Notes from the Trading Desk – Franklin Templeton

Franklin Templeton’s Notes from the Trading Desk offers a weekly overview of what their professional traders and analysts are watching in the markets. The European desk is manned by eight professionals based in Edinburgh, Scotland, with an average of 15 years of experience whose job it is to monitor the markets around the world. Their views are theirs alone and are not intended to be construed as investment advice.

The Digest

Despite a late selloff on Friday, global equities traded higher overall last week. Markets in the Asia Pacific (APAC) region closed the week up 1.8%, the STOXX Europe 600 Index closed up 1.3%, whilst the S&P 500 Index closed up 0.6%. There was a fairly evident rotation into some of the more beaten-up sectors as we saw a global theme of year-to-date losers performing better last week and European value outperforming growth.

UK Gross Domestic Product (GDP) Drops

Data continues to be a key focus for markets as countries generally continue to emerge from lockdowns. However, the main headline in Europe came out of the United Kingdom after the country registered its largest quarterly GDP drop on record in the second quarter (Q2), falling 20.4%.

The hit to GDP was largely expected, and officially means that the UK economy is now in a recession following a 2.2% drop in the first quarter. Private consumption was considered the main driver, falling 23.1% through the quarter. UK equities largely underperformed equities globally last week, with the FTSE 100 Index up just 1% and the FTSE 250 Index up just 0.6%, but that is from a relatively low base; UK equities have generally underperformed this year.

Data suggests that April and May were the low points for the UK economy, with GDP rebounding 8.7% in June. Unemployment remained the same in June, whilst industrial production grew faster than expected. Although a rebound is expected through the third quarter, the strength of that optimism would be tapered should there be a second spike in COVID-19 cases in the country.

From data already released, the United Kingdom was the worst-hit economy in Europe in the second quarter. This becomes clearer when we compare the equivalent data across the eurozone. Data released on Friday suggests eurozone GDP fell -12.1%, which was largely in line with expectations. GDP in France dropped 13.8% in the second quarter.

Berenberg Bank has predicted that the eurozone will return to pre-COVID-19 levels of GDP by the third quarter of 2022.

The Citi Economic Surprise Index hit new all-time highs again last week; however, there is concern that this will begin to level out as some recent data has missed expectations. The German ZEW survey was one key data disappointment, coming in at -81.3. In China, data on new loans, industrial production and retail sales for July all missed expectations. In the United States, it was a similar story. Later this week the focus will be on the global manufacturing data on Friday.

COVID-19: Beware Rising Cases in Europe

As the summer started and lockdowns eased across Europe, there was a “feel-good” factor that helped consumer activity start to rebound nicely in a number of countries, and equity markets likewise saw recovery.

However, concerns seem to be rising over the increase in new COVID-19 case numbers across the continent. Spain is now registering over 3,000 new cases a day, and notably both France and Germany are also seeing numbers increasing.

Towards the end of last week, the UK government announced it had added France and the Netherlands to its list of quarantine countries (which means that visitors returning from these destinations have to quarantine for 14 days). Unsurprisingly, the travel & leisure sector closed down 2.3% on Friday, the worst-performing sector on the day. France has already threatened retaliatory measures. Over the next month it will be crucial to see if new cases can be controlled and to determine what the impact to consumer confidence will be, as well as the knock-on effect on market sentiment.

Whilst the number of increased cases may be attributed in some part to better testing, we also need to be monitoring the mortality rate, as it differs amongst countries. However, as we progress into colder months, we could see populations at greater risk and governments back under pressure to re-impose more restrictions.

Latin America is also an area of key focus with regards to coronavirus cases. The region is currently accounting for half of all COVID-19 deaths worldwide. From an economic perspective, whilst the United States and countries around Europe and Asia have been able to inject unprecedented levels of stimulus into their economies, countries in Latin America do not have the same financial resources to do the same. Policies to contain the virus are costly, and could plunge the region into a deep economic crisis.

Finally, the number of active cases in the United States continues to rise, with new daily cases hovering around the 50,000 mark.

Week in Review


European equities traded higher amid a generally quiet week despite a late selloff on Friday.

