Banking | - Part 107

Egypt’s $12 Billion IMF Talks: A Guide to What to Expect

CAIRO, Egypt, Capital Markets in Africa: Egyptian officials are holding talks in Cairo with the International Monetary Fund over a loan to help finance the government’s economic program. Egypt is seeking $12 billion over three years. The most-populous Arab country has had a tumultuous relationship with the IMF since the 2011 uprising that ousted Hosni Mubarak, turning down two initial loan accords. Some of the topics likely to be discussed — new taxes, cuts to…

Standard Chartered Climbs as Impairment Drop Signals Turnaround

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Johannesburg, South Africa, Capital Markets in Africa: Standard Chartered Plc rose as much as 5.7 percent in London trading as first-half loan impairment charges fell by a third, showing further progress in Chief Executive Officer Bill Winters’s plan to turn around the bank. The shares were up 5.3 percent at 11:01 a.m. in London, after provisions for bad loans declined to $1.1 billion in the first half, below the $1.56 billion Citigroup Inc. analysts had estimated. Operating costs…

Kenya Bank Profits Drop First Time in 16 Years on Costs

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NAIROBI, Kenya, Capital Markets in Africa: Kenya’s banking industry last year recorded the first decline in profit since 1999 as costs outpaced income in the wake of two failures and more onerous regulations. Pretax profit across the sector declined 5 percent to 134 billion shillings ($1.3 billion) in the 12 months through December, according to the central bank’s Bank Supervision Report, released in the capital, Nairobi, on Tuesday. That came as a 16 percent increase in…

Australia Rejoins Global Disinflation Fight With Record Low Rate

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LAGOS, Nigeria, Capital Markets in Africa: Australia’s record low interest-rate following Tuesday’s cut underscores the demise of its economic exceptionalism: swept up in a wave of global disinflation, policy makers had little choice but to step in line with international peers as a strengthening currency threatens to push prices lower still. It’s a far cry from five years ago when the benchmark rate was a developed-world high 4.75 percent and the local dollar was worth more than…

Nedbank Heads for Eight-Month High on Surprise Profit Increase

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Johannesburg, Capital Markets in Africa: Nedbank Group Ltd., the South African lender controlled by Old Mutual Plc, reached the highest level in eight months after first-half profit rose, beating analyst estimates that had predicted a decline. The shares jumped as much as 8.3 percent on Monday before paring gains, leading returns on the seven-member FTSE/JSE Africa Banks Index. First-half earnings per share excluding one-time items climbed to 11.19 rand from 11.01 rand a year earlier as bad-loan impairments improved….

Kenyan Banks Seen Resisting Lower Loan Costs After Rate Cut

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NAIROBI, Kenya, Capital Markets in Africa: The Central Bank of Kenya’s reduction of the benchmark rate used by lenders to set borrowing costs may have caught commercial banks by surprise but they may find ways to dodge lowering lending rates. “Which bank would want to lend at a lower rate, taking more risk for lower returns?” Faith Atiti, a research analyst at Commercial Bank of Africa Ltd., said by phone from Nairobi. Banks will probably increase premiums and…

Pound Slumps as Egyptian Banks ‘Scrape Barrel’ Over FX Shortage

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CARIO, Egypt, Capital Markets in Africa: The Egyptian pound extended a record low on the black market, as tighter restrictions on the use of local debit and credit cards overseas and comments by the central bank governor stoked speculation of a devaluation. The pound fell to 12.99 per dollar on Tuesday from 12.02 last week, according to the average quote of five currency traders in Cairo and Alexandria. That’s the lowest since Bloomberg started tracking black…

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