Stanbic’s income dropped by 18.6% to Ksh 5.2 billion with a notable reduction in net interest income, which fell by 4.8% while loan loss provisions rose by 54% following reliefs and restructured due to COVID-19. However, the bank grew its deposits, loans and investments. There are 18 profit warnings, with more expected to come.
Highlights:
- The banking sector is expected to be more resilient compared to other sectors, despite more profit warnings from the sector.
- Safaricom declined by 3.7%, a profit-taking by investors given the recent gains. Investors a taking a wait and see approach given the expected Ethiopian licence.
- The recently passed US Stimulus package is likely to lead to asset price inflation.
