South African Banking Industry Updates

SA Bank Report FY21

 

A benchmarking analysis of SA Banks’ performance in FY21.

 

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Introduction

Ours is an organisation that serves the public interest, and the work we do is integral to maintaining trust in the resilience of capital markets. Our South African Banking Sector Updates, Newsletters, Articles and Benchmark Reports are key priority on our annual business calendar.

South African Banking Peer Reviews

The analyses we do identifies common trends regarding the financial performance of the banks and compares these against peers. Also note that all information is sourced from publicly available banks’ financial statements.

South Africa Peer Bank Analysis FY21 – May 2022

 Our FY22 summarised the South African Bank’s financial performance in 2021 and the improvements and challenges faced by the Banks. The report focuses on the ECL impacts and how the Bank’s compare in terms of management overlays. Whilst transactional activity have returned to the “new normal” there are still a number of emerging headwinds in the future. The EY report provided perspective of the outlook and the impact of the uncertainty on credit risk. The report also focuses on the latest guidance and trends with the increased focus on sustainable finance.

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FY 21 Report

This year's report speaks to some of the challenges currently faced by South African banks since Covid-19 pandemic emerged. The continued uncertainty associated with the variants and how government’s respond has severe consequences for banks' forecasting estimates, both in short-term uncertainty and volatility (which is forecast to persist in the medium term), and in the long-term. Hence, the need for institutions to invest in high-frequency big data platforms which enables the acceleration of their technology spend as part of their next and beyond post COVID-19 initiatives. EY looks at how banks can best deal with these challenges. 

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FY 20 Report

We have compared the results for 12 months ended (ME) Dec-20 (Jan’20 - Dec’20), which is FY20 for four South African bank namely FirstRand Limited (FirstRand), Absa Group Limited (Absa), Nedbank Group Limited (Nedbank) and Standard Bank Group Limited (Standard Bank) and includes 2H20 and 1H21 for FirstRand. Transformation is key to the banking environment growing and banks have an opportunity to design new products and streams of revenue to align to customer needs. However, the increasing regulatory requirements and impact on the balance sheet should be borne in mind as part of these transformations.

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IBOR Transition Readiness Survey

        Download the 2021 South African IBOR Transition Readiness Banking Survey infographic.

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