Adriaan Kruger
3 minute read
24 Mar 2021
9:24 am

2020 banking profits plunge by R50bn

Adriaan Kruger

According to an overview of banks’ results by PwC, aggregate headline earnings for all the banks declined more than 48% last year.

Picture: iStock

When the major South African banks announced their results over the last two weeks, the management teams of each noted the exceptional challenges of an unprecedented economic environment during 2020. According to an overview of banks’ results by PricewaterhouseCoopers (PwC), aggregate headline earnings for all the banks declined more than 48% last year compared to the previous financial year, return on equity more than halved from 17.8% to 8.3%, and provisions for bad debt increased by 2.5 times. Looking at the actual figures, the headline earnings of the large retail banks that published their results recently declined by more than...