SA's big banks post modest 5.9% earnings in 2024 amid economic headwinds - PwC

Philippa Larkin

South Africa’s major banks - Absa, FirstRand, Nedbank, and Standard Bank- posted a modest uptick in earnings for 2024 against a backdrop of formidable challenges, according to the latest PwC report released on Monday. Combined headline earnings climbed 5.9% from the 2023 financial year to R119 billion, a slowdown from the robust double-digit growth seen in prior years. For context, 2023 saw earnings soar 13.8% to R113.2bn. The return on equity (ROE) nudged down to 17.5% from 17.6% in FY23, while the credit loss ratio improved to 89 basis points (bps) from 102 bps, underscoring resilience amid choppy waters. However, the major banks’ combined headline earnings growth of 5.9% far surpassed South African and sub-Saharan economic growth. Underpinning earnings growth was the combination of resilient revenue growth across net interest…

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Star South Africa (Digital) - 1 Issue, 2025-03-18

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