Major banks analysis

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Combined headline earnings of R86.8bn increased 99% against FY20, combined ROE of 15.9% (FY20: 8.3%), net interest margin of 408 bps (FY20: 387 bps), credit loss ratio of 74 bps (FY20: 180 bps), cost-to-income ratio of 55.8% (FY20: 56.4%)

As the books closed for 2021, the operating environment that contextualised the period was in some ways more familiar. While 2020 began with a brief period of normality, the COVID-19 pandemic dominated the entirety of 2021. Learnings from navigating the extreme uncertainty during earlier phases of the pandemic - coupled with shifts to new ways of working and delivering financial services - aided the major banks’ abilities to navigate 2021 with a focus on stability, innovation and digitally-led operational excellence. Against more supportive conditions, the major banks delivered strong results on the back of a rebound in economic activity, increased client engagement levels and gains made through the execution of their digitally-centric strategies.
15 Mar 2022 5AM English South Africa Business News · Investing

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