COMPANY BRIEFS
Investec eyes business banking for growth
Investment banking giant Investec is not concerned that an expected drop in interest rates could impact its sound revenue and profit growth as it has enough growth opportunities across its business. One area of growth it plans to target in the year ahead is business banking.
That’s the word from Investec Bank CEO Cumesh Moodliar, speaking to Moneyweb following the release of the group’s latest annual results on Thursday.
He says Investec’s business transactional banking service is premised around its private banking operation, which its clients associate with higher service levels and support and personal relationships.
“Many of our clients have their own businesses, they may be MDs, and they want that kind of relationship for their businesses as well.”
Investec recorded robust performance for the full year ended 31 March 2024, underpinned by the strong showing in its corporate client franchises in both South Africa and the UK, as well as Investec Wealth & Investment in South Africa.
During its 2024 financial year (ended March) Investec recorded revenue growth of 5.7% in the specialist banking space in southern Africa.
This was primarily driven by higher average interest-earning assets, positive endowment effect from higher interest rates, increased client activity, and continued client acquisition.
The group also continued to grow its mortgage book to just over 7.3% amid high interest rates and tough economic conditions.
Nvidia forecasts R517 billion in sales
Shares of Nvidia, the chipmaker at the centre of an artificial intelligence (AI) boom, surged on Thursday after a bullish sales forecast showed that AI computing spending remains strong.
Second-quarter revenue will be about $28 billion (R517 billion), the company said Wednesday, topping the $26.8 billion predicted by analysts.
Results in the fiscal first quarter, which ended April 28, also beat projections — lifted by growth in Nvidia’s data-centre division.
The big question heading into the earnings report was whether Nvidia’s latest numbers could justify the dizzying run-up in its stock.
The shares had gained 92% this year through Wednesday’s close, fueled by investor hopes that the company would continue to shatter expectations.
The report didn’t disappoint, and chief executive officer Jensen Huang stoked the excitement by talking about the dawning of a new era.
“This is the beginning of a new industrial revolution,” he said in an interview, echoing one of his favorite themes.
“This is really exciting.”
The shares rose 9.3% to $1,037.99 on Thursday, adding nearly $220 billion to Nvidia’s valuation.
That’s far more than the entire market capitalization of Intel, a chipmaker that once dwarfed Nvidia by every measure.
-BLOOMBERG-
South Africa's central bank to hold benchmark rate at 8.25% on May 30: Reuters poll
South Africa's central bank will hold its benchmark interest rate at 8.25% on May 30, the day after the country's general election, before likely beginning an easing cycle next quarter as inflation retreats back to target.
All 20 economists in a May 20-23 Reuters poll said the South African Reserve Bank (SARB) will leave the benchmark rate unchanged at the conclusion of its meeting next Thursday.
They were divided on future moves, however, with eight of 17 believing rates would be cut by 25 basis points (bp) to 8.00% either in July or September, while another eight expected no change next quarter and one saw a 50 bp cut to 7.75%.
Eight of nine economists said the Bank was more likely to cut rates fewer times this year than they expect, rather than more times.
Elna Moolman, Standard Bank's head of macro, fixed income and currency research, said that by the September meeting inflation should be on the "brink of sustainably reaching" the mid-point of the SARB's 3-6% target band, making it hard for the central bank to justify keeping real rates high and restrictive.
-REUTERS-
China's CNOOC signs oil exploration, production contracts with Mozambique
State-run China National Offshore Oil Co said on Friday it had signed oil exploration and production concession contracts with Mozambique's energy ministry and national energy company ENH.
The contract is for five offshore blocks in waters off the African nation and covers a total area of about 29,000 sq km (11,200 sq miles) with water depths from 500 m to 2,500 m (1,640 ft to 8,202 ft), it said in a statement.
Investment banking giant Investec is not concerned that an expected drop in interest rates could impact its sound revenue and profit growth as it has enough growth opportunities across its business. One area of growth it plans to target in the year ahead is business banking.
That’s the word from Investec Bank CEO Cumesh Moodliar, speaking to Moneyweb following the release of the group’s latest annual results on Thursday.
He says Investec’s business transactional banking service is premised around its private banking operation, which its clients associate with higher service levels and support and personal relationships.
“Many of our clients have their own businesses, they may be MDs, and they want that kind of relationship for their businesses as well.”
Investec recorded robust performance for the full year ended 31 March 2024, underpinned by the strong showing in its corporate client franchises in both South Africa and the UK, as well as Investec Wealth & Investment in South Africa.
During its 2024 financial year (ended March) Investec recorded revenue growth of 5.7% in the specialist banking space in southern Africa.
This was primarily driven by higher average interest-earning assets, positive endowment effect from higher interest rates, increased client activity, and continued client acquisition.
The group also continued to grow its mortgage book to just over 7.3% amid high interest rates and tough economic conditions.
Nvidia forecasts R517 billion in sales
Shares of Nvidia, the chipmaker at the centre of an artificial intelligence (AI) boom, surged on Thursday after a bullish sales forecast showed that AI computing spending remains strong.
Second-quarter revenue will be about $28 billion (R517 billion), the company said Wednesday, topping the $26.8 billion predicted by analysts.
Results in the fiscal first quarter, which ended April 28, also beat projections — lifted by growth in Nvidia’s data-centre division.
The big question heading into the earnings report was whether Nvidia’s latest numbers could justify the dizzying run-up in its stock.
The shares had gained 92% this year through Wednesday’s close, fueled by investor hopes that the company would continue to shatter expectations.
The report didn’t disappoint, and chief executive officer Jensen Huang stoked the excitement by talking about the dawning of a new era.
“This is the beginning of a new industrial revolution,” he said in an interview, echoing one of his favorite themes.
“This is really exciting.”
The shares rose 9.3% to $1,037.99 on Thursday, adding nearly $220 billion to Nvidia’s valuation.
That’s far more than the entire market capitalization of Intel, a chipmaker that once dwarfed Nvidia by every measure.
-BLOOMBERG-
South Africa's central bank to hold benchmark rate at 8.25% on May 30: Reuters poll
South Africa's central bank will hold its benchmark interest rate at 8.25% on May 30, the day after the country's general election, before likely beginning an easing cycle next quarter as inflation retreats back to target.
All 20 economists in a May 20-23 Reuters poll said the South African Reserve Bank (SARB) will leave the benchmark rate unchanged at the conclusion of its meeting next Thursday.
They were divided on future moves, however, with eight of 17 believing rates would be cut by 25 basis points (bp) to 8.00% either in July or September, while another eight expected no change next quarter and one saw a 50 bp cut to 7.75%.
Eight of nine economists said the Bank was more likely to cut rates fewer times this year than they expect, rather than more times.
Elna Moolman, Standard Bank's head of macro, fixed income and currency research, said that by the September meeting inflation should be on the "brink of sustainably reaching" the mid-point of the SARB's 3-6% target band, making it hard for the central bank to justify keeping real rates high and restrictive.
-REUTERS-
China's CNOOC signs oil exploration, production contracts with Mozambique
State-run China National Offshore Oil Co said on Friday it had signed oil exploration and production concession contracts with Mozambique's energy ministry and national energy company ENH.
The contract is for five offshore blocks in waters off the African nation and covers a total area of about 29,000 sq km (11,200 sq miles) with water depths from 500 m to 2,500 m (1,640 ft to 8,202 ft), it said in a statement.
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