Who Owns Whom
Request Free Trial List Your Company WOWEB Login
Home > Report Group > Banking Industry Including Stokvels South Africa
  • Cart
  • Checkout

    • Update scheduled for April 2024

    banking industry south africa

    The Banking Industry in South Africa 2022

    Carole Veitch | South Africa | 26 September 2022

    The Banking Industry in South Africa 2021

    Carole Veitch | South Africa | 16 March 2021

    The Banking Industry in South Africa 2019

    Louise Mitchell | South Africa | 06 September 2019

    The Banking Industry in South Africa 2018

    Louise Mitchell | South Africa | 03 August 2018

    The Banking Industry in South Africa 2017

    LOUISE MITCHELL | South Africa | 06 April 2017

    The Banking Industry in South Africa 2016

    Louise Mitchell | South Africa | 31 March 2016

    The Banking Industry in South Africa 2015

    Martin Rothschild | South Africa | 03 February 2015

    Report Info

    Report Summary Table of Contents
    Enquire about this report

    Report Coverage

    This report covers the banking industry in South Africa including the major commercial banks, development banks, central bank, digital banks, microfinancing and stokvels. It includes comprehensive information on the size and state of the sector, industry statistics and performance indicators, rankings, corporate actions and other developments. There are profiles of 81 companies including the major banks such as FirstRand (FNB), ABSA, Standard, Nedbank, Capitec and Investec, development banks such as the Land Bank and relatively new players such as TymeBank and Bank Zero.

    Introduction

    • South Africa’s banking sector is well capitalised and its capital adequacy and liquidity ratios have remained well above minimum statutory requirements.
    • In the year to end-March 2022 the sector recorded increased assets, gross loans and advances, investment and trading securities and short-term negotiable securities.
    • Profitability improved significantly.
    • However, the operating environment remains highly volatile and the sector is facing elevated domestic and global risks.
    • These include a possible greylisting over South Africa’s failure to implement adequate measures to prevent illicit money flows.

    Strengths

    • Stokvels are effective savings and investment instruments.
    • The banking sector is stable and well capitalised.
    • The level of formal financial inclusion is 91%, and 81% of South Africans aged 16 years and over have a commercial bank account.
    • The major banks have well-diversified product portfolios and broad geographical reach.
    • The South African banking system is well regulated and is regarded by the International Monetary Fund as one of the best banking systems in the world.

    Weaknesses

    • Capital requirements that determine how banks allocate credit tend to work against small businesses and poor people.
    • The commercial banking sector is dominated by five major players and is highly concentrated.

    Opportunities

    • Expansion of the major banks into the growing African corporate and investment banking market.
    • The development of digital banking products and apps.
    • The inclusion of unbanked low-income earners.
    • The R50bn a year stokvel savings pot can be leveraged to finance small business development.
    • The regulation of the cryptocurrency market could allow for the development of new banking channels.

    Threats

    • Ballooning national debt poses a threat to financial stability.
    • Banking-related corruption, crime and fraud, including cybercrime and money laundering.
    • Climate change-related shocks.
    • Domestic and global macroeconomic pressures.
    • Further waves of COVID-19.
    • The impact of the war in Ukraine on inflation.
    • The threat of South Africa’s grey-listing over inadequate measures to combat money laundering.

    Outlook

    • The Reserve Bank expects banks and financial institutions to remain resilient with adequate capital buffers to absorb shocks.
    • With inflation and interest rate increases, and as consumers and businesses come under increased pressure, analysts predict that the risk of non-performing loans will rise.
    • Analysts expect climate change to increasingly impact financial stability and monetary policy.
    • The rise of digital banking will continue to drive the demise of in-person banking.

    Read More..
    The Banking Industry in South Africa 2022

    Full Report

    R 9 500.00(ZAR) estimated $499.62 (USD)*

    Buy Now +

    Industry Landscape

    R 6 650.00(ZAR) estimated $ 349.73 (USD)*

    Buy Now +

    Historical Reports

    The Banking Industry in South Africa 2021-03-16

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2019-09-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2018-08-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2017-04-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2016-03-31

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2015-02-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 9
    2.2. Geographic Position 11
    2.3. Size of the Industry 13
    2.4. Key Success Factors and Pain Points 17
    3. LOCAL 18
    3.1. State of the Industry 18
    3.2. Key Trends 24
    3.3. Notable Players 25
    3.4. Corporate Actions 29
    3.5. Regulations 32
    3.6. Enterprise Development and Social Economic Development 37
    4. AFRICA 39
    5. INTERNATIONAL 43
    6. INFLUENCING FACTORS 45
    6.1. The War in Ukraine 45
    6.2. Economic Environment 47
    6.3. COVID-19 48
    6.4. Financial Inclusion 50
    6.5. Technology, Research & Development (R&D) and Innovation 51
    6.6. Government Support 54
    6.7. Labour 54
    6.8. Cryptocurrency 55
    6.9. Crime 55
    6.10. Environmental Issues 57
    7. COMPETITIVE ENVIRONMENT 58
    7.1. Competition 58
    7.2. Ownership Structure of the Industry 59
    7.3. Barriers to Entry 59
    8. SWOT ANALYSIS 59
    9. OUTLOOK 60
    10. INDUSTRY ASSOCIATIONS 61
    11. REFERENCES 62
    11.1. Publications 62
    11.2. Websites 63
    APPENDIX 1 65
    Summary of Notable Players 65
    COMPANY PROFILES 89
    Absa Bank Ltd 89
    Access Bank South Africa Ltd 93
    African Bank Ltd 95
    African Dawn Capital Ltd 97
    Albaraka Bank Ltd 99
    Bank of China Ltd 102
    Bank of Taiwan Co. Ltd 105
    Bank Zero Mutual Bank 108
    Barko Financial Services (Pty) Ltd 109
    Bayport Financial Services 2010 (Pty) Ltd 111
    BetterHome Group Ltd 114
    Bidvest Bank Ltd 116
    BNP Paribas Personal Finance South Africa Ltd 119
    BNP Paribas S.A. 121
    British Airways PLC 126
    C T International Financiers (Pty) Ltd 129
    Capital Harvest (Pty) Ltd 130
    Capitec Bank Ltd 132
    China Construction Bank Corporation 134
    Citibank N.A. 137
    Clicks Group Ltd 140
    Deutsche Bank AG 143
    Development Bank of Southern Africa 159
    Diners Club (S A) (Pty) Ltd 162
    Dis-Chem Pharmacies Ltd 164
    Discovery Ltd 172
    Discovery Vitality (Pty) Ltd 176
    Ditsobotla Primary Savings and Credit Co-Operative Bank Limited Primary Co-Operative 178
    Exclusive Books Group (Pty) Ltd 180
    Finbond Group Ltd 183
    FirstRand Bank Ltd 186
    Foschini Group Ltd (The) 190
    Fundi Capital (Pty) Ltd 194
    Gauteng Enterprise Propeller 196
    GBS Mutual Bank 198
    Grindrod Bank Ltd 200
    Habib Overseas Bank Ltd 203
    HBZ Bank Ltd 205
    HSBC Bank PLC 207
    ICICI Bank Ltd 209
    iMasFinance Co-Operative Limited Primary Co-Operative 212
    Industrial Development Corporation of South Africa Ltd 215
    Investec Bank Ltd 223
    Ithala Development Finance Corporation Ltd 227
    JPMorgan Chase Bank N.A. 229
    Land and Agricultural Development Bank of South Africa 231
    Lewis Group Ltd 234
    Mahala Loyalty Program (Pty) Ltd 237
    MTN Group Ltd 239
    National Youth Development Agency (The) 242
    NBC Holdings (Pty) Ltd 244
    Nedbank Ltd 247
    Old Mutual Finance (RF) (Pty) Ltd 254
    Ooba (Pty) Ltd 256
    Oranjekas Spaar en Krediet Kooperatief Beperk Primary Co-Operative 259
    OSK Kooperatiewe Bank Beperk Primary Co-Operative 261
    Phakamani Foundation NPC 263
    Pick n Pay Stores Ltd 264
    Primedia (Pty) Ltd 267
    Retailability (Pty) Ltd 270
    SA Home Loans (Pty) Ltd 273
    SA Taxi Development Finance (Pty) Ltd 275
    Sasfin Bank Ltd 276
    SaveAct Trust 278
    Small Enterprise Finance Agency Ltd 279
    Small Enterprise Foundation NPC (The) 282
    South African Airways SOC Ltd 285
    South African Reserve Bank 288
    Spot Money SA (Pty) Ltd 291
    Standard Bank of South Africa Ltd (The) 292
    Standard Chartered PLC 296
    Suid-Afrikaanse Poskantoor SOC Ltd 299
    Thuthukani Financial Services Holdings (Pty) Ltd 302
    Transaction Capital Ltd 304
    Tyme Bank Ltd 307
    Ubank Ltd 309
    Virtual Market Place (RF) (Pty) Ltd 312
    Vodacom Group Ltd 314
    Wellness Warehouse (Pty) Ltd 317
    Woolworths Financial Services (Pty) Ltd 320
    Ziphakamise Savings and Credit Co-operative Bank Limited Primary Co-Operative 322

