19 days ago • Posted by William Ramstein

South African banks show signs of struggle despite robust banking system

Nonperforming loan ratio at South Africa's biggest banks have recently begun a rising trend as more loans become non performing relative to total loan count. Standard Bank's NPL ratio was 6.21% in 2020 nearly doubling 2016 levels. Return on average tangible equity has seen the inverse effect pushing some banks to hold back on lending and others to use this as leverage to gain more market share. Net interest margins have trended down at the Big 4s with the SA central bank slashing interest rates to 3.5% from 6.5%.

Source: Spglobal