South Africa's big four banks to see rise in problem loans: Moody's

South Africa's big four banks will see a rise in problem loans in the next 12 to 18 months as the economy struggles to grow, but this poses only a moderate risk to profits, ratings agency Moody's said on Tuesday. Sluggish economic growth, forecast by the government to average 0.5 percent this year, will pose challenges for FirstRand, Standard Bank, Barclays Africa Group and Nedbank.
"The subdued South African economy will restrain their lending growth and make it harder for borrowers, especially households, to service their debt repayments," said a Moody's vice president Nondas Nicolaides.