    Report Coverage

    This report focuses on the banking industry in South Africa including stokvels. It includes comprehensive information on commercial and central banking, stokvels and other credit granting and lease financing organisations. The report provides information on the state and size of the sector, assets, loans and advances, regulation and corporate actions. There are profiles of 90 companies including the major banking groups such as FirstRand (FNB), Absa, Standard Bank, Nedbank and Capitec, credit-granting institutions including retailers, international banks operating in South Africa stokvels and home loan companies.

    Introduction

    The South African banking industry is regarded by the International Monetary Fund (IMF) as one of the best banking systems in the world and major local banks are highly rated by global banking consultancy Lafferty Group. The industry’s image, however, has been tarnished by a corruption scandal, which resulted in the collapse of VBS Mutual Bank. According to the South African Reserve Bank (Sarb), the banking industry’s total assets rose by 10.2% year-on-year to R6.5-trillion in September 2020. South African banks have played a critical role in the coronavirus pandemic response, providing more than R50bn in financial relief to financially distressed individuals and businesses. Stakeholders have reported a significant increase in non-performing loans as a result of the pandemic, and while local banks are well capitalised, analysts say that their creditworthiness could be threatened by South Africa’s crippling burden of debt. With savings totalling around R50bn in 2020, South Africa’s 810,000 pooled savings and investment clubs, (commonly known as stokvels), are an integral part of the country’s communal savings culture. The National Stokvel Association of South Africa estimates that more than 11 million adults are active stokvel members. Following the launch of FNB’s new stokvel banking product in February 2021, stakeholders say that informal savings and investment clubs are increasingly becoming part of the economic mainstream.

    Strengths

    • Stokvels are dynamic savings and investment instruments.
    • The banking sector is stable and well capitalised.
    • The level of formal financial inclusion has strengthened to 91% and 81% of South Africans aged 16 years and over have a commercial bank account.
    • The major banks have well-diversified product portfolios and broad geographical reach.
    • The sector is highly innovative.
    • The South African banking system is well regulated and is regarded by the International Monetary Fund as one of the best banking systems in the world.

    Weaknesses

    • A large number of unregulated players operate in the informal microlending sector.
    • Capital requirements that determine how banks allocate credit tend to work against small businesses and poor people.
    • Stokvels are unregulated and members’ money is not secure.
    • The commercial banking sector is dominated by five major players and is highly concentrated.
    • The interdependency of the financial sector and the government represent a potential threat to financial stability.
    • The sector has shed jobs as a result of branch closures by the major banks.

    Opportunities

    • Expansion of the major banks into the growing African corporate and investment banking market.
    • The anticipated growth of Islamic banking locally and in the rest of Africa.
    • The development of digital banking products and apps.
    • The domestic home loans market.
    • The inclusion of unbanked low-income earners
    • The R50bn stokvel savings pot can be leveraged to finance small business development and promote greater financial mobility.
    • The regulation of the cryptocurrency market could allow for the development of new banking channels.

    Threats

    • A potentially more devastating third wave of coronavirus.
    • Ballooning national debt poses a threat to financial stability.
    • Banking-related corruption, crime and fraud, including cybercrime.
    • Climate change-related shocks.
    • Domestic and global macroeconomic pressures.
    • Further sovereign credit ratings downgrades, which could negatively affect the funding and liquidity of banks.
    • Government’s land expropriation without compensation policy.

    Outlook

    South Africa’s banking system remained stable during the first and second waves of the coronavirus crisis, despite a significant increase in non-performing loans. Given the sector’s built-in capital and liquidity buffers, role players are confident that it will remain strong enough to weather an anticipated third wave of the pandemic and associated financial stressors. However, in its Financial Stability Review released in November 2020, the South African Reserve Bank highlights the risks associated with South Africa’s ballooning national debt, warning that the interdependency of the financial sector and the government represent a threat to financial stability. Although the roll-out of vaccines is underway, role players anticipate that the growth prospects of the banking sector and the domestic economy will remain constrained over the next three years. Segments that could offer significant growth potential include the domestic home loans market and stokvel investment and savings products.

    Read More..
    The Banking Industry in South Africa 2021

    Full Report

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 69.95 (USD)*

    Buy Now +

    Historical Reports

    The Banking Industry in South Africa 2022-09-26

    R 9 500.00(ZAR) estimated $499.62 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2019-09-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2018-08-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2017-04-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2016-03-31

