Banks and financials fell 7.5% and 5.5%, respectively, last week as the 2020 earnings season revealed what many had feared: the bulk of the banks suffered swinging losses due to Covid-19.
According to an overview of banks’ results by PwC, aggregate headline earnings for all the banks declined by more than 48% in 2020 compared to the previous financial year; return on equity more than halved from 17.8% to 8.3%; and provisions for bad debt increased 2.5 times.
Michael Avery speaks to Costa Natsas, financial services leader of PwC Africa; and Nolwandle Mthombeni, senior banks analyst at Intellidex, about what we can learn from this earnings season.
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