Johannesburg - South Africa’s biggest banks remained financially sound last year with banking assets growing 16 percent, the SA Reserve Bank’s banking supervision department said in its annual report yesterday.
The JSE banking index rose 1.89 percent.
The report said: “Tightening financial conditions and lower commodity prices are providing… headwinds to growth.”
Read: Inflation risk looms large for SA
Impaired loans year on year increased 7 percent to R112 billion.
Gross loans and advances accounted for 74.5 percent of banking sector assets from 77.5 percent to R3.6 trillion from R3.23trln.
The 12-month moving average on return on equity and return on assets rose to 17.1 percent and 1.2 percent last year from 13.9 percent and 1 percent, respectively, on the back of operating profit, which rose by 20.8 percent year on year, compared with 7.4 percent.
The SA Reserve Bank’s supervision department fined two banks last year for failing to comply with the Financial Intelligence Centre Act.
BUSINESS REPORT