Today’s Trading Playbook
KEY THEMES
U.S. equities ended a choppy session yesterday nearly flat, as investors went in anticipation mode for an expected rate hike at the Federal Reserve meeting this week, as well as more earnings announcements to digest. Moreover, European index futures were pointing to a lower opening, pressured by disappointing earnings from UBS. On the other hand, oil prices rose on Tuesday on worries about tightening supply after Russia cut gas supply through a major pipeline to Europe.
Elsewhere, on a conference call held yesterday, Commercial International Bank - Egypt’s [COMI] management indicated the following:
(1) sluggish deposits are a result of the high-yield 18% p.a., which dented growth in Q2 2022; however, growth resumed strongly last month,
(2) The 14% p.a. CDs offered by COMI should not hurt NIM too much, given high-yield Treasuries which will produce a reasonable spread. Management opted to provide funding sources at current rates, as another rate hike by the CBE is on the cards by the end of the year,
(3) The sale of Treasuries that took place in Q1 2022 was meant to provide enough room for loan growth, given sluggish deposits growth, and …
(4) Management is targeting a loan book growth of c.30% for 2022, with the bottom line expected to register between EGP15-15.5bn.
Now, on to the top news and analysis for the day.