This report on the banking industry in South Africa includes information on central banking, commercial banks, development banks, mutual and co-operative banks and other credit providers. It includes the number of banks and branches, assets, deposits and loans, financial stability, credit demand and credit quality. Issues under discussion include bank profitability, revenue diversification, payments and fintech, notable players, corporate actions and competition. The report includes profiles of 73 companies, including major banks such as Standard Bank, FirstRand, Absa, Nedbank, Capitec, and Investec; digital banks like TymeBank and Discovery; state-owned institutions like the Land Bank and the Development Bank; and foreign-owned banks like Citibank and the Bank of China.
Challenges
Banks have become increasingly exposed to government debt. Industry growth is constrained by low economic growth.Introduction
- South Africa’s banks held R8.5tn in assets in June 2025, with most held by the big four banks.
- Increased assets have accompanied a recovery in credit demand and a reduction in the rate of loan defaults.
- Digital banks are growing faster than the big banks in terms of number of customers.
- The industry is well-capitalised and resilient.
- Current trends are being driven by the adoption of digital business models and the acquisition of fintechs, pursuit of lower-income customers, and a focus on expanding on the continent.
Opportunities
Cost cutting through digitisation. Expansion into sub-Saharan Africa. Growth in non-interest revenue from fees charged and commissions made. New fintech technologies, especially in digital payment, lending, and insurance products. South Africa’s exit from the Financial Action Task Force’s grey list will improve global opportunities.Outlook
- Pressures on ROE have been more acutely felt globally than in South Africa.
- The industry’s outlook is tightly tied to the economy’s growth.
- Investments in high-growth economies in West and East Africa offer opportunities.
- Unless economic growth recovers, banks will continue to focus on cost-cutting.
- Low-cost digital-only banks are accelerating customer acquisition.
- Technology and digitisation are key to lowering costs and diversification.
- Digital banks have sought to work with established players rather than go alone.
Trends
Banks have improved their capital and liquidity coverage positions since Q1 2024. Credit quality has begun to stabilise and improve. Growth in the value of non-performing loans reduced significantly from 2023 to 2024. Credit quality has improved with a slowdown in loan impairments and reduced credit application rejections. Demand for credit, although sluggish, has begun to recover, with corporate credit recovering more quickly than household credit. Some international banks have left South Africa and Africa in favour of higher-return regions such as Asia. Sub-Saharan Africa is a major focus in terms of revenue diversification. The shift in payments away from cash to electronic is gaining momentum, although off a small base.Table of Contents
1. INTRODUCTION4. AFRICA5. INTERNATIONAL8. INDUSTRY SUMMARY9. OUTLOOKAnnexure 1 - List of Relevant LegislationAppendix 1 - Summary of Notable Players
2. DESCRIPTION OF THE INDUSTRY
3. LOCAL
6. INFLUENCING FACTORS
7. COMPETITIVE ENVIRONMENT
10. INDUSTRY ASSOCIATIONS
COMPANY PROFILES
Companies Mentioned
- Absa Bank Ltd.
- Access Bank South Africa Ltd.
- African Bank Ltd.
- African Dawn Capital Ltd.
- Albaraka Bank Ltd.
- Bank of China Limited (Incorporated in China)
- Bank of Taiwan Co. Ltd Incorporated in Republic of China
- Bank Zero Mutual Bank
- Barko Financial Services (Pty) Ltd.
- Bayport Financial Services 2010 (Pty) Ltd.
- Betterhome Group Ltd.
- Bidvest Bank Ltd.
- Bnp Paribas Personal Finance South Africa Ltd.
- 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.
- 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
- Gotyme Bank Ltd.
- Hbz Bank Ltd.
- Imasfinance Co-Operative Limited Primary Co-Operative Ltd.
- 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.
- Osk Kooperatiewe Bank Beperk Primary Co-Operative Ltd.
- 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 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 Housing Finance (Pty) Ltd.
- Trinitas Equity Partners (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 Ltd
