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Absa feels the pain

The article from BusinessTech discusses how Absa, one of South Africa's major banks, is experiencing significant financial strain due to a combination of factors including a challenging economic environment, increased operational costs, and a notable rise in credit impairments. Specifically, Absa reported a 2% drop in headline earnings for the first half of the year, with credit impairments soaring by 65% to R11.7 billion, largely due to the economic fallout from the Covid-19 pandemic affecting borrowers' ability to repay loans. Additionally, the bank has had to deal with rising inflation, higher interest rates, and increased costs related to technology upgrades and compliance with new regulations. Despite these challenges, Absa's CEO, Arrie Rautenbach, remains optimistic, highlighting the bank's efforts to adapt through digital transformation and cost management strategies to navigate through the tough economic conditions.

Read the Full businesstech.co.za Article at:
[ https://businesstech.co.za/news/business/803209/absa-feels-the-pain/ ]