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Absa Group

JSE:ABG
Snowflake Description

Good value with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ABG
JSE
ZAR134B
Market Cap
  1. Home
  2. ZA
  3. Banks
Company description

Absa Group Limited provides various financial products and services in South Africa and internationally. The last earnings update was 94 days ago. More info.


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ABG Share Price and Events
7 Day Returns
-0.8%
JSE:ABG
-1.8%
ZA Banks
-1%
ZA Market
1 Year Returns
3.6%
JSE:ABG
6.6%
ZA Banks
-2%
ZA Market
ABG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Absa Group (ABG) -0.8% 0.3% 8.3% 3.6% 4.7% -11.1%
ZA Banks -1.8% 0.9% 9.7% 6.6% 26.3% 34.8%
ZA Market -1% 1.7% -1% -2% 3.2% 2.4%
1 Year Return vs Industry and Market
  • ABG underperformed the Banks industry which returned 6.6% over the past year.
  • ABG outperformed the Market in South Africa which returned -2% over the past year.
Price Volatility
ABG
Industry
5yr Volatility vs Market

ABG Value

 Is Absa Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Absa Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Absa Group.

JSE:ABG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= ZAR134.42 * 16.2%
ZAR21.83
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. ZAR134.42
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year ZA Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for JSE:ABG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year ZA Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.615 (1 + (1- 28%) (139.95%))
1.157
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.157 * 5.96%)
9.63%

Discounted Cash Flow Calculation for JSE:ABG using Excess Returns Model Model

The calculations below outline how an intrinsic value for Absa Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

JSE:ABG Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (16.2% – 9.63%) * ZAR134.42)
ZAR8.89
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ZAR8.89 / (9.63% - 2.73%)
ZAR128.92
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ZAR134.42 + ZAR128.92
ZAR263.34
JSE:ABG Discount to Share Price
Calculation Result
Value per share (ZAR) From above. ZAR263.34
Current discount Discount to share price of ZAR161.30
= -1 x (ZAR161.30 - ZAR263.34) / ZAR263.34
38.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Absa Group is available for.
Intrinsic value
39%
Share price is ZAR161.3 vs Future cash flow value of ZAR263.34
Current Discount Checks
For Absa Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Absa Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Absa Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Absa Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Absa Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
JSE:ABG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in ZAR ZAR17.24
JSE:ABG Share Price ** JSE (2019-11-14) in ZAR ZAR161.3
South Africa Banks Industry PE Ratio Median Figure of 6 Publicly-Listed Banks Companies 8.91x
South Africa Market PE Ratio Median Figure of 207 Publicly-Listed Companies 10.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Absa Group.

JSE:ABG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:ABG Share Price ÷ EPS (both in ZAR)

= 161.3 ÷ 17.24

9.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Absa Group is overvalued based on earnings compared to the ZA Banks industry average.
  • Absa Group is good value based on earnings compared to the South Africa market.
Price based on expected Growth
Does Absa Group's expected growth come at a high price?
Raw Data
JSE:ABG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
9.9%per year
Africa Banks Industry PEG Ratio Median Figure of 38 Publicly-Listed Banks Companies 0.55x
South Africa Market PEG Ratio Median Figure of 75 Publicly-Listed Companies 1.11x

*Line of best fit is calculated by linear regression .

JSE:ABG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.36x ÷ 9.9%

0.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Absa Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Absa Group's assets?
Raw Data
JSE:ABG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in ZAR ZAR135.34
JSE:ABG Share Price * JSE (2019-11-14) in ZAR ZAR161.3
South Africa Banks Industry PB Ratio Median Figure of 6 Publicly-Listed Banks Companies 1.26x
South Africa Market PB Ratio Median Figure of 267 Publicly-Listed Companies 0.89x
JSE:ABG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:ABG Share Price ÷ Book Value per Share (both in ZAR)

= 161.3 ÷ 135.34

1.19x

* Primary Listing of Absa Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Absa Group is good value based on assets compared to the ZA Banks industry average.
X
Value checks
We assess Absa Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Absa Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ABG Future Performance