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2015-02-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 8
    2.2. Geographic Position 9
    3. SIZE OF THE INDUSTRY 10
    3.1. Central Banking 11
    3.2. Commercial Banking 11
    3.3. Other Credit Granting 13
    3.4. Lease Financing 15
    3.5. Stokvels 16
    4. STATE OF THE INDUSTRY 16
    4.1. Local 16
    4.1.1. Corporate Actions 24
    4.1.2. Regulations 25
    4.1.3. Enterprise Development and Social Economic Development 31
    4.2. Continental 33
    4.3. International 38
    5. INFLUENCING FACTORS 42
    5.1. Coronavirus 42
    5.2. Government Interventions 45
    5.3. Economic Environment 46
    5.4. Financial Inclusion 47
    5.5. Operating Expenses 48
    5.6. Labour 49
    5.7. Cryptocurrency 50
    5.8. Technology, Research and Development (R&D) and Innovation 51
    5.9. Crime and Fraud 54
    5.10. Environmental and Social Concerns 55
    6. COMPETITION 57
    6.1. Barriers to Entry 58
    7. SWOT ANALYSIS 58
    8. OUTLOOK 59
    9. INDUSTRY ASSOCIATIONS 60
    10. REFERENCES 61
    10.1. Publications 61
    10.2. Websites 62
    APPENDIX 1 64
    Summary of Notable Players 64
    COMPANY PROFILES 86
    ABSA BANK LTD 86
    AFRICAN BANK LTD 91
    AFRICAN DAWN CAPITAL LTD 93
    ALBARAKA BANK LTD 96
    ARIVA RENTALS (PTY) LTD 99
    BANK OF CHINA LTD 101
    BANK OF TAIWAN 105
    BARKO FINANCIAL SERVICES (PTY) LTD 109
    BAYPORT FINANCIAL SERVICES 2010 (PTY) LTD 111
    BETTERLIFE GROUP LTD 115
    BIDVEST BANK LTD 117
    BMW FINANCIAL SERVICES (SOUTH AFRICA) (PTY) LTD 121
    BNP PARIBAS PERSONAL FINANCE SOUTH AFRICA LTD 122
    BNP PARIBAS SA 125
    BRITISH AIRWAYS PLC 131
    C T INTERNATIONAL FINANCIERS (PTY) LTD 135
    CANARA BANK 137
    CAPITAL HARVEST (PTY) LTD 139
    CAPITEC BANK LTD 141
    CHINA CONSTRUCTION BANK CORPORATION 144
    CITIBANK N.A. 147
    CLICKS GROUP LTD 151
    COMAIR LTD 155
    DEUTSCHE BANK AG 160
    DEVELOPMENT BANK OF SOUTHERN AFRICA 180
    DINERS CLUB (S A) (PTY) LTD 184
    DIS-CHEM PHARMACIES LTD 186
    DISCOVERY LTD 196
    DISCOVERY VITALITY (PTY) LTD 200
    DITSOBOTLA PRIMARY SAVINGS & CREDIT CO-OPERATIVE BANK LTD PRIMARY CO-OPERATIVE 202
    EXCLUSIVE BOOKS GROUP (PTY) LTD 204
    FFS FINANCE SOUTH AFRICA (RF) (PTY) LTD 208
    FINBOND GROUP LTD 210
    FIRSTRAND BANK LTD 214
    FOSCHINI GROUP LTD (THE) 219
    FUNDI CAPITAL (PTY) LTD 224
    GAUTENG ENTERPRISE PROPELLER 226
    GBS MUTUAL BANK 229
    GRINDROD BANK LTD 231
    GROBANK LTD 234
    HABIB OVERSEAS BANK LTD 236
    HBZ BANK LTD 238
    HSBC BANK PLC 241
    ICICI BANK LTD 244
    IEMAS FINANCIAL SERVICES CO-OPERATIVE LIMITED PRIMARY CO-OPERATIVE 248
    INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD 251
    INVESTEC BANK LTD 262
    ITHALA DEVELOPMENT FINANCE CORPORATION LTD 267
    JPMORGAN CHASE BANK N.A. 270
    LAND AND AGRICULTURAL DEVELOPMENT BANK OF SOUTH AFRICA 273
    LEWIS GROUP LTD 277
    MAHALA LOYALTY PROGRAM (PTY) LTD 280
    MER PASTCOMP LTD 282
    MERCEDES-BENZ FINANCIAL SERVICES SOUTH AFRICA (PTY) LTD 285
    MTN GROUP LTD 287
    NATIONAL YOUTH DEVELOPMENT AGENCY (THE) 291
    NBC HOLDINGS (PTY) LTD 294
    NEDBANK LTD 297
    OLD MUTUAL FINANCE (RF) (PTY) LTD 306
    OOBA (PTY) LTD 308
    ORANJEKAS SPAAR EN KREDIET KOOPERATIEF BEPERK PRIMARY CO-OPERATIVE 312
    OSK KOOPERATIEWE BANK BEPERK PRIMARY CO-OPERATIVE 314
    PHAKAMANI FOUNDATION 316
    PICK N PAY STORES LTD 318
    PRIMEDIA (PTY) LTD 322
    RETAILABILITY (PTY) LTD 326
    SA HOME LOANS (PTY) LTD 329
    SA TAXI DEVELOPMENT FINANCE (PTY) LTD 332
    SASFIN BANK LTD 334
    SAVEACT TRUST 337
    SMALL ENTERPRISE FINANCE AGENCY LTD 339
    SMALL ENTERPRISE FOUNDATION (THE) 343
    SOCIETE GENERALE SA 346
    SOUTH AFRICAN AIRWAYS (SOC) LTD 352
    SOUTH AFRICAN RESERVE BANK 356
    SPOT MONEY SA (PTY) LTD 360
    STANDARD BANK OF SOUTH AFRICA LTD (THE) 362
    STANDARD CHARTERED PLC 367
    STATE BANK OF INDIA 370
    SUID-AFRIKAANSE POSKANTOOR (SOC) LTD 375
    THUTHUKANI FINANCIAL SERVICES HOLDINGS (PTY) LTD 378
    TOYOTA FINANCIAL SERVICES (SOUTH AFRICA) LTD 380
    TRANSACTION CAPITAL LTD 383
    TYME BANK LTD 386
    UBANK LTD 388
    VIRTUAL MARKET PLACE (RF) (PTY) LTD 391
    VODACOM GROUP LTD 393
    WELLNESS WAREHOUSE (PTY) LTD 397
    WOOLWORTHS FINANCIAL SERVICES (PTY) LTD 400
    ZIPHAKAMISE SAVINGS AND CREDIT CO-OPERATIVE BANK LIMITED PRIMARY CO-OPERATIVE 403

    Introduction

    The focus of this report is the South African banking industry and includes information on other credit granting, lease financing, vehicle financing, and loyalty and reward programmes. According to the South African Reserve Bank (Sarb) total assets of all types of registered banks stood at R5.74-trillion in May 2019, which was a year-on-year increase of 11.1%. South Africa’s banking sector is still highly concentrated with the five largest banks holding over 90% of total assets as at February 2019. As Capitec Bank’s customer base has grown to the largest in the industry, the bank’s market share on the Johannesburg Stock Exchange (JSE) continues to grow and it now holds the third largest share after FirstRand and Standard Bank. Further changes in the landscape are brought about by three technology-based banks that are entering the sector. Commercial banks are facing increasing competition from financial technology (fintech) companies that are taking over the traditional activities (like payments, lending, deposits, asset management, and even advisory services) of established players. Analysts emphasised the increasingly important role that microfinance institutions are playing in the improvement of financial inclusion.

    Strengths

    • Digital banks will have lower operational costs.
    • Growth in the African operations of the largest South African commercial banks.
    • Microfinancing is helping to increase financial inclusion.
    • Strictly enforced regulatory framework.
    • Strong, healthy competition in the sector and new entrants keeps industry players innovating which further strengthens it.
    • The banked population of 80% is higher than in the rest of sub-Saharan Africa.
    • The major South African banks have well-diversified portfolios, geographically and in terms of products.
    • The South African banking system is well capitalised, safely above the capital adequacy ratio.
    • Well-managed banking system with effective governance structures and management systems.

    Weaknesses

    • Capital requirements that determine how banks allocate credit tend to work against small businesses and poor people.
    • Job losses as a result of branch closures by the major banks.
    • Loyalty and reward programmes are now being used more selectively.
    • Operating expenses of large commercial banks are increasing due to staff costs and implementation of information technology platforms.
    • Strict enforcement of regulations turns potential clients towards the informal microlending sector.
    • The sector is dominated by the major commercial banks.
    • Weak financial performance of commercial banks as a result of fewer loans to consumers whose spending power is weakened by increases in living costs.

    Opportunities

    • Expansion of the major banks into the growing African private banking market.
    • Low-income earners who remain outside the formal banking system and who will be attracted by innovative inclusive banking products.
    • The expected growth of Islamic banking locally and continentally.

    Threats

    • An increase in bank robberies and cash in transit heists.
    • Increasing cybercrime activities.
    • Legislation for land expropriation without compensation is unclear about the handling of mortgages for expropriated land or properties.
    • New legislation that will cause debt of poor South Africans to be written off.
    • Slow growth of the South African economy.
    • The deterioration of sovereign credit ratings constrains the funding and liquidity of banks.

    Outlook

    Low levels of economic growth could impact on financial stability through higher unemployment and the reduced ability to service debt by households and companies. This, in turn, could lower the profitability of banks and impact negatively on the quality of banks’ assets. Digital banks that enter the sector will need to offer better service, cheaper lending rates, and higher savings interest rates than traditional banks in order to gain a competitive advantage. Erwin van Helden, head of payments and digital channels for Temenos Middle East and Africa told Moneyweb: “In the long term, the size of the South African banking market will stay the same in the sense that most consumers are already banked. But we are likely to see the market share being redistributed as these new players enter the market.”

    The Banking Industry in South Africa 2019

    Full Report

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 69.95 (USD)*

    Buy Now +

    Historical Reports

    The Banking Industry in South Africa 2022-09-26

    R 9 500.00(ZAR) estimated $499.62 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2021-03-16

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2018-08-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2017-04-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2016-03-31

