Standard Bank has seen a double-digit increase in profits for the first half of 2023, but customers are struggling amidst the high-interest rate environment.
Despite recording strong financial results first half of the year, Standard Bank says consumers are still struggling to pay back their loans.
The South African Reserve Bank raised the repo rate by 125 basis points to 8.25% over the period, with inflation only returning to its target range of 3% to 6% in June. “Our banking businesses benefitted from continued client franchise growth, larger balance sheets, increased transaction volumes, and certain market and interest rate tailwinds. Revenue growth was well ahead of cost growth which supported strong positive operating leverage and a decline in the cost-to-income ratio to 50.5%,” the group said.
The group said credit impairment charges increased across all its portfolios, indicative of the challenging economic environment, higher interest, the weak outlook, and sovereign credit risk migration in specific African markets. In South Africa, credit impairment charges grew across all portfolios, while the non-recurrence of credit recoveries on the payment holiday portfolio in 1H22 .Looking ahead, the group said that inflation will likely start to move within the SARB’s target range of 4.5% in the medium term.
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.
South Africa's Standard Bank posts 34% jump in interim profitAfrica's biggest lender by assets Standard Bank said on Thursday its interim profit jumped by more than a third as high interest rates helped offset rising bad loans.
Read more »
Another interest rate hike on the cards for South AfricaThe Deputy Governor of the South African Reserve Bank says there is a real possibility that South Africa could see more interest rate hikes.
Read more »
Half a century of South African ceramic art covered in online saleThe August online auction comprising 250 lots in three sessions with a dedicated South African ceramics focus, is now open for bidding.
Read more »
South African rand weakens after China rate cutThe South African rand slipped on Tuesday, after China's central bank surprisingly cut key policy rates to boost a sputtering economic recovery in South Africa's biggest trading partner.
Read more »
EDITORIAL: The puzzling resilience of the South African economyDespite the omnishambles, unemployment’s down and growth forecasts are up. What’s going on?
Read more »