Last week, I examined how key factors like the recovery from covid-19, the Russia-Ukraine war, rising inflation and interest rates, and domestic regulatory policies have impacted the banking sector’s earnings in the first half of 2022.
I explained that the higher interest rate environment, loan book growth, and increased mobile banking service adoption supported bank earnings.
These factors were enough to cushion the impact of the higher interest payments made by banks to their customers. As such, they translated into profit after tax (PAT), growing by an average of 18% y/y in H1’22. The highest increases were recorded in FBNH (49%), Stanbic (36%) and Fidelity (21%).
Despite this double-digit growth in the first half of the year, I warned that higher contractionary monetary policies (i.e. higher interest rates) and higher inflation were