“Since reporting in March 2022, the global macro-economic outlook has deteriorated. Growth has slowed, inflation has risen, and uncertainty has increased. Key drivers include the ongoing conflict in Ukraine, the strict lockdowns in China, and persistent global supply chain disruptions,” the bank said in a trading statement on Tuesday
In South Africa, inflation reached 5.9% in April 2022. By 31 May 2022, the Reserve Bank’s Monetary Policy Committee had raised the repo rate by 100 basis points to 4.75% and indicated that there were likely to be further increases in the second half of the year. “A higher average balance sheet and positive endowment from higher interest rates should drive strong net interest income growth. A larger client base and higher client activity is expected to continue to support fee growth. Trading revenues are subject to market volatility and related client activity.
In the five months to 31 May 2022, the group recorded low double-digit revenue growth. A larger average balance sheet and higher interest rates drove low-teen net interest income growth.