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Wed 6 Aug 2025
Close: 23 334c 
Day's move: -73c (-0.31%)
Volume: 1 257 615
Trades: 7 621
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Interest and similar income rose by 1% to R62.0 billion (R61.3 billion) with net interest income inclining by 2% to R21.2 billion (R20.8 billion). Total net income was up 8% to R33.7 billion (R31.1 billion) and profit attributable to ordinary shareholders lowered by 7% to R7.3 billion (R7.9 billion). Additionally, headline earnings per share increased by 6% to 1 800c per share (1 699c per share).
Interim dividend declaration
Notice was given that an interim dividend of 1 028 cents per ordinary share has been declared, payable to shareholders for the 6 months ended 30 June 2025.
Looking forward
Looking forward, the global economic outlook remains subdued and risk elevated as US tariffs are expected to negatively impact business confidence, capital investment, global trade volumes, supply chains and export volumes in most countries. SA's economic recovery is expected to improve, driven by increased consumer spending given higher real incomes, subdued inflation, reduced interest rates and continued withdrawals from contractional savings. However, the 30% tariffs on SA exports to the US, weaker global growth and sluggish commodity prices will likely undermine business confidence, hurt exports and discourage private sector fixed investment. We forecast GDP growth of 1.0% for 2025, followed by 1.5% in 2026, with downside risk. Following the 25 bps interest rate cut in July 2025, we expect rates to remain stable from here. Banking conditions should improve moderately as the year progresses and credit growth is forecast to improve further, supported by the gradual recovery in the domestic economy and lower interest rates.
On the back of the negative impact of a more difficult-than-expected SA environment on revenue growth and the change in our strategy on ETI, we have revised our 2025 guidance. We now expect DHEPS growth for the year to be low single digits and ROE to end the period around 15%. From there we target an improvement in the group's ROE to 17% in the medium term, supported by various growth initiatives and active capital management and offsetting the negative impact of ETI on ROE. In the long term our focus remains on achieving an ROE of more than 18%.
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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