FNBB anticipates tough trading year on rising rates
First National Bank (FNB) anticipates challenging operating environment next year following the recent increased interest rate which will limit the scope of credit growth.
Recently the central bank increased the interest rate to 2.65 percent due to rising global commodity prices and inflation. FNB
CEO, Steven Bogatsu pointed out in the bank’s 2022 annual report that although banks benefit from higher interest rates, this is offset by higher credit risk. “From a funding perspective, we are operating in a highly competitive market. Total advances to customers increased by eight percent to P16.1 billion and our market share remained stable, increasing slightly from 22 percent to 23 percent. “Our responsible approach to lending kept impairments in check despite the financial challenges faced by many of our customers.”
He said rising interest rates and costs, combined with job losses, will increase the pressure on consumers and small businesses and may result in an increase in loan impairments. “Our deposits are also likely to be impacted by the