FirstRand

EXTRACT FROM PORTFOLIO MANAGER COMMENTARIES – MARCH 2023

The banks (Absa Group, FirstRand, Nedbank, Standard Bank) reported another set of strong earnings. Despite the headwinds facing the domestic economy, banks remain surprisingly constructive on their outlook. Credit losses are expected to remain within range and investment in selfgeneration projects should drive strong corporate advances growth. Our funds have a reasonable holding in the banks given their attractive dividend yields and ability to sustain and grow earnings. No contagion from global events is expected for the local banking sector.