Absa: SA bad credit card debt surges 70%, profit under pressure | Business

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Banking group Absa has reported muted profit growth for its half-year to end-June, hit by a 60% surge in credit impairments as South Africans struggled with higher interest rates and elevated inflation. | News24_Business

There is clear evidence that the higher interest rate environment is placing significant pressure on sensitive parts of the economy such as consumer-facing sectors, Absa said, adding"degrading rail and port infrastructure" also present a downside risk.

Absa also said the results showed the benefits of its push into a well-diversified franchise as well as its growth strategy. "We have a well-positioned balance sheet to withstand it. We continue to believe in our strategy ... and we are seeing the tangible benefits of a consistent execution."

 

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