Sasfin points to ‘terrible’ state of economy as bad debts double
‘It could get a lot worse, depending on what our political friends do,’ warns CEO Roland Sassoon
THE sharp increase in Sasfin’s bad debts, which more than doubled during the year to June, is indicative of the weak economic environment the bank is operating in, says CEO Roland Sassoon."We are now looking at portfolio losses and saying this economy is really looking terrible," Sassoon said on Monday, following the release of the banking and financial services group’s financial results for the year to June."We’ve increased our general provisions for portfolio impairments based on the state of the economy," said Sassoon. Construction, mining and agriculture were the sectors under the most pressure, he said."It could get a lot worse, depending on what our political friends do. If SA gets downgraded, you’re going to see the currency crash and interest rates rise, which could impact on a lot of borrowers and importers," Sassoon said, adding that the picture could be good for exporters.Sasfin, which finances thousands of small-and medium-sized enterprises in SA, was hardest hit by cred...
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