South Africa’s banking earnings season has come and gone and market watchers are now peeling their eyes to see which of the country’s big six lenders, faced with a myriad of economic headwinds, will finish the year in a strong position. Bank profits have been healthy so far, with some delivering record headline earnings and handsome dividends.
This comes on the back of higher interest rates that are helping the banks to earn more from lending, although it is now markedly more expensive for customers to service their debt. The South African Reserve Bank (Sarb) has raised interest rates by a combined 425 basis points since November 2021, in its fierce fight to rein in runaway inflation, much like its counterparts in major economies. Click here to read full article