Nonperforming loans rise, but banks remain strong

BUSINESS

Last year, repayments of one in 20 loans at South Africa’s four major banks were in arrears.

The number of nonperforming loans increased during the Covid-19 pandemic in the past year. And, according to credit ratings agency Moody’s Investors Service, this figure could still rise from 5.4% to between 7% and 9% this financial year.