South Africa Banking Market Report 2024 – Local Banks are Increasingly Focusing on the Rest of Africa as Lending Slows and Impairments Rise Locally

Dublin, May 06, 2024 (GLOBE NEWSWIRE) — The “Banking Industry in South Africa 2024” report has been added to ResearchAndMarkets.com’s offering.

This report on the banking industry in South Africa covers central banking, development banks, commercial and mutual and co-operative banks and other credit providers. It includes information on the size of the industry such as number of banks, customers, and major performance stats including loans and impairments. It covers the state of the industry, digital banking, economic effects on the industry, financial sentiment and stability, notable players, corporate actions and influencing factors.

There are profiles of 82 companies including major players such as Absa, FirstRand, Standard Bank, Nedbank, Investec and Capitec, digital banks such as Bank Zero and TymeBank, international players such as BNP Paribas, development banks such as the Development Bank of Southern Africa and leasing companies such as the financial services arms of Toyota and BMW.

Market Insight

• The banking sector is well capitalised and its capital adequacy and liquidity ratios have remained well above minimum statutory requirements.
• The slowing economy and increased cost of living have seen consumer lending slow, and banks are looking to the rest of Africa to generate better returns.
• Despite this, higher interest rates have lifted interest income.
• The sector is dominated by the five largest banks which hold about 90% of total banking sector assets.
• Risks include the increase in impaired advances, the setting up of a state bank and higher transaction costs.
• The major banks are facing increasing competition from digital banks, and increasing pressure to reduce financing of fossil fuel projects and increase sustainable financing.

Trends

• Banks are increasingly looking to service micro and township businesses
• Digitisation of banking, which could increase financial inclusion and reduce operating costs.
• Growing use of loyalty cards.
• Increasing focus on recruiting people with digital skills.
• Local banks are increasingly focusing on the rest of Africa as lending slows and impairments rise locally.
• Sustainable finance and green bonds are growing, while there are increased demands to reduce financing of fossil fuel projects.
• The poor economy and high cost of living has slowed demand for finance.

Opportunities

• Assisting SMEs with enterprise development and supplier development.
• Expansion of the major banks into the growing African corporate and investment banking market.
• Financing of small businesses.
• The development of digital banking products and apps.
• The inclusion of unbanked low-income earners.
• The regulation of cryptocurrency could allow for the development of new banking channels.

Challenges

• Banking-related corruption, crime and fraud, including cybercrime and money laundering.
• Climate change-related shocks.
• Concern about state banks and contagion in the banking system.
• Criticism of high executive pay.
• Grey-listing could increase transactional banking costs.
• Impairments are growing as the number of indebted consumers rises.
• Increased emigration could compound skills shortages.
• Loadshedding costs.
• Reputational risk from financing fossil fuels and failing to increase sustainable finance.
• The commercial banking sector is dominated by major players and is highly concentrated.
• The Competition Commission’s rand fixing case against the banks has highlighted the government’s mistrust in private banks.
• Wealth banking is being affected by emigration.

Market Outlook

• Credit conditions are expected to remain tight in 2024.
• Non-performing loans will likely remain elevated.
• The sector is expected to maintain strong risk-adjusted returns, supported by net interest margins and transactional revenue.
• While major local banks’ balance sheets remained resilient, the outlook is uncertain.
• Technological disruption and competition from non-traditional players will continue to affect bank strategy.
• Climate change is expected to create significant opportunities for balance sheet growth and innovative sustainable financing solutions.

