S&P affirms Investec Bank

S&P said it affirmed its BB/B long- and short-term issuer credit ratings on Investec Bank Ltd.

The outlook is stable.

The agency also affirmed the zaAA-/zaA-1+ long- and short-term South Africa national scale ratings on the bank.

“We affirmed the ratings because we expect that Investec Bank will maintain better average asset quality than peers, with a cost of risk of only 0.35% of average customer loans in 2018-2019,” S&P said in a news release.

“We estimate the group's risk-adjusted capital (RAC) ratio will be in the 6.0%-6.5% range over the next 12-18 months, balancing moderate loan and earnings growth, and factoring in the group's target to improve its tier 1 ratio to above 10.1% over the next two years through earnings retention.”

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