The group is also expecting a basic loss of 7.6 billion rand for the full year comparable to 4.1 billion rand for the same period last year.
(READ MORE: ABIL expects R3 Bln H1 headline loss)
[DATA ABIL:African Bank Investments Limited] continues to face tough trading conditions as its clients face inflationary pressures and rising costs of living.
The group’s retail sector also saw a decline in sales due to diminishing consumer demand for credit.
"Ellerine Holdings Limited recorded merchandise sales of 2.8 billion rand for the nine months ended 30 June 2014, a 12 per cent decline relative to the comparative period," reported ABIL.
"Retail sales were negatively impacted by further credit risk reduction measures, lower customer demand for credit and the impact of a continuing tough consumer environment."
(READ MORE: Ellerine sale unlikely to affect ABIL's balance sheet)
The bank reported its non-performing loan formation for the quarter ended June 2014 having decreased by 7.1 per cent from the last quarter ended March 2014.
The group noted that some of the effects on the market were deteriorating economic environment that had lowered GDP growth expectations, increasing inflation, and loss of customer income through strike action.
"ABIL customers' disposable income and their ability to service debt continues to be under pressure, driven by a combination of above inflationary cost of living increases, higher relative debt servicing costs and lower growth in their gross income," said ABIL.
ABIL noted that it would continue to engage regulators to assist in ensuring a sustainable unsecured credit market to meet the needs of individuals in South Africa.
"We continue to believe that the ultimate outcome of the revised regulations will result in a fairer, better and more equitable unsecured lending industry going forward, adequately balancing the interests of credit providers, customers and regulators," ABIL explained.