Key Topics Covered:

1. INTRODUCTION

2. DESCRIPTION OF THE INDUSTRY
2.1 Industry Value Chain
2.2 Geographic Position
2.3 Size of the Industry

3. LOCAL
3.1 State of the Industry
3.1. Key Trends
3.2 Key Issues
3.3 Notable Players
3.4 Corporate Actions
3.5 Regulations
3.6 Enterprise Development and Social Development

4. AFRICA

5. INTERNATIONAL

6. INFLUENCING FACTORS
6.1 Economic Environment
6.2 Labour
6.3 Environmental Issues
6.4 Technology, R&D, Innovation
6.5 Government Support
6.6 Input Costs
6.7 Financial Inclusion
6.8 Crime
6.9 Greylisting

7. COMPETITIVE ENVIRONMENT
7.1 Competition
7.2 Ownership Structure of the Industry
7.3 Barriers to Entry

8. INDUSTRY SUMMARY

9. OUTLOOK

10. INDUSTRY ASSOCIATIONS

COMPANY PROFILES

• Absa Bank Ltd
• Access Bank South Africa Ltd
• African Bank Ltd
• African Dawn Capital Ltd
• Albaraka Bank Ltd
• Bank of China Ltd (Incorporated in China)
• Bank of Taiwan Co. Ltd
• Bank Zero Mutual Bank
• Barko Financial Services (Pty) Ltd
• Bayport Financial Services 2010 (Pty) Ltd
• BetterHome Group Ltd
• Bidvest Bank Ltd
• BNP Paribas Ltd (Incorporated in France)
• BNP Paribas Personal Finance South Africa Ltd
• British Airways PLC
• C T International Financiers (Pty) Ltd
• Capital Harvest (Pty) Ltd
• Capitec Bank Ltd
• China Construction Bank Corporation (Incorporated in China)
• Citibank NA (Incorporated in the United States of America)
• Clicks Group Ltd
• Deutsche Bank AG
• Development Bank of Southern Africa
• Diners Club (S A) (Pty) Ltd
• Dis-Chem Pharmacies Ltd
• Discovery Ltd
• Discovery Vitality (Pty) Ltd
• Ditsobotla Primary Savings and Credit Co-Operative Bank Limited Primary Co-Operative
• Exclusive Books Group (Pty) Ltd
• Finbond Group Ltd
• FirstRand Bank Ltd
• Foschini Group Ltd (The)
• Fundi Capital (Pty) Ltd
• Gauteng Enterprise Propeller
• GBS Mutual Bank
• Grindrod Bank Ltd
• HBZ Bank Ltd
• HSBC Bank PLC (Incorporated in the United Kingdom)
• iMasFinance Co-Operative Limited Primary Co-Operative
• Industrial Development Corporation of South Africa Ltd
• Investec Bank Ltd
• Ithala Development Finance Corporation Ltd
• JP Morgan Chase Bank N A Johannesburg Branch
• Land and Agricultural Development Bank of South Africa
• Lewis Group Ltd
• Mahala Loyalty Program (Pty) Ltd
• MTN Group Ltd
• National Youth Development Agency (The)
• NBC Holdings (Pty) Ltd
• Nedbank Ltd
• Old Mutual Finance (RF) (Pty) Ltd
• Ooba (Pty) Ltd
• Oranjekas Spaar en Krediet Kooperatief Beperk Primary Co-Operative
• OSK Kooperatiewe Bank Beperk Primary Co-Operative
• Phakamani Foundation NPC
• Pick n Pay Stores Ltd
• Primedia (Pty) Ltd
• Retailability (Pty) Ltd
• SA Home Loans (Pty) Ltd
• SA Taxi Development Finance (Pty) Ltd
• Sasfin Bank Ltd
• SaveAct Trust
• Small Enterprise Finance Agency Ltd
• Small Enterprise Foundation NPC (The)
• South African Airways SOC Ltd
• South African Reserve Bank
• Spot Money SA (Pty) Ltd
• Standard Bank of South Africa Ltd (The)
• Standard Chartered PLC
• Suid-Afrikaanse Poskantoor SOC Ltd
• Thuthukani Financial Services Holdings (Pty) Ltd
• Transaction Capital Ltd
• Tyme Bank Ltd
• Ubank Ltd
• Virtual Market Place (RF) (Pty) Ltd
• Vodacom Group Ltd
• Wellness Warehouse (Pty) Ltd
• Woolworths Financial Services (Pty) Ltd
• Ziphakamise Savings and Credit Co-Operative Bank Limited Primary Co-Operative

For more information about this report visit https://www.researchandmarkets.com/r/oz48e3

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