Mike Brown is CEO of Nedbank. BUSINESS DAY TV: South African banking stocks have been under pressure for the past week following the axing of Pravin Gordhan as finance minister and the subsequent ratings downgrade by Standard & Poor’s. The new finance minister Malusi Gigaba admits that the rating is a setback but there’s no need to worry, he says. Joining us to find out if he’s worried about the downgrade and its effects is Mike Brown, CEO of Nedbank. So we were actually talking about the banking shares today and they’ve held up incredibly well given what’s gone down over the past 24 hours, but I suppose a lot of this has been priced in because we have been expecting the Cabinet reshuffle and the possibility of a downgrade for at least the past year. MIKE BROWN: That’s exactly right. I’m sure not all of your viewers are complicated banks’ analysts but generally the way people value banks is using a very complicated formula called the Gordon Growth Formula. But one of the biggest inp...
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