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The Banking Industry in South Africa, including Stokvels
BY Carole Veitch
South Africa
16 March 2021
R 14 400.00 (ZAR)  
estimated $ 990.03 (USD) *
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The Banking Industry in South Africa including Stokvels


The South African banking industry is regarded as one of the best banking systems in the world and major local banks are highly rated. The industry’s image was tarnished by a corruption scandal which resulted in the collapse of VBS Mutual Bank. South African banks have played a critical role in the coronavirus pandemic response, providing significant financial relief to financially distressed individuals and businesses. While local banks are well capitalised, analysts say that their creditworthiness could be threatened by South Africa’s crippling burden of debt.


Competition


South Africa’s retail banking sector is dominated by five JSE-listed banking groups, but with the entry of new banks to the market, the banking landscape is becoming less consolidated and increasingly competitive. Competition has driven down bank charges, particularly on entry-level accounts. Banks are increasingly investing in digital banking and focusing on product customisation to retain and attract customers. New players do not have the geographical footprint of established banks, but their digital platforms allow them to meet consumers’ demand for affordable bank services that are faster and more convenient than traditional banking.


Coronavirus


The banking industry has been severely affected by the pandemic. Sustained pressure on consumers and businesses due to lockdowns and the expiry of temporary credit relief measures have resulted in a significant increase in non-performing loans. Banks nevertheless remained resilient with capital adequacy ratios well above the statutory requirement. Banks played a role in the pandemic response by providing relief to financially-distressed customers during lockdown.


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.


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