S&P Global Ratings has forecast SA’s banking sector will lose about R74bn, or 1.4%, in unpaid loans, almost double the lowest rate they have lost, reflecting the broader economic tremors shaking the country.
S&P Global Ratings’ comments late on Tuesday came a day after Absa laid bare its financial soul for the year to end-December, showing it took almost R16bn in credit writedown (https://www.businesslive.co.za/bd/companies/financial-services/2024-03-11-absas-earnings-inch-up-on-higher-bad-debts/) charges — or amounts the bank would not be able to collect according to terms of the loans. That sent its credit loss ratio to 1.18%, a notable increase from 0.96% a year earlier...
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