18 Aug 2026 — 4 reviews
Absa's interim results are what you want from a bank: steady earnings growth, improving asset quality, and a bigger cheque for shareholders. HEPS of 1,545.4 cents (+7.9%) came from a combination of revenue growth (+4.1% to R58.8bn) and disciplined cost management — the cost-to-income ratio ticked up marginally to 53.4% from 53.2% but that's rounding error territory. Net interest margin compressed slightly to 4.46% from 4.58% as rate cuts filter through, but loan growth of 5% and deposit growth of 8% more than compensated. The real standout: the Stage 3 loans ratio improved from 5.90% to 5.30%, and the credit loss ratio followed suit. In an economy where consumers are stretched, that's genuinely impressive risk management. The dividend is the headline-grabber — 850 cents per share, up 8.3% year-on-year. That's a 7.6% yield at R222.60. The balance sheet is fortress-grade: CET1 of 12.8% and LCR of 125.2% give ample room for further capital returns or growth investment. The pan-African story (12 countries, Kenya and Ghana being the key markets outside SA) adds optionality. At a trailing PE of 7.98x and 0.94x book, Absa remains the cheapest Big Four bank by a comfortable margin. Rating: BULLISH. When a bank grows HEPS 7.9%, lifts the dividend 8.3%, and still trades below book value, the market is leaving money on the table.
Copper has officially dethroned iron ore as BHP's profit engine. Operating earnings from copper hit $18.19 billion in FY2026, well ahead of iron ore's $14.53 billion. That's a tectonic shift for a company that built its fortune on Pilbara red dirt. Record copper prices above $14,000/ton — driven by AI data centre buildouts and the energy transition — transformed BHP's earnings power. The underlying attributable profit of $13.20 billion came in 4% above consensus, and the full-year dividend of $1.72 per share (final: 99 US cents) is the biggest shareholder return since FY2022. The stock jumped as much as 4.2% in Sydney on the news. New CEO Brandon Craig, just one month into the job, is talking copper growth — 40% more production by 2035 from the project pipeline, even as near-term output dips. The Jansen potash project adds a third leg to the stool. Iron ore's Western Australia operations grew earnings 2% to $14.67bn despite Port Hedland labour tensions, and net debt fell to $8.69bn — below the $10-12bn target range. The JSE listing trades at R719.57 with a PE of 23.2x, which looks full but reflects the copper growth premium. Rating: BULLISH. BHP is no longer an iron ore miner with copper on the side. It's a copper supermajor that also happens to dig up iron ore. The highest dividend in four years is just the cherry on top.
NEPI Rockcastle is the best property company on the JSE and it's not close. The H1 2026 numbers are classic NRP: not flashy, just relentlessly consistent. Net rental income grew 3.8% to €317.7M, distributable earnings per share rose 3.5% to 32.14 euro cents, and the distribution followed at 28.93c. The 90% payout ratio is maintained while LTV stays at a conservative 33.1% — well below the 35% strategic threshold. Tenant sales were 2.7% higher like-for-like with average basket size up 3.3%. The recovery rate hit 99% by July. These are the numbers of a business with genuine pricing power. The S&P upgrade to BBB+ in July 2026 is the cherry on top — it validates the balance sheet quality and opens the door to cheaper debt for the development pipeline. Speaking of which: NEPI's first investment outside Central and Eastern Europe, in Bilbao, Spain, signals that management sees growth opportunities beyond its traditional hunting ground. Guidance was raised to 3.5-4% DEPS growth for the full year. At R149.55, NRP trades on a PE of 10.9x and 1.12x book with a yield of ~7.7% (in EUR terms). Rating: BULLISH. NEPI is the closest thing the JSE has to a sure bet. Buy the compounder, collect the dividends, sleep well.
The Trustco saga has lurched from opaque to absurd. A shareholder group called a general meeting to oust the entire board — including founder and controlling figure Quinton van Rooyen — and replace them with a slate of five new directors. The meeting was held on 18 August. The result: the meeting was found not to be validly requisitioned because the requisitionist wasn't even a registered member of Trustco Group Holdings. Despite the invalidity, voting was allowed 'for record purposes', and every single removal resolution failed by roughly 58% against to 42% for. The proposed new directors fared even worse — 58.3% against to 41.7% for. This is the definition of a pointless SENS. The company trades at 30 cents on the JSE — a price that hasn't budged since the stock was suspended or went dormant in January 2025. Revenue and net income are negative, there's no PE ratio to speak of, and the stock has lost 40% of its value over the past year. The requisitioned meeting was a sideshow designed to give the appearance of shareholder activism, but without the legal standing to back it up. Rating: NEUTRAL. Trustco remains what it has been for years: a governance black box trading in penny stock territory. The boardroom drama changes nothing. Stay away unless you have a very specific reason to be here.