banking news
South African
News
SA banks post
strong results, look to Africa
The financial results of South Africa’s four major
banking groups (Absa, FirstRand, Nedbank and Standard Bank)
for the six months to 30 June 2013 have remained positive in spite
of a challenging local and global economic climate.
The four banking groups posted combined headline earnings
of R23.7 billion, up 11.5% from the comparable period last
year. Core earnings increased 12.4% to R47.6 billion in the
first half of 2012 and 5% on the second half of the year.
These are some of the findings from PwC’s South Africa
Major Banks Analysis: Finding Strength in Adversity.
‘Notwithstanding some international headwinds, the
South African banking system has remained stable and the
50
BANKER SA
banks are adequately well capitalised, with solid returns
on equity,’ said Tom Winterboer, PwC Financial Services Leader
for Africa. ‘We expect South Africa’s banks to continue on
a cautious growth path.’
According to the report, regulatory reform is regarded as
the most significant and pressing issue in the industry. From
1 January 2013, all of South Africa’s banks reported that they had
successfully transitioned to Basel III.
The report showed that capital levels continue to be strong for
the industry. The combined total adequacy ratio strengthened
to 15.2 K