“Despite credit impairments increasing, net interest income after impairments represents pleasing growth over 2012,” the Johannesburg-based lender said in a trading update today without giving further details. “Fees and commissions and trading income have recorded positive growth. Costs continue to be affected” by rand weakness, it said.
South African banks, including Nedbank Group Ltd. (NED) and African Bank Investments Ltd. (ABL), have also said bad debts are rising this year. Economic growth slowed to an annualized 0.9 percent in the first quarter from 2.1 percent in the preceding three months, Statistics South Africa said on May 28. The rand has slumped 15 percent against the dollar this year to the lowest in more than four years.
Standard Bank, the second-worst performing bank stock on the six-member FTSE/JSE Africa Banks Index this year after Absa Group Ltd. (ASA), gained 1.6 percent to 111.70 rand in Johannesburg trading.
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