South African Banks Earnings & Asset Quality in 2020
Year : Mar 2020
2020 is shaping up to be an even more challenging year than 2019 and, of course, the exact local and global impact of the COVID-19 pandemic is currently unknown. However, to date, GCR has assumed a severe stress environment will extend through the period laid down by the timelines of the National Disaster, i.e. up to 15th June 2020.
The South African economy has been struggling for much of the past decade. Over the past five years, GDP per capita growth has been negative, meaning the South African population (as a whole) have been getting poorer. In combination, official unemployment increased to 29.1% in the last quarter of 2019, the highest since 2008.