Bank customers battle with higher rates

Xolile Bhengu

Xolile Bhengu

Higher interest rates have resulted in Standard Bank customers falling R1,7billion behind in their loan repayments.

The bank is bracing itself for up to R1,1billion worth of home loans to fall into arrears

The group said in its interim results for the six months ended June that higher interest rates are impacting on consumers. But this is likely to be moderated to some extent by increased levels of disposable income and better employment prospects within an expanding economy.

Standard Bank said a weaker used car market has forced it to increase bad debt provisioning.

The bank grew its card holders by 7percent to 2,4 million who spent 12percent more than a year ago.

But Standard Bank said it is acquiring new customers in its home market at a slower rate, and is looking to expand outside of South Africa for much of its growth.