impairments increased 5% off the back of advances growth and the anticipated customer strain given the rate hiking cycle. The results statement says FNB’s overall lending approach is informed by internal and external data analysis related to affordability indicators, which still suggest that low- to medium-risk customers have capacity for credit and a higher propensity to take up a broader range of financial services products.
The results show that arrears are trending up, but at lower levels than anticipated. The current debt relief portfolio continued to perform better than expected and specific debt-relief outstanding advances amounted to R1.5-billion. On the retail side, new customers were up 5% while the number of eWallet users increased to 8.2 million.
“We have paid out R612-million in pre-emptive life insurance claims since the introduction of FNB Life, and 50% of funeral claims are paid out within four hours. In addition, our short-term insurance policies increased to 275,000 in the last six months.