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The Banking Industry
BY Louise Mitchell
South Africa
06 September 2019
R 14 400.00 (ZAR)  
estimated $ 1 004.77 (USD) *
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The Banking Sector


There were 42 banking institutions, excluding registered foreign bank representatives, registered with the Prudential Authority in May 2019, an increase from 36 institutions a year earlier. There are 30 foreign banks with approved representative offices in South Africa. Total assets of all types of registered banks stood at R5.74-trillion in May, 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 in February 2019. Capitec Bank’s customer base and market capitalisation continue to grow ahead of its large competitors.


Increasing Competition


Banks are not only facing increasing pressure from Capitec as technology-based banks are entering the sector. Commercial banks are facing increasing competition from fintech companies that are taking over traditional activities like payments, lending, deposits, asset management, and even advisory services. Absa, FNB, Nedbank and Standard Bank are closing down or downsizing branches to control rising operating costs and in response to customers’ increasing use of online and mobile banking services. New digital banks including Discovery Bank, Bank Zero and TymeBank and mobile money apps and services provided by telecoms and retail companies will be forcing commercial banks to intensify efforts to continue modernising technology platforms.


Report Coverage


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. It includes comprehensive information on the state and size of the sector including the central bank, commercial banks and new banks, regulatory developments and corporate actions. There are profiles of 92 companies. These include the major commercial banks as well as institutions such as the former South African Bank of Athens, now trading as Grobank after the acquisition by GroCapital and African Bank, which has been under Reserve Bank control after it was nearly liquidated in 2014. Profiles also include companies offering financial services such as Woolworths, Vodacom and MTN.


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