 How is Absa Group expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Absa Group expected to grow at an attractive rate?
  • Absa Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Absa Group's earnings growth is positive but not above the South Africa market average.
  • Absa Group's revenue growth is positive but not above the South Africa market average.
Annual Growth Rates Comparison
Raw Data
JSE:ABG Future Growth Rates Data Sources
Data Point Source Value (per year)
JSE:ABG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 9.9%
JSE:ABG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 7.8%
South Africa Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
Africa Banks Industry Revenue Growth Rate Market Cap Weighted Average 10.4%
South Africa Market Earnings Growth Rate Market Cap Weighted Average 16.8%
South Africa Market Revenue Growth Rate Market Cap Weighted Average 8.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
JSE:ABG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
JSE:ABG Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 91,620 19,369 8
2020-12-31 85,309 17,827 8
2019-12-31 79,720 16,327 8
2019-11-15
JSE:ABG Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-06-30 71,411 17,572 14,305
2019-03-31 70,782 15,728 14,111
2018-12-31 70,153 13,884 13,917
2018-09-30 69,060 5,402 13,818
2018-06-30 67,966 -3,081 13,718
2018-03-31 67,117 -1,808 13,803
2017-12-31 66,268 -534 13,888
2017-09-30 65,526 -13,482 14,484
2017-06-30 64,828 11,429 15,112
2017-03-31 64,173 13,242 14,910
2016-12-31 63,517 15,054 14,708
2016-09-30 63,039 -15,124 14,644

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Absa Group's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
  • Absa Group's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
JSE:ABG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Absa Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:ABG Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 23.01 24.09 21.23 5.00
2020-12-31 21.01 21.57 19.99 6.00
2019-12-31 19.41 20.09 18.33 4.00
2019-11-15
JSE:ABG Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-06-30 17.24
2019-03-31 17.00
2018-12-31 16.77
2018-09-30 16.62
2018-06-30 16.47
2018-03-31 16.57
2017-12-31 16.66
2017-09-30 17.50
2017-06-30 18.26
2017-03-31 17.95
2016-12-31 17.64
2016-09-30 17.43

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Absa Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Absa Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the South Africa market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Africa market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Absa Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ABG Past Performance

  How has Absa Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Absa Group's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Absa Group's year on year earnings growth rate has been positive over the past 5 years.
  • Absa Group's 1-year earnings growth exceeds its 5-year average (4.3% vs 1.3%)
  • Absa Group's earnings growth has not exceeded the ZA Banks industry average in the past year (4.3% vs 4.7%).
Earnings and Revenue History
Absa Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Absa Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:ABG Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 71,411.00 14,305.00 4,202.00
2019-03-31 70,782.00 14,111.00 3,885.50
2018-12-31 70,153.00 13,917.00 3,569.00
2018-09-30 69,059.50 13,817.50 1,867.50
2018-06-30 67,966.00 13,718.00 1,799.00
2018-03-31 67,117.00 13,803.00 2,599.00
2017-12-31 66,268.00 13,888.00 3,399.00
2017-09-30 65,525.50 14,483.50 4,791.50
2017-06-30 64,828.00 15,112.00 4,691.00
2017-03-31 64,172.50 14,910.00 4,299.50
2016-12-31 63,517.00 14,708.00 3,908.00
2016-09-30 63,038.50 14,644.00 4,412.05
2016-06-30 62,560.00 14,580.00 4,916.10
2016-03-31 61,401.50 14,455.50 4,507.60
2015-12-31 60,243.00 14,331.00 4,099.10
2015-09-30 59,410.00 14,075.50 3,942.55
2015-06-30 58,577.00 13,820.00 3,786.00
2015-03-31 57,698.50 13,518.00 3,786.00
2014-12-31 56,820.00 13,216.00 3,786.00
2014-09-30 55,778.00 12,885.00 2,384.00
2014-06-30 54,734.00 12,554.00 1,783.00
2014-03-31 53,544.50 12,267.50 2,504.00
2013-12-31 52,355.00 11,981.00 3,225.00
2013-09-30 52,130.50 11,701.50 1,537.50
2013-06-30 51,844.00 11,422.00 2,937.00
2013-03-31 48,982.50 10,710.50 2,776.50
2012-12-31 46,121.00 9,999.00 2,754.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Absa Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Absa Group used its assets less efficiently than the ZA Banks industry average last year based on Return on Assets.
  • Unable to establish if Absa Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Absa Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Absa Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ABG Health

 How is Absa Group's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Absa Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Absa Group Company Filings, last reported 4 months ago.

