Absa (AGRPY, $22.18) earnings double in 2021
Absa Group headline earnings more than doubled to R18.6 billion in 2021 (R8 billion in 2020), on the back of an increase in pre-provision profit and reduction in the impairments charge.
Absa generates most of its income from South Africa. The country’s gross domestic product strengthened from a low base in 2020 and experienced upward momentum for most of the year.
Revenue growth came in at +6%, or +8% in constant currency, bolstered by strong growth in net interest income (+9%).
Non-interest income was close to 2020 levels. The adverse impact of Covid-19-related claims in the insurance business offset strong income increases in areas including Global Markets.
For 2022, Absa expects high single-digit revenue growth, and return on equity at similar levels to 2021.
“While the outlook for the global economy in 2022 is particularly uncertain, we feel positive about the strong base that we have built in the past few years and how this has positioned us to deliver on our strategic objectives,” said Jason Quinn, Absa Interim Group Chief Executive. “We will pursue growth opportunities appropriate to the environment and shore up buffers as needed to ensure that the bank remains resilient.”
The most notable companies in this group are PNC Financial Services Group (NYSE:PNC), Itau Unibanco Holding SA (NYSE:ITUB), US Bancorp (NYSE:USB), Banco Bradesco SA (NYSE:BBD), Deutsche Bank Aktiengesellschaft (NYSE:DB), Regions Financial Corp (NYSE:RF), Huntington Bancshares (NASDAQ:HBAN), KeyCorp (NYSE:KEY), Veritex Holdings (NASDAQ:VBTX).
Regional banks have a smaller reach than major banks, and cater mostly to one region of a country, such as a state or within a group of states. They offer services often similar – albeit with some limitations/smaller scale – compared to major banks. Taking deposits, making loans, mortgages, leases, credit cards , fund management, insurance and investment banking. SunTrust Banks, State Street Corp., M&T Bank Corp. are some examples of U.S. regional banks.
The average market capitalization across the Regional Banks Industry is 5.01B. The market cap for tickers in the group ranges from 10.73K to 117.6B. CIHKY holds the highest valuation in this group at 117.6B. The lowest valued company is ACBCQ at 10.73K.
High and low price notable news
The average weekly price growth across all stocks in the Regional Banks Industry was 1%. For the same Industry, the average monthly price growth was 3%, and the average quarterly price growth was -8%. MNBO experienced the highest price growth at 31%, while FRCB experienced the biggest fall at -22%.
The average weekly volume growth across all stocks in the Regional Banks Industry was 25%. For the same stocks of the Industry, the average monthly volume growth was -55% and the average quarterly volume growth was 22%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 50
P/E Growth Rating: 68
Price Growth Rating: 61
SMR Rating: 37
Profit Risk Rating: 84
Seasonality Score: -15 (-100 ... +100)