TREASURY INSTABILITY
Big four banks buffeted by a year of political storms
It has been an eventful year for SA’s four largest banks, with the dismissal of a finance minister, subsequent downgrades of government debt, some corporate activity, a lengthy court challenge, and changes in management all affecting performance. Pravin Gordhan’s dismissal in March, to have him replaced with the inept Malusi Gigaba, sent banking shares spiralling downwards just after most had reported strong full-year results for 2016 (FirstRand, which has a June year-end, was due to report its performance for the six months to December). Barclays Africa, Nedbank and Standard Bank published results weeks before the downgrade, showing growth between 4% and 6% for the year, despite a slowdown in the economy. As banking shares rallied on the news, heading for levels last seen before finance minister Nhlanhla Nene was "recalled", President Jacob Zuma again sent them spiralling down with another change at the Treasury. The Banking Association SA (Basa) objected in the strongest way it co...
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