The Banking Industry in South Africa 2016
Price
R 1 900.00(ZAR) estimated $ 119.89 (USD)*
Report Coverage
The detailed report on the competitive banking sector describes the current market, the latest regulatory and corporate developments and discusses factors influencing the success of the sector. The report profiles 95 companies, including the “Big Four” banks, FirstRand, Standard Bank, Barclays Africa (Absa) and Nedbank, as well as major players in all sub-sectors of the Banking Industry.
South Africa’s Banking Sector
This report focuses on the South African banking industry and includes other credit granting, lease financing, and loyalty and reward programmes. The finance, real estate and business services industry contributed 18.6% to GDP in 2015 and with total banking sector assets of R4,855bn in January 2016, the banking sector plays a vital role in the country’s economy. It distributes resources and capital across all economic sectors, which in turn allows these sectors to contribute to the performance of the economy.
A Well Developed Sector
According to Banking Association South Africa, the country has a well developed and proactively regulated banking system which is equal to or greater than those of industrialised countries. As a result, the sector has attracted international interest, with numerous foreign banks establishing offices in South Africa and international banking organisations acquiring shares in major local banks. There are currently six foreign controlled banks, 39 foreign bank representatives and 15 branches of foreign banks registered with the South African Reserve Bank.
Challenging Conditions
Despite the resilience of the sector, it is facing numerous problems emanating from the real economy, mainly from rising unemployment, ongoing labour disputes and comparatively increased levels of inflation. In addition, running costs are increasing, often as a result of the implementation of measures to ensure compliance with regulations. Other factors that are putting pressure on margins are rising interest rates and the increasing number of households that are defaulting on the repayment of loans.
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 10 |
| 2.2. | Geographic Position | 12 |
| 3. | SIZE OF THE INDUSTRY | 12 |
| 3.1. | Central Banking | 12 |
| 3.2. | Banking | 14 |
| 3.3. | Lease Financing | 17 |
| 4. | STATE OF THE INDUSTRY | 38 |
| 4.1. | Local | 38 |
| 4.1.1. | Corporate Actions | 47 |
| 4.1.2. | Regulations | 49 |
| 4.1.3. | Enterprise Development and Social Economic Development | 54 |
| 4.2. | Continental | 56 |
| 4.3. | International | 62 |
| 5. | INFLUENCING FACTORS | 64 |
| 5.1. | Government Intervention | 64 |
| 5.2. | Economic Environment | 64 |
| 5.3. | Expansion into Africa | 66 |
| 5.4. | Labour | 67 |
| 5.5. | Technology, Research and Development (R&D) and Innovation | 70 |
| 5.6. | Crime | 74 |
| 5.7. | Financial Inclusion | 77 |
| 5.8. | Environmental Concerns | 78 |
| 6. | COMPETITION | 79 |
| 6.1. | Barriers to Entry | 82 |
| 7. | SWOT ANALYSIS | 83 |
| 8. | OUTLOOK | 84 |
| 9. | INDUSTRY ASSOCIATIONS | 85 |
| 10. | REFERENCES | 87 |
| 10.1. | Publications | 87 |
| 10.2. | Websites | 89 |
| Appendix 1 | 92 | |
| Responsibilities of the South African Reserve Bank | 92 | |
| Appendix 2 | 93 | |
| Islamic Banking Instruments | 93 | |
| COMPANY PROFILES – CENTRAL BANKING & BANKS AND OTHER BANKING SERVICES | 94 | |
| ABSA BANK LTD | 94 | |
| African Bank Ltd | 99 | |
| Bank of Baroda | 102 | |
| Bank of China Ltd | 104 | |
| Bank of Taiwan | 107 | |
| Bidvest Bank Ltd | 110 | |
| BNP Paribas | 113 | |
| Canara Bank | 118 | |
| Capitec Bank Ltd | 120 | |
| China Construction Bank Corporation | 123 | |
| Citibank NA | 126 | |
| Deutsche Bank AG | 129 | |
| Development Bank of Southern Africa | 164 | |
| Ditsobotla Primary Savings and Credit Co-Operative Bank Ltd | 168 | |
| FirstRand Bank Ltd | 170 | |
| GBS Mutual Bank | 175 | |
| Grindrod Bank Ltd | 178 | |
| HSBC Bank Plc | 182 | |
| ICICI Bank Ltd | 184 | |
| Investec Bank Ltd | 188 | |
