The Banking Industry in South Africa
Price
R 1 700.00(ZAR) estimated $ 110.87 (USD)*
The South African Banking Sector
The South African banking sector which has total assets of R4,890bn is under the spotlight for collusion by three of the major banks on fixing foreign currency. Other important developments in the sector include the closing of the accounts of the Gupta family, regarded as politically connected to President Jacob Zuma, which led to the scrutiny of black ownership in the financial sector, and the major banks defending their lending practices and records in addressing racial inequality. The firing of Finance Minister Pravin Gordhan and his deputy Mcebisi Jonas and the controversial cabinet reshuffle at the end of March 2017 has been described by the Banking Association as a matter of “extreme concern for the whole of South Africa.” A direct result has been a downgrade to junk status of the country’s foreign currency debt by global ratings agency S&P and the Rand immediately plummeting more than 4% after it had strengthened more than 20% in the course of a year.
Report Coverage
As well as focusing on developments in the commercial banking sector, the detailed Banking Industry report includes information on Other Credit Granting, Lease Financing, and Loyalty and Reward Programmes. Profiles for 91 companies active in the sector are provided. Included is VBS Mutual Bank, originally known as the Venda Building Society, which gave President Jacob Zuma a loan in 2016 to finance the R7.8m he was forced to pay back by the Constitutional Court for non-security upgrades to his home in Nkandla. Since this time VBS has clinched a deal to be the official banker of the Twelve Apostle Church in Christ (TACC), which claims to have 6.8 million members. Also profiled is Capitec, which as at December 2016 had the second-largest market share in the unsecured credit market book and showed the biggest growth in customer numbers year-on-year with an increase of 1 million customers.
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 6 |
| 2.2. | Geographic Position | 8 |
| 3. | SIZE OF THE INDUSTRY | 8 |
| 3.1. | Central Banking | 9 |
| 3.2. | Banking | 10 |
| 3.3. | Lease Financing | 14 |
| 4. | STATE OF THE INDUSTRY | 33 |
| 4.1. | Local | 33 |
| 4.1.1. | Corporate Actions | 40 |
| 4.1.2. | Regulations | 42 |
| 4.1.3. | Enterprise Development and Social Economic Development | 49 |
| 4.2. | Continental | 52 |
| 4.3. | International | 55 |
| 5. | INFLUENCING FACTORS | 57 |
| 5.1. | Government Intervention | 57 |
| 5.2. | Political Environment | 58 |
| 5.3. | Economic Environment | 59 |
| 5.4. | Expansion into Africa | 60 |
| 5.5. | Labour | 60 |
| 5.6. | Technology, Research and Development (R&D) and Innovation | 63 |
| 5.7. | Crime | 67 |
| 5.8. | Financial Inclusion | 68 |
| 5.9. | Environmental Concerns | 70 |
| 6. | COMPETITION | 71 |
| 6.1. | Barriers to Entry | 74 |
| 7. | SWOT ANALYSIS | 75 |
| 8. | OUTLOOK | 76 |
| 9. | INDUSTRY ASSOCIATIONS | 76 |
| 10. | REFERENCES | 78 |
| 10.1. | Publications | 78 |
| 10.2. | Websites | 80 |
| APPENDIX 1 | 83 | |
| Markets in which Loyalty and Reward Programmes have been adopted | 83 | |
| COMPANY PROFILES – CENTRAL BANKING & BANKS AND OTHER BANKING SERVICES | 84 | |
| AFRICAN BANK LTD | 84 | |
| BANK OF BARODA | 86 | |
| BANK OF CHINA LTD | 88 | |
| BANK OF TAIWAN | 91 | |
| BIDVEST BANK LTD | 95 | |