JSE:ABG Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 126,309.00 187,557.00 198,067.00
2019-03-31 126,309.00 187,557.00 198,067.00
2018-12-31 121,606.00 195,332.00 178,888.00
2018-09-30 121,606.00 195,332.00 178,888.00
2018-06-30 119,519.00 244,282.00 166,798.00
2018-03-31 119,519.00 244,282.00 166,798.00
2017-12-31 119,258.00 159,966.00 171,492.00
2017-09-30 119,060.00 237,258.00 171,552.00
2017-06-30 116,331.00 210,347.00 147,273.00
2017-03-31 116,331.00 210,347.00 147,273.00
2016-12-31 102,280.00 221,451.00 131,870.00
2016-09-30 102,280.00 221,451.00 131,870.00
2016-06-30 100,675.00 208,617.00 132,060.00
2016-03-31 100,675.00 208,617.00 132,060.00
2015-12-31 98,647.00 259,475.00 181,090.00
2015-09-30 98,647.00 259,475.00 181,090.00
2015-06-30 91,859.00 133,452.00 105,478.00
2015-03-31 91,859.00 133,452.00 105,478.00
2014-12-31 90,945.00 185,170.00 115,312.00
2014-09-30 90,945.00 122,048.00 115,293.00
2014-06-30 86,282.00 125,073.00 105,488.00
2014-03-31 86,282.00 125,073.00 105,488.00
2013-12-31 85,201.00 183,042.00 111,887.00
2013-09-30 85,201.00 116,745.00 107,972.00
2013-06-30 73,664.00 128,210.00 100,787.00
2013-03-31 73,664.00 128,210.00 100,787.00
2012-12-31 84,445.00 190,847.00 111,504.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Absa Group has an acceptable proportion of non-loan assets held.
  • Absa Group's liabilities are made up of primarily low risk sources of funding.
  • Loans at Absa Group are broadly funded by customer deposits.
  • Absa Group's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Absa Group has a low allowance for bad loans.
  • Absa Group has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Absa Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Absa Group has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ABG Dividends

 What is Absa Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.88%
Current annual income from Absa Group dividends. Estimated to be 7.76% next year.
If you bought ZAR2,000 of Absa Group shares you are expected to receive ZAR138 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Absa Group's pays a higher dividend yield than the bottom 25% of dividend payers in South Africa (3.3%).
  • Absa Group's dividend is below the markets top 25% of dividend payers in South Africa (8.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
JSE:ABG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
South Africa Banks Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.9%
South Africa Market Average Dividend Yield Market Cap Weighted Average of 179 Stocks 4%
South Africa Minimum Threshold Dividend Yield 10th Percentile 1.9%
South Africa Bottom 25% Dividend Yield 25th Percentile 3.3%
South Africa Top 25% Dividend Yield 75th Percentile 8.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

JSE:ABG Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 13.55 10.00
2020-12-31 12.43 11.00
2019-12-31 11.59 10.00
2019-11-15
JSE:ABG Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-03-11 11.100 6.861
2018-03-01 10.700 6.464
2017-02-23 10.300 6.750
2017-02-22 10.300 6.552
2016-04-01 10.000 6.583
2016-03-02 10.000 7.061
2016-03-01 10.000 7.062
2015-04-01 9.250 5.561
2015-03-03 9.250 5.095
2014-07-30 8.700 5.021
2014-02-11 8.200 5.420
2013-07-30 7.190 5.182
2013-02-12 6.840 4.554
2012-07-27 7.070 4.812
2012-02-10 7.840 5.185
2011-08-02 5.840 4.183
2011-04-15 4.550 3.382
2011-02-15 4.550 3.468
2010-04-21 4.450 3.361
2010-03-01 4.450 3.189
2010-02-16 4.450 3.341
2009-08-03 5.550 4.398
2009-02-10 5.950 5.958

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Absa Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Absa Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Absa Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Absa Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ABG Management

 What is the CEO of Absa Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
René van Wyk
AGE 63
TENURE AS CEO 0.7 years
CEO Bio

Mr. René van Wyk, BCom, BCompt (Hons), CA(SA), AMP has been Group Interim Chief Executive Officer at Absa Group Ltd. and Absa Bank Ltd. since March 01, 2019. Mr. van Wyk has been Executive Director at Absa Group Ltd. and at Absa Bank Ltd. Mr. van Wyk serves as the Chief Executive Officer and Executive Director at IBL Asset Finance and Services Limited. Mr. van Wyk served as Head of Bank Supervision Department at South African Reserve Bank since November 1, 2011 until May 2016. Previously, he served as Executive Head of Risk at Nedbank Capital. Prior to that, he had held various senior positions in the Nedbank Group since 1993, including Chief Executive Officer of Imperial Bank, a subsidiary of Nedbank and was a partner in KPMG before joining Nedbank. He has been an Executive Director at Absa Bank Limited and Absa Group Ltd since February 1, 2019. He served as Independent Non-Executive Director at Absa Bank Limited and Absa Group Ltd since February 1, 2017 until February 1, 2019. He has been Independent Non-Executive Director at Barclays Africa Group Limited since February 1, 2017. He holds BCompt and BCompt (Honours) degrees and is a chartered accountant.

