Hello 2008! SVB, Stanbic and the Safaricom Drag.
SVB was put under the FDIC on Friday. Stanbic released its FY22 earnings and we also have the latest inflation numbers from KNBS.
Hey Hisa fan,
Silicon Valley Bank, the largest commercial bank in Silicon Valley and the 16th largest bank in the United States collapsed Friday after a stunning 48 hours in which the bank tried to raise capital, leading to a follow up crisis in the financial sector, the second-largest failure of a financial institution in US history.
The Federal Deposit Insurance Corporation (FDIC), which insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships, said it had taken charge of the roughly $175 Billion in deposits held at the bank.
While comparing SVB to The Bear Sterns Investment Bank’s collapse of 2008 could be something investors would love to do, the breakage of SBV could be different. The collapse of SVB definitely erodes the confidence of investors and consumers, increasing the odds of recessions and heralds another 2008, but it does mark the beginning of the breakage phase.
Kenya Inflation & PMI Statistics.
Inflation in Kenya rose by 0.2% in February, according to the latest data from the Kenya National Bureau of Statistics. Headline inflation for February rose to 9.2% from 9% in January, as households continued to face high costs of living due to rise on prices for food, fuel and housing.
The Consumer Price Index, which measures the rate of change in prices of baskets of goods consumed by households, rose by 0.6% from 129.29 in January 2023 to 130.13 in February 2023. According to KNBS, from February 2022 to February 2023, goods in the fields of food and non-alcoholic beverages (13.3%), housing, water, electricity, gas and other fuels (7.6%), transportation (12.9%) price.
The S&P Global Purchasing Managers' Index (PMI) released last week indicated that fell Kenya’s PMI fell for the first time since October 2022 to 46.6 in February from 52.0 in January. The PMI above 50.0 signals growth in business activity, while a PMI below that points to a contraction.
Coffee Break ☕️
Do you talk about money with your close friends, family, colleagues or loved ones? Well, here is a little game we are encouraging everyone to play. Do let us know when you play it and what you can learn from it. We’ll be waiting 😊
Last Week’s Key Earnings:
Stanbic Holdings Plc [NSE:SBIC] (FY2022)Stanbic Holdings Plc posted a 25.7% year-on-year growth in net earnings to Kes.9.1 billion. (FY2021 : Kes.7.2Bn).
Earnings Per Share (EPS) - Increased to Kes.22.92 from Kes.18.23 over the same period in 2021.
Total Assets Increased 21.6% to Kes.399.8Bn (FY2021: Kes.328.9Bn) mainly attributed to a 16.4% growth in loans and advances.
Loan and advances - Kes.266.8Bn equivalent to 16.4% (FY2021:Kes.229.3Bn).
Holdings of Government securities went up 40.3% from to Kes.83.6Bn (FY2021: Kes.59.5Bn).
Customer deposits held with the bank was up 19.5% to KES.304.3Bn (FY2021: KES.254.6Bn).
Oracle Corporation [NYSE:ORCL] (3Q2023)Total Revenue stood at USD 12.4 billion, up 18% in constant currency
Q3 Cloud Revenue (IaaS plus SaaS) USD 4.1 billion, up 45% in USD, up 48% in constant currency.
Q3 GAAP Earnings per Share was USD 0.68, Non-GAAP Earnings per Share USD 1.22
Q3 Cloud Application (SaaS) Revenue USD 2.9 billion, up 42% in USD, up 44% in constant currency. Q3 Fusion Cloud ERP (SaaS) Revenue $0.7 billion, up 25% in USD, up 28% in constant currency.
Q3 NetSuite Cloud ERP (SaaS) Revenue $0.7 billion, up 23% in USD, up 26% in constant currency.
Oracle Board of Directors declared a quarterly cash dividend of USD 0.40 per share, up 25% from USD 0.32
Markets
Markets in the U.S Plunged as Federal Reserve Chairman Jerome Powell's harsh rhetoric continued during his briefing to lawmakers. His speech signalled that he and his colleagues at the Federal reserve would be deploying more tools such as raising interest rates, to deal with inflation and a hot labor market.
The Dow Jones Industrial Average dropped during the week, finishing 4.4% lower, to close at 31,910. The S&P 500 lost 4.45% to settle at 3,861.59. The Nasdaq Composite shed 4.7% to end at 11,138.89.
Local Markets.
Stocks on the Nairobi Securities Exchange followed their global counterparts with Safaricom Plc [NSE: SCOM 0.00%↑] , the NSE’s largest company by market capitalisation leading the week’s market rout.
The benchmark All share Index of the Nairobi Securities Exchange (NASI) lost 8.28 points or 6.56% during the week to settle at 117.89. The NSE 20 and the the NSE 25 share indices also slumped 25.65 points (1.57%) and 136.07 points (4.34%) to close the week at 1608.44 and 2997.25 respectively.
What cowries are we collecting this week?
Local Earnings Data - The Hisa team will be collecting data across banks as they release the financials of the FY2022. Standard Chartered Bank Kenya [NSE: SCBK] will be releasing their financials on Tuesday before market open.
Silvergate Capital Corp. [NYSE: SI] - With plans to wind down operations and liquidate its bank after the crypto industry’s meltdown, we will be watching on Silvergate to see on how shareholders will perform. The stock closed Friday at USD 2.52 per share.
Bumble Inc. [NASDAQ: BMBL] - Blackstone Inc. and its founder, Whitney Wolfe Herd announced a public offering of 12,500,000 shares of Bumble’s Class A common stock. We will be watching how investors will react to this news.
Disclaimer: The writer of this article owns SCOM 0.00%↑ , FTGH, EQTY, NVDA 0.00%↑ & AAPL 2.08%↑ shares. This article does not constitute any investment recommendations. Investors and the general public are advised to do their own research before making any investment decision.