The retail banking confidence in South Africa has remained weak in the fourth quarter of 2013, according to a survey by professional services firm Ernst & Young (EY).
Overall, the banking confidence fell marginally from 58 index points in Q3 to 56 points in Q4 2013.
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The survey also found that there were weak growth prospects in retail banking in Q4 2013, and slowdown in non-interest revenue and credit growth.
Despite the weak growth prospects, retail bank confidence was stronger in Q4, rising from 25 index points to 30 points.
EY Africa Financial Services Sector leader, Emilio Pera, said the combined impact of slow credit growth, coupled with rising credit losses made for a difficult operating environment in the fourth quarter.
"I think retail banking will be dependent on the macroeconomic environment.
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By GlobalData"There are some banks that are starting to benefit from their ventures into Africa, and as these business units become more financially meaningful, they will start contributing to overall positive profits growth," Pera added.