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2015-02-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 9
    2.2. Geographic Position 9
    3. SIZE OF THE INDUSTRY 10
    3.1. Central Banking 10
    3.2. Commercial Banking 10
    3.3. Other Credit Granting 14
    3.4. Lease Financing 16
    4. STATE OF THE INDUSTRY 17
    4.1. Local 17
    4.1.1. Corporate Actions 26
    4.1.2. Regulations 29
    4.1.3. Enterprise Development and Social Economic Development 35
    4.2. Continental 37
    4.3. International 42
    5. INFLUENCING FACTORS 44
    5.1. Economic Environment 44
    5.2. Government Intervention 45
    5.3. Financial Inclusion 46
    5.4. Operating Expenses 48
    5.5. Labour 49
    5.6. Cryptocurrency 51
    5.7. Information Technology (IT), Research and Development (R&D) and Innovation 52
    5.8. Crime and Fraud 55
    5.9. Environmental and Social Concerns 56
    6. COMPETITION 58
    6.1. Barriers to Entry 59
    7. SWOT ANALYSIS 59
    8. OUTLOOK 60
    9. INDUSTRY ASSOCIATIONS 61
    10. REFERENCES 62
    10.1. Publications 62
    10.2. Websites 64
    APPENDIX 1 67
    Registered CFI’s as at February 2018 67
    APPENDIX 2 69
    Summary of Major Players in all Subsectors of the Banking Industry 69
    COMPANY PROFILES 86
    ABSA BANK LTD 86
    AFRICAN BANK LTD 91
    AFRICAN DAWN CAPITAL LTD 94
    ALBARAKA BANK LTD 97
    ARIVA RENTALS (PTY) LTD 100
    BANK OF CHINA LTD 102
    BANK OF TAIWAN 106
    BARKO FINANCIAL SERVICES (PTY) LTD 110
    BAYPORT FINANCIAL SERVICES 2010 (PTY) LTD 112
    BETTERLIFE GROUP LTD 116
    BIDVEST BANK LTD 118
    BMW FINANCIAL SERVICES (SOUTH AFRICA) (PTY) LTD 122
    BNP PARIBAS PERSONAL FINANCE SOUTH AFRICA LTD 124
    BNP PARIBAS SA 126
    BRITISH AIRWAYS PLC 132
    C T INTERNATIONAL FINANCIERS (PTY) LTD 137
    CANARA BANK 139
    CAPITAL HARVEST (PTY) LTD 141
    CAPITEC BANK LTD 143
    CHINA CONSTRUCTION BANK CORPORATION 146
    CITIBANK N.A. 150
    CLICKS GROUP LTD 153
    COMAIR LTD 157
    DEUTSCHE BANK AG 162
    DEVELOPMENT BANK OF SOUTHERN AFRICA 183
    DINERS CLUB (S A) (PTY) LTD 186
    DIS-CHEM PHARMACIES LTD 188
    DISCOVERY LTD 198
    DISCOVERY VITALITY (PTY) LTD 202
    DITSOBOTLA PRIMARY SAVINGS AND CREDIT CO-OPERATIVE BANK LTD 205
    EDCON LTD 207
    EXCLUSIVE BOOKS GROUP (PTY) LTD 211
    FFS FINANCE SOUTH AFRICA (RF) (PTY) LTD 214
    FINBOND GROUP LTD 216
    FIRSTRAND BANK LTD 220
    FOSCHINI GROUP LTD (THE) 225
    FUNDI CAPITAL (PTY) LTD 230
    GAUTENG ENTERPRISE PROPELLER 233
    GBS MUTUAL BANK 236
    GRINDROD BANK LTD 238
    HABIB OVERSEAS BANK LTD 241
    HBZ BANK LTD 243
    GROBANK LTD 246
    HSBC BANK PLC 249
    ICICI BANK LTD 252
    IEMAS FINANCIAL SERVICES CO-OPERATIVE LTD 255
    INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD 259
    INVESTEC BANK LTD 270
    ITHALA DEVELOPMENT FINANCE CORPORATION LTD 275
    JPMORGAN CHASE BANK N.A. 278
    KUYASA HOUSING FINANCE COMPANY (PTY) LTD (THE) 281
    LAND AND AGRICULTURAL DEVELOPMENT BANK OF SOUTH AFRICA 283
    LEWIS GROUP LTD 287
    MAHALA LOYALTY PROGRAM (PTY) LTD 291
    MERCANTILE BANK LTD 293
    MERCEDES-BENZ FINANCIAL SERVICES SOUTH AFRICA (PTY) LTD 295
    MTN GROUP LTD 297
    NATIONAL YOUTH DEVELOPMENT AGENCY (THE) 301
    NBC HOLDINGS (PTY) LTD 304
    NEDBANK LTD 307
    OLD MUTUAL FINANCE (RF) (PTY) LTD 316
    OOBA (PTY) LTD 318
    ORANJEKAS SPAAR EN KREDIET KOOPERATIEF BEPERK 321
    OSK KOOPERATIEWE BANK BEPERK 323
    PHAKAMANI FOUNDATION 325
    PICK N PAY STORES LTD 327
    PRIMEDIA (PTY) LTD 332
    REAL PEOPLE HOME FINANCE (PTY) LTD 336
    SA HOME LOANS (PTY) LTD 338
    SA TAXI DEVELOPMENT FINANCE (PTY) LTD 341
    SASFIN BANK LTD 343
    SAVEACT TRUST 346
    SMALL ENTERPRISE FINANCE AGENCY LTD 348
    SMALL ENTERPRISE FOUNDATION (THE) 352
    SOCIETE GENERALE SA 355
    SOUTH AFRICAN AIRWAYS (SOC) LTD 361
    SOUTH AFRICAN RESERVE BANK 365
    STANDARD BANK OF SOUTH AFRICA LTD (THE) 369
    STANDARD CHARTERED PLC 374
    STATE BANK OF INDIA 377
    SUID-AFRIKAANSE POSKANTOOR (SOC) LTD 382
    THUTHUKANI FINANCIAL SERVICES HOLDINGS (PTY) LTD 385
    TOYOTA FINANCIAL SERVICES (SOUTH AFRICA) LTD 387
    TRANSACTION CAPITAL LTD 390
    TYME BANK LTD 393
    UBANK LTD 395
    VIRGIN MONEY SOUTH AFRICA (PTY) LTD 398
    VIRTUAL MARKET PLACE (PTY) LTD 400
    VODACOM GROUP LTD 402
    WELLNESS WAREHOUSE (PTY) LTD 406
    WOOLWORTHS FINANCIAL SERVICES (PTY) LTD 409
    ZIPHAKAMISE SAVINGS AND CREDIT CO-OPERATIVE BANK LTD 412

    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. The report includes details on 90 organisations, fintech, digital banking, cryptocurrencies and other new technologies influencing the sector, as well as recent corporate actions and developments such as the demise of VBS Bank and the Competition Commission’s ongoing investigation into 17 banks relating to price fixing and market allocation in the trading of foreign currency. It includes details on the restructuring of overseas shareholdings in local commercial banks, resulting in the reorganisation of the Old Mutual Group and sell-down by Barclays of its stake in Barclays Africa with implications for two of the big banks, Nedbank and Absa.

    Introduction

    The focus of this report is the South African banking industry including other credit granting, lease financing, and loyalty and reward programmes. According to the South African Reserve Bank (SARB) commercial banks are the biggest single contributor to the output of the finance and insurance subsector in South Africa. The latest research showed that the finance, insurance, real estate and business services sector contributed 19.8% to total real GDP in 2015. 10.3% came from the real estate and business services subsector and 9.5% from the finance and insurance subsector. Of the 9.5%, commercial banks contributed about 4% and insurance around 2%. Total assets of registered banks reached R5,140bn in January 2018, an increase of 5.1% over R4,890bn in January 2017. South Africa’s banking sector is still highly concentrated with the five largest banks holding 91% of total assets as of 31 December 2017. The landscape is changing with technology-based banks entering the sector and increasing competition from financial technology (fintech) companies.

    Strengths

    • Strictly enforced regulatory framework.
    • Strong, healthy competition in the sector and new entrants keeps industry players innovating which further strengths it.
    • The asset-based risk-averse nature of Islamic banking protects this sector from economic uncertainties.
    • The major South African banks have well-diversified portfolios, geographically and in terms of products.
    • The South African banking system is well capitalised, safely above the capital adequacy ratio.
    • Well-managed banking system with effective governance structures and management systems.

    Weaknesses

    • Capital requirements that determine how banks allocate credit tend to work against small businesses and poor people.
    • Despite compliance with BEE legislation, the ownership structures of the sector are still largely non-transformed.
    • Lease financing is not seen as a viable option with consumers instead opting for instalment sales.
    • Strict enforcement of regulations turns potential clients towards the informal micro-lending sector.
    • The sector is heavily dominated by the ‘Big Four’ banks.

    Opportunities

    • Focus on the growing African private banking market.
    • Increased investment opportunities as a result of the expected recovery of the US and UK economies, European quantitative easing and lower international oil prices.
    • Low-income earners who remain outside the formal banking system and who will be attracted by innovative Inclusive Banking products.
    • The expected growth of Islamic banking locally and continentally.
    • The growth of the banking industry through new and innovative technology and new entrants which will make POS payments and other banking initiatives more accessible.
    • The popularity, success and continued growth of loyalty reward programmes.

