A major hedge fund is shorting shares in the unsecured lender in expectation of further declines.
A larger than expected loss has not phased investors who believe better days are ahead for the countries largest unsecured lender.
The unsecured lender’s interim results show a loss of R4.4-billion as its customers struggle to repay loans.
African Bank, South Africa’s largest provider of unsecured loans, has posted a loss for the fiscal year through September.
The NCR has reached a settlement agreement with African Bank relating to two cases in which the bank was accused of reckless lending.
African Bank Investments aims to raise R4-billion through a Goldman Sachs rights offering and the sale of furniture retailer Ellerines.
Unsecured lender African Bank’s outlook rating has been downgraded from stable to negative by Moody’s Investors Service.
South Africa’s biggest unsecured lender is rated highly despite increasing bad debt
African Development Bank president Donald Kaberuka has pledged to provide Malawi with $45-million in order to resuscitate the ailing economy.
The turmoil in North Africa has hit growth across the continent but may be prompting important indirect political changes.