South African Banks Show Impressive Growth

Despite economic challenges, South Africa’s major banks demonstrated significant growth in 2024, according to The Banker’s annual ranking. While **Standard Bank** remains the largest, **FirstRand** is outperforming in key areas.

T1 Capital Growth Across South Africa

Tier 1 Capital, a crucial indicator of financial health, increased by 10% to $43.5 billion across the top six South African banks. This follows a 2% decline the previous year, signaling a strong recovery. The ranking focuses on Tier 1 Capital, viewed as the most stable source of funds, when determining the ‘biggest bank’.

**Standard Bank** has held the top position for a decade, with **FirstRand** consistently in second place. Despite maintaining its lead in size, **Standard Bank** has been surpassed in overall performance.

Capitec Shows Largest Growth

**Capitec** demonstrated the most significant growth in T1 Capital, increasing by 20.7%. This was one of the highest growth rates in Africa, underscoring the bank’s robust performance. Furthermore, **Investec** experienced substantial growth, with T1 Capital up 12.2% year-on-year.

According to The Banker, South Africa’s banks seemingly “brushed aside” persistent domestic challenges to demonstrate remarkable growth.

FirstRand’s Notable Performance

**FirstRand**’s T1 Capital grew by almost 15% year-on-year, adding over $1.4 billion in nominal terms. This growth is particularly noteworthy given its already substantial base, demonstrating the bank’s strong financial momentum.

Performance Rankings: FirstRand Leads

Assessing overall performance, **FirstRand** emerged as the top-performing bank in the country, surpassing **Standard Bank**. **Investec** also showed a standout performance, climbing to second place from fifth in 2024. The performance indicators include growth, profitability, operational efficiency, and asset quality.

Specifically, “**Investec’s** success stems from its leading positions in asset quality and return on risk, as well as second-place finishes in profitability and growth,” according to The Banker.

Currently, South Africa’s banking sector holds assets exceeding 6.5 trillion South African rands, demonstrating its critical role in the nation’s economy (Statista).

Capitec’s Impressive Gains

While The Banker’s performance rankings focused on the Top 5 biggest banks, **Capitec** posted double-digit gains in pre-tax profitability of 37.6%. In terms of total asset growth, **Capitec** also leads the way with 19.8%.

**Capitec** was also recognized for having the second highest return on assets in Africa, recording a 5.8% RoA, surpassed only by Nigeria’s Guaranty Trust Bank at 6.9%.

In summary, while **Standard Bank** holds the top spot in terms of T1 Capital, **FirstRand** leads in overall performance, with **Investec** and **Capitec** demonstrating significant growth and profitability.