    Threats

    • Increasing cybercrime activities.
    • Increasing political interference.
    • Lack of IT skills in the banking sector.
    • Reputational and financial damage as a result of banks colluding on exchange rates.
    • Slow growth of the South African economy, growing inflation.
    • Slower economic growth of African countries is impacting the performance of South African banks with holdings in African banks.
    • The banking system being placed on a negative economic outlook by credit rating agencies.
    • The possibility of South Africa’s credit rating being downgraded even further.

    Outlook

    Industry role players said credit losses could still worsen and the retail credit cycle has been worse than expected, partly due to more borrowers opting for debt review instead of defaulting on their loans. Ernest van Rooyen, a financial services Africa partner at EY, said the competitive landscape in the banking sector would likely intensify this year from technology-led new entrants such as Bank Zero, Discovery Bank and TymeDigital. Cash-strapped customers would benefit from increasing efforts by existing and new banks as they put new products on the market to gain customers. Although banking sector analysts expect the big four South African banks to be able to handle economic and regulatory factors adequately and maintain a sound capital adequacy ratio based on their earnings resilience and capital buffers, the downgrade of South Africa’s and the banks’ foreign currency debt to non-investment grade will negatively affect the ability of the banks to “service foreign currency obligations”, according to the Deputy Reserve Bank Governor.

    Read More..
    The Banking Industry in South Africa 2018

    Full Report

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 69.95 (USD)*

    Buy Now +

    Historical Reports

    The Banking Industry in South Africa 2022-09-26

    R 9 500.00(ZAR) estimated $499.62 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2021-03-16

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2019-09-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2017-04-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2016-03-31

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2015-02-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 7
    2.2. Geographic Position 9
    3. SIZE OF THE INDUSTRY 9
    3.1. Central Banking 11
    3.2. Commercial Banking 12
    3.3. Other Credit Granting 15
    3.4. Lease Financing 18
    4. STATE OF THE INDUSTRY 19
    4.1. Local 19
    4.1.1. Corporate Actions 28
    4.1.2. Regulations 30
    4.1.3. Enterprise Development and Social Economic Development 37
    4.2. Continental 40
    4.3. International 42
    5. INFLUENCING FACTORS 44
    5.1. Economic Environment 44
    5.2. Government Intervention 46
    5.3. Political Environment 47
    5.4. Land Restitution 48
    5.5. Operating Expenses 49
    5.6. Expansion into Africa 49
    5.7. Labour 50
    5.8. Cryptocurrency 54
    5.9. Information Technology (IT), Research and Development (R&D) and Innovation 54
    5.10. Crime 58
    5.11. Financial Inclusion 59
    5.12. Environmental Concerns 62
    6. COMPETITION 62
    6.1. Barriers to Entry 64
    7. SWOT ANALYSIS 65
    8. OUTLOOK 66
    9. INDUSTRY ASSOCIATIONS 66
    10. REFERENCES 68
    10.1. Publications 68
    10.2. Websites 70
    APPENDIX 1 73
    Registered CFI’s as at October 2017 73
    APPENDIX 2 76
    Summary of Major Players in all Subsectors of the Banking Industry 76
    COMPANY PROFILES – CENTRAL BANKING & BANKS AND OTHER BANKING SERVICES 90
    ABSA BANK LTD 90
    AFRICAN BANK LTD 95
    BANK OF CHINA LTD 97
    BANK OF TAIWAN 101
    BIDVEST BANK LTD 104
    BNP PARIBAS SA 107
    CANARA BANK 113
    CAPITEC BANK LTD 115
    CHINA CONSTRUCTION BANK CORPORATION 118
    CITIBANK N.A. 122
    DEUTSCHE BANK AG 125
    DITSOBOTLA PRIMARY SAVINGS AND CREDIT CO-OPERATIVE BANK LTD 145
    FIRSTRAND BANK LTD 147
    GBS MUTUAL BANK 152
    GRINDROD BANK LTD 155
    HSBC BANK PLC 158
    ICICI BANK LTD 161
    INVESTEC BANK LTD 165
    JPMORGAN CHASE BANK N.A. 170
    LAND AND AGRICULTURAL DEVELOPMENT BANK OF SOUTH AFRICA 173
    MERCANTILE BANK LTD 178
    NEDBANK LTD 181
    OSK KOOPERATIEWE BANK LTD 190
    SASFIN BANK LTD 192
    SOCIETE GENERALE SA 195
    SOUTH AFRICAN BANK OF ATHENS LTD (THE) 200
    SOUTH AFRICAN RESERVE BANK 205
    STANDARD BANK OF SOUTH AFRICA LTD (THE) 209
    STANDARD CHARTERED PLC 213
    STATE BANK OF INDIA 216
    SUID-AFRIKAANSE POSKANTOOR (SOC) LTD 221
    UBANK LTD 224
    VBS MUTUAL BANK 227
    VIRGIN MONEY SOUTH AFRICA (PTY) LTD 229
    COMPANY PROFILES – ISLAMIC FINANCE SOUTH AFRICA 231
    ABSA BANK LTD 231
    ALBARAKA BANK LTD 236
    FIRSTRAND BANK LTD 240
    HABIB OVERSEAS BANK LTD 245
    HBZ BANK LTD 247
    STANDARD BANK OF SOUTH AFRICA LTD (THE) 250
    COMPANY PROFILES – AUTOMOTIVE FINANCING 254
    ABSA BANK LTD 254
    ARIVA RENTALS (PTY) LTD 259
    BIDVEST BANK LTD 261
    BMW FINANCIAL SERVICES (SOUTH AFRICA) (PTY) LTD 264
    FFS FINANCE SOUTH AFRICA (RF) (PTY) LTD 266
    FIRSTRAND BANK LTD 268
    IEMAS FINANCIAL SERVICES CO-OPERATIVE LTD 273
    MERCEDES-BENZ FINANCIAL SERVICES SOUTH AFRICA (PTY) LTD 277
    NEDBANK LTD 279
    STANDARD BANK OF SOUTH AFRICA LTD (THE) 288
    TOYOTA FINANCIAL SERVICES (SOUTH AFRICA) LTD 292
    COMPANY PROFILES – RETAIL & SECTION 21 COMPANIES 295
    AFRICAN DAWN CAPITAL LTD 295
    BARKO FINANCIAL SERVICES (PTY) LTD 298
    BAYPORT FINANCIAL SERVICES 2010 (PTY) LTD 300
    BETTERLIFE GROUP LTD 305
    BNP PARIBAS PERSONAL FINANCE SOUTH AFRICA LTD 307
    C T INTERNATIONAL FINANCIERS (PTY) LTD 310
    CAPITAL HARVEST (PTY) LTD 312
    DISCOVERY LTD 314
    FINBOND GROUP LTD 319
    FOSCHINI GROUP LTD (THE) 324
    FUNDI CAPITAL (PTY) LTD 328
    GAUTENG ENTERPRISE PROPELLER 331
    IEMAS FINANCIAL SERVICES CO-OPERATIVE LTD 334
    INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD 338
    ITHALA DEVELOPMENT FINANCE CORPORATION LTD 349
    KUYASA HOUSING FINANCE COMPANY (PTY) LTD (THE) 352
    LEWIS GROUP LTD 354
    NATIONAL YOUTH DEVELOPMENT AGENCY (THE) 357
    OLD MUTUAL FINANCE (RF) (PTY) LTD 360
    ORANJEKAS SPAAR EN KREDIET KOOPERATIEF LTD 362
    PHAKAMANI FOUNDATION 364
    REAL PEOPLE HOME FINANCE (PTY) LTD 366
    SA TAXI DEVELOPMENT FINANCE (PTY) LTD 368
    SMALL ENTERPRISE FINANCE AGENCY LTD 370
    SMALL ENTERPRISE FOUNDATION (THE) 374
    THUTHUKANI FINANCIAL SERVICES HOLDINGS (PTY) LTD 376
    TRANSACTION CAPITAL LTD 378
    UBANK LTD 381
    WOOLWORTHS FINANCIAL SERVICES (PTY) LTD 384
    COMPANY PROFILES – REWARD & LOYALTY PROGRAMMES 387
    ABSA BANK LTD 387
    BRITISH AIRWAYS PLC 392
    CLICKS GROUP LTD 397
    COMAIR LTD 401
    DINERS CLUB (S A) (PTY) LTD 406
    DIS-CHEM PHARMACIES LTD 408
    DISCOVERY VITALITY (PTY) LTD 417
    EDCON LTD 420
    EXCLUSIVE BOOKS GROUP (PTY) LTD 424
    FIRSTRAND BANK LTD 428
    FOSCHINI GROUP LTD (THE) 433
    INVESTEC BANK LTD 437
    MAHALA LOYALTY PROGRAM (PTY) LTD 442
    MTN GROUP LTD 444
    NEDBANK LTD 448
    PICK N PAY STORES LTD 457
    PRIMEDIA (PTY) LTD 462
    SOUTH AFRICAN AIRWAYS (SOC) LTD 467
    STANDARD BANK OF SOUTH AFRICA LTD (THE) 471
    VIRGIN MONEY SOUTH AFRICA (PTY) LTD 475
    VIRTUAL MARKET PLACE (PTY) LTD 477
    VODACOM GROUP LTD 479
    WELLNESS WAREHOUSE (PTY) LTD 483
    WOOLWORTHS FINANCIAL SERVICES (PTY) LTD 486
    COMPANY PROFILES – DIRECT HOME LOANS 489
    ABSA BANK LTD 489
    FIRSTRAND BANK LTD 494
    INVESTEC BANK LTD 499
    NBC HOLDINGS (PTY) LTD 504
    NEDBANK LTD 507
    OOBA (PTY) LTD 516
    SA HOME LOANS (PTY) LTD 519
    STANDARD BANK OF SOUTH AFRICA LTD (THE) 522

