SA banks facing slow burn with higher interest rates
Analysts say rises in credit costs since November 2021 may spark higher credit impairments
10 April 2023 - 19:16
The majority of SA bank shares had stellar runs in 2022. Emerging relatively unscathed from the Covid-19 pandemic, they benefited from the endowment effect of steadily rising interest rates, which translated into higher loan repayments that enhanced their earnings.
That saw the JSE banks index rise 11.7% in 2022 and 17.7% on a total returns basis, which factors in dividends as well as capital appreciation of the share. ..
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