Banking

NAIROBI (Capital Markets in Africa) – Kenya’s central bank fined five of the country’s biggest lenders a total 392.5 million shillings ($3.9 million) after a probe showed they handled money acquired illegally from the National Youth Service. Standard Chartered Bank Kenya Ltd., Equity Bank Kenya Ltd., KCB Bank Kenya Ltd., Co-operative Bank of Kenya Ltd. and Diamond Trust Bank Kenya Ltd. handled 3.58 billion shillings, the regulator said in an emailed statement. Violations include failure…

PORT LOUIS (Capital Markets in Africa) – Mauritius’s biggest bank expects economic growth to accelerate next year, driven by railway, road and other infrastructure projects, its chief executive officer said. The Indian Ocean island nation’s economy will probably grow 4 percent in 2019, compared with 3.8 percent this year, MCB Group Ltd. CEO Pierre Guy Noel said in an interview Monday in Ebene, south of the capital, Port Louis. “We are expecting to benefit, in 2019, from the…

JOHANNESBURG (Capital Markets in Africa) – Moody’s has changed its outlook on the South African banking system to stable from negative, reflecting the expected resilience of the banks’ financial metrics and creditworthiness over the next 12-18 months, despite weakening operating conditions, Moody’s Investors Service said in a report today. Moody’s report, “Banking System Outlook – South Africa, Resilient financials amid a weakening economy drive our stable outlook” is available on www.moodys.com. Moody’s subscribers can access…

NAIROBI (Capital Markets in Africa) – Kenyan lawmakers’ move to postpone a value-added tax on fuel and their failure to repeal a cap on commercial lending rates weakens the government’s fiscal-policy credibility, Moody’s Investors Service said. While President Uhuru Kenyatta can still reject the proposed amendments to legislation, they could exacerbate Kenya’s “sizeable financing needs in light of the government’s recurring fiscal deficits and growing debt burden,” Moody’s Vice President Lucie Villa said in an emailed report Monday. The 16 percent…

LAGOS (Capital Markets in Africa) – The former head of the London unit of Union Bank of Nigeria Plc was arrested last year as part of a bribery probe, according to four people with knowledge of the case, solving a mystery hinted at by U.K. prosecutors this week. Maurice Phido was detained by police in May 2017, the people said, who asked not to be identified because his name isn’t public. Phido was released on bail after…

JOHANNESBURG (Capital Markets in Africa) – You wouldn’t say South Africa was in the grips of a recession by looking at the retail-banking unit of FirstRand Ltd., the continent’s largest lender by market value. First National Bank, which accounts for more than half of FirstRand’s profit, is outshining its Johannesburg-based peers by adding customers and deposits, extending more credit to its top clients and boosting transactions through its mobile-phone banking app. A decline in credit losses as a…