Fixed-line phone company Telkom announces a R1,7-billion deal with Absa to provide the banking group with a virtual network for its branches.
People with irregular incomes can now access an inexpensive debit card for a one-off fee of just R30 and no ongoing management fees.
The asset finance industry is experiencing rising levels of arrears and bad debt as consumers begin to feel the pinch.
SA banks have not been discouraged by the ongoing spate of bombings of ATMs and will continue to provide financial services in remote areas.
The Competition Commission looks to streamline debit order systems, writes Maya Fisher-French.
South African banking charges were higher than they would be at competitive levels, according to a Competition Commission enquiry report.
Success is paramount for small businesses, but so are employees, reports Barrie Terblanche.
Nominal house-price growth slowed further in May this year to a level of 4,3% year-on-year, the lowest price growth since late 1999, Absa said on Thursday.
The increase in the retail price of petrol by 55 cents per litre will result in a ”period of anguish” for South African households, an economist said on Wednesday. Absa economist Chris Hart said the increase would cause food prices to rise and fuel inflation. Hart said the country was expecting a hike in electricity prices as well as an increase in the rate of taxes.
An Absa ATM situated inside a Newcastle pub was blown up, police said on Thursday. Captain Shooz Magudulela said the incident took place in Newcastle’s industrial area late on Wednesday night. ”A security guard was found tied up this morning [Thursday] and he had been like that since 9pm last night,” he said.
Three men have been arrested in connection with an Absa ATM bombing at Phagameng township in Modimolle on Wednesday, Limpopo police said. Spokesperson Superintendent Malesela Ledwaba said the men were caught after a massive search. ”We are still searching for two more men involved in the bombing.”
South Africa’s third-biggest bank, Absa, and food and clothing retailer Woolworths are to enter into a joint venture, the companies said in separate statements on Wednesday. The venture ”will provide Absa with access to customers in the retailer finance market at point-of-sale”, Absa said.
About 60% to 70% of the South African home finance market is now facilitated by originators, who have managed to secure interest rate concessions of 1% to 2,5% for their clients. They handle the shopping around for you, as well as the administration and insurance.
The amount that people are paying to service their debt has risen to an all-time high of 80% of disposable income, according to figures recently released by the South African Reserve Bank. Ian Wason, MD of Bond Busters, attributes much of this to the lengthy introduction of the National Credit Act.
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/ 27 February 2008
South Africa’s targeted CPIX inflation rate quickened to 8,8% year-on-year in January from 8,6% in December, above forecasts, data showed on Wednesday. The all-items consumer price index (CPI) increased by an annual rate of 9,3%, compared to 9% in December, Statistics South Africa said.
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/ 27 February 2008
Nedbank Group, South Africa’s fourth-largest bank, said on Wednesday 2007 headline earnings per share rose 33,8% despite rising household debt, but it warned of increasing default rates. Nedbank, majority-owned by insurer Old Mutual, said 2007 headline earnings rose 33,5% to R5,921-billion as its retail and corporate units grew on higher investment in infrastructure.
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/ 19 February 2008
Absa increased full-year headline earnings per share by about 19% and played down the potential impact of a slowdown in the domestic economy. Absa said on Tuesday that headline EPS rose to R14,01 in 2007 from R11,81 while headline earnings increased to R9,413-billion from R7,872-billion.
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/ 18 February 2008
South African stocks were sharply higher at midday on Monday led by banks ahead of Absa’s year-end earnings, while stronger overseas markets and firm metal prices spurred broad-based gains, traders said. By noon, the broader all-share index had gained 1,27% to 28 867,61, lifted mainly by a 2,36% gain in banks.
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/ 14 February 2008
The winners of the Premier Soccer League (PSL) will get a colossal R10-million first prize. This was announced by league sponsor Absa at the Carlton Centre on Thursday. Just more than R29-million will be shared by the 16 PSL clubs at the end of the season.
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/ 11 February 2008
Absa, South Africa’s biggest retail bank, said on Monday it expects group headline earnings per share and EPS to be between 15% and 19% higher in 2007. Absa, which is majority-owned by Britain’s Barclays, said headline EPS and EPS for the bank unit would be between 25% and 28% higher than the previous year.
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/ 7 February 2008
The Premier Soccer League (PSL) brand is worth R200-million. This is according to research conducted by BMI Sport Info, an independent research company. PSL consultant Peter Mancer said on Thursday at a press conference in Johannesburg that the brand has grown from strength to strength over the years.
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/ 16 January 2008
Despite a significant dip in real retail sales in South Africa, analysts feel that risks remain for another rate hike on January 31. However, the central bank may also have to ponder that real retail sales could head into negative territory in the months ahead and lead consumers into a recession.
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/ 16 January 2008
The JSE remained sharply weaker by midday on Wednesday, in line with other world markets, which were also experiencing a bumpy ride. At noon, the JSE’s all-share index was 2,97% in the red. The gold- and platinum-mining indices slumped 4,09% and 4,07% respectively, while resources were off 3,27%.
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/ 10 January 2008
Growth in house prices in the middle segment of the market slowed to a nominal 11,2% year-on-year in December 2007 — the lowest price growth since December 1999, when it was 9,3%, the Absa house-price index showed on Thursday. Nominal price growth of 12,5% year-on-year was recorded in November last year.
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/ 19 December 2007
South African consumer inflation raced further away from the central bank’s band in November, backing the case for another interest rate rise, despite a slowdown in retail sales. The targeted CPIX gauge — which strips out mortgage costs — jumped to 7,9% year-on-year from 7,3% in October.
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/ 19 December 2007
South Africa’s targeted CPIX inflation rate quickened to 7,9% year-on-year in November from 7,3% in October, official data showed on Wednesday. Statistics South Africa also said that the all-items consumer price index increased by an annual rate of 8,4%, compared to 7,9% in October.
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/ 14 December 2007
A weaker bank sector forced a positive JSE to pull back into the red by midday on Friday, leaving the all-share index 0,14% lower at noon. The JSE’s bank index was down 1,38% at midday as local and international traders questioned whether the move by the central banks to inject liquidity into financial markets was enough to settle global credit concerns.
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/ 7 December 2007
The end of the year is a good time to examine your finances, but this year take some time to review your domestic worker’s retirement plan. For many households domestic workers form the backbone of the support structure and it’s important to ensure they are provided for when they retire.
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/ 6 December 2007
South African Reserve Bank Governor Tito Mboweni on Thursday raised the repo rate by 50 basis points following a two-day meeting of the bank’s monetary policy committee. The increase pushes the repo rate to 11%, the prime overdraft rate to 14,5% and the tightening cycle that began in June last year to 400 basis points.
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/ 6 December 2007
The JSE posted strong gains in early trade on Thursday ahead of the Monetary Policy Committee’s interest rate decision expected later in the afternoon, with higher world markets adding some incentive for buying interest. At 9.21am, the all-share index was up 0,73% as the platinum mining index gained 1,19%.
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/ 29 November 2007
After being sharply firmer earlier in Thursday, weaker local producer price index (PPI) data forced the JSE to pull back at midday, even though world markets were firm. The JSE had been up as much as 533 points during the day, but by midday, it was only 337 points in the black.
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/ 28 November 2007
South Africa’s targeted CPIX inflation rate quickened to 7,3% in the year to October from 6,7% in September, data showed on Wednesday, above forecasts. Statistics South Africa also said that the all-items consumer price index (CPI) increased by an annual rate of 7,9%, compared with 7,2% in September.