CEO Compensation
  • Insufficient data for René to compare compensation growth.
  • Insufficient data for René to establish whether their remuneration is reasonable compared to companies of similar size in South Africa.
Management Team Tenure

Average tenure and age of the Absa Group management team in years:

1.5
Average Tenure
56
Average Age
  • The average tenure for the Absa Group management team is less than 2 years, this suggests a new team.
Management Team

Jason Quinn

TITLE
Group Finance Director & Executive Director
COMPENSATION
ZAR16M
AGE
59
TENURE
3.2 yrs

Peter Matlare

TITLE
Deputy CEO of Regional Operations & Executive Director
COMPENSATION
ZAR20M
AGE
59
TENURE
3.3 yrs

René van Wyk

TITLE
Interim CEO & Executive Director
AGE
63
TENURE
0.7 yrs

Alan Hartdegen

TITLE
Head of Investor Relations

Charles Wheeler

TITLE
General Counsel & Acting Head of Compliance
AGE
54
TENURE
6.8 yrs

Roze Phillips

TITLE
Group Executive of People & Culture
AGE
49
TENURE
0.6 yrs

Charles Russon

TITLE
Chief Executive of Corporate & Investment Bank
AGE
52
TENURE
1.3 yrs

Arrie Rautenbach

TITLE
Chief Executive of Retail & Business Banking - South Africa
AGE
53
TENURE
1.7 yrs

Paul O'Flaherty

TITLE
Chief Executive of Engineering Services
COMPENSATION
ZAR2M
AGE
56
TENURE
1 yrs

August van Heerden

TITLE
Chief Risk Officer
AGE
57
Board of Directors Tenure

Average tenure and age of the Absa Group board of directors in years:

5.1
Average Tenure
61
Average Age
  • The tenure for the Absa Group board of directors is about average.
Board of Directors

WE Lucas-Bull

TITLE
Independent Non-Executive Chairman
COMPENSATION
ZAR5M
AGE
65
TENURE
6.6 yrs

Jason Quinn

TITLE
Group Finance Director & Executive Director
COMPENSATION
ZAR16M
AGE
59
TENURE
3.2 yrs

Peter Matlare

TITLE
Deputy CEO of Regional Operations & Executive Director
COMPENSATION
ZAR20M
AGE
59
TENURE
7.9 yrs

René van Wyk

TITLE
Interim CEO & Executive Director
AGE
63
TENURE
2.8 yrs

Mohamed Husain

TITLE
Lead Independent Director
COMPENSATION
ZAR2M
AGE
59
TENURE
1.4 yrs

Colin Beggs

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR3M
AGE
71
TENURE
9.4 yrs

Mark Merson

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR876K
AGE
50
TENURE
5.8 yrs

Alex Darko

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
66
TENURE
5.1 yrs

Francis Okomo-Okello

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR628K
AGE
69
TENURE
5.1 yrs

Daisy Naidoo

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR600K
AGE
47
TENURE
3.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (ZAR) Value (ZAR)
X
Management checks
We assess Absa Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Absa Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ABG News

Simply Wall St News

ABG Company Info

Description

Absa Group Limited provides various financial products and services in South Africa and internationally. It offers personal and business banking, corporate and investment banking, wealth and investment management, and insurance services. The company offers retail and business banking products and services to individual, enterprise, and commercial customers, including residential property-related finance solutions; vehicle and asset finance products and services; credit cards and merchant acquiring solutions; personal loans; short-term insurance products; and transactional banking, savings, and investment products and services. It also provides business banking products and services, such as debt, deposit, and transactional products; commercial property finance, term and agriculture loans, and overdraft services; term, notice, fixed, cheque, savings and transmission, and call deposits; and transactional products and electronic banking services. In addition, the company offers investment banking services; private equity and infrastructure investments; corporate banking products and services; and wealth management services, which comprise advice-led private client asset management, risk management, structured lending, and stock broking solutions to the wealth segment. Further, it provides life insurance products covering death, disability and retrenchment, funeral, and investment products; investments, such as asset management, multi management, unit trusts, and linked investment products; risk management, structured lending, and stockbroking solutions; and fiduciary and financial advisory services. Additionally, the company offers market services; trade and working capital solutions; and cash management, payment, and liquidity products and solutions. The company was formerly known as Barclays Africa Group Limited and changed its name to Absa Group Limited in May 2018. The company was founded in 1986 and is headquartered in Johannesburg, South Africa.

Details
Name: Absa Group Limited
ABG
Exchange: JSE
Founded: 1986
ZAR134,013,879,705
830,836,204
Website: http://www.absa.africa
Address: Absa Group Limited
Absa Towers West,
7th Floor,
Johannesburg,
Gauteng, 2001,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE ABG Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 01. Jan 1992
OTCPK AGRP.F Ordinary Shares Pink Sheets LLC US USD 01. Jan 1992
DB AU61 Ordinary Shares Deutsche Boerse AG DE EUR 01. Jan 1992
OTCPK AGRP.Y SPONSORED ADR Pink Sheets LLC US USD 29. Jun 2003
Number of employees
Current staff
Staff numbers
40,856
Absa Group employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 16:32
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/11/13
Last earnings filing: 2019/08/13
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.