Standard Bank

Banks and insurers reported results to end-June during the quarter. Bank advances growth continues to be driven by corporate lending rather than retail portfolios. Despite the pressure of contracting net interest margins in a lower rate environment, banks have been able to deliver decent earnings growth due to gains in non-interest income (partly driven by strong trading income), good cost control, and declining credit loss ratios. Capital positions remain strong. Both Standard Bank and Nedbank bought back shares during the period, and we expect excess capital returns to continue to be a feature of the sector.

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