Car loan surge signals growing consumer confidence in SA
Despite ongoing financial pressures, South Africans showed signs of renewed optimism in 2024, with vehicle loan applications at Standard Bank Vehicle and Asset Finance (VAF) jumping over 5% compared to the sluggish totals of the past two years. The uptick, fuelled by a dip in interest rates, hints at a brighter outlook for consumers.
Derick De Vries, head of automotive retail at Standard Bank VAF, ties the boost to the South African Reserve Bank’s rate cuts. “We experienced the first interest rate cut in September 2024, marking the end of the interest rate hiking cycle that began in November 2021. So, it’s not too surprising to see this slight boost in the car market,” he says. Cuts of 25 basis points in September, November, and January 2025 spurred a 9.3% surge in applications in the last quarter – the biggest quarterly leap in two years.
A new online application feature on the Standard Bank app, pre-filling customer details, also drove sales. “This has resulted in higher loan disbursements in 2024 because not only were applications higher, but consumers’ affordability improved,” De Vries adds.
Santam shines with strong 2024 results despite tough conditions
Santam, South Africa’s short-term insurer, posted a robust 2024, boosting its underwriting margin to 7.6% (up from 3.5% in 2023), with Gross Written Premium (GWP) rising 11% (from 6%) and Net Earned Premium (NEP) up 10% (from 6%) for the year ending 31 December. This came despite a tough landscape of extreme weather, high inflation, elevated interest rates, and geopolitical tensions squeezing disposable incomes.
Group CEO Tavaziva Madzinga hailed the turnaround in electricity supply and infrastructure progress under the Government of National Unity as economic bright spots. “The positive turnaround in electricity supply in 2024 and progress in addressing the country’s infrastructure challenges, bode well for future economic growth in South Africa,” he said. He credited Santam’s refreshed FutureFit 2030 strategy for laying a solid foundation to tackle market woes and meet policyholder needs.
Standouts included 7% and 10% GWP growth in motor and property insurance, a 51% profit leap in alternative risk transfer businesses (R781 million from R516 million), and strong gains from the MTN book transfer. Santam’s capital coverage hit 166%, above its 145%-165% target, signaling resilience for the road ahead.
FNB and Pick n Pay boost rewards for shoppers in expanded partnership
FNB and Pick n Pay are taking their partnership up a notch, rolling out bigger eBucks rewards for FNB and RMB Private Bank customers from 1 April 2025. Shoppers can now earn up to 30% back on Pick n Pay’s asap! delivery service and up to 20% back in-store and at Pick n Pay Clothing, while Smart Shopper benefits stay intact.The move builds on a sizzling response to 99c bread rewards and a November 2024 launch for FNB’s Private Segment (earning over R750,000 yearly), which saw 20% more activity on Pick n Pay Clothing and asap!. “At FNB, we are always looking for ways to make our customers’ money go further,” says Lytania Johnson, CEO of FNB Personal Segment, representing over 7 million customers. “This partnership with Pick n Pay gives customers substantially more every time they shop.”From April, FNB Easy customers snag 99c bread vouchers, Aspire customers get up to R150 monthly, while Premier, Private Clients, and RMB Private Bank clients score up to 30% back on asap! and 20% in-store. The eBucks programme’s latest perk promises to stretch every rand further.
PERSONAL FINANCE