    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.

    Introduction

    The focus of this report is the South African banking industry including other credit granting, lease financing, and loyalty and reward programmes. South Africa’s financial sector is well developed and the finance, real estate and business services industry was the biggest contributor to GDP in 2016 at 19.6%. Total banking sector assets amounted to R4,890bn in January 2017 compared to R4,860bn in January 2016, representing a significantly smaller growth from 2015 when total assets stood at R4,286bn. The South African banking sector is under the spotlight for collusion by three of the major banks on fixing foreign currency. Other developments 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 on 30 March 2017 has resulted in the country’s foreign currency debt and seven financial institutions being downgraded to non-investment grade (BB+), also termed junk status.

    Strengths

    • Strictly enforced regulatory framework.
    • Strong, healthy competition in the sector keeps industry players innovating which further strengths it.
    • The asset-based risk-averse nature of Islamic banking protects this sector from economic uncertainties.
    • The major South African banks have well-diversified portfolios, geographically and in terms of products.
    • The South African banking system is well capitalised, safely above the capital adequacy ratio.
    • Well-managed banking system with effective governance structures and management systems.

    Weaknesses

    • Capital requirements that determine how banks allocate credit tend to work against small businesses and poor people.
    • Despite compliance with BEE legislation, the ownership structures of the sector are still largely non-transformed.
    • Lease financing is not seen as a viable option with consumers instead opting for instalment sales.
    • Strict enforcement of regulations turns potential clients towards the informal micro-lending sector.
    • The sector is heavily dominated by the ‘Big Four’ banks.

    Opportunities

    • Focus on the growing African private banking market.
    • Increased investment opportunities as a result of the expected recovery of the US and UK economies, European quantitative easing and lower international oil prices.
    • Low-income earners who remain outside the formal banking system and who will be attracted by innovative Inclusive Banking products.
    • The expected growth of Islamic banking locally and continentally.
    • The growth of the banking industry through new and innovative technology which will make POS payments and other banking initiatives more accessible.
    • The popularity, success and continued growth of loyalty reward programmes.

    Threats

    • If Eskom does not sign on IPPs, this will have a negative impact on investments made by banks in renewable energy projects.
    • Illiquidity of African countries is impacting the performance of South African banks with holdings in African banks.
    • Increasing cybercrime and terrorist activities.
    • Increasing political interference.
    • Lack of IT skills in the banking sector.
    • Lower growth expected from China and other emerging market economies (EMEs).
    • Reputational and financial damage as a result of banks colluding on exchange rates.
    • Slow growth of the South African economy, growing inflation and increasing unemployment.
    • The banking system being placed on a negative economic outlook by credit rating agencies.
    • The possibility of South Africa’s credit rating being downgraded even further.

    Outlook

    Banks globally and locally will be dealing with estimated global growth of 2.7% in 2017 and increasing costs driven by new regulatory requirements. The significant investments that many banks have to make in their IT infrastructure, data management and analytics capabilities are likely to have a negative impact on the banks’ bottom line, but banks that manage to turn these costs into savings are expected to enjoy a competitive advantage. According to estimates from KPMG, more than 80% of banks’ technology budgets in the UK for the past five years have been spent on addressing regulatory requirements, mitigating litigation and streamlining. Although banking sector analysts expect the “Big Four” South African banks to be able to handle economic and regulatory factors adequately and maintain a sound capital adequacy ratio based on their earnings resilience and capital buffers, the recent downgrade of the country’s foreign currency debt and the banks was described as concerning. According to the Deputy Reserve Bank Governor, the downgrade to non-investment grade (BB+) will negatively affect the ability of the banks to “service foreign currency obligations.” However, Nedbank CEO Mike Brown emphasised that despite the downgrade and the associated challenges, local banks operate “in a South African banking system that is sound and well-capitalised.”

    Read More..
    The Banking Industry in South Africa 2017

    Full Report

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 69.95 (USD)*

    Buy Now +

    Historical Reports

    The Banking Industry in South Africa 2022-09-26

    R 9 500.00(ZAR) estimated $499.62 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2021-03-16

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2019-09-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2018-08-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2016-03-31

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2015-02-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    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

    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.

    Introduction

    The focus of this report is the South African banking industry including other credit granting, lease financing, and loyalty and reward programmes. The banking sector is vital to a country’s economy because it distributes resources and capital across all economic sectors, which in turn allows these sectors to contribute to the performance of the economy. South Africa’s financial sector is well developed and the finance, real estate and business services industry was the biggest contributor to GDP in 2015 at 18.6%, followed by government at 15.5%. Total banking sector assets amounted to R4,855bn in January 2016 compared to R4,286bn in January 2015. The South African banking sector compares favourably with its international counterparts and has shown resilience against poor local economic fundamentals, erratic European markets, the crash of African Bank in 2014 and recent ratings agency downgrades.

    Strengths

    • Strictly enforced regulatory framework.
    • Strong, healthy competition in the sector keeps industry players innovating which further strengths it.
    • The asset-based risk-averse nature of Islamic banking protects this sector from economic uncertainties.
    • The major South African banks have well-diversified portfolios, geographically and in terms of products.
    • The South African banking system is well capitalised, safely above the capital adequacy ratio.
    • Well-managed banking system with effective governance structures and management systems.

    Weaknesses

    • A large portion of the population does not know about Islamic banking.
    • Despite compliance with BEE legislation, the ownership structures of the sector are still largely non-transformed.
    • Lease financing is not seen as a viable option with consumers instead opting for instalment sales.
    • Strict enforcement of regulations turns potential clients towards the informal micro-lending sector.
    • The sector is heavily dominated by the ‘Big Four’ banks.

    Opportunities

    • Expansion of mobile banking in Africa where mobile broadband connections are anticipated to reach 160 million in 2016.
    • Focus on the growing African private banking market.
    • Increased investment opportunities as a result of the expected recovery of the US and UK economies, European quantitative easing and lower international oil prices.
    • Low-income earners who remain outside the formal banking system and who will be attracted by innovative Inclusive Banking products.
    • The expected growth of Islamic banking locally and continentally.
    • The growth of the banking industry through new and innovative technology which will make POS payments and other banking initiatives more accessible.
    • The popularity, success and continued growth of loyalty reward programmes.

