JOHANNESBURG - Absa has flagged an increase in the number of clients struggling to pay back loans.
It says high inflation, interest rate hikes, and persistent power cuts will lead to greater credit impairments in its next interim results.
But higher interest rates will see the bank grow revenue by double digits in the six months to end June.
It’s been a tough two years for consumers battling with the local interest rate hike cycle.
Many are struggling to repay their debt, resulting in greater credit impairments at banks.