As noted, value outperformed momentum last week, with and this some of the year-to-date losers including banks, oil & gas and travel & leisure amongst the outperformers. Automobile stocks were also notably strong. The year-to-date outperformers were among the week’s laggards, with health care and technology both down. Real estate also lagged as investors made moves out of more defensive stocks.

We are in the midst of peak holiday season in Europe, so newsflow and market volumes are light at this time of year. Even amidst earnings season, European markets were very quiet in July, with volumes the lowest since 2013 for the time of year.

August also started quietly in terms of market volumes. In times like this, market moves can be exacerbated on very little newsflow, so they have to be taken with a pinch of salt. Volumes were poor last week, with weekly totals at their lowest levels since late January. Whilst many market participants are on late summer breaks, the impression we get is that many fund managers are now in “wait-and-see” mode, with many questioning how sustainable the extent of the bounce from the lows actually is.

United States

US markets were higher across the board last week, with the S&P 500 Index breaking above its highest-ever closing level on Thursday, albeit on low volumes as we have seen in Europe. The NASDAQ Index underperformed, but it had seen a huge run, up almost 60% from the March lows. Looking at sectors, the picture was again similar to Europe, with the defensive real estate investment trusts (REITs) and utilities underperforming, whilst value interest helped the industrials come out on top. The worrying rise in COVID-19 cases is beginning to moderate slightly, with the incidence of death in known cases falling below 2%. US equities have now clawed back 99% of the losses suffered since their pre-pandemic high, with European indices lagging. As we have discussed previously, the domineering US technology companies have been responsible for much of this recovery.

July US inflation data came in better than expected, with the core consumer price index (CPI) up +1.6%, the strongest monthly increase since 1991. The data helped to lift bond yields from their lows (the US 10-year Treasury rallied 14.5 basis points last week). The core figure was boosted by a positive reversal in areas such as transportation, automobile insurance and airline fares as lockdown restrictions eased. We expect to see more modest readings likely going forward.

US Congress remains at an impasse regarding the government’s latest stimulus package, but temporary measures are now in place. President Donald Trump authorised all US states to pay US$400 per week in additional unemployment benefits, suspended payroll tax collection and extended the federal eviction moratorium. This has abated near-term concerns about individuals left without support, but there still may be more relief coming. There are also questions over just how effective these measures are, with the payroll deferral “voluntary” and really amounting to a zero-interest bridge loan at best.

Last week saw Argentina’s Economy Minister Martin Guzman reach a breakthrough agreement with its largest bondholder group to restructure US$65 billion of foreign debt, allowing the country to move forward from its sovereign debt default. A deadlock has persisted since May, when the country saw its ninth default since Argentina became independent in 1816. There had been panic over the prospect of the government pausing talks with bondholders and instead trying to thrash out a deal with its largest creditor, International Monetary Fund (IMF). So, this development is welcome news to all parties, despite all having to give back some ground. A formal vote is still required, with the deadline being 24 August.


Equities in the APAC region were mostly higher, with Japan the clear outperformer on the week. Chinese equities made small gains, with mixed macro data from the country. Retail sales in China slumped in July for the seventh month in a row, with households appearing to remain reluctant to spend. This will clearly also be a concern for economies elsewhere that are reopening later than China.

China’s economic rebound is clearly uneven, with other data looking more promising; industrial output rose 4.8% year-on-year in July, with local governments helping to support the space through infrastructure spending. The rebound in industrial production has been particularly impressive versus the rest of the world. Car sales were also a bright spot within the larger retail sales release, up 12% year-on-year in July, which helped automobile stocks to outperform globally last week.

As noted, US equities have now recovered around 99% of their losses looking at pre-pandemic highs versus March lows, and China and South Korea have fared even better. With their relatively heavy shift towards technology, the Shanghai Composite Index and the KOSPI have now recovered all of their losses (in local currency). Japan’s equity market is lagging somewhat, at just less than 80% of those losses recovered.

Week Ahead

The United Kingdom will be in focus as Brexit talks resuming this week.

We also have Global Flash Purchasing Managers’ Index reports (PMIs) for August coming out Friday.

Perhaps most concerning in the July PMIs was the more modest move up in the employment PMI to a level that is still below 50, thus still in contraction. With fiscal supports now fading, labour market healing is a necessary condition for the recovery to continue. Although the employment PMI did not fall nearly as much as indicated by the slump in global hiring, hopes for a quicker bounce-back than the painfully sluggish recovery from the global financial crisis likely needs to see the global employment PMI move above 50 at some point this quarter.


