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Credit demand, World Cup boost Abil

Aug 04 2010 09:14

Company Data

African Bank Investments [JSE : ABL]

Last traded R36.10
Change R-0.22
% Change -0.61%
Cumulative volume 2.12m
Market cap R29.03bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - The mass-market lender African Bank Investments [JSE:ABL] said on Wednesday loans grew 13% in the nine months to June, and forecast steady performance ahead.

Lenders in South Africa have struggled to post convincing growth as unemployment and personal debt remain high following a recession that ended last year.

Abil, which also owns furniture retailer Ellerines, said in a trading update on Wednesday it was helped by growing demand for credit cards and strong merchandise sales in the run-up to the 2010 soccer World Cup.

The bank said as of the end of June, its gross loans grew 13% to R22.9bn, on a year-to-date basis.

The lender, whose financial year begins in October, gave few absolute or comparative figures about its performance.

Non-performing loans of as a precentage of loans "reduced modestly" in the April-June quarter, the bank said.

Sales for the quarter increased by nearly 30%, it said, another sign that South Africa's slow recovery may be gaining traction.

Shares of Abil are up about 3% so far this year, roughly in line with the benchmark all-share index.

- Reuters

 
 
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