Absa sets aside billions for bad debt provision
Shares rise 3% as investors focus on its underlying performance
24 August 2020 - 23:42
Absa has set aside R7.3bn to absorb a wave of expected loan defaults as it reported a sharp drop in half-year earnings, the latest lender to chronicle the economic fallout from the Covid-19 crisis.
Like competitors, Absa has been building up cash buffers to cover potential credit losses from customers reeling from the pandemic, pushing it into a 82% drop in half-year headline earnings after bad debt charges in the six months to end-June jumped nearly four-fold to R14.7bn...
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