Market holidays: None of note.

Monday 17 August
• Economic/Political:
• Data: US: (August) Empire Manufacturing; UK: (August) Rightmove house prices; Japan: (Q2) GDP (report shows a contraction of 27.8% on the quarter)

Tuesday 18 August
• Economic/Political: Brexit talks
• Data: US: building permits; housing starts

Wednesday 19 August
• Economic/Political: FOMC meeting minutes; European Central Bank (ECB) Current Account
• Data: UK: (July) CPI; Japan: (June) core machine orders; (July) trade balance

Thursday 20 August
• Economic/Political: Norges Bank rate announcement: no change; Central Bank of the Republic of Turkey (CBRT) rate announcement: no change; ECB July monetary policy meeting account; Riksbank’s Deputy Governor Cecilla Skingsley speaks
• Data: US initial jobless claims

Friday 21 August
• Economic/Political: France sovereign debt to be rated by Moody’s
• Data: Global (August) flash PMIs: US: Markit manufacturing & services, Japan: Markit manufacturing & services, France: Markit manufacturing & services, Germany: Markit manufacturing & services, eurozone: Markit manufacturing & services, UK: Markit manufacturing & services; eurozone: (August, advance) consumer confidence; UK: (August, Preliminary) Gfk consumer confidence, (July) retail sales.


Franklin Templeton Key risks & Disclaimers:

What Are the Risks?

All investments involve risk, including possible loss of principal. The value of investments can go down as well as up, and investors may not get back the full amount invested. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Bond prices generally move in the opposite direction of interest rates. Thus, as prices of bonds in an investment portfolio adjust to a rise in interest rates, the value of the portfolio may decline. Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. Past performance is not an indicator or guarantee of future performance.

This article reflects the analysis and opinions of Franklin Templeton’s European Trading Desk as of 17th August 2020, and may vary from the analysis and opinions of other investment teams, platforms, portfolio managers or strategies at Franklin Templeton. Because market and economic conditions are often subject to rapid change, the analysis and opinions provided may change without notice. An assessment of a particular country, market, region, security, investment or strategy is not intended as an investment recommendation, nor does it constitute investment advice. Statements of fact are from sources considered reliable, but no representation or warranty is made as to their completeness or accuracy. This article does not provide a complete analysis of every material fact regarding any country, region, market, industry or security. Nothing in this document may be relied upon as investment advice or an investment recommendation. The companies named herein are used solely for illustrative purposes; any investment may or may not be currently held by any portfolio advised by Franklin Templeton. Data from third-party sources may have been used in the preparation of this material and Franklin Templeton (“FT”) has not independently verified, validated or audited such data. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user. Products, services and information may not be available in all jurisdictions and are offered by FT affiliates and/or their distributors as local laws and regulations permit. Please consult your own professional adviser for further information on availability of products and services in your jurisdiction. 

Issued by Franklin Templeton Investment Management Limited (FTIML) Registered office: Cannon Place, 78 Cannon Street, London EC4N 6HL. FTIML is authorised and regulated by the Financial Conduct Authority.

MeDirect Disclaimers:

This information has been accurately reproduced, as received from Franklin Templeton Investment Management Limited (FTIML). No information has been omitted which would render the reproduced information inaccurate or misleading. This information is being distributed by MeDirect Bank (Malta) plc to its customers. The information contained in this document is for general information purposes only and is not intended to provide legal or other professional advice nor does it commit MeDirect Bank (Malta) plc to any obligation whatsoever. The information available in this document is not intended to be a suggestion, recommendation or solicitation to buy, hold or sell, any securities and is not guaranteed as to accuracy or completeness.

The financial instruments discussed in the document may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein.

If you invest in this product you may lose some or all of the money you invest. The value of your investment may go down as well as up. A commission or sales fee may be charged at the time of the initial purchase for an investment and may be deducted from the invested amount therefore lowering the size of your investment. Any income you get from this investment may go down as well as up. This product may be affected by changes in currency exchange rate movements thereby affecting your investment return therefrom. The performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable guide to future performance. Any decision to invest in a mutual fund should always be based upon the details contained in the Prospectus and Key Investor Information Document (KIID), which may be obtained from MeDirect Bank (Malta) plc.

