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.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now