Absa expects to report an increase in credit impairment charges for the first half of the year.
- The increase is likely to result in a credit loss ratio of between 1.25% and 1.3%.
- This is the highest credit loss ratio Absa has seen in years.
- The increase is being driven by rising interest rates, which are putting pressure on consumers’ finances.
- Absa is not the only bank that is seeing an increase in bad debt.
- Standard Bank and Nedbank have also reported increases in their bad debt charges.
- The rising cost of debt is having a negative impact on consumers’ finances.
- This is likely to lead to an increase in defaults and bankruptcies in the coming months.