South African Banking Sector Analysis

Abstract

RNCOS has released its new research report - “South African Banking Sector Analysis” - that details on the fast growing banking industry of South Africa. The South African banking industry is experiencing significant growth, especially in terms of banking assets. During 2003-2006, asset growth recorded in the South African banking industry was higher than that witnessed in the global banking industry. The Capital Adequacy Ratio (CAR) of the industry also increased from 12.3% in December 2006 to 12.8% in December 2007, with banks maintaining their CARs above the minimum requirement of 10%.

This research report provides valuable year-on-year trend analysis on the growing banking industry of South Africa, and products and services offered by it. It' s a thorough study on the structure of the industry and gives a comprehensive overview on the driving and restraining forces operating in the industry.

• Banks deposits in South Africa are forecasted to grow at a CAGR of about 9% during 2008-2012.
• Banks loans are projected to expand at a CAGR of 10.16% during 2008-2012.
• Mortgage loans, and overdrafts and loans represented the largest portions of loans and advances, amounting to 40% and 22.5% respectively at the end of December 2007.
• The number of credit card transactions increased at a CAGR of 12.3% between 2002 and 2007.
• Net interest income of South African banks is forecasted to grow at a CAGR of 6.2% during 2008-2012.

• Market analysis of different product segments in the South African banking industry.
• Evaluation of present and future market trends.
• Study of factors pushing the banking industry toward growth.
• Analysis of challenges and growth prospects for the industry.
• Competitive landscape of the industry.

This section provides overview and key financials of prominent domestic and foreign players like ABSA Group Limited, Investec Limited, FirstRand Limited, Citibank N.A., Deutsche Bank AG, and State Bank of India, operating in the South African banking industry.

Research Methodology Used in the Report

Information has been sourced from various credible sources like books, newspapers, trade journals, white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.

RNCOS industry forecast and analysis is based on various macro- and microeconomic factors, sector and industry specific databases, and our in-house statistical and analytical model. This model takes into account the past and current trends in an economy, and more specifically in an industry, to bring out an objective market analysis.

Our industry experts study the relationship between various industry and economic variables to ensure the required accuracy and desired check on the quality of data and information given in the report.