| JPMorgan Chase Bank NA | 193 | |
| Land and Agricultural Development Bank of South Africa | 195 | |
| Mercantile Bank Ltd | 200 | |
| Nedbank Ltd | 203 | |
| OSK Kooperatiewe Bank Ltd | 211 | |
| Sasfin Bank Ltd | 213 | |
| Societe Generale SA | 216 | |
| South African Bank of Athens Ltd (The) | 220 | |
| South African Reserve Bank | 225 | |
| Standard Bank of South Africa Ltd (The) | 230 | |
| Standard Chartered Bank Plc | 234 | |
| State Bank of India | 236 | |
| Suid-Afrikaanse Poskantoor (SOC) Ltd | 240 | |
| Ubank Ltd | 244 | |
| VBS Mutual Bank | 247 | |
| Virgin Money South Africa (Pty) Ltd | 250 | |
| COMPANY PROFILES – ISLAMIC FINANCE SOUTH AFRICA | 252 | |
| Absa Bank Ltd | 252 | |
| Albaraka Bank Ltd | 257 | |
| FirstRand Bank Ltd | 261 | |
| Habib Overseas Bank Ltd | 266 | |
| HBZ Bank Ltd | 268 | |
| COMPANY PROFILES – AUTOMOTIVE FINANCING | 271 | |
| Absa Bank Ltd | 271 | |
| Ariva Rentals (Pty) Ltd | 276 | |
| Bidvest Bank Ltd | 278 | |
| BMW Financial Services (South Africa) (Pty) Ltd | 281 | |
| FFS Finance South Africa (RF) (Pty) Ltd | 282 | |
| FirstRand Bank Ltd | 284 | |
| Mercedes-Benz Financial Services South Africa (Pty) Ltd | 289 | |
| Nedbank Ltd | 291 | |
| Standard Bank of South Africa Ltd (The) | 299 | |
| Toyota Financial Services (South Africa) Ltd | 303 | |
| COMPANY PROFILES – RETAIL & SECTION 21 COMPANIES | 306 | |
| Foschini Retail Group (Pty) Ltd | 306 | |
| Gauteng Enterprise Propeller | 309 | |
| JD Group Ltd | 312 | |
| Kuyasa Fund (The) | 318 | |
| Lewis Group Ltd | 320 | |
| Phakamani Foundation | 323 | |
| RCS Investment Holdings Ltd | 325 | |
| Small Enterprise Finance Agency Ltd | 327 | |
| Small Enterprise Foundation (The) | 331 | |
| Thuthukani Financial Services (Pty) Ltd | 333 | |
| Ubank Ltd | 335 | |
| Woolworths Financial Services (Pty) Ltd | 338 | |
| COMPANY PROFILES – PRIVATE AND PRIVATELY HELD CONCERNS | 341 | |
| African Dawn Capital Ltd | 341 | |
| Barko Financial Services (Pty) Ltd | 345 | |
| Bayport Financial Services 2010 (Pty) Ltd | 347 | |
| BetterLife Home Loans (Pty) Ltd | 349 | |
| Capital Harvest (Pty) Ltd | 351 | |
| CT International Financiers (Pty) Ltd | 353 | |
| Discovery Ltd | 354 | |
| Edu-Loan (Pty) Ltd | 359 | |
| Finbond Group Ltd | 363 | |
| Iemas Financial Services Co-Operative Ltd | 368 | |
| Industrial Development Corporation of South Africa Ltd | 372 | |
| Ithala Development Finance Corporation Ltd | 379 | |
| Ithala SOC Ltd | 384 | |
| National Youth Development Agency (The) | 386 | |
| Net1 Finance Holdings (Pty) Ltd | 388 | |
| Old Mutual Finance (RF) (Pty) Ltd | 390 | |
| Real People (Pty) Ltd | 392 | |
| SA Taxi Development Finance (Pty) Ltd | 394 | |
| Tembeka Social Investment Company Ltd | 395 | |
| Transaction Capital Ltd | 397 | |
| COMPANY PROFILES – REWARD & LOYALTY PROGRAMMES | 400 | |
| Absa Bank Ltd | 400 | |
| American Express International | 405 | |
| British Airways Plc | 407 | |
| Clicks Group Ltd | 412 | |
| Comair Ltd | 417 | |
| Diners Club (SA) (Pty) Ltd | 422 | |
| Dis-Chem Pharmacies (Pty) Ltd | 424 | |
| Discovery Vitality (Pty) Ltd | 430 | |
| Edcon Ltd | 433 | |
| Exclusive Books Group (Pty) Ltd | 437 | |
| FirstRand Bank Ltd | 441 | |
| Foschini Retail Group (Pty) Ltd | 446 | |
| Investec Bank Ltd | 449 | |
| Mahala Loyalty Program (Pty) Ltd | 454 | |
| MTN Group Ltd | 457 | |
| Nedbank Ltd | 462 | |
| Ooba (Pty) Ltd | 470 | |
| Pick n Pay Stores Ltd | 473 | |
| Primedia (Pty) Ltd | 478 | |
| South African Airways (SOC) Ltd | 483 | |
| Standard Bank of South Africa Ltd (The) | 487 | |
| Virgin Money South Africa (Pty) Ltd | 491 | |
| Virtual Market Place (Pty) Ltd | 493 | |
| Vodacom Group Ltd | 495 | |
| Wellness Warehouse (Pty) Ltd | 499 | |
| Woolworths Financial Services (Pty) Ltd | 501 | |
| COMPANY PROFILES – DIRECT HOME LOANS | 504 | |
| Absa Bank Ltd | 504 | |
| FirstRand Bank Ltd | 509 | |
| Investec Bank Ltd | 514 | |
| NBC Holdings (Pty) Ltd | 519 | |
| Nedbank Ltd | 522 | |
| Ooba (Pty) Ltd | 530 | |
| SA Home Loans (Pty) Ltd | 533 | |
| Standard Bank of South Africa Ltd (The) | 535 |