Exploring Mutual Funds – Warning Signs

Ray Calleja

An article written by Ray Calleja: Head – Private Clients, MeDirect

With mutual funds, like with everything else, things can go wrong and as an investor you must be aware of red flags, which may indicate that all is not well in some of the funds that you are invested in. Today we will discuss some of the warning signs that you need to look out for. If you do spot a red flag it does not automatically mean that you need to sell but rather, you should investigate further.

Asset Growth

As funds attract new investors and grow larger, their returns often become sluggish, weighed down by too many assets. While there is no definite relationship between the size of a fund and its performance, it is believed that both, being too large and too small, can hinder a fund’s performance. There are obvious cost benefits with large funds – where economies of scale come into play. The fixed costs become a smaller proportion of the expenses thus improving the efficiency of the fund. A large fund will also bring in increased revenue for the fund house from its management fees. If used effectively, these benefits can be passed on to the investors.

However, when a fund is unable to maintain its own investment strategy and fails to continue to produce returns comparable to the fund’s historical record, then the fund has become too large. This is not a problem for index funds and bond funds, where the bigger the size the better it is, since this should mean a reduction in a fund’s expense ratio.

Nevertheless, the size of a fund must be looked at in relation to its investment style. This is particularly true for funds which invest in specific sectors or those which are thematic funds (e.g. an infrastructure theme fund). The same applies for mid-cap or small-cap funds because if a mid-cap or small-cap fund becomes too large, it cannot invest solely in mid-caps or small-caps due to concentration risk in individual stocks, not to mention that mid-cap or small-cap stocks can be illiquid. Large scale buying or selling by the fund can lead to a massive impact on the price of mid-cap or small-cap stocks. When these funds become bigger because they are attracting new investors, the challenge is on for the fund manager, who may see his/her performance slip as he/she tries to find new investments with the new influx of cash.

This does not mean that smaller is always better. Smaller funds may show better short-term performance but this could be attributed to a few successful stocks in the portfolio, which could have a big impact on the performance of the fund. Such funds may also not have a long track record, and their fund managers may well be inexperienced. These types of funds tend to be less diversified with the result that one stock may have a major impact on the overall portfolio if it suffers from a downturn. Operating expenses also tend to be higher with smaller funds, which is the contrary to what we spoke about, earlier.

Therefore, when it comes to asset size of your mutual fund always consider the size in relation to the investment approach. You should also be wary when you see that the asset base of the fund is shrinking. This could mean that either there have been major outflows from the fund, due to investors withdrawing their investment or value of the assets in the portfolio have fallen considerably.

Another red flag is the amount of cash being held by the fund. Has this increased compared to previous years? Although a small proportion of the fund must be held in cash to meet any redemption requests from its shareholders, a large cash holding – usually above 15% of its total portfolio value – may indicate that the manager is having difficulty allocating the fund’s assets to various securities. Some still may argue against such threshold as they maintain that holding a relatively large amount of cash will give them the opportunity to take full advantage in situations where they anticipate a market correction or downturn.

The bottom line is that you must continue to monitor a mutual fund you are invested in to make sure that its strategy is matching the fund’s original objectives and goals. If not, then it may be time for you to sell that fund.

Change of Fund Manager

In previous articles, we discussed the importance of the fund manager since he/she is responsible for a fund’s performance and he/she is the person who makes all the important decisions about buying and selling the portfolio of securities making up the fund’s assets. So, when a fund manager leaves many wonder if they should sell their fund. The answer is not always yes.

When a fund manager does leave, the fund house will claim that it is business as usual. Obviously, you will need to take that with a pinch of salt and delve deeper before taking any action. Was the manager the only person at the helm or was he part of a larger team? Some fund houses follow a common investment philosophy and are process-driven. In such circumstances, fund managers are asked to follow a common philosophy and are not allowed to deviate from it. If your fund comes from a fund house with such a policy the exit of a fund manager may therefore not have a huge impact.

