Standard Bank warns interim profit could halve
Headline earnings per share for the banking group’s six months to end-June could fall as much as 50%, while Covid-19 uncertainty persists
Standard Bank has warned of that interim profits in the six months to end-June could halve after the Covid-19 pandemic weighed on economic activity and prompted relief efforts for clients.
SA’s hard lockdown in April resulted in a share drop off in transactions and, while activity improved in May and June, it remained below pre-lockdown levels, the banking group said in a trading update.
Headline earnings per share (HEPS) to end-June are expected to be between 30% and 50% lower than the previous period’s 837.4c, with the group warning the pandemic is not yet over.
“Despite considerable effort, the pandemic appears to be gaining momentum in certain of the markets in which the group operates on the continent, particularly in SA,” the group said.
“Elsewhere in the world, countries are battling with a second wave of infections. The path from here remains uncertain and this continues to weigh on sentiment and demand,” the statement read.
Headline earnings is a widely used profit measure in SA, which strips out certain one-off items to give a better indication of the underlying performance of a company.