FirstRand

EXTRACT FROM PORTFOLIO MANAGER COMMENTARIES – JUNE 2023

Our balanced and equity funds have a sizeable holding in the banks, given their low ratings and attractive high single-digit dividend yields. Good capital positions further support this. Although they are exposed to the tough consumer environment, conservative advances growth into this cycle and high provisioning levels should mitigate credit losses. The banks also benefit (to varying degrees) from higher interest rates on lazy deposits and capital. Corporate lending is expected to bolster revenues.