| CANARA BANK | 98 | |
| CAPITEC BANK LTD | 100 | |
| CHINA CONSTRUCTION BANK CORPORATION | 103 | |
| CITIBANK NA | 107 | |
| DEVELOPMENT BANK OF SOUTHERN AFRICA | 110 | |
| DITSOBOTLA PRIMARY SAVINGS AND CREDIT CO-OPERATIVE BANK LTD | 114 | |
| FIRSTRAND BANK LTD | 116 | |
| GBS MUTUAL BANK | 121 | |
| GRINDROD BANK LTD | 124 | |
| HSBC BANK PLC | 127 | |
| ICICI BANK LTD | 130 | |
| INVESTEC BANK LTD | 134 | |
| JPMORGAN CHASE BANK NA | 139 | |
| MERCANTILE BANK LTD | 142 | |
| NEDBANK LTD | 145 | |
| OSK KOOPERATIEWE BANK LTD | 153 | |
| SOUTH AFRICAN BANK OF ATHENS LTD (THE) | 155 | |
| STANDARD BANK OF SOUTH AFRICA LTD (THE) | 159 | |
| STANDARD CHARTERED BANK PLC | 163 | |
| STATE BANK OF INDIA | 166 | |
| SUID-AFRIKAANSE POSKANTOOR (SOC) LTD | 171 | |
| UBANK LTD | 174 | |
| VBS MUTUAL BANK | 177 | |
| VIRGIN MONEY SOUTH AFRICA (PTY) LTD | 180 | |
| COMPANY PROFILES – ISLAMIC FINANCE SOUTH AFRICA | 182 | |
| ALBARAKA BANK LTD | 182 | |
| FIRSTRAND BANK LTD | 186 | |
| HABIB OVERSEAS BANK LTD | 191 | |
| HBZ BANK LTD | 193 | |
| COMPANY PROFILES – AUTOMOTIVE FINANCING | 196 | |
| ARIVA RENTALS (PTY) LTD | 196 | |
| BIDVEST BANK LTD | 198 | |
| BMW FINANCIAL SERVICES (SOUTH AFRICA) (PTY) LTD | 201 | |
| FFS FINANCE SOUTH AFRICA (RF) (PTY) LTD | 203 | |
| FIRSTRAND BANK LTD | 205 | |
| MERCEDES-BENZ FINANCIAL SERVICES SOUTH AFRICA (PTY) LTD | 210 | |
| NEDBANK LTD | 212 | |
| STANDARD BANK OF SOUTH AFRICA LTD (THE) | 220 | |
| TOYOTA FINANCIAL SERVICES (SOUTH AFRICA) LTD | 224 | |
| COMPANY PROFILES – RETAIL & SECTION 21 COMPANIES | 227 | |
| BNP PARIBAS PERSONAL FINANCE SOUTH AFRICA LTD | 227 | |
| FOSCHINI RETAIL GROUP (PTY) LTD | 229 | |
| GAUTENG ENTERPRISE PROPELLER | 232 | |
| KUYASA FUND (THE) | 235 | |
| PHAKAMANI FOUNDATION | 237 | |
| SMALL ENTERPRISE FINANCE AGENCY LTD | 239 | |
| SMALL ENTERPRISE FOUNDATION (THE) | 243 | |
| THUTHUKANI FINANCIAL SERVICES HOLDINGS (PTY) LTD | 245 | |
| UBANK LTD | 248 | |
| WOOLWORTHS FINANCIAL SERVICES (PTY) LTD | 251 | |
| COMPANY PROFILES – PRIVATE AND PRIVATELY HELD CONCERNS | 254 | |
| BARKO FINANCIAL SERVICES (PTY) LTD | 254 | |
| BAYPORT FINANCIAL SERVICES 2010 (PTY) LTD | 256 | |
| BETTERLIFE HOME LOANS (PTY) LTD | 261 | |
| C T INTERNATIONAL FINANCIERS (PTY) LTD | 263 | |
| CAPITAL HARVEST (PTY) LTD | 265 | |
| FUNDI CAPITAL (PTY) LTD | 267 | |
| IEMAS FINANCIAL SERVICES CO-OPERATIVE LTD | 271 | |
| NATIONAL YOUTH DEVELOPMENT AGENCY (THE) | 275 | |
| OLD MUTUAL FINANCE (RF) (PTY) LTD | 278 | |
| SA TAXI DEVELOPMENT FINANCE (PTY) LTD | 280 | |
| TEMBEKA SOCIAL INVESTMENT COMPANY LTD | 282 | |
| COMPANY PROFILES – REWARD & LOYALTY PROGRAMMES | 284 | |
| BRITISH AIRWAYS PLC | 284 | |
| DINERS CLUB (S A) (PTY) LTD | 289 | |
| EDCON LTD | 291 | |
| EXCLUSIVE BOOKS GROUP (PTY) LTD | 295 | |
| FIRSTRAND BANK LTD | 299 | |
| FOSCHINI RETAIL GROUP (PTY) LTD | 304 | |
| INVESTEC BANK LTD | 307 | |
| MTN GROUP LTD | 312 | |
| NEDBANK LTD | 316 | |
| STANDARD BANK OF SOUTH AFRICA LTD (THE) | 324 | |
| VIRGIN MONEY SOUTH AFRICA (PTY) LTD | 328 | |
| VODACOM GROUP LTD | 330 | |
| WELLNESS WAREHOUSE (PTY) LTD | 334 | |
| WOOLWORTHS FINANCIAL SERVICES (PTY) LTD | 337 | |
| FIRSTRAND BANK LTD | 340 | |
| INVESTEC BANK LTD | 345 | |
| NBC HOLDINGS (PTY) LTD | 350 | |
| NEDBANK LTD | 353 | |
| SA HOME LOANS (PTY) LTD | 361 | |
| STANDARD BANK OF SOUTH AFRICA LTD (THE) | 364 |
