When you asses the forecasts and the budget documents, the 1.6% long-term forecast for GDP growth is embedding in a lot of the reforms that Operation Vulindlela is putting into place, says Peter Attard Montalto, head of capital markets research on Business Day TV.
Zero-based budgeting has been used elsewhere in the world. It’s often used after deep financial crises, such as in eastern Europe or where the IMF and the World Bank comes in for a capacity building operation around fiscal management, says Intelldex’s Peter Attard Montalto on eNCA.
Considering that TymeBank needed about R1bn to break even just a few months ago, it will be left with only R600m to invest in its new initiatives, notes Nolwandle Mthombeni, senior banks analyst at Intellidex. Featured in News24.
I expect the big four banks to pay out dividends even though it will be less than their historic dividend policies as they will need to be cautious in the face of the lingering Covid-19 uncertainties, says Intellidex’s Stuart Theobald. Featured in CNBC Africa.
We were expecting to hear more from Minister Mboweni about Operation Vulindlela – the joint venture between National Treasury and the Presidency meant to drive reforms, says Intellidex’s Peter Attard Montalto on SABC News.
Operation Vulindlela is doing the right things on behalf of National Treasury and the Presidency. However, if you do not break through the political blockages then you cannot move the dial, says Intellidex’s Peter Attard Montalto in an interview with Michael Avery on Classic FM.
Kuben Naidoo, the SARB deputy governor and CEO of the Prudential Authority – has cautioned the banking industry to tread carefully as it juggles the positive effects of higher economic growth associated with the vaccine rollout, because another economic downturn is still possible. Intellidex’s Dr Stuart Theobald said that banks will be cautious to signal that there are still a lot of uncertainties so they will likely not declare dividends at the same levels as their historical dividend policies.
Featured in Business Day.
The South African Reserve Bank’s Prudential Authority giving banks the go ahead on dividend payments as they put the finishing touches to their 2020 financial results, but some banks have already warned shareholders not to expect a pay-out. Intellidex chair Stuart Theobald is featured in Daily Maverick saying that bank boards always have to be prudent in deciding to pay dividends, but the SA Reserve Bank is clearly trying to use moral suasion to tell boards to be particularly cautious about the outlook. He also pointed out that SA’s credit environment has been better than some of the worst-case scenarios envisaged when the SARB decided to give banks access to the capital buffers that are built up in good times.
Access the full article here.
Banks are sufficiently capitalised and have shown resilience and therefore are in a better position to pay dividends, and that’s the sense from the market as well, notes Intellidex Nolwandle Mthombeni. Featured in Bloomberg.
In a report published last week, Intellidex says that the Covid-19 Loan Guarantee Scheme (LGS) is now “moribund”. Featured in Moneyweb.