Company news in brief

Standard Bank lifts almost 5%

Shares in Africa's largest bank by assets, Standard Bank, lifted more than 4% on Friday morning, when it flagged profit growth of more than a third in its half-year to end-June, when it benefitted from a sharp rise in interest rates and growth in its client base.

Headline earnings per share are expected to rise between 33% and 38% in the period to end-June, the group said, also providing a guidance range, taking into consideration the effects of new accounting rules, of up to 35%.

The bank, which generated record headline earnings of R15.3 billion in the prior comparative period, had said in June that it had been boosted in the period by the endowment impact of higher interest rates, which means debtors need to pay more on their loans, as well as "improved customer activity levels".

The South African Reserve Bank left its key repo rate unchanged at a 14-year high of 8.25% at its July meeting, but as of the end of June 2022, it was at 4.75% - a climb of almost 74%.

Standard Bank, valued at almost R325 billion on the JSE, had also warned in June it was seeing increased pressure on customers as a result, while remaining concerned about the increased risk of sovereign defaults in Africa. –Fin24



MTN Uganda declares first interim dividend



MTN Uganda, the mobile operator's fourth-biggest market, has posted profit growth of almost a fifth in the six months to end-June, boosted by data and fintech as it helped put smartphones in the hands of more customers in the east African country.

Profit after tax rose 17.8% to 228 billion Ugandan shillings (R1.2 billion) in the period to end-June, it said in an update, with margins picking up and service revenue rising 15% to about R6.5 billion.

Active data subscribers and data revenue both climbed by a fifth, with smartphone penetration rising 3.7 percentage points to 35.7%, the company said.

The company said overall mobile subscribers grew 11.2% to 18.08 million, with fintech subscribers up 11.6% to 10.9 million, while data subscribers grew 21.4% to 6.9 million.

MTN Uganda declared its first interim dividend, amounting to about R653 million, but it paid final dividends in 2021 and 2022. – Fin24



Hyundai, Kia recall US cars



Hyundai Motor and Kia said on Thursday they are recalling more than 91 000 newer vehicles in the US because of fire risks and urged owners to park outside and away from structures pending repairs.

The recall covers Hyundai 2023-2024 Palisade, 2023 Tucson, Sonata, Elantra, and Kona vehicles and 2023-2024 Seltos and 2023 Kia Soul, Sportage vehicles. About 52 000 Hyundai vehicles and nearly 40v000 Kia vehicles are covered under the recall.

The Korean automakers said electronic controllers for the Idle Stop & Go oil pump assembly may contain damaged electrical components that can cause the pump to overheat.

Owners will be notified in late September and dealers will inspect and replace the electric oil pump controller as needed.

Hyundai said in December it received a report of a 2023 Hyundai Palisade vehicle exhibiting heat damage on the wire harness/connector of the electric oil pump, prompting the automaker to open an investigation.

Kia said in June it received a report of melting in a 2023 Soul. – Fin24/Reuters