Stanbic Results, Expected Banking Financials, Expected Profit Warnings, Safaricom Interim Dividend and Impact of the Stimulus Package

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EABL Equity

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.

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