Zambia banks reap record profits from government debt
INTERNATIONAL – Zambia’s government debt is yielding as much as 33% thanks to a widening budget deficit, and there’s one clear winner: local banks, which are reaping record profits.
Standard Bank Group Ltd.’s Zambian unit earned more in the country in 2019 than any lender ever has, according to a statement by the company, Stanbic Bank Zambia Ltd.
That’s partially due to rising interest income from holdings of government securities, and in a year when the economy was growing at about 2%, the slowest pace in more than two decades.
Source: iol.co.za
