SCB’s interest expense lines widened significantly signaling costly deposits booked in the period as ‘fees and commissions’ leaned weighing the non interest revenue line. The latter being a probable autopsy of the infamous unwarranted fee directive by the central bank After a stellar FY18, Standard Chartered Chief Executive Officer – Herman Kasekende faces an uphill earnings battle to regain market leadership after rising interest expenses, a flat trading income and a leaning fee and commission lines weighed the London incorporated lender. Standard Chartered Bank Zambia’s (SCBs) first quarter profits slid 33.58% to K69.49 million compared with K104.62 million same period…
Author: The Editor
BBZ’s earnings jumped significantly driven by strong and solid growth in revenue metrics in first quarter of 2019 comparing with 2018 period. Systemic factors such as the autopsy of unwarranted fees weighed the fees and commission lines however non interest costs widened higher than anticipated causing margin erosion that cost the bank first place in the market by a few Kwacha’s. BBZ is still in contention for first place given its 2019 strategy. One of Zambia’s top two banks by both asset size and profitability, Barclays Bank PLC – BBZ recorded an earnings levitation of 36.31% in PAT to K73.45…
SBZ recorded bullish growth in most revenue metrics save the non interest lines which widened on restructure costs. The bank remains market leader in the trading income space despite currency risk and a bearish rate environment. Credit risk profile on recoveries improved on write backs improving earnings margin significantly. Zambia’s largest lender by asset size, Stanbic Bank , started the year at a bullish pace, extending the momentum built in Q4 of 2018 with its earnings rallying 23% higher, to PAT levels of K78.82 million compared with K63.98 million a year ago). This was revealed by the quarterly financial statements…
Rising debt and fiscal deficits are weighing growth for the copper producer. Growth potential exists in the medium term when arrears are addressed and drought effects fade gradually. Washington based lender, the International Monetary Fund (IMF) on 30 April lowered Zambia growth forecast to 2.3% for 2019 from 2018’s 3.7% on account of balance sheet vulnerabilities highlighted in its Article IV mission team visit led by Ms. Mary Goodman between April 16-30. This will be the second lowered forecast for Zambia after the World Bank last month revised the copper producers growth rate to 3.3% from 3.4% on account expenditure…
As the month of April comes to a close, Markit Economics is expected to release factory activity gauges for global economies. The releases for bigger economies such as in Asia, US and Europe are being released this week. Next weeks round of releases will cover key African economies. Zambia’s headline Purchasing Managers Index – PMI was last recorded at 48.1 (March) compared to 50.4 the previous month. Procasti-tax-nation, liquidity and currency risk concerns weighing private sector pulse The copper producer has for seven (7) straight months been in the red territory as elevated manufacturing cost curves from a higher fuel…
Atlas Mara Ltd. is shaking things up by exiting some of its operations on the continent in exchange for a share of Kenya’s biggest bank by market value. The sub-Saharan African bank, founded by ex-Barclays Plc chief Bob Diamond, will swap its operations in Rwanda, Zambia, Mozambique and Tanzania for a 6.27 percent stake in Nairobi-based Equity Group Holdings Plc, Atlas Mara said in a statement on Tuesday. The transaction is worth about 10.7 billion shillings ($106 million), Equity said in a separate statement.The reorganization, which sees Chief Executive Officer John Staley stepping down to pursue other interests, comes after a review…
Transport Minister in Africa’s copper producer, Dr. Brian Mushimba told the BT that his Ministry has submitted plans to construct a high speed mass speed train connecting Kenneth Kaunda International Airport – KKIA to Kafue town. This will be in a quest to decongest Lusaka city which currently grapples with traffic. This will be Zambia’s second attempt to introduce a more advanced mode of transport after Professor Clive Chirwa’s idea of bringing transport civilization to the copper producer. Dr. Mushimba said the plans for construction have been submitted to the Ministry of Finance pending funding approval. The Ministry of Transport…
BongoHive Co -founder Simunza Muyangana was fearful that Zambian emerging businesses have not fully maximized benefits of the AGOA initiative and Joe Danguro a Nigerian Policy Analyst explained Nigeria on the fence strategy. Tutwa Consulting’s Analyst Langalanga affirmed the skew towards bigger businesses the CFTA will have. With the Gambia being the twenty second (22) nation of fifty four nations to ratify the Africa Continental Free Trade Agreement – CFTA, other players such as Nigeria still remain on the fence. The United Nations Economic Commission for Africa – UNECA said the CFTA will translate into 52.5% increase in trade volumes…
Economic fundamentals point to a fading dovish stance on interest rates. May meeting could be the first rate tightening cycle in 41 months Barely a month away today, Zambia’s central bank will commence 2 day deliberations for the second rate decision of 2019. With two underwater outcomes from the 25 and 26 April debt sales, with K2.6 billion on offer, filling only 25% (K658 million worth of securities). The next critical event on the money markets calendar for the Bank of Zambia – BOZ save the usual fortnight treasury bill sales, is the rate decision meeting. The BOZ has maintained…
Central Bank in Africa’s copper producer, Zambia has recorded the second anemic outcome this week after filling up only 21% of its K1.65 billion offer in government bonds. The Bank of Zambia only succeeded in attracting K341 million worth of liquidity to buy the fixed income securities on offer. Ninety eight percent of the debt sale was skewed in the 2,3 and 5 year tenors whose yields edged higher by 550, 525 and 500 basis points to 29.5%, 29.75% and 30.5%. The under subscription is the tenth so far this year of eleven debt sales (9 – treasury bill and…