LUSAKA (The Business Telegraph) – Deliberations for the third rate decision meeting commence this week for 2 after which central bank head Dr. Denny Kalyalya will announce the monetary policy stance for the next quarter. Kalyalya faces extraordinary times marred by disease pandemic that has forced central banks to expand balance sheet through quantitative easing methods while grappling to keep inflation in check and suppressing interest rates to ultra thin level to stimulate consumer demand. The copper producer faces elevated inflation, shriveling growth forecast at -5% and rising coronavirus infection cases just under 10,000. Average Lending Rates- ALR eased 211…
Author: The Editor
LUSAKA (The Business Telegraph): The Paris Club under the Debt Service Sustainable Initiative – DSSI have extended debt service reprieve to Africa’s second largest copper producer Zambia for the period 01 May to 31 December. This was contained in a press release from the Paris Club dated 10 August. A total of 41 nations of the 73 eligible have nodded this offer of which 28 are African nations. “In application of the term sheet of the Debt service suspension Initiative (DSSI) also endorsed by the G20, the Paris Club recognized that the Republic of Zambia is eligible to benefit from…
LUSAKA (The Business Telegraph) – The central bank in Africa’s red metal hotspot on the 12 August named authorised brokers for foreign exchange trading in line with its revised trading guidelines. In a memo to commercial banks the Bank of Zambia office of the Deputy Governor Operations named ICAP Broking Services Ltd, GFI Africa Money Market Brokers Ltd, Emerging Markets New York and Continental Capital as authorised brokers. For a long time the Zambian market operated without clear cut approval process for approving brokers let alone traders were still able to trade but by reaching out to fellow dealers in…
LUSAKA (The Business Telegraph) – As the world grapples with disease pandemic, there is an increasing shift skew towards digital interactions in keeping with social distancing and health safety measures. Banks are noticing decreased appetite for hard cash but a corresponding increase in electronic money demand. COVID19 times have litmus tested many financial institutions digital strategies given that clients are shying away from contact type of transactions. One bank that has embraced digitization by doing away with paper applications for loans both at personal market and small business scale (SMEs) is Stanbic Bank Zambia. Clients now have the bank on…
LUSAKA (The Business Telegraph) – First half after tax earnings for the Zambian banking industry shriveled 54% year on year to K379.6mln. This was due to a 119.2% spike in credit impairements to K690.7mln exacerbated by sovereign risk downgrades and COVID related credit risk concerns. Credit impairments. Key drivers of credit provision numbers were First National Bank (K230.1mln), Standard Chartered Bank (K145.2mln), Absa Bank (K136.2mln) and Stanbic Bank (K131.1mln). It is about a dry point of construction that most international banks have had to adjust their impairment numbers to reflect sovereign risk posture of the country which was between 1Q-2Q20…
LUSAKA (Business Telegraph) – Access Bank Group is on a roll to increase its footprint in Africa and as such has taken to buy-off commercial banks across the continent. Recently, the Nigerian bank concluded purchase of Transnational Bank (Kenya). Not so far from this transaction in central Africa is another bank that the tier 1 lender has targeted, Lusaka Securities Exchange listed Cavmont Capital Holdings (ISIN:ZM0000000227). The success of this merger will be Zambia’s second M&A transaction in 4 years that will see Nigeria Stock exchange listed financial institution takeover Cavmont Capital Holdings Ltd, a deal estimated to close by…
LUSAKA (Business Telegraph) – In our earlier analysis for 1Q20, Indo Zambia Bank Ltd was tagged a financial institution worth watching for its bullish earnings momentum. Half year after tax earnings reveal an aggressive sprint to the top two bracket after the indigenous bank posted after tax earnings of K111.8mln a 48.9% year on year and a 103% growth quarter on quarter. Indo Zambia generated the highest after tax profit for the second quarter at K74.0mln which on a year to date basis rallied its earnings to above K100mln mark which only two banks have surpassed in an 18 bank…
LUSAKA (The Business Telegraph) – Lusaka Securities Exchange – LuSE listed Standard Chartered Bank’s half year earnings came under immense pressure from rising sovereign risk adjusted impairments and rising margin squeeze related drivers. Stancharts 1H20 after tax earnings slid deeper into loss zone to K225.5mln from a profit of K123.0mln a year earlier same time. On a quarterly basis 2Q20 after tax earnings narrowed 78.7% to K39.7mln (loss). Stanchart’s credit impairments cumulatively widened to K145.8mln of which K58.8mln was passed in the second quarter while the bank has suffered a decline in earning performance across all income lines. Non interest…
Atlas Mara head office on Church road §
LUSAKA (Business Telegraph) – Lusaka Securities Exchange listed Zanaco bank’s first half revenues revealed exemplary performance across all income lines. The big strong reliable giant grew its total income by 36.1% year on year to K950.1mln supported by a strong interest income trajectory which rallied 30.1% to K848.3mln and a non interest earnings base. Revenue leadership. On an annual basis, Zanaco Plc’s advances interest income rose 32.7% to K493.5mln (as the bank extended credit more offset by margin erosion pressure from a central bank 225bps rate cut in May) in parallel with its duration income that widened 29.0% to K351.8mln…