Yowel wrote:These results are interesting. On the balance sheet, customer deposits growth of only 6% against public notion that with the rate caps and tier three banks struggling, funds would have naturally gone to the big banks. Balances to other banks down 43% (who are funding the small banks since also their deposits have also stagnated?), growth in deposits in 2014/2015 was only 13%.
When you look at lending, higher by 11%, in 2014/2015 was 22% which is obvious from the capping law.
In terms of cash, there are questions not answered. @muganda, any chance we can see the cash flow statement.
Flight to quality has been largely a myth for 2016. It was evident in 2015 when Dubai and Imperial bank went under but insignificant thereafter.
The big boys have had a slowdown in the deposit growth rate and their QoQ 2016 numbers bear witness to it. I suspect some small time depositors gave the banking sector a wide berth all together in the wake of Chase Bank developments. In addition, there is not enough liquidity/savings in the economy to go around...more like a de-saving trend.
The main purpose of the stock market is to make fools of as many people as possible.