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The Banking Industry Updated Report Available
BY LOUISE MITCHELL
South Africa
06 April 2017
R 6 960.00 (ZAR)  
estimated $ 505.04 (USD) *
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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.


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