You must also try to find out more about the new manager who will replace him or her. What about his/her track record and experience? If the new person has a good and long track record at a similar fund, then that should make your decision easier and you are likely to stay put. If it is a manager who has been with the fund house but does not have much of a record, then take a look at other funds of the company in the same asset class. Some fund houses have an excellent track record and are able to replace departed fund managers without much disruption and effectively.

Good managers build good teams around them and that can endure after their departure, giving an incentive to stay with a fund even if the manager leaves. Even though everything always starts with the leader, as long as the new manager can maintain the fund’s ethos and get the best from the team, things should be fine. 

A change in the fund manager will make a difference only in certain circumstances. If the fund you own is an index fund it should not really make any material difference if the manager leaves, since that fund is meant to be tracking a defined benchmark, anyway and are not actively choosing stocks.

Finally, it is also important to find out whether the incoming fund manager will be adopting a new strategy to the fund. If that happens, then you do need to ask yourself the question whether the new strategy still fits in with your investment objectives. A fund’s value will not be affected overnight, so you will have sufficient time to assess the situation and then decide whether you want to stay or leave your investment in that fund.

Fund House Mergers or Acquisitions

In the last few years, we have witnessed several mergers and acquisitions, with the most prominent one in 2020 being the acquisition of Legg Mason by Franklin Templeton. Such transaction is another way to unlock economies of scale. Before that, there were other large asset management firms such as Aberdeen and Standard Life, along with Janus and Henderson which merged. More and more of these mergers are happening, since acquisitions are a quick way to grow the asset base and/or to expand the footprint of asset managers in markets where they haven’t been active in the past. Change in the European and global funds industry is not driven only by regulations and earnings pressure on asset management firms. It is also driven by investor demand, since investors ultimately decide in which funds to invest.

However, changes in ownership can also have a negative impact and may lead to a slow-down in performance or even to departures by fund managers and their teams shortly after a firm is sold to another company. It is therefore important for you to stay informed on the latest news on fund houses and their growth plans and new fund launches by visiting the MeDirect website, which is constantly updated with the latest news from the industry, not to mention the fund houses’ own websites and other financial news portals. Do take note of what independent sources have to say about your funds and their fund houses. Our partners Morningstar do not sell their own funds and their role is to be a watchdog in this field. Read their fund analysis and reports, also available on the Medirect website.

To recap you should do a regular check-up, say once every one or two months, to make sure that things have not changed with your mutual funds. Have the assets grown suddenly? Are their fund managers still in place? Is there anything unusual going on with the fund house? If you find out that there have been changes or changes are in the offing then do ask questions. If you are unsure, don’t ignore. Instead, you should be speaking to your Financial Advisor.

The above is for informative purposes only and should not be construed as an offer to sell or solicitation of an offer to subscribe for or purchase any investment. The information provided is subject to change without notice and does not constitute investment advice. MeDirect Bank (Malta) plc has based this document on information obtained from sources it believes to be reliable but which have not been independently verified and therefore does not provide any guarantees, representations or warranties.

MeDirect Bank (Malta) plc, company registration number C34125, is licensed by the Malta Financial Services Authority under the Banking Act (Cap. 371) and the Investment Services Act (Cap. 370).

The financial instruments discussed may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein.

If you invest in any of the products discussed you may lose some or all of the money you invest. The value of your investment may go down as well as up. A commission or sales fee may be charged at the time of the initial purchase for an investment and may be deducted from the invested amount therefore lowering the size of your investment. Any income you get from this investment may go down as well as up. This product may be affected by changes in currency exchange rate movements thereby affecting your investment return therefrom. The performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable guide to future performance. Any decision to invest in a mutual fund should always be based upon the details contained in the Prospectus and Key Investor Information Document (KIID), which may be obtained from MeDirect Bank (Malta) plc.

MeDirect absorbs significant COVID-19 related losses but remains well capitalised and on track for future growth

During the first half of 2020, MeDirect Group continued to implement its retail digital transformation to deliver long-term profitable growth as a more diversified pan-European retail and digital challenger bank, despite the COVID-19 pandemic and its effects on world economies and markets.

The Group remains well capitalised and liquid and as a systemically important bank, it is supervised by the European Central Bank.

