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.
“If you look at recent activity post lockdown, there is an improving trend,” he said. Write-offs in private-equity investments reflect a tough economy “on the ground.” Profit before provisions at Absa “certainly surprised the most and showed management have been on the right path,” while Nedbank reflected a challenging period.
Jan Meintjes, portfolio manager at Denker Capital: The major banks have approached provisioning differently, but none of the methods is wrong, he said. Those that front-loaded provisions more aggressively, such as Absa and FirstRand, are likely to show lower credit costs ahead.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SA space agency aiming for R4.47bn in infrastructure fundingSA’s new space infrastructure hub will boost local space industry capabilities with Sansa having Africa’s only satellite engineering proficiency
Source: BDliveSA - 🏆 12. / 63 Read more »
Cricket SA apologises over board member’s Twitter commentsEugenia Kula-Ameyaw was responding to a tweet about Momentum’s decision to pull out as sponsors
Source: BDliveSA - 🏆 12. / 63 Read more »
SA moves to lockdown level 1: Read President Cyril Ramaphosa’s full speechPresident Ramaphosa said ''now is the time to return our country, its people and our economy to a situation that is more normal, that more resembles the lives that we were living six months ago'.
Source: IOL - 🏆 46. / 51 Read more »
SA moves to lockdown level 1: Read President Cyril Ramaphosa’s full speechLockdownSA: President CyrilRamaphosa has announced the resumption of international air travel as well as the lifting of a number of restrictions on social gatherings under Alert Level 1. Read the full speech here:
Source: IOL - 🏆 46. / 51 Read more »
Level 1: SA to welcome international travellers from October 1President Cyril Ramaphosa revealed that, from October 1, international travel will be restricted to and from certain countries that are deemed high risk.
Source: IOL - 🏆 46. / 51 Read more »
SA moves to level 1 lockdown at midnight on SundayPresident Cyril Ramaphosa says SA's borders will reopen from October 1 for international travel for the first time in half a year
Source: BDliveSA - 🏆 12. / 63 Read more »