Updated July 28, 2023
Overview of Banks in South Africa
The Central bank of the Republic of South Africa which regulates the banks operating in South Africa serves as the central bank which was founded and established in the year 1921 in the month of June, under the Currency and Bank Act of 1920. The central bank oversees the bank’s operations in South Africa, and at the same time, it works to maintain and achieve stability in their domestic prices.
The South African Reserve Bank which is the central bank also functions the following:
- To Ensure a sound financial and banking system in the nation
- Act as a lender of last resort for the banks operating in South Africa
- Acts as a banker to the South African government
- To issue coins and banknotes
- Further to Manage the nation’s gold reserves and foreign exchange
As per the report from Moody’s, it has rated the banking system of South Africa not positive as the rating agency i.e. the Moody’s felt that the South Africa bank’s creditworthiness will likely face pressure in the nearby future. The challenges that will be faced by the banks operating in South Africa are weak operating conditions which are expected to affect the overall profitability and the loan quality.
Top 10 Banks in South Africa
On the basis of their assets size, we hereby discuss the details of Top 10 Banks in South Africa:
1. Standard Bank Group Limited
Standard Bank Group Limited was incorporated in 1969. The bank headquarters is situated in Johannesburg. This bank provides services such as transactional banking, borrowing, saving, investment, insurance, lending, wealth management, risk management, and advisory services. It has handled around ZAR2.13 trillion of the total assets. Standard Bank Group Limited had generated revenue of around ZAR59.62 billion in the year 2018. In the same year, the net income of Standard Bank Group Limited was around ZAR28.19bn. It employs around 48,000+ employees
2. First Rand Ltd
First Rand Ltd was established in 1966 which is also a subsidiary of FirstRand Limited. The bank’s headquarters is situated in Sandton. The bank provides banking, investment services, and insurance to commercial, retail, public-sector and corporate customers in South Africa and across the world. It has handled around more than R1.53 trillion of the total assets for the year ended 2018. It employs around 45,490+ employees.
3. ABSA
ABSA was founded in 1991. The headquarter of this bank is situated in Johannesburg. Absa provides corporate and investment baking retail, business, along with wealth management. Its retail banking division provides vehicle and asset finance, home loans, personal loans, and other services. ABSA had generated net income around R15,259 in 2018 with total assets R1,288,744. Approximately more than 30,630+ employees work here.
4. Nedbank
Nedbank was first incorporated in 1966 and this group also contains BoE Private Clients and Go Banking clients. The bank headquarters is in Sandton. Nedbank offers documentary credits and collections, foreign currency accounts, guarantees, payments and receipts, trade finance, and treasury services. The bank reports R 903,961 in assets. 32,000+ employees work here.
5. Investec Bank
Investec Bank was incorporated in the year 1974. The headquarter of the bank is situated in Sandton. This bank offers corporate, investment, and institutional banking, along with private banking services., The Bank has handled around more than £57.61 billion of the total assets with an operating income of around £607.51 million in 2018. More than 9,720+ employees work here.
6. Capitech
Capitech which was established in 1980. The bank is headquartered in Stellenbosch. Capitec Bank Holdings Ltd.is the parent company of Capitech. The bank operates in card machines, mobile banking, money transfers, workplace banking, financial education for employees of a company, including the salary transfers. It has handled around Rm84,957 of the total assets in the year 2018 and net profit Rm4,458 for the same period. It employs more than 11,440+ people.
7. African Bank
African Bank Limited (“ABL”, “the Group”) is a public company incorporated in the Republic of South Africa. The headquarter of this bank is in Midrand. The Bank commenced business on the 4 April 2016 after the final execution of the restructuring transaction of the entity formerly known as African Bank Limited (in curatorship). Total assets reported as for 2018 were R30.28 billion, net income R303 million.
8. Grindrod Bank
Grindrod Bank was incorporated in the year 2004 which is a subsidiary of Grindrod Financial Holdings Limited. The headquarter of this bank is in Durban. Services are offered like investment, property finance and retail services, asset management, through Grindrod Asset Management and Grindrod Bank. 5,880+ employees are employed by this bank. The bank reports R34.95 billion for the year 2018 in terms of total assets and R507 million net loss.
9. Mercantile Bank
Mercantile Bank was established and incorporated in 1965 in South Africa and is owned by CGD which is the largest bank in Portugal existing for more than 140 years and is also a global financial services group. The Bank’s headquartered is in Sandown. This Group provides commercial banking and niche business which is differentiated through great service which has been underpinned by a deep understanding of the banking needs of the South African business person or say the South African entrepreneur. It has handled around R12.83 billion of the total assets and net income reported in 2017 was R194 million.
10. Bidvest Bank
Bidvest Bank incorporated in 1946, is a wholly-owned subsidiary of an international business conglomerate which is the Bidvest Group Limited and its head office is in Johannesburg. This bank specializes in foreign exchange (forex) and further it offers vehicle insurance, retail banking, and also financing. For 2018 net profit stood above R302.33 million with total assets of R9.22 billion. It employs around 117,000+ employees.
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