The list of the biggest banks in South Africa presently. Banks are financial institutions saddled with the responsibilities of keeping valuable items for residents in a particular country. These institutions are able to do this by employing top security services in order to secure public funds.
There are different types of banks and some of these banks are richer than one another. But how do they get the money? which of the banks are the richest banks in South Africa? Actually, just like many other companies, banks are investors. This implies that they look for better investment opportunities with better return-on-investment. But which banks occupy the top 10 positions? Below we list the current biggest banks in South Africa.
Top 7 Richest Banks In South Africa 2020
Having her headquarters located in Johannesburg, Standard bank occupies the first position in the list of richest banks in the World. Currently, the bank has over 20 branches across African countries. The bank is also one of the key players in the economic development of the country for nearly one hundred and fifty years (150 years).
Established in 1962, the bank currently has more than 49,000 employers working in over 1280 branches in Africa. Currently, the bank has $11,865 Million as Capital, $147,689 Million as Assets, and $2,267 Million as Profits. There are currently 9,200 automated teller machines (ATMs) in Africa. Standard Bank is also known as the biggest lender by assets in South Africa. In 2019, the bank became the first bank to move its operations into Amazon Web Services.
2. Amalgamated Banks of South Africa (ABSA)
Formerly known as Barclays Africa Group, Amalgamated Banks of South Africa (ABSA) group Limited is an African based financial services group known for providing personal and business banking, credit cards. Currently, the areas served by the bank include Botswana, Mozambique, Ghana, Kenya, Mauritius, Namibia, Nigeria, Seychelles, South Africa, Tanzania, Uganda, and Zambia. In addition, the bank has an international office in London which was opened in September 2018 and in New York, opened in 2019.
Established in 1991, ABSA was given birth to as a result of a merger between the United Bank, The Allied Bank, The Volkskas Bank Group, and certain interests of the Sage Group. Barclays Bank of the United Kingdom purchased a 56.4 percent stake in ABSA in May 2005. Currently, the bank has $5,254 Million as Capital, $74,969 Million as Assets, and $557 Million as profits.
Being a retail, commercial, and investment bank, FirstRand Bank is one of the largest companies in Africa. It is a fully integrated financial services group and includes First National Bank, OUTsurance, Rand Merchant Bank, WesBank, and Momentum. With her headquarter located in Johannesburg, the bank has Alan Pullinger as the Group Chief Executive Officer (CEO) and Roger Jardine as the Chairman.
As of 2017, FirstRand bank has over 44,916 employees. Currently, the capital is $5,120 Million while assets and profits are $87,567 Million and $1,492 Million respectively. Established in 1970, FirstRand is known for having subsidiaries in countries like Mozambique, Namibia, Lesotho, Tanzania, Ghana, Zambia, Nigeria, United Kingdom, Botswana, etc. In 2016, the bank was awarded ‘The Best Banking Performer’ in South Africa by the Global Brands Magazine.
With a market capitalization of over R835.2 Billion, Nedbank has her headquarter located in Johannesburg, South Africa. The bank is one of the newest banks in South Africa. The bank is known to offer wholesale and retail banking services including insurance, asset management, and wealth management. The current capital is $67,466, assets of $67,466 Million, and profits of $749 Million. Even though her primary market is in South Africa, the bank also operates in the Southern African Development Community (SADC) through subsidiaries and banks in Malawi, Lesotho, Mozambique, Namibia, Swaziland, Zimbabwe, Angola, and Kenya. There are also international offices for clients in Guernsey, Isle of Man, Jersey, The United Kingdom, and the United Arab Emirates.
Nedbank bank has both local and international subsidiaries including Syftrets Securities Limited, Nedbank Group Insurance Holdings Limited, Dr. Holsber Benefit Fund, Ecobank Transnational Incorporated, MBCA Bank Limited, Banco Unico and a host of others.
Investec is an international banking and wealth management group known for providing a wide range of financial products and services to clients based in South Africa, Asia-Pacific, and Europe. The bank is dual-listed in the Johannesburg Stock Exchange and the London Stock Exchange. Founded in 1974 by Larry Nestadt, Errol Grolman, and Ion Kantor in Johannesburg, Investec has grown into a much larger bank due to the acquisition of numerous companies along the way. In 1998, the bank acquired Guinness Mahon, which is a leading merchant bank based in London. It also acquired the remaining shares in Rensburg Sheppards Plc in 2010 and a host of many other smaller companies.
Investec is also known for its diverse sponsorships. Recently in 2019, the bank, in collaboration with other large corporate sponsors, sponsors a leading private software engineering college called Wethinkcode so as to combat the unemployment faced by youths in South Africa. They are achieving this by providing free tuition for eligible students. Currently, the capital, assets, and profits of the bank are $2,852 Million, $37,532 Million, and $395 Million respectively.
Established on the 1st of March, 2001, Capitec is the sixth richest bank in South Africa. Capitec is one of the largest retail banks in South Africa based on the number of customers. The bank usually records over 120,000 customers per month. With headquarter located in 1 Quantum Street, Techno Park, Stellenbosch, Western Cape, South Africa, the current number of employees in the bank is over 11,440.
Currently, Capitec maintains over 500 retail branches across the globe, over 3418 ATMs, and boasts of over 6.2 million customers. According to a report by Chief Financial Officer in 2015, 309,000 out of these customers are online banking customers while 3.5 Million are mobile banking customers. The bank is also known for offering excellent customer services. In fact, the bank came first in 2015 when the South African Customer Satisfaction Index carried out a customer satisfaction survey on South African banks. Currently, the bank has $1,171 Million as Capital, $7,180 Million as assets, and $379 as profits.
With Capital of $617 Million, assets of $2,202 Million, and profits of $22 Million, the African Bank occupies the seventh position. African bank is a retail bank that is known for offering financial services and products. With the headquarters located in Johannesburg, the bank has a countrywide branch distribution network. This is in addition to a fully digital channel that offers Collections, Sales, and Customer Service Contact Centers.
Closing On The Richest Banks In South Africa
South African banks have been known for dominating Africa’s banking sector despite the numerous challenges faced by them. Most of the banks in the list also occupy a high position in the list of top richest banks in the World.