The bad debt bogey
Hopes of recovery marred by legacy issues
SOUTH AFRICAN investors will gain an earlier than expected insight into the health of domestic consumers and local companies when Absa reports its financial results on Monday – more than a week earlier than had been slated. It follows a decision by parent Barclays plc to bring forward its own results presentation in an effort to placate the nerves of jittery investors concerned that the Britishbased group is in need of fresh capital and a possible government bail-out.
All eyes will be on South Africa’s bad debt levels after Barclays revealed last week its impairments worldwide would rise to a staggering £8bn.
While Barclays struggles in global markets, it’s clear the environment in SA has also deteriorated significantly over the past year, not only for individuals but also for companies. Recent official retail sales figures, plus