MeDirect Group’s client base grew by 8% in the first six months of 2020, from 66,500 to 72,100, in line with the compound annual growth rate (CAGR) of 15% during the past two years. The Group’s attractive savings products and wealth solutions have continued to drive growth in client assets, which have reached €3.7 billion as at 30 June 2020, up 9% from €3.4 billion as at 31 December 2019, in line with the 13% CAGR during the past two years.

Arnaud Denis, Chief Executive Officer of MeDirect Group said: “The Group is implementing new digital solutions to provide customers with straightforward services and a seamless banking experience. The successful launch of the Group’s new mobile application in Malta in early May and in Belgium in July was one of the key milestones of this transformation.”

Throughout the first half of 2020, the Group continued to diversify its balance sheet and is on track to meet its target of a €1 billion Dutch government-backed mortgage portfolio by December 2020.

During the peak of the COVID-19 outbreak, MeDirect Belgium was the first issuer to securitise a portfolio of Dutch residential mortgages with a third party investor through a Residential Mortgage-Backed Security (RMBS). As a result of the transaction, MeDirect Belgium raised €350 million of long-term lower cost funding and diversified its funding sources. The successful placement of the senior tranche of this large debut transaction in the midst of the crisis reinforced investor confidence in the Group as an issuer.

The Group continued to de-risk its historical pan-European international corporate lending business as part of the strategic transformation. This portfolio comprises working capital facilities and other loans which finance companies in the real economy that employ thousands of people across a wide range of sectors, some of which have been more exposed to the impact of COVID-19.

MeDirect Malta’s local corporate banking business in Malta, accounting for less than 10% of the Group’s corporate lending, remains sound and profitable. MeDirect Malta has become an accredited financial intermediary under the Malta Development Bank’s COVID-19 Guarantee Scheme and has launched its MeAssist product in early May 2020 in order to enhance access to bank financing for its clients.

“The Group was one of the first banks to implement efficiently full remote working capabilities to address the operational challenges of COVID-19. During the first half of 2020, and despite COVID-19, MeDirect Group continued to be very successful in attracting high calibre talent and digital experts in all markets to support its strategic transformation,” Mr Denis said.

The Group’s balance sheet increased by 23% to €3.8 billion during the first six months of 2020, from €3.1 billion as at 31 December 2019. This was principally driven by the €463 million increase in the Dutch government-backed mortgage portfolio.

The total customer deposits grew by 8% to €2.6 billion as at 30 June 2020 from €2.4 billion as at 31 December 2019.

Mr Denis said: “The COVID-19 outbreak has substantially increased the uncertainty in the macroeconomic environment, which MeDirect has considered in its forward-looking provisioning approach. The Group carried out a comprehensive review of all lending portfolios and individually assessed borrowers on a loan-by-loan basis within its international corporate lending portfolio to identify problem exposures.”

The review resulted in the recognition of impairment provisions of €55.7 million for the first six months of 2020, capturing expected credit losses. As a result of the effects of COVID-19, the Group reported a loss after tax of €50.1 million for the six months ended 30 June 2020, compared to a profit after tax of €6.9 million for the first six months of calendar 2019. Management estimates that if one-off COVID-related impacts were excluded, MeDirect Group would have recorded a profit after tax of approximately €1.7 million for the first six months of 2020 while continuing to invest actively in the implementation of its transformation, including the build out of its digital platform and the diversification of its balance sheet.

MeDirect Group’s CET1 and Tier 1 capital ratios were 13.4% and its total capital ratio was 15.7% as at 30 June 2020. Despite the reported loss coming from the COVID-19 impact the Group’s Tier 1 capital ratio remains well above the Total SREP Capital Requirements, with Tier 1 capital surplus of circa 440 basis points above this requirement.

MeDirect Group liquidity reserves remain strong at €666.8 million as at 30 June 2020, and LCR stands at 569%, €549.7 million above regulatory requirements. 

Michael A. Bussey, Chairman of MeDirect Group concluded that “the Group remains well capitalised and liquid, with strong capital and liquidity ratios. MeDirect Group continues to monitor and assess the ongoing global macroeconomic developments and the potential implications for the countries and sectors in which the Group has its exposures.  Despite the significant challenges the banking industry is facing due to the COVID-19 outbreak, the Group continues to spearhead with the implementation of its business transformation to deliver long-term profitable growth.”


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