    Threats

    • Increased downward pressure on consumer spending as a result of increasing inflation rates and interest rates.
    • Increasing cybercrime and terrorist activities.
    • Increasing unemployment.
    • Lack of IT skills in the banking sector.
    • Lower growth expected from China and other emerging market economies (EMEs).
    • Possible curatorship of UBank following an NCR investigation into non-adherence to regulations.
    • Slow growth of the South African economy, exacerbated by the implementation of load-shedding for the foreseeable future.
    • The banking system being placed on a negative economic outlook by credit rating agencies.
    • The possibility of South Africa’s credit rating being downgraded to junk status.

    Outlook

    Banks globally and locally will be dealing estimated global growth of 3.4% in 2016 and increasing costs driven by new regulatory requirements. At the same time, banks could use regulatory and supervisory imperatives to drive cost savings and to accelerate the adoption of new business models. On the other hand, the significant investments that many banks have to make in their IT infrastructure, data management and analytics capabilities could be regulatory costs that might have a negative impact on the bottom line of banks. Banks that manage to turn these costs into savings will have a competitive advantage. The South African banking sector will have to deal with internal issues of self-regulation, new rules of Basel III and severe economic challenges that will impact consumers. Banking sector analysts expect the “Big Four” South African banks to be able to handle these factors adequately and maintain a sound capital adequacy ratio, based on their earnings resilience and capital buffers. However, players in the sector may find it harder to source funding inexpensively as ratings agencies downgraded the South African banking industry in 2014 and placed it on negative outlook for 2015. In order to achieve growth, commentators believe the top South African banks will need to look to African countries to grow margins significantly in 2016. However, there is still predicted room for growth as new technologies and easily accessible information open up banking possibilities to the poor and unbanked. Analysts concur that the South African banking industry needs to improve its defences and protection against cybercriminal attacks and believe that Islamic banking will continue to grow in the short-term, as investors seek safer and low risk assets. Credit granting is expected to remain steady in line with weak economic growth and unsecured lending is predicted to continue its upward trend as banks continue to decrease their exposure to bad debt, in line with new regulations. The market for lease financing is expected to remain steady as there has not been significant deviation over the past five years. As far as loyalty reward membership programmes are concerned, Value+Nettwork estimates that memberships will continue to grow as more consumers become aware of the benefits offered by these programmes.

    Read More..
    The Banking Industry in South Africa 2016

    Full Report

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 69.95 (USD)*

    Buy Now +

    Historical Reports

    The Banking Industry in South Africa 2022-09-26

    R 9 500.00(ZAR) estimated $499.62 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2021-03-16

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2019-09-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2018-08-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2017-04-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2015-02-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    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

    Introduction

    The banking sector is vital to a country’s economy because it distributes resources and capital across all economic sectors, which in turn allows these sectors to contribute to the performance of the economy. South Africa’s financial sector is well developed, contributes an estimated 10.5% to GDP, and according to The African Economic Outlook report on South Africa for 2014, holds assets valued at over R6-trillion. Reserve Bank statistics indicate total assets of R4.189-trillion for the local banking sector, which posted a profit of R51.1bn for 2014. The South African banking sector compares favourably with its international counterparts and has showed resilience against poor local economic fundamentals, erratic European markets, the crash of African Bank and recent ratings agency downgrades. Despite these problems, the local banking industry is still regarded by the International Monetary Fund (IMF) as one of the best banking systems globally. Although this report focuses mainly on the South African banking industry, the Islamic banking sector, other credit granting, lease financing, and loyalty and reward programmes are also covered. Islamic banking, despite its growth, continues to hold a marginal stake in the global banking sector; the same goes for its stake of the market share in the South African context currently standing at less than 2%. Other services within the sector have grown in varying degrees. Credit granting has shown small and steady growth but the National Credit Regulator (NCR) has increased oversight of unsecured lending, including a recent announcement declaring the intention to investigate the activities of mining banker Ubank.

    Strengths

    • Strictly enforced regulatory framework.
    • Strong, healthy competition in the sector keeps industry players innovating which further strengths it.
    • The asset-based risk-averse nature of Islamic banking protects this sector from economic uncertainties.
    • The major South African banks have well-diversified portfolios, geographically and in terms of products.
    • The South African banking system is well capitalised, safely above the capital adequacy ratio
    • Well-managed banking system with effective governance structures and management systems.

    Weaknesses

    • A large portion of the population does not know about Islamic banking.
    • Despite compliance with BEE legislation, the ownership structures of the sector are still largely non-transformed.
    • Lease financing not seen as a viable option with consumers instead opting for instalment sales.
    • Strict enforcement of regulations turns potential clients towards the informal micro-lending sector.
    • The sector is heavily dominated by the ‘Big Four’ banks.

    Opportunities

    • Expansion of mobile banking in Africa where mobile broadband connections are anticipated to reach 160 million in 2016.
    • Focus on the growing African private banking market.
    • Increased consumer spending as a result of expected lower inflation rates.
    • Increased investment opportunities as a result of the expected recovery of the US and UK economies, European quantitative easing and lower international oil prices.
    • Low-income earners who remain outside the formal banking system and who will be attracted by innovative Inclusive Banking products.
    • The expected growth of Islamic banking locally and continentally.
    • The growth of the banking industry through new and innovative technology which will make POS payments and other banking initiatives more accessible.
    • The popularity, success, and continued growth of loyalty reward programmes

    Threats

    • Cyber-crime and terrorist activities.
    • Global economic destabilisation because of geo-political terrorist activities and economic problems in the Eurozone and Japan.
    • Increasing unemployment.
    • Lack of IT skills in the banking sector.
    • Lower growth expected from China and other emerging market economies (EMEs).
    • Possible curatorship of Ubank following an NCR investigation into non-adherence to regulations.
    • Ratings downgrades by various ratings agencies as well as the banking system being placed on a negative economic outlook.
    • Slow growth of the South African economy, exacerbated by the implementation of load-shedding for the foreseeable future.

    Outlook

    BNP Paribas has cited the problems with electricity supply, an expected difficult round of labour negotiations, and predicted political instability and tensions in parliament being problematic for growth in South Africa in 2015. The organisation used these factors to justify its below-consensus 2% growth rate for the country, although it did increase its forecast for economic growth for 2016 to 2.6%. The organisation also expected better conditions for consumers because of lower international oil prices, which would lead to greater consumer purchasing power and an easier inflation outlook. The Monetary Policy Committee of the Reserve Bank has released its forecast for inflation for 2015, an expected average of 3.8%, which is a significant improvement on 2014’s average inflation of 6.1%. The Committee also stated that the steep decline expected in 2015 would provide a strong base effect for inflation in 2016. BNP expects the rand to remain weak for 2015, holding around the R11.50 to the US dollar level. The global economic growth outlook remains mixed, despite improvements in the US economy, decreased international oil prices, and more rounds of quantitative easing announced for struggling European countries. The US economy grew the fastest it has grown since 2003, at a rate of 5% in 2014. Growth in the United Kingdom has been steady, despite slightly slower fourth quarter growth. However, the international economy poses various pitfalls going forward as other advanced economies have declined, including Japan which is in a technical recession and the Eurozone staying weak because of fears of deflation. The IMF has also lowered the growth prediction for top emerging market economies which has led to an overall global growth decrease of 0.3% to 3.5%. Chinese growth is expected to moderate down to 6.8% from achieved growth of 7.4% in 2014, as the economy continues to rebalance towards domestic consumption and reduce vulnerabilities in its banking system. Africa will remain a high growth region in 2015, although weaker commodity prices will increase risk in investing in Africa. The South African banking sector will have to deal with internal issues of self-regulation, the NCR’s investigation of Ubank and the continued curatorship of African Bank in 2015. Banking sector analysts expect the top five South African banks to be able to handle these factors adequately and maintain a sound capital adequacy ratio. However, players in the sector may find it harder to source funding inexpensively as ratings agencies downgraded the South African banking industry in 2014 and placed it on negative outlook for 2015. Banks will also have to deal with threats from the political sphere as politicians will look to score points through calls for financial sector nationalisation and the establishment of a state-owned bank. In order to grow significantly, commentators believe the top South African banks will need to look to African countries to grow margins significantly in 2015 and 2016, as the South African banking market matures. However, there is still predicted room for growth as new technologies and easily accessible information open up banking possibilities to the poor and underprivileged. The South African banking industry needs to improve its defences and protection against cyber-criminal attacks as the “Big Four” were fined in 2014 for not having the proper protections in place. Analysts concur that Islamic banking will continue to grow in the short-term, as investors seek safer and low risk assets. Credit granting is expected to remain steady in line with weak economic growth and unsecured lending is predicted to continue its downtrend as it faces further regulations from the NCR. The market for lease financing is expected to remain steady as there has not been significant deviation over the past five years. As far as loyalty reward membership programmes are concerned, Value Network estimates that memberships will continue to grow as more consumers become aware of the benefits offered by these programmes.

