Which is SA’s best capitalised?
African Bank in strong capital position and stable
African Bank, which had its credit outlook revised from negative to stable by S&P Global Ratings this week, is SA’s best-capitalised bank, according to the ratings agency. African Bank’s strong capital position and stable outlook demonstrates the bank’s turnaround following a 20-month curatorship and subsequent relaunch in April 2016. The bank’s risk-adjusted capital ratio was expected to remain above 20%, making it the best-capitalised bank in the country, S&P said. This was appropriate for the higher level of risk to which it was exposed as a result of its unsecured retail loan book. The Reserve Bank placed it in curatorship in August 2014 after it collapsed under bad debt and needed a R10bn capital injection from the private sector to keep its performing debt book afloat. It has separated from former parent African Bank Investments Limited (Abil), which resumed trading on the JSE in February as African Phoenix. Under the leadership of Brian Riley, African Bank is now diversifying...
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