Pan-African Banking Model: Balancing Risk and Reward

Pan-African Banking Model: Balancing Risk and Reward

LAGOS (Capital Markets in Africa) – Africa-originated banks are increasingly becoming dominated players across the financial landscape in Africa. This is happening at a time when some western-based banks are scaling back their activities in the region. For the most part, these pan-African banks originate from large African economies (based on income) such as Nigeria (United Bank of Africa), South Africa (Standard Bank), Morocco (Attijariwafa Bank) but also small economies such as Togo where Ecobank…

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Banks Bashed in Battle Over South African Financial System

Banks Bashed in Battle Over South African Financial System

JOHANNESBURG (Capital Markets in Africa) – New allegations by President Jacob Zuma’s supporters that South Africa’s biggest banks are frustrating efforts to address racial inequality signal an escalation of a battle for control of the nation’s financial system including the Treasury. Protestors from the ruling African National Congress’s youth wing invaded aBarclays Africa Group Ltd. branch on Jan. 26. Then, on Monday, the ANC’s top leaders said the four biggest lenders can’t be allowed to continue dominating…

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African Bank Investments Makes a Come Back After 30-Month Hiatus

African Bank Investments Makes a Come Back After 30-Month Hiatus

JOHANNESBURG (Capital Markets in Africa) – African Phoenix Investments Ltd., the holding company resurrected from the remnants of failed African Bank Investments Ltd., started trading 30 months after being suspended, with volumes far exceeding all other shares on the Johannesburg Stock Exchange. The securities started trading at 55 cents, before falling to 50 cents as of 10:19 a.m. in Johannesburg, giving the company a market value of 751 million rand ($56 million). Almost 24 million shares…

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Nigerian Bank FCMB Sees Capital Staying at ‘Comfortable’ Levels

Nigerian Bank FCMB Sees Capital Staying at ‘Comfortable’ Levels

LAGOS (Capital Markets in Africa) – FCMB Group Plc, a Nigerian lender which some analysts have said may need to raise capital, expects to remain comfortably above regulatory requirements for the rest of 2017. The Lagos-based bank raised 7 billion naira ($23 million) by selling bonds in the last quarter of 2016, “which was used to refinance term deposits and modestly increased capital,’’ Ladi Balogun, chief executive officer of First City Monument Bank Ltd., said in…

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Nigeria Central Bank Hits Out at ‘Unpatriotic’ Policy Critics

Nigeria Central Bank Hits Out at ‘Unpatriotic’ Policy Critics

LAGOS (Capital Markets in Africa) – Nigeria’s central bank lashed out at critics of its efforts to prop up the naira and said that weakening the currency would only harm poor people. “Intelligence reports at the disposal of the bank reveal the involvement of some unpatriotic elements funding the push to have the Central Bank of Nigeria and the federal government reverse its foreign-exchange policy,” Isaac Okorafor, a spokesman, said in a statement on the Abuja-based central…

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Tunisian banks pressurise amid significant asset risk and challenging operating conditions

TUNIS (Capital Markets in Africa) – Moody’s Investors Service says that subdued economic growth, evolving regulation and significant asset risk pressure will maintain pressure on Tunisian banks’ performance. Moody’s report, entitled “Banks – Tunisia: Subdued economic growth, evolving regulation and significant asset risk will maintain pressure on banking performance,” is available on www.moodys.com. “Asset risk is a major issue facing Tunisian banks, and we expect non-performing loans to remain at high levels — at around…

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South Africa’s Central Bank Keeps Benchmark Rate Unchanged

South Africa’s Central Bank Keeps Benchmark Rate Unchanged

JOHANNESBURG (Capital Markets in Africa) South Africa’s Reserve Bank kept borrowing costs unchanged for a fifth straight meeting even as inflation forecasts worsened. The Monetary Policy Committee unanimously decided to leave the benchmark repurchase rate at 7 percent, Governor Lesetja Kganyago told reporters Tuesday in the capital, Pretoria. That’s in line with the forecast of all 24 economists surveyed by Bloomberg. The key lending rate has remained unchanged since March after the MPC raised it by 200 basis points since 2014…

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