Nedbank makes provisions for bad debt

JOHANNESBURG - One of South Africa's biggest banks says there are signs of strain among clients who are defaulting on loans.

Nedbank's credit loss ratio, which is a financial metric that shows the quality of a bank's loan portfolio, rose for the year to December.

READ: Nedbank results | Profits up, bank flags inflation

The bank says consumers are coming under increasing pressure from higher-than-expected interest rate increases, higher levels of inflation and more severe impacts from power cuts.

Nedbank has now upped its provisions for bad debt in a sign that the near term outlook is set to worsen.