DStv Channel 403 Friday, 08 November 2024

Nedbank makes provisions for bad debt

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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.

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