| Fri, 20 May 2022 | R759.8b | R276.9b | R62.5b | 9.6x | 12.2x | 2.7x |
| Sun, 17 Apr 2022 | R780.2b | R276.9b | R62.5b | 10x | 12.5x | 2.8x |
| Tue, 15 Mar 2022 | R771.0b | R301.5b | R60.4b | 10.8x | 12.8x | 2.6x |
| Thu, 10 Feb 2022 | R735.9b | R296.1b | R55.5b | 11.8x | 13.3x | 2.5x |
| Sat, 08 Jan 2022 | R710.3b | R296.1b | R55.5b | 11.6x | 12.8x | 2.4x |
| Mon, 06 Dec 2021 | R631.7b | R296.1b | R55.5b | 10.7x | 11.4x | 2.1x |
| Wed, 03 Nov 2021 | R633.1b | R296.1b | R55.5b | 10.9x | 11.4x | 2.1x |
| Fri, 01 Oct 2021 | R653.7b | R290.2b | R52.2b | 11.1x | 12.5x | 2.3x |
| Sun, 29 Aug 2021 | R672.8b | R289.9b | R52.0b | 11.6x | 12.9x | 2.3x |
| Mon, 05 Jul 2021 | R598.3b | R289.9b | R52.0b | 10.2x | 11.5x | 2.1x |
| Thu, 08 Apr 2021 | R539.7b | R275.9b | R41.0b | 12.3x | 13.2x | 2x |
| Sun, 10 Jan 2021 | R533.7b | R261.3b | R29.7b | 16.9x | 18x | 2x |
Price to Earnings Ratio
12.2x
Current Industry PE
- Investors are pessimistic on the South African Banks industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 8.4x which is lower than its 3-year average PE of 11.9x.
- The industry is trading close to its 3-year average PS ratio of 2.3x.
Past Earnings Growth
- The earnings for companies in the Banks industry have grown 36% per year over the last three years.
- Revenues for these companies have grown 8.1% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Financials industry?
| ZA Market | -1.18% | |
| Financials | -1.22% | |
| Banks | -1.62% | |
| Regional Banks | 0% | |
| Diversified Banks | -1.62% | |
Industry PE
- Investors are most optimistic about the Diversified Banks industry even though it's trading below its 3-year average PE ratio of 11.9x.
- Analysts are expecting annual earnings growth of 11.0%, which is lower than the prior year's growth of 14.4% per year.
- Investors are most pessimistic about the Diversified Banks industry, which is trading below its 3-year average of 11.9x.
Forecasted Growth
- Analysts are most optimistic on the Diversified Banks industry, expecting annual earnings growth of 11% over the next 5 years.
- However this is lower than its past earnings growth rate of 14% per year.
- In contrast, the Diversified Banks industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SFN Sasfin Holdings | R29.50 | 5.4% +R46.2m | 9.3% | PB0.5x |