Algeria, June 14, 2018

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SA Reserve Bank releases report on country's biggest banks

The South African Reserve Bank (Sarb) has released their annual bank supervision report for 2017.

The report states details on the registered banks in South Africa to 31 December 2017. Sarb's report revealed that the total banking sector assets increased from R4,88 trillion in December 2016 to R5,16 trillion at the end of last year.

There was also an increase in gross loans and advance by 2,54% in 2017 which is a drop in comparison to the 2,98% form 2016.

Two new commercial banking licences were issued to TymeDigital (Commonwealth Bank of South Africa Limited) and Discovery Bank. The Sarb are also listing their asset values with the asset values of other registered banks in South Africa.

Both banks have not formally begun trading in the country, which is why they have low asset values and their ranking alongside South Africa's biggest banks shows the threat they face in the country's banking market.

Bank Assets (R million) Growth
1.Standard Bank 1 254 849 +1,64%
2. FirstRandBank 1 120 747 +10,23%
3. Absa 983 378 +7,51%
4. Nedbank 892 006 +2,60%
5. Investec 415 285 +7,29%
6. Capitec 87 033 +21,34%
7. African Bank 31 356 -14%
8. Grindrod Bank 16 696 +9,91%
9. Mercantile Bank 12 892 +8,9%
10. Bidvest Bank 8 508 +21,39%
11. Sasfin 7 778 14,97%
12,. Albaraka Bank 5 930 +10,10%
13. Ubank 5 224 12,90%
14. HBZ Bank 4856 +14,97%
15. South African Bank of Athens 2 355 +3,95%
16. Tyme Digital (Commonwealth Bank of South Africa) 1 403 +100%
17. Habib Overseas Bank 1 186 +4,461%
18. Discovery Bank 622 +100%

Mutual banks

Mutual banks were also included in the report. The report showed that VBS was number one on the list at the end of the assessment period, however, there have been reports that the bank has been mismanaged. The bad mismanagement of the bank resulted in it being put under curatorship earlier this year.

Bank Zero, a new mutual bank will enter the South African banking market later this year. As the bank has not been launched as yet the assets are included the table below.

Bank Assets (R milion) Growth
1. VBS Bank 2 401 +55,6%
2. Finbond Mutual Bank 1 603 %
GBS Mutual Bank 1 376 %

Foreign banks

15 international banks that have local branches in the country were also included in the report. Four of the international banks are ranked with South Africa's 10 biggest banks in the country overall.

Bank of Baroda announced that they would be exiting the country. They have been reported to be working with the Gupta's and the Hawks raided their offices recently as a part of an investigation into state capture.

Bank Assets (R million) Growth
1. Citibank NA 58 756 -9,53%
2. HSBC 47 717 +5,79%
3. Bank of China 44 341 +35,74%
4. China Construction Bank 36 098 -3,91%
5. JPMorgan Chase 33 939 +18,99
6. Standard Chartered Bank 33 493 +3,75%
7. BNP Paribas 13 748 +22,70%
8. Deutsche Bank 10 450 +0,60%
9. Société Générale 8 935 +13.48%
10. State Bank of India 8c602 +15,64%
11. Bank of Baroda 2 779 -29,47%
12. Bank of Taiwan 2 365 +17,78%
13. ICIC Bank 584 +116,79%
14. Canara Bank 488 +48,65%
15. Bank of India 472 +10,53%

Project Khoka

The Sarb recently released a report which evaluated the emergence of technological innovations in the financial sector. The report also revealed that daily number of the SA payments system could be handled in less than two hours with full confidentiality.

The report comes after the Sarb announced earlier this year that they had created a Fintech programme to evaluate the rise of financial technological innovations and look at their regulatory implications.

iol



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