Larry Claasen
3 minute read
2 Dec 2020
10:00 am

Standard remains cautious despite recovery in its credit loss ratio

Larry Claasen

The reopening of the economy has helped it but the bank says it still needs some time to see how deep the recovery is across all sectors of the economy.

Standard Bank initially indicated that they plan on closing 91 branches, with 1200 employers potentially losing their jobs. Picture: Moneyweb

Despite an improvement in its credit loss ratio for the ten months to 31 October 31, Standard Bank says its credit impairment outlook for beyond the end of the 2020 financial year “remains very uncertain”. This was in spite of its credit loss ratio, a measure of the lender’s losses as a percentage of total average advances, for the ten months coming in below that of the 169 bps for its half-year to end June. The previous half-year’s credit loss ratio was 76 bps. The knock-on effect of this caution is that it did not give any guidance on whether...