The non-performing loans (NPL) in South Africa have shown fluctuations from 2013 onwards. In 2023, the NPL stood at 3.24 units. Between 2022 and 2023, the value declined by 0.92%, marking a consistent year-on-year reduction. The Compound Annual Growth Rate (CAGR) over the last 5 years indicates a decrease of approximately 0.94% annually. Going forward from 2024, the forecast suggests a gradual decline in NPLs, concluding at 3.05 units by 2028, which cumulatively reflects a decrease of 4.63% over this period.
Future trends to observe:
-Economic recovery post-pandemic and its impact on loan defaults.
-Changes in regulatory policies affecting credit markets.
-Adoption of financial technologies improving credit assessing mechanisms.
