After 2 years in contraction zone, Zambia’s private sector pulse for the month of April expanded to 50.1 from 49.7 (March) as measured by Markit Economics Purchasing Managers Index – PMI. The copper producer has been in the doldrums for 25-months straight weighed by currency weakness fuelling input inflation, energy bottlenecks causing power rationing and more recently, pandemic effects that suppressed consumer demand in addition to disrupting supply delivery chains. Zambia last crossed the 50 benchmark in February 2019 at 50.1 after-which it slid to record lows of 34.8 in May 2020 at the zenith of global COVID crisis. Fifty…
Author: The Editor
Amidst elevated inflation at a 62-month high fuelled by currency weakness, Africa’s second largest copper producer Zambia will have its second rate decision meeting on the 17-19 May. The Monetary Policy Committee (MPC) had in its first meeting on February 17, hiked rates 50 basis points to 8.5% which marked the genesis of the rate hiking cycle pressured by an eminent exchange rate rout. But for societal and economic effects of the corona virus pandemic, the upward adjustment would have been steeper in aggressively curbing the currency rout. Zambia’s foreign exchange market remains imbalanced with demand outwitting supply significantly in…
In the labyrinth of deteriorating sovereign risk concerns characterised by coupon defaults on dollar bonds and pandemic effects, Absa Zambia PLC is one bank that adjusted its credit risk appetite inferred from its first quarter financials for 2021. The second largest lender in Africa’s second largest hotspot posted 2.6% year on year growth of its advances book to slightly over seven yards in Kwacha terms corresponding to an infinitesimal 1.1% expansion in its advances income. It is likely that the lender did not take as bullish a stance on sovereign related strategic transactions i.e. the celebrated farmer input support program…
Citibank Zambia’s first quarter headline earnings sagged 25.0% to K67 million compared to a year ago. Well known for its corporate banking brand and stellar transactional processing services, Citi’s financial performance is an autopsy of cautious balance sheet extension (lending) approach especially at a time of waning sovereign posture as the US bank sought to manage its risk appetite. Clad with sovereign default on dollar bond coupons, triggering adverse rating downgrades in a pandemic risk era, Zambia’s business pulse was generally suppressed in 2020. Interest income ebbed 54% as advances and interest rate trading lines sagged while on the contrary…
With time decay, the amalgamation (M&A) transaction between BancABC and Finance Bank is evidently paying off. Atlas Mara Zambia first quarter performance has revealed a cost efficient trajectory as cost to income ratio narrows sharply to 49.0% from 86.1% levels same time a year ago. Typical of mergers, costs in the previous periods were elevated but have started to ebb to optimal levels which is giving profitability a positive cue. Atlas Mara marginally contained its non interest expenses after a 6.5% growth despite pandemic times that ideally would be expected to drive spend while interest expenses sagged 3.3%. These lean…
Africa’s second largest copper producer Zambia recorded increased interest in 5-year fixed income in April 30, bond auction. The tenor attracted bids totaling K722.0 million of the K410 million on offer of which K360 million of appetite was absorbed. Other tenors sought for were the 3-year which was the second preferred with appetite at K471 million part of which K319 million was satisfied. The pulse observed in the two tenors does to some extent reflect risk appetite creeping back into the market given the recent positive outlook of the in the Zambian economy given a Fitch upgrade on the copper…
First National Bank Zambia head office at Acacia Park in Lusaka the capital.
Lusaka Securities Exchange listed Standard Chartered Bank Zambia’s (ISIN:ZM000000094) after tax earnings for the first quarter of 2021 took a positive cue from a more positive country risk outlook for Africa’ second largest copper producer by a catapult in profitability to K150.2 million compared to its steep loss levels a year ago. Recently Fitch rating agency upgraded the Southern African nations long term issuer rating (LTIR) to ‘CCC’ from ‘CC’ on the local currency side. Read also: Fitch reprieves Zambia’s LCY rating to ‘CCC’ maintains FCY at ‘RD’ The implications of this, is a lower risk weight for sovereign assets…
Zambia’s largest indigenous bank by both asset and profitability, Zambia National Commercial Bank PLC quadrupled its first quarter after tax earnings to K208.9-million year on year while maintaining income leadership across almost all earning lines to K815.5 million. This was according to quarterly financial statements in the press for the quarter ended March 31, 2021. Read also: Income leadership, a 48% earnings rally but steep expense base, Zanaco Plc’s FY20 theme The Lusaka Securities Exchange – LuSE listed local bank (ISIN:ZM0000000250) has continued to demonstrate its big strong reliable capability with solid growth in interest margins that widened 202.2% to…
Washington based Africa centre for strategic studies almost wrote a formula revealing that for every half a degree celsius of local temperature rise, conflict risks in the region rises by 10-20%. Climate change remains a very thorny issue globally and evidently had it not been for the COVID19 pandemic, it would still rank as the worlds top risk. One renowned risk practitioner and famous co-book author of Global Risk Agility and Decision Making Dante Disparte serving as Chief Strategy Officer and Head of Global Policy at Circle, advised that climate change be viewed as a close parallel to COVID19 calling…