Tag: Mike Brown

In 2023 the operating environment for South African banks was more challenging than initially forecast. In addition to a weaker global economy, domestic economic activity was impacted by record levels of load-shedding (electricity shortages), logistical constraints, higher-than-expected levels of inflation and, as a result, higher-than-expected increases in interest rates. Collectively, these conditions have put increasing pressure on consumers’ finances and led to reductions in business confidence and investment in most sectors other than energy.

The banking group expects earnings for the year ahead to be in line with subdued economic growth.

While the bank’s West African-associate weighed on 2017 earnings, a turnaround last year helped mitigate challenging conditions at home. Nedbank has benefitted from a turnaround at its Ecobank Transnational International (ETI) associate as growth in its home market continues to stagnate.