Are SA banks prepared enough to manage bad debt?
A report by PwC, covering results at Standard Bank, FirstRand, Absa and Nedbank, estimates their charges soared by a combined 130% in the first half of 2020 from a year earlier
17 September 2020 - 12:14
SA’s banks have made their rainy-day provisions. Now, they must wait and see whether the funds set aside will be enough to manage a potential torrent of bad debt and ease pressure on their earnings in coming months.
The country’s so-called “Big Four” experienced a profit slump deeper than that seen during the global financial crisis in the six months ended June after a spike in credit impairment charges as they grappled with the effects of the coronavirus pandemic and a nationwide lockdown. Their return on equity fell to 9.2% from 15.4% a year earlier, according to SA Reserve Bank data...
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