Wed. Jul 24th, 2024

In response to the economic instability plaguing South Africa, Capitec, one of the country’s largest banks, has implemented stricter lending rules, as revealed in a statement released as the third quarter of the year commences. The bank attributes these measures to the challenges posed by the weak economic situation, including elevated interest rates and inflation rates surpassing government targets in recent months.

Capitec’s statement highlights how these economic factors have placed significant financial pressure on consumers, resulting in higher fees for borrowers and making it more difficult for them to meet their loan repayment obligations. To mitigate risks associated with its loan portfolio during these trying economic times, the bank has strengthened its loan-granting terms.

The bank also reported an increase in profits for the period, primarily attributed to robust sales of funeral plans. Capitec anticipates an 8% to 10% per-share earnings increase in the upcoming review period.

Capitec’s half-year results are slated for release later this month, shedding further light on the bank’s performance amid South Africa’s economic challenges.

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