The Daily Update: 20 June

The latest updates from the JSE and NYSE over the past 24 hours.

South Africa

Transaction Capital

• Gomo, a joint collaboration between WeBuyCars and Mobalyz, facilitates debt agreements for consumers to acquire pre-owned vehicles.
• Gomo has concluded more than 2,500 vehicle-backed loans, with a loan book of R515 million funded on balance sheet.
• Transaction Capital has announced that agreements have been reached with a leading South African bank. (undisclosed bank)
• As per the agreements, Gomo will become an originator of loans for the bank based on agreed criteria.
• Gomo will earn a portion of the net interest margin and other fees, with the bank funding the assets on its balance sheet.
• The Gomo product will be made available nationwide across the entire dealership network of WeBuyCars, expanding beyond Gauteng.
• A significant increase in the scale of Gomo's business is expected in the coming years, taking advantage of this growth opportunity.

Standard Bank Group Limited- Trading statement for the six months ending 30 June 2023

• HEPS and EPS for the six-month period ending 30 June 2023 are expected to be more than 20% higher.
• The global economic and geopolitical environment remains volatile, with slowed global growth, high inflation, and rising interest rates.
• The macro-economic outlook in South Africa has deteriorated, with expectations of higher inflation and interest rates for a longer period and constrained economic growth.
• Banking activities recorded revenue growth of over 20% compared to the same period last year, supported by higher interest rates and balance sheet growth.
• Operating expenses grew in the mid-teens, driven by higher remuneration, incentives, and technology spend.
• Credit impairment charges were nearly 50% higher due to larger lending books, consumer strain, and increased sovereign debt risk.
• Elevated credit impairments in consumer banking, particularly in home loans, due to interest rate hikes and high inflation levels.

City Lodge Hotels Limited- Voluntary operational update and trading statement

• HEPS and EPS for the year ending 30 June 2023 are expected to show over a 100% improvement compared to the previous year's results.
• Travel trends are rebounding, and demand patterns have normalized to pre-Covid-19 levels.
• The hospitality sector is recovering, with the return of international guests and strong domestic travel.
• Monthly occupancies have steadily improved, surpassing 2019 levels, with March 2023 reaching 63% occupancies.
• May 2023 group occupancy was 56%, exceeding 2019 by over 4%.
• Average room rates (ARR) have rebounded, showing high single-digit percentage increases compared to 2019.
• Year-to-date ARR for 2023 is 12% higher than the previous corresponding period.
• Food and beverage offerings contribute approximately 17% of the Group's total revenue.
• Improved financial performance has resulted in a near-neutral net debt position, with a cash balance of R297 million and borrowings of R300 million.
• The Group has access to additional unused debt facilities and overdraft facilities.

The U.S.

Alibaba

• Alibaba has announced Eddie Wu will succeed Daniel Zhang as CEO of Alibaba.

Airbus

• Airbus has secured the biggest aircraft order in aviation history, notching a 500-plane sale to Indias dominant airline IndiGo.