STAN­DARD BANK

Finweek English Edition - - INVESTMENT -

St e v e Meint j e s , he a d of re­search at stock­bro­ker­age SP Reid, has re­cently t urned bullish on JSE-listed bank­ing groups, in­clud­ing Stan­dard Bank. Mein­t­jes points out t hat Stan­dard Bank con­tin­ues to carr y a high cost-to-i ncome ra­tio, but has man­aged to off load its trou­ble­some Lon­don busi­ness. He told clients: “The mar­ket is some­times a lit­tle tardy in recog­nis­ing im­proved cir­cum­stances but usu­ally does in the end as it did in re­cent years with, for e x a mple, Ned­bank. Al­though Stan­dard Bank, on a con­sen­sus 12-month [for­ward P/E] of 11.3 times, has had some im­prove­ment priced in, we be­lieve this phase could last for sev­eral years and hence up­grade to a buy.”

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