DBSA expects profits to fall in 2020 amid Covid-19

The Development Bank of Southern Africa said on Monday it expects to remain profitable in its year to end-March 2020, but is concerned that some clients will struggle to repay loans as Covid-19 weighs on economic activity.

The group expects profit to be lower than the R3.1bn net profit it made in its 2019 year, but development loans are expected to increase by almost R4bn, or 75% from 2019.Given the deterioration in SA’s economy, the Bank expects a rise in expected credit loss provisions as clients become affected, it said in a trading update, referring to the ability of clients to repay loans.

“However, forecasting under the current environment is complex and expected credit loss provisions have a high variability potential because of the influence from the developing economic recession and recovery prospects,” the group said. “Notwithstanding the disruption of the local fixed-income market, the DBSA has been successful in raising funding from international development finance institutions as well as international and local commercial banks,” the group said.

The Bank’s debt-to-equity level for March 2020 is expected to remain significantly below its regulated debt-to-equity ratio cap of 250%, the group said.

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.

Revised 2020 school calendar for SA announcedThe department of Basic Education today released the revised school calendar for South African schools.
Source: IOL - 🏆 46. / 51 Read more »

Revised 2020 school calendar for SA announcedThe department of Basic Education today released the revised school calendar for South African schools. lockdown Covid_19
Source: IOL - 🏆 46. / 51 Read more »

Basic education dept releases amended 2020 school calendar, it wont carry into 2021In a statement, the department said there will be a break to separate the third and fourth term but only for one week from October 26 to the 30th.
Source: TheCitizen_News - 🏆 6. / 75 Read more »

Basic Education Dept releases amended school calendar for 2020
Source: ewnupdates - 🏆 30. / 53 Read more »

YOUR WEEKLY HOROSCOPE | August 2 to 8 2020What do the stars hold in store for you?
Source: SundayTimesZA - 🏆 47. / 51 Read more »

This is when the 2020 school year will end and when the 2021 year will beginBasic education minister Angie Motshekga gazetted the regulations governing the recent closure of public schools on Sunday
Source: BDliveSA - 🏆 12. / 63 Read more »