SARB to make African Bank announcement

Comment on this story
African BankThornTree Independent Newspapers Photo: Simphiwe Mbokazi.

Johannesburg - South Africa’s Reserve Bank plans to detail later today measures for African Bank Investments Ltd., the stricken Johannesburg-lender whose stock lost most of its value last week after saying it needed R8.5 billion of new funds.

The Reserve Bank will hold a press conference at 4 p.m. in Pretoria today to “announce measures to be taken with regard to African Bank Ltd.,” the bank said in a statement on its website without providing additional details.

African Bank’s situation has become critical after saying chief executive and founder Leon Kirkinis resigned, losses would be at a record this year and it would need to tap investors for funds for the second time in less than a year as bad loans mount.

The stock dropped to 31 cents on August 8, from 6.88 rand on August 5, the day before a trading update revealed that the bank expects a record 7.6 billion-rand loss this year and Kirkinis was stepping down after 23 years with the company. - Bloomberg News



sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.