African Bank CEO on how the bank is cushioning its customers from the effects of COVID-19

The Covid-19 pandemic has presented unprecedented challenges for individuals and businesses worldwide, with financial pressures mounting as a result of the global economic downturn. In a recent interview with CNBC Africa, Basani Maluleke, CEO of African Bank, shed light on how the bank is working to cushion its customers from the effects of the ongoing crisis. Maluleke discussed various strategies and relief measures being implemented by African Bank to support its customers during these difficult times. One of the key initiatives mentioned by Maluleke is the provision of payment holidays to customers, with over ten million rand in payment holidays granted since March. This initiative aims to alleviate the financial burden on customers who may be facing difficulties in meeting their financial obligations due to the economic impact of the pandemic. Another important point raised by Maluleke is the importance of credit life claims for customers, which provide relief on installment payments for up to 12 months in the event of reduced income or financial hardship. Maluleke emphasized the need for customers to understand their options and utilize the available support to their advantage. Despite the efforts by financial institutions to provide relief and support to customers, Maluleke expressed concerns about the accumulation of debt among individuals and the potential risks associated with increased defaults and financial instability. He highlighted the need for proactive measures to address these challenges and emphasized the importance of finding sustainable solutions to navigate the financial uncertainties brought about by the pandemic. Maluleke also addressed the impact of the crisis on African Bank's profitability, acknowledging the significant pressure on the bank's financial performance due to rising payments and potential write-offs. However, he remained optimistic about the bank's resilience and ability to weather the storm, citing the bank's strong capitalization and experienced management team as key strengths in facing the challenges ahead. Additionally, Maluleke reassured stakeholders about the bank's preparedness to confront the evolving financial landscape and expressed confidence in the support of African Bank's shareholder base, including the Reserve Bank and other key stakeholders. While acknowledging the uncertainty surrounding the extent of potential write-offs in the coming year, Maluleke affirmed that African Bank is actively monitoring the situation and will provide further insights into the bank's financial outlook during the upcoming release of its financial results in June. In conclusion, Maluleke's insights shed light on the proactive measures and strategic initiatives being undertaken by African Bank to navigate the financial complexities brought about by the Covid-19 crisis. As the bank continues to support its customers and adapt to the evolving economic landscape, Maluleke's leadership and resilience will be crucial in steering African Bank through the challenges ahead.