    The Banking Industry in South Africa 2015

    Full Report

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 69.95 (USD)*

    Buy Now +

    Historical Reports

    The Banking Industry in South Africa 2022-09-26

    R 9 500.00(ZAR) estimated $499.62 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2021-03-16

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2019-09-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2018-08-03

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2017-04-06

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    The Banking Industry in South Africa 2016-03-31

    R 1 900.00(ZAR) estimated $99.92 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Supply Chain 5
    2.2. Geographic Position 6
    3. SIZE OF THE INDUSTRY 7
    3.1. Central Banking 7
    3.2. Banking 7
    3.3. Other Credit Granting 9
    3.4. Lease Financing 10
    4. STATE OF THE INDUSTRY 17
    4.1. Local 17
    4.1.1. Corporate Actions 24
    4.1.2. Regulations 25
    4.1.3. Enterprise Development and Social Economic Development 27
    4.2. Continental 28
    4.3. International 31
    5. INFLUENCING FACTORS 32
    5.1. Regulatory Reform 32
    5.2. Government Interest 32
    5.3. Economic Environment 32
    5.4. Global Geopolitical Environment 34
    5.5. Expansion into Africa 34
    5.6. Labour 34
    5.6.1. Skills and Training 34
    5.6.2. Employment Figures 36
    5.6.3. Unions 36
    5.7. Technology and Information Technology 36
    5.8. Crime 37
    5.9. Financial Inclusion 38
    5.10. Environmental Concerns 39
    6. COMPETITION 40
    6.1. Barriers to Entry 41
    6.2. Research and Development (R&D) and Innovation 41
    7. SWOT ANALYSIS 42
    8. OUTLOOK 43
    9. INDUSTRY ASSOCIATIONS 44
    10. REFERENCES 45
    10.1. Publications 45
    10.2. Websites 46
    ORGANOGRAM 81110, 81121a & 81920a 47
    Central Banking & Banks and Other Banking Services 47
    COMPANY PROFILES 49
    ABSA BANK LTD 49
    AFRICAN BANK LTD 54
    BIDVEST BANK LTD 57
    CAPITEC BANK LTD 60
    CITIBANK NA 62
    FIRSTRAND BANK LTD 64
    GBS MUTUAL BANK 67
    GRINDROD BANK LTD 69
    HABIB OVERSEAS BANK LTD 72
    INVESTEC BANK LTD 74
    LAND & AGRICULTURAL DEVELOPMENT BANK OF SA 78
    MERCANTILE BANK LTD 81
    NEDBANK LTD 83
    SASFIN BANK LTD 89
    SOUTH AFRICAN BANK OF ATHENS LTD (THE) 91
    SOUTH AFRICAN POST OFFICE (SOC) LTD 94
    SOUTH AFRICAN RESERVE BANK 97
    STANDARD BANK OF SOUTH AFRICA LTD (THE) 100
    UBANK LTD 103
    VBS MUTUAL BANK 105
    VIRGIN MONEY SOUTH AFRICA (PTY) LTD 107
    ORGANOGRAM 81121b 109
    Islamic Finance in South Africa 109
    COMPANY PROFILES 110
    ABSA BANK LTD 110
    ALBARAKA BANK LTD 115
    FIRSTRAND BANK LTD 118
    HBZ BANK LTD 121
    ORGANOGRAM 81910a 123
    Automotive Finance 123
    COMPANY PROFILES 124
    ABSA BANK LTD 124
    ARIVA RENTALS (PTY) LTD 129
    FFS FINANCE SOUTH AFRICA (PTY) LTD 130
    FIRSTRAND BANK LTD 131
    MERCEDES-BENZ FINANCIAL SERVICES (PTY) LTD 134
    NEDBANK LTD 136
    STANDARD BANK OF SOUTH AFRICA LTD (THE) 142
    TOYOTA FINANCIAL SERVICES (SA) LTD 145
    ORGANOGRAM 81920b 147
    Retail & Section 21 Companies 147
    COMPANY PROFILES 148
    GAUTENG ENTERPRISE PROPELLER 148
    JD GROUP LTD 151
    LEWIS GROUP LTD 157
    RCS INVESTMENT HOLDINGS (PTY) LTD 159
    SMALL ENTERPRISE FINANCE AGENCY (SOC) LTD 161
    SMALL ENTERPRISE FOUNDATION (THE) 164
    THUTHUKANI FINANCIAL SERVICES (PTY) LTD 166
    UBANK LTD 168
    WOOLWORTHS FINANCIAL SERVICES (PTY) LTD 170
    ORGANOGRAM 81920c 172
    Privately and Publicly Held Concerns 172
    COMPANY PROFILES 173
    AFRICAN DAWN CAPITAL LTD 173
    BARKO FINANCIAL SERVICES (PTY) LTD 176
    BAYPORT FINANCIAL SERVICES 2010 (PTY) LTD 178
    CT INTERNATIONAL FINANCIERS LTD 180
    EDU-LOAN (PTY) LTD 181
    FINBOND GROUP LTD 184
    IEMAS FINANCIAL SERVICES (CO-OPERATIVE) LTD 187
    INDUSTRIAL DEVELOPMENT CORPORATION OF SOUTH AFRICA LTD 189
    NATIONAL YOUTH DEVELOPMENT AGENCY 194
    NET1 FINANCE HOLDINGS (PTY) LTD 196
    PA BETTERBOND (PTY) LTD 198
    REAL PEOPLE (PTY) LTD 200
    TRANSACTION CAPITAL LTD 202
    ORGANOGRAM 81920d 205
    Reward & Loyalty Programmes 205
    COMPANY PROFILES 207
    ABSA BANK LTD 207
    AMERICAN EXPRESS INTERNATIONAL 212
    BRITISH AIRWAYS PLC 213
    CLICKS GROUP LTD 217
    COMAIR LTD 221
    DINERS CLUB (SA) (PTY) LTD 224
    DIS-CHEM PHARMACIES (PTY) LTD 226
    DISCOVERY VITALITY (PTY) LTD 230
    EDCON LTD 232
    EXCLUSIVE BOOKS GROUP (PTY) LTD 235
    FIRSTRAND BANK LTD 238
    FOSCHINI RETAIL GROUP (PTY) LTD 241
    INVESTEC BANK LTD 244
    MAHALA LOYALTY PROGRAMME (PTY) LTD 248
    NEDBANK LTD 253
    NEWBUCKS OPERATIONS (PTY) LTD 259
    OOBA (PTY) LTD 261
    PICK 'N PAY STORES LTD 263
    PRIMEDIA (PTY) LTD 267
    PROTEA GROUP HOLDINGS SOUTH AFRICA (PTY) LTD 271
    SOUTH AFRICAN AIRWAYS (SOC) LTD 274
    STANDARD BANK OF SOUTH AFRICA LTD (THE) 278
    VIRGIN MONEY SOUTH AFRICA (PTY) LTD 281
    VIRTUAL MARKET PLACE (PTY) LTD 283
    VODACOM GROUP LTD 284
    WELLNESS WAREHOUSE (PTY) LTD 287
    WOOLWORTHS FINANCIAL SERVICES (PTY) LTD 289
    ORGANOGRAM 81920e 291
    Direct Home Loans 291
    COMPANY PROFILES 292
    ABSA BANK LTD 292
    FIRSTRAND BANK LTD 297
    INVESTEC BANK LTD 300
    NBC HOLDINGS (PTY) LTD 304
    NEDBANK LTD 306
    OOBA (PTY) LTD 312
    SA HOME LOANS (PTY) LTD 314
    STANDARD BANK OF SOUTH AFRICA LTD (THE) 315

    Stay Up to Date with the Latest Industry News in